Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector

Khan, Tehmina S.

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Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector

IMF Working Paper No. WP/06/230

40 Pages Posted: 25 Oct 2006

See all articles by Tehmina S. Khan

Tehmina S. Khan

University of Oxford - Nuffield Department of Medicine; International Monetary Fund (IMF)

There are 2 versions of this paper

Date Written: October 1, 2006

Abstract

Total factor productivity (TFP) of 14 manufacturing sectors in France has kept up with that of the United States during 1980-2002 and remained well above that of the United Kingdom. Estimates using a dynamic panel equilibrium correction model indicate that sectors further behind the technological frontier experience faster productivity growth and that spending on research and development and trade with technologically advanced economies positively influences TFP growth, but not the speed of convergence. Conversely, TFP growth is negatively related to some key labor market variables, namely the replacement ratio and the ratio of the minimum wage to the median wage.

Keywords: Economic growth, Total factor productivity (TFP), Research and Development (R&D), Labor market institutions, Trade, Technological convergence

JEL Classification: O30, O47, O57

Suggested Citation: Suggested Citation

Khan, Tehmina S., Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector (October 1, 2006). IMF Working Paper No. WP/06/230, Available at SSRN: https://ssrn.com/abstract=939618