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

40 Pages Posted: 13 Nov 2006

See all articles by Tehmina S. Khan

Tehmina S. Khan

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

Multiple version iconThere are 2 versions of this paper

Date Written: October 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.

JEL Classification: O30, O47, O57

Suggested Citation

Khan, Tehmina S., Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector (October 2006). IMF Working Paper No. 06/230, Available at SSRN: https://ssrn.com/abstract=941292

Tehmina S. Khan (Contact Author)

University of Oxford - Nuffield Department of Medicine ( email )

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Oxford, OX1 1NF
United Kingdom

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

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