Productivity convergence and economic growth: A frontier production function approach

Christopher Cornwell and Jens-Uwe Wächter

No B 06-1999, ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies

Abstract: The empirical growth literature has focused on capital accumulation but largely ignored productivity growth. To address this imbalance, we propose a methodology for analyzing productivity convergence based on frontier production functions. We examine whether departures from the frontier are cointegrated, determine the extent and speed of catch-up, and assess the importance of efficiency changes for economic growth. Using a sample of 26 OECD countries from 1965-90, we find convergence and catch-up is fairly strong among EU countries but not among the G-7. Overall, the ability to absorb new technology is an important source of economic growth.

Keywords: cointegration; convergence; growth; productivity; unit root (search for similar items in EconPapers)
JEL-codes: C2 O47 O57 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zeiwps:b061999

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