Productivity, Factor Accumulation and Social Networks: Theory and Evidence
R. Quentin Grafton (),
Tom Kompas () and
Dorian Owen ()
Economics and Environment Network Working Papers from Australian National University, Economics and Environment Network
The paper analyzes how social barriers to communication affect economy-wide productivity and factor accumulation. Using a dynamic model of an economy that includes a reproducible capital stock (physical or human) and effective labor, a negative relationship is shown to exist between social barriers to communication and total factor productivity (TFP), per capita consumption and reproducible capital. Robust estimates obtained from cross-country data are consistent with the model’s predictions. The theory and empirical results help explain cross-country differences in TFP, the high productivity performance of leading industrialized countries and how productivity ‘catch up’ may be initiated.
Keywords: productivity; dynamic model; barriers to communication (search for similar items in EconPapers)
JEL-codes: O41 C61 C21 (search for similar items in EconPapers)
Pages: 41 pages
New Economics Papers: this item is included in nep-dev, nep-evo and nep-net
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Working Paper: Productivity, Factor Accumulation and Social Networks: Theory and Evidence (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:anu:eenwps:0401
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