Skip to main content
×
Home

A NOTE ON SKILL-STRUCTURE SHOCKS, THE SHARE OF THE HIGH-TECH SECTOR, AND ECONOMIC GROWTH DYNAMICS

  • Pedro Mazeda Gil (a1), Oscar Afonso (a1) and Paulo B. Vasconcelos (a2)
Abstract

By means of an endogenous growth model of directed technical change with vertical and horizontal R&D, we study a transitional-dynamics mechanism that is consistent with the changes in the shares of the high- versus the low-tech sectors found in recent European data. Under the hypothesis of a positive shock in the proportion of high-skilled labor, the technological-knowledge bias channel leads to unbalanced sectoral growth with a noticeable shift of resources across sectors. A calibration exercise suggests that the model is able to account for up to from 50 to about 100 percent of the increase in the share of the high-tech sector observed in the data from 1995 to 2007. However, the model predicts that the dynamics of the share of the high-tech sector has no significant impact on the dynamics of the economic growth rate.

Copyright
Corresponding author
Address correspondence to: Pedro Mazeda Gil, Faculty of Economics and CEF.UP, University of Porto, Rua Dr Roberto Frias, 4200-464, Porto, Portugal; e-mail: pgil@fep.up.pt.
References
Hide All
Acemoglu D. and Zilibotti F. (2001) Productivity differences. Quarterly Journal of Economics 116 (2), 563606.
Afonso O. and Thompson M. (2011) Costly investment, complementarities and the skill premium. Economic Modelling 28, 22542262.
Barro R. and Sala-i-Martin X. (2004) Economic Growth, 2nd ed. Cambridge, MA: MIT Press.
Barro R.J. and Lee J.-W. (2010) A New Data Set of Educational Attainment in the World, 1950–2010. NBER working paper 15902, pp. 1–47.
Brito P. (2004) Local Dynamics for Four-Dimensional Models: A Complete Characterization. Mimeo, ISEG, Universidade de Lisboa.
Eicher T. and Turnovsky S. (2001) Transitional dynamics in a two-sector non-scale growth model. Journal of Economic Dynamics and Control 25, 85113.
European Commission (2010) Europe 2020—A Strategy for Smart, Sustainable and Inclusive Growth. Discussion paper, Communication from the Commission.
Geroski P. (1995) What do we know about entry? International Journal of Industrial Organization 13, 421440.
Gil P.M., Afonso O., and Vasconcelos P. (2015) Skill-structure shocks, the share of the high-tech sector and economic growth dynamics. FEP Working Papers 554, 147.
Gil P.M., Brito P., and Afonso O. (2013) Growth and firm dynamics with horizontal and vertical R&D. Macroeconomic Dynamics 17 (7), 14381466.
Hatzichronoglou T. (1997) Revision of the High-Technology Sector and Product Classification. OECD/STI working paper 2, pp. 1–26.
Johansson B., Karlsson C., Backman M., and Juusola P. (2007) The Lisbon Agenda from 2000 to 2010. CESIS Electronic working paper, 106, pp. 1–46.
King R.B. (2000) Beyond the Quartic Equation, Modern Birkhauser reprint ed. Boston: Birkhäuser.
Ngai R. and Pissarides C. (2007) Structural change in a multi-sector model of growth. American Economic Review 97 (1), 429443.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Macroeconomic Dynamics
  • ISSN: 1365-1005
  • EISSN: 1469-8056
  • URL: /core/journals/macroeconomic-dynamics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 54 *
Loading metrics...

Abstract views

Total abstract views: 389 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 17th November 2017. This data will be updated every 24 hours.