In this paper we add new results to the emerging field of
investigating
productivity levels rather than productivity change, as initiated by
Hall
and Jones (1996, 1997). To obtain measures of relative productivity
levels
we depart from traditional growth accounting and calculate the
Malmquist
index of total factor productivity change using the nonparametric Data
Envelopment Analysis (DEA) for a broad cross country sample. This index
can be decomposed in measures of technological progress and efficiency
change that are cumulated to level measures. The so obtained
heterogeneity
in productivity levels is next related to several determinants of
technology
driven growth in an econometric exercise. Doing this (1) we are able to
provide confimation of the validity of the decomposition of the
Malmquist
index and (2) we find innovation-related explanations for international
technological frontier shifts and imitative catching up and falling
behind.
JEL-classification: O33, O47
Paper available as ps- file and pdf- file. Beitrag Nr. 179, Volkswirtschaftliche Diskussionsreihe, Institut für Volkswirtschaftslehre der Universität Augsburg.
Jens Krüger, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229
Uwe Cantner, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229
Horst Hanusch, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229