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Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle
Author: Mr. Frederick L Joutz and Mr. Yasser Abdih
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 074
Language:
English
Publication Date:
01 Apr 2005
DOI:
https://doi.org/10.5089/9781451860931.001
ISBN:
9781451860931
ISSN:
1018-5941
Pages:
39
Keywords:
WP; production function; growth rate
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The knowledge production function is central to R&D-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Time-series evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between TFP and the knowledge stock. The results indicate the presence of strong intertemporal knowledge spillovers and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund