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Cross-sectoral patterns of efficiency and technical change in manufacturing

Koop, G.M. (2001) Cross-sectoral patterns of efficiency and technical change in manufacturing. International Economic Review, 42 (1). pp. 73-103. ISSN 0020-6598

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Abstract

This article uses data from 11 countries for 19 years to investigate the forces driving output change in 6 manufacturing sectors. A flexible model is adopted that allows for the decomposition of output changes into three types of change: technical, efficiency, and input. This framework allows, among other things, for the investigation of (1) the relative roles of the three components of output growth in each sector, (2) the manner in which efficiency change moves over the business cycle, and (3) potential technical spillovers from one sector to another.