Nonlinearities in productivity growth: A semi-parametric panel analysis
Azomahou, Théophile T., Diene, Bity and Diene, Mbaye (2012). Nonlinearities in productivity growth: A semi-parametric panel analysis. UNU-MERIT.
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Author Azomahou, Théophile T.
Diene, Bity
Diene, MbayeTitle Nonlinearities in productivity growth: A semi-parametric panel analysis Publication Date 2012 Publisher UNU-MERIT Abstract We use country panel data spanning over 1998-2008 for both developed and developing countries to study the productivity growth when countries are close to the technology frontier. Relying on a semi-parametric generalized additive model, we estimate both reduced and structural forms for total factor productivity growth. We consider three measurements of frontier: the economy with the highest level of productivity growth, the world productivity growth and the productivity growth of the USA. We obtain a U-shape relation between productivity growth and the proximity to the world productivity growth. The relation between productivity growth and human capital displays an inverted U-shape form (res. U-shape) when the proximity to the highest productivity growth is used (res. the proximity to productivity growth of USA). Total staff in R&D has an inverted W-shape effect on productivity growth. The share of R&D expenditure funded by government and from abroad impact positively the growth of productivity. However, the increase in government spending on R&D has a greater impact on productivity growth when the former is weak, and a smaller impact when R&D spending is already high. International trade has a positive effect on productivity growth. Specification tests show that our semi-parametric models provide a better approximation of the data compared to the parametric analogue, revealing a high degree of nonlinearity governing productivity growth. Keyword R&D
TFP
Panel data
Nonparametric estimation
Reduced vs. structural formJEL C14
I23
O3
O4Copyright Holder UNU-MERIT Copyright Year 2012 -
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