By Werner Smolny
This publication includes a theoretical and empirical research of the assets of technological switch and financial growth.
The first half takes an combination view on the development approach. Scale economies and data spillovers are analysed with a vast panel of sectoral information for Germany and the United States.
The moment half includes a micro research of endogenous suggestions and data spillovers. The determinants of strategies are analysed and the results of techniques on productiveness and marketplace behaviour are mentioned. The versions are predicted with a extensive panel of multinational point information from the ifo company panel.
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Extra info for Endogenous Innovations and Knowledge Spillovers: A Theoretical and Empirical Analysis
In case of a correct measurement of productivity, the mean of the ratio should become equal to one; in case of measurement errors or to test for a constant but non-zero longrun productivity gap, a constant should be included in the test. The stationarity of relative labour productivity then would indicate unconditional convergence, while stationarity of the relative total factor productivity can be interpreted as conditional (on the capital-labour ratio) convergence. 11ylt = constant + Al . 1) = constant + A2 .
K. u 84 92 64 76 80 88 68 60 72 TFPf: Relative total factor productivity, country i vs. S. 3 Data and empirical specification 45 of the seventies, but the changing trends in the seventies and eighties (at a different time period for the 6 countries) leave quite a different picture. 48 The sectoral differences of the process of convergence of German industries versus their United States' counterparts are also the topic of the next figures. 4, the average productivity growth of the individual sectors in Germany from 1961-90 is plotted against the corresponding productivity gap with respect to the United States in 1960.
In model (5), it is tested for inter-sectoral knowledge spillovers by introducing other sectors' total factor productivity growth fjtjp. The results indicate a really strong spillover effect, strong enough to account for endogenous growth. The estimated coefficient is quite significant, and its value implies a strong association of the variables. In addition, the constant is reduced by about one half. Note that this result cannot be attributed simply to a simultaneous equation bias: the fjtfp-variable is calculated excluding the sector under consideration.