Productivity Growth, Technological Convergence, RandD, Trade, and Labor Markets: Evidence From the French Manufacturing Sector
October 1, 2006
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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.
Subject: Capacity utilization, Labor, Labor markets, Production, Productivity, Technology, Technology transfer, Total factor productivity
Keywords: Capacity utilization, capital stock, Economic growth, Europe, Labor market institutions, Labor markets, Productivity, replacement ratio, Research and Development (R&D), Technological convergence, Technology transfer, TFP easgrowth, TFP estimate, TFP growth in the United States, TFP level, TFP relative, Total factor productivity, Total factor productivity (TFP), Trade, WP
Pages:
38
Volume:
2006
DOI:
Issue:
230
Series:
Working Paper No. 2006/230
Stock No:
WPIEA2006230
ISBN:
9781451864908
ISSN:
1018-5941
