The barrier model of productivity growth: South Africa
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Sammendrag
Abstract:
The barrier model of productivity growth suggests that individual country productivity is related to the
world technology frontier disturbed by national barriers. We offer a country study of the barrier model
exploiting the dramatic changes in the linkages to the world economy in South Africa. The
productivity growth in the manufacturing sector panel for 1970-2003 covers a period of political and
economic turbulence and international sanctions. The econometric analysis uses tariffs as measure
of barrier and fixed effects estimation to concentrate inference to time series properties. The model
shows how productivity growth can be understood as a combination of world frontier growth and the
tariff barrier to international spillovers. The estimates establish a long run relationship where
domestic productivity follows the world frontier and with change of the barrier affecting transitional
growth.
Keywords: Barriers to growth, technology spillover, South Africa, total factor productivity,
econometric analysis
Utgiver
Statistics Norway, Research DepartmentSerie
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