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 interrelated.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 growt led by computers and office machinery.The results are contrasted to the standard, Domar decomposition of TFP growth.
|Place of Publication||Tilburg|
|Number of pages||23|
|Publication status||Published - 2000|
|Name||CentER Discussion Paper|
- sources of growth