The contributions of human capital, R&D spending and convergence to total factor productivity growth

Kadri Männasoo, Heili Hein and Raul Ruubel

Regional Studies, 2018, vol. 52, issue 12, 1598-1611

Abstract: The study investigates the drivers of total factor productivity (TFP) growth, covering 99 European regions from 31 countries over the period 2000–13. It shows that human capital endowment had a positive effect upon TFP growth, particularly in advanced regions, but the effect from regions’ own research and development (R&D) expenditures was largely absent. The effects of human capital and R&D on TFP growth varied with the productivity gap. Further, there was a threshold effect in convergence, where stronger TFP growth was associated with both a larger productivity gap and a higher initial level of productivity. Spatial spillover effects had a positive impact upon TFP growth.

Date: 2018
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DOI: 10.1080/00343404.2018.1445848

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