Technology Diffusion, Services, and Endogenous Growth in Europe: Is the Lisbon Strategy Useful?
University of Rome "La Sapienza" - Department of Economics
affiliation not provided to SSRN
LUISS Guido Carli University - LUISS Business school
Pier Carlo Padoan
International Monetary Fund (IMF)
IMF Working Paper No. 05/103
We explore the role of business services in knowledge accumulation and growth and the determinants of knowledge diffusion including the role of distance. A continuous-time model is estimated on several European countries, Japan, and the United States. Policy simulations illustrate the benefits for EU growth of the deepening of the single market, the reduction of regulatory barriers, and the accumulation of technology and human capital. Our results support the basic insights of the Lisbon Agenda. Economic growth in Europe is enhanced to the extent that: trade in services increases, technology accumulation and diffusion increase, regulation becomes both less intensive and more uniform across countries, and human capital accumulation increases in all countries.
Number of Pages in PDF File: 49
Keywords: Economic integration, manufacturing and services, technology diffusion
JEL Classification: F150, O140, O330
Date posted: March 3, 2006