Technological and non-technological drivers of productivity dynamics in developed and emerging market economies

Alistair Dieppe, Neville Francis and Gene Kindberg-Hanlon

Journal of Economic Dynamics and Control, 2021, vol. 131, issue C

Abstract: Frequently, factors other than structural developments in technology and production efficiency drive changes in labor productivity in advanced economies (AEs) and emerging market and developing economies (EMDEs). In this paper, we contrast the responses of AEs and EMDEs to innovations in technology and investigate whether the cross-country co-movement in productivity is due to technological or non-technological factors. We find that technological innovations are associated with higher and more rapidly increasing rates of investment in EMDEs relative to AEs, suggesting that positive technological developments are often capital-embodied in the former economies. Employment falls in both AEs and EMDEs following positive technology developments, with the effect smaller but more persistent in EMDEs. Low cross-country correlations of technological developments suggest that global synchronization of labor productivity growth is primarily due to non-technological influences. Overall, non-technological factors accounted for most of the fall in labor productivity growth during 2007-09 but less than one-half of the longer-term productivity decline after the global financial crisis in the median AE and EMDE.

Keywords: Productivity; Technology and technological diffusion; Advanced economies and emerging and developing economies (search for similar items in EconPapers)
JEL-codes: C30 E32 O40 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188921001512
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:131:y:2021:i:c:s0165188921001512

DOI: 10.1016/j.jedc.2021.104216

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().