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

• Type: Article in International Scientific Journal
• Date: 2016

Authors

Pedro Rui Mazeda Gil (Author) FEP; Óscar Afonso (Author) FEP; vasconcelos, pb (Author) FEP

Journal

Title: Macroeconomic Dynamics

Vol. 20

Pages: 1906-1923

ISSN: 1365-1005

Publisher: Cambridge University Press

Indexing

ISI Web of Knowledge - 4 Citations

Scopus - 4 Citations

Scientific classification

CORDIS: Social sciences > Economics

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00K-VSP

DOI: 10.1017/s1365100515000152

Abstract (EN): 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.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 18