Template-type: ReDIF-Paper 1.0
Author-Name: Azomahou, Theophile
Author-Email: azomahou@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Diene, Bity 
Author-Workplace-Name: CREA, University of Luxembourg
Author-Name: Diene, Mbaye
Author-Workplace-Name: CRES, Universite Cheikh Anta Diop
Title: Technology frontier, labor productivity and economic growth: Evidence
	 from OECD countries
Abstract: We use 29 OECD countries data spanning over 1960-2000 to study the 
	 growth strategy when countries are close to the technology frontier. 
	 Relying on a semi-parametric generalized additive model, we estimate 
	 labor productivity equations. We find that the number of agents enrolled 
	 in higher education is a determinant of growth. Moreover, when a country 
	 is sufficiently near the technology frontier thanks to an increasing R&D 
	 expenditure, it becomes optimal to invest in fundamental research, since 
	 after a short period of efficiency, business R&D can no longer ensure 
	 the transition toward the technology frontier, while higher education 
	 presents the opposite shape. These findings support the main assertion 
	 of Aghion and Cohen (2004) that countries which are near the technology 
	 frontier have to invest in higher education while those far away from 
	 the frontier make their technology level growing up by investing in 
	 primary and secondary schooling.
Classification-JEL: I23, J24, O40
Keywords: Education, R&D, Labor Productivity, Economic Growth
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 059
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-059.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009059