Can General Purpose Technology Theory Explain Economic Growth? Electrical Power as a Case Study

Cristiano Andrea Ristuccia and Solomos Solomou

No 4683, CESifo Working Paper Series from CESifo

Abstract: Does the concept of General Purpose Technologies help explain periods of faster and slower productivity advance in economies? The paper develops a new comparative data set on the usage of electricity in the manufacturing sectors of the USA, Britain, France, Germany and Japan and proceeds to evaluate the hypothesis of a productivity bonus as postulated by many existing GPT models. Using the case of the diffusion of electrical power in the early twentieth century this paper shows that there was no generalized productivity boost from electrical power diffusion as postulated by many existing GPT models. The productivity gains from this GPT varied widely across economies and industries, suggesting that the power of GPTs to predict aggregate or sectoral growth is limited.

Keywords: general purpose technologies; economic growth; economic history; productivity; long swings (search for similar items in EconPapers)
JEL-codes: N11 N12 N13 N14 N60 O40 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Working Paper: Can general purpose technology theory explain economic growth? Electrical Power as a case study (2014)
Working Paper: Can general purpose technology theory explain economic growth? Electrical power as a case study
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4683

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