Schumpeterian and Semi‐Endogenous Productivity Growth Explanations

27 Pages Posted: 7 Jan 2017

See all articles by Johannes W. Fedderke

Johannes W. Fedderke

Pennsylvania State University - School of International Affairs

Yang Liu

Peking University

Date Written: January 2017


This paper examines the nature and sources of productivity growth in South African manufacturing sectors, from an international comparative perspective. On panel data estimations, we find that the evidence tends to support Schumpeterian explanations of productivity growth for a panel of countries including both developed and developing countries, and a panel of South African manufacturing sectors. By contrast, semi‐endogenous productivity growth is supported for a panel of OECD (Organisation for Economic Cooperation and Development) manufacturing sectors. However, we also report evidence that suggests that sectors are not homogeneous. For this reason, time series evidence may be more reliable than panel data. Time series evidence for South Africa suggests that prospects for the sustained productivity growth associated with Schumpeterian innovation processes, is restricted to a narrow set of sectors. For the OECD manufacturing sectors, both semi‐endogenous and Schumpeterian growth finds support. Schumpeterian growth is present for a larger number of sectors than for South Africa, and is most prevalent in the North American economies.

Keywords: Productivity growth, Schumpeterian productivity growth, semi‐endogenous productivity growth

Suggested Citation

Fedderke, Johannes W. and Liu, Yang, Schumpeterian and Semi‐Endogenous Productivity Growth Explanations (January 2017). Economics of Transition, Vol. 25, Issue 1, pp. 111-137, 2017. Available at SSRN: or

Johannes W. Fedderke (Contact Author)

Pennsylvania State University - School of International Affairs ( email )

Lewis Katz Building
University Park, PA 16802
United States


Yang Liu

Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871

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