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dc.contributor.authorRomero, João Pen
dc.contributor.authorMcCombie, Johnen
dc.date.accessioned2016-01-06T18:40:19Z
dc.date.available2016-01-06T18:40:19Z
dc.date.issued2016en
dc.identifier.citationJounal of Economic Studies 2016.en
dc.identifier.issn0144-3585
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/253124
dc.description.abstractPURPOSE: The aim of this paper is twofold: to investigate the existence of different degrees of returns to scale in low-tech and high-tech manufacturing industries; and to examine whether the degrees of returns to scale change through time. DESIGN/METHODOLOGY/APPROACH: The empirical investigation implemented in the paper uses data from the EU KLEMS Database, covering a sample of 12 manufacturing industries in 11 OECD countries over the period 1976-2006. The investigation employed two different estimation methods: Instrumental Variables and System GMM. The robustness of the results was assessed by employing two different specifications of Kaldor-Verdoorn’s Law, by using lags and 5-year averages to smooth business cycle fluctuations, and by dividing the sample into two time periods. FINDINGS: The results reported in the paper provide strong evidence in support of the hypothesis of substantial increasing returns to scale in manufacturing. The investigation suggests that high-tech manufacturing industries exhibit larger degrees of returns to scale than low-tech manufacturing industries. Finally, the analysis revealed also that the magnitude of the returns to scale in manufacturing have increased in the last decades, driven by increases in the magnitude of returns to scale observed in high-tech industries. ORIGINALITY/VALUE: No previous work has assessed the hypothesis that increasing returns to scale vary according to the technological content of industries. Moreover, no previous work has used System GMM or data from EU KLEMS to test KaldorVerdoorn’s Law. Most importantly, the findings of the paper present new evidence on the degree of returns to scale in high-tech and low-tech manufacturing industries.
dc.description.sponsorshipThe authors would like to thank Dr. Marta Spreafico and two anonymous referees for their helpful comments. The usual disclaimer applies. Financial support from the Coordination for the Improvement of Higher Education Personnel (CAPES-Brazil), process number 0257-11-7, is gratefully acknowledged.
dc.languageEnglishen
dc.language.isoenen
dc.publisherEmerald
dc.subjectIncreasing Returnsen
dc.subjectKaldor-Verdoorn’s Lawen
dc.subjectProductivity Growthen
dc.subjectManufacturing sectoren
dc.titleDifferences in Increasing Returns Between Technological Sectors: A Panel Data Investigation Using the EU KLEMS Databaseen
dc.typeArticle
dc.description.versionThis is the author accepted manuscript. The final version is available from Journal of Economic Studies via https://doi.org/10.1108/JES-03-2015-0045en
prism.endingPage878
prism.publicationDate2016en
prism.publicationNameJounal of Economic Studiesen
prism.startingPage863
prism.volume43en
dcterms.dateAccepted2016-02-27en
rioxxterms.versionofrecord10.1108/JES-03-2015-0045en
rioxxterms.versionAM
rioxxterms.licenseref.urihttp://www.rioxx.net/licenses/all-rights-reserveden
rioxxterms.licenseref.startdate2016en
rioxxterms.typeJournal Article/Reviewen
rioxxterms.freetoread.startdate2099-01-01


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