Engines of growth in the US economy

Thijs Ten Raa, Edward N. Wolff

    Research output: Contribution to journalArticlepeer-review

    Abstract

    There is good reason to believe that R&D influences on TFP growth in other sectors are indirect. For R&D to spill over, it must first be successful in the home sector. Indeed, observed spillovers conform better to TFP growth than to R&D in the upstream sectors. Sectoral TFP growth rates are thus inter-related. Solving the intersectoral TFP equation resolves overall TFP growth into sources of growth. The solution essentially eliminates the spillovers and amounts to a novel decomposition of TFP growth. The top 10 sectors are designated 'engines of growth' led by computers and office machinery. The results are contrasted with the standard, Domar decomposition of TFP growth.

    Original languageEnglish (US)
    Pages (from-to)473-489
    Number of pages17
    JournalStructural Change and Economic Dynamics
    Volume11
    Issue number4
    DOIs
    StatePublished - 2000

    Keywords

    • Input-output
    • Sources of growth
    • Spillovers

    ASJC Scopus subject areas

    • Economics and Econometrics

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