Search

This paper seeks to explain why some countries have managed to catch up in terms of labor productivity over the period 1993-2007 in 76 countries. By integrating the technology gap research within the standard growth-accounting approach, we introduce a methodology which allows us to split total factor productivity (TFP) change into two components: conditional technical inefficiency and the magnitude of the technology gap. We find that labor productivity growth depends both on investment in fixed capital and TFP. Fast emerging economies exhibit patterns of growth based in particular on the reduction of the technology gap, confirming the role of investment in technological capabilities to spur productivity catch-up. Looking at change in the distribution of labor productivity, emerging countries managed to shift from low productivity toward a medium level of productivity thanks to technology accumulation. Less advanced countries cannot rely only on technology diffusion and learning by doing, policies for technological capabilities accumulation are necessary.

Filippetti A. and Peyrache A. Labour productivity and technology gap in European regions: a conditional frontier approach, Regional Studies. A conditional frontier approach is proposed to capture the role of the technology gap in explaining labour productivity differences in 211 European regions in eighteen countries over the years 1995-2007. Labour productivity growth is driven by capital accumulation and technical change. In lagging behind regions, productivity growth is mainly driven by capital accumulation. The technology gap does not play a role in driving labour productivity growth and remains stable across regions in the considered period. Cohesion policy seems more effective in terms of fixed investment rather than technological capabilities, while technology gap remains a source of unused potential productivity growth.

Parallel Sessions C: Comparisons in the Spatial-temporal Domain

Closing the technology gap to reduce labour productivity disparities across Europe is crucial for the European cohesion policy. This article explores the sources of labour productivity growth in Europe over the period 1993-2007 in light of the enlargement process. Labour productivity growth has been mostly driven by capital accumulation. New Member States have significantly reduced their inefficiency and their technology gap. Disparities in the levels of labour productivity are still substantial and, to a considerable extent, they can be attributed to technology gap differences. This raises concerns about the process of convergence in labour productivity in Europe and suggests further policies aimed at reducing the technology gap.

One of the main characteristics of the technological capabilities of countries has always been their uneven distribution across the countries. This paper explores the dynamic of technological capabilities for a sample of 42 countries over the period 1995-2007 introducing some methodological novelties. The results suggest that a process of convergence of technological capabilities has occurred to some extent. However, this has not been complete as some countries are still unable to reach a balanced growth in the different components of technological capabilities. We conclude by arguing that the production of technology can no longer be considered a privilege of a few advanced countries. This is going to bear consequences in the global arena in terms of trade, international division of labour and technological specialization