Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector

 
Author/Editor: Khan, Tehmina S.
 
Publication Date: October 01, 2006
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Total factor productivity (TFP) of 14 manufacturing sectors in France has kept up with that of the United States during 1980-2002 and remained well above that of the United Kingdom. Estimates using a dynamic panel equilibrium correction model indicate that sectors further behind the technological frontier experience faster productivity growth and that spending on research and development and trade with technologically advanced economies positively influences TFP growth, but not the speed of convergence. Conversely, TFP growth is negatively related to some key labor market variables, namely the replacement ratio and the ratio of the minimum wage to the median wage.
 
Series: Working Paper No. 06/230
Subject(s): Economic growth | France | Productivity | Manufacturing sector | Industrial investment | Labor markets | Wages | Trade

Author's Keyword(s): Economic growth | Total Factor Productivity (TFP) | Research and Development (R&D) | labor market institutions | trade | technological convergence
 
English
Publication Date: October 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006230 Pages: 38
Price:
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