Arbeitspapier
Appropriate technology, human capital and development accounting
Over the past decade, research explaining cross country income differences has increasingly pointed to the dominant role of total factor productivity (TFP) gaps as opposed to factor accumulation. Nevertheless, it is a widely held belief that a country's ability to absorb and implement technologies is tied to its human capital. In this paper, we implement this idea in a novel specification and explore its quantitative implications within a development accounting framework. In our model, intermediate goods production takes place over a range of industries, and human capital ratios in a country influence industry specific productivities asymmetrically. As a result, in human capital abundant countries, production is concentrated around industries with high TFP, while in low human capital countries, production is concentrated around industries with low TFP. Development accounting exercises for a range of parameter values suggest that this human capital-technology complementarity may account for eighteen to twenty five percent of differences in GDP per worker which is higher than the combined direct contribution of factors of production.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 1236
- Klassifikation
-
Wirtschaft
Industrialization; Manufacturing and Service Industries; Choice of Technology
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Thema
-
Development accounting
total factor productivity
technology-skill complementarity
appropriate technology
human capital
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Chanda, Areendam
Farkas, Beatrice
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Chanda, Areendam
- Farkas, Beatrice
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2012
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