Productivity, Factor Accumulation And Social Networks: Theory And Evidence
- Topics:
- Organization
- Tags:
- Accumulation,
- Barrier,
- Network,
- Productivity,
- Social Networking,
- Theory,
- Total Factor Productivity,
- University Of Otago
- Source:
- University of Otago
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Overview: The paper analyzes how social barriers to communication affect economy-wide productivity and factor accumulation. Using a dynamic model of an economy that includes a reproducible capital stock (physical or human) and effective labor, a negative relationship is shown to exist between social barriers to communication and Total Factor Productivity (TFP), per capita consumption and reproducible capital. Robust estimates obtained from cross-country data are consistent with the model's predictions. The theory and empirical results help explain cross-country differences in TFP, the high productivity performance of leading industrialized countries and how productivity 'Catch up' may be initiated.
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Format: PDF | Size: 721KB | Date: Mar 2004 | Pages: 41
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