Speaker
Description
The standard macroeconomic literature suggests that output p.c. and productive technology are positively correlated. Removing technological disparities between countries would hence narrow the substantial variation in output p.c. across countries. But technology is factor-neutral in this standard development accounting framework, which is at odds with important macroeconomic frameworks and empirical results. We hence develop a CES production structure with factor-biased technologies and revisit the question: how much would the variation in output p.c. across countries narrow if barriers to technology adoption across countries are removed? Our results for the aggregate market sector suggest: probably not at all. But there are remarkable differences for this result across five subsectors. We use those to illustrate that our presumably surprising finding results from an interplay of complementary production factors, associated factor-bias in technologies, and the menu of available technologies.
| Keyword | Economic Growth |
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