Template-type: ReDIF-Paper 1.0
Author-Name: Azomahou, Theophile
Author-Email: azomahou@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG, Maastricht University
Author-Name: Diene, Bity
Author-Workplace-Name: University of Auvergne, CERDI
Author-Name: Diene, Mbaye
Author-Workplace-Name: University Cheikh-Anta-Diop, CRES
Title: Nonlinearities in productivity growth: A semi-parametric panel analysis 
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. 
Classification-JEL: C14, I23, O31, O40
Keywords: network formation, strategic alliances, innovation, network strategy,
	 interfirm networks 
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 046
File-URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-046.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012046