EconPapers    
Economics at your fingertips  
 

Increasing returns to scale, technological catch-up and research intensity: endogenising the Verdoorn coefficient

João P. Romerojpromero and Gustavo Britto
Authors registered in the RePEc Author Service: João P. Romero ()

Cambridge Journal of Economics, 2017, vol. 41, issue 2, 391-412

Abstract: This paper examines the importance of output growth and research intensity for productivity growth. Two hypotheses are tested. First, the paper investigates the impact of the two variables on productivity growth when simultaneously considered, assessing whether the basic Kaldorian and Schumpeterian models can be combined. Second, it examines whether research intensity impacts on the magnitude of returns to scale, assessing if countries with higher research intensity benefit from higher returns to scale. The tests reported in the paper provide strong evidence of the importance of demand growth for productivity growth, and on the existence of increasing returns to scale in manufacturing, while also recognizing the relevance of research intensity for productivity growth. Most importantly, the test results suggest that research intensity has a more relevant impact on the magnitude of returns to scale than on productivity growth directly.

Keywords: Increasing returns; Productivity growth; Research intensity; Technological catch-up; Kaldor-Verdoorn’s Law (search for similar items in EconPapers)
JEL-codes: O11 O30 O47 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/cje/bew030 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:cambje:v:41:y:2017:i:2:p:391-412.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Cambridge Journal of Economics is currently edited by Jacqui Lagrue

More articles in Cambridge Journal of Economics from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-10-04
Handle: RePEc:oup:cambje:v:41:y:2017:i:2:p:391-412.