Research ArticleOpen AccessGoogle Scholar indexed
A New Index for Identifying Technology Development in OECD Countries
Department of Economics and Management, The Max Stern Yezreel Valley College, Jezreel Valley, Israel
Department of Economics and Management, The Max Stern Yezreel Valley College, Jezreel Valley, Israel
- 1 Department of Economics and Management, The Max Stern Yezreel Valley College, Jezreel Valley, Israel
- 2 Department of Economics and Management, The Max Stern Yezreel Valley College, Jezreel Valley, Israel
Copy link · social · email
Abstract
In this paper , we suggested a new technique for extracting a technology index time series and calculated the technology index for 26 OECD countries for the years 1990-2011. Assuming that production function is Cobb-Douglas and with constant return to scale and that the labor parameter is equal to the labor share out of the total production , we extracted the technology parameter for each year and for each country. According to our findings, the largest advance in technology occurred in Estonia, Slovenia, Poland, and Ireland while the smallest advance was in Italy, Portugal, Mexico and Japan. A possible explanation for these differences is foreign R&D spillovers.
KeywordsTechnology IndexOECD Countries
- Masanjala, W.H. and Papageorgiou, C. (2004) The Solow Model with CES Technology: Nonlinearities and Parameter Heterogeneity. Journal of Applied Econometrics, 19, 171-201. https://doi.org/10.1002/jae.722
- Papageorgiou, C. and Saam, M. (2008) Two Level CES Production Technology in the Solow and Diamond Growth Models. The Scandinavian Journal of Economics, 110, 119-143. https://doi.org/10.1111/j.1467-9442.2008.00529.x
- Hartley, J.E. (2000) Does the Solow Residual Actually Measure Changes in Technology? Review of Political Economy, 12, 27-44. https://doi.org/10.1080/095382500106803
- Otto, G. (1999) The Solow Residual for Australia: Technology Shocks or Factor Utilization? Economic Inquiry, 37, 136-153. https://doi.org/10.1111/j.1465-7295.1999.tb01421.x
- Fabricant, S. (1954) Economic Progress and Economic Change. NBER.
- Abramovitz, M. (1956) Resource and Output Trends in the United States since 1870. NBER, 1-23.
- Kendrick, J. (1956) Productivity Trends: Capital and Labor. The Review of Economics and Statistics, 38, 248-257. https://doi.org/10.2307/1925777
- Solow, R.M. (1956) A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70, 65-94. https://doi.org/10.2307/1884513
- Wolfgang, K. (2004) International Technology Diffusion. Journal of Economic Literature, 42, 752-782. https://doi.org/10.1257/0022051042177685
- Spulber, D. (2008) Innovation and International Trade in Technology. Journal of Economic Theory, 138, 1-20. https://doi.org/10.1016/j.jet.2007.06.002
- Sjöholm, F. (1996) International Transfer of Knowledge: The Role of International Trade and Geographic Proximity. Weltwirtschaftliches Archiv, 132, 97-115. https://doi.org/10.1007/BF02707904
- Coe, D.T., Helpman, E. and Hoffmaister, A. (1995) North-South R&D Spillovers. NBER, No. w5048.
- Keller, W. (1998) Are International R&D Spillovers Trade-Related? Analyzing Spillovers among Randomly Matched Trade Partners. European Economic Review, 42, 1469-1481. https://doi.org/10.1016/S0014-2921(97)00092-5
- Mayer, J. (2001) Technology Diffusion, Human Capital and Economic Growth in Developing Countries. United Nations Conference on Trade and Development.
- Eaton, J. and Kortum, S. (2001) Trade in Capital Goods. European Economic Review, 45, 1195-1235. https://doi.org/10.1016/S0014-2921(00)00103-3