Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence

In this article, we study how firm heterogeneity influences productivity catching up using plant-level data from Mexico. The article addresses three issues: first, it evaluates the process of convergence towards the global versus the local technological frontier in a middle-income country such as Me...

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Bibliographic Details
Main Authors: Iacovone, Leonardo, Crespi, Gustavo A.
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5860
id okr-10986-5860
recordtype oai_dc
spelling okr-10986-58602021-04-23T14:02:23Z Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence Iacovone, Leonardo Crespi, Gustavo A. Economic Integration F150 Firm Performance: Size, Diversification, and Scope L250 Industrial Policy O250 Technological Change: Choices and Consequences Diffusion Processes O330 In this article, we study how firm heterogeneity influences productivity catching up using plant-level data from Mexico. The article addresses three issues: first, it evaluates the process of convergence towards the global versus the local technological frontier in a middle-income country such as Mexico. Second, it systematically evaluates the role of technological efforts in determining the speed of convergence towards each of these technological frontiers. Third, it assesses the role of openness and trade integration in determining the speed of convergence and presents a horse race between integration and technological effort in explaining the determinants of heterogeneity in influencing the process of convergence toward both the domestic and the global technological frontier. Our results suggest that building firm-level technological capabilities is important for catching up with the global frontier. A policy focused on trade alone will facilitate convergence towards the best technological practices available locally, but it will fall short of encouraging convergence with the global frontier. 2012-03-30T07:34:54Z 2012-03-30T07:34:54Z 2010 Journal Article Industrial and Corporate Change 09606491 http://hdl.handle.net/10986/5860 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Economic Integration F150
Firm Performance: Size, Diversification, and Scope L250
Industrial Policy O250
Technological Change: Choices and Consequences
Diffusion Processes O330
spellingShingle Economic Integration F150
Firm Performance: Size, Diversification, and Scope L250
Industrial Policy O250
Technological Change: Choices and Consequences
Diffusion Processes O330
Iacovone, Leonardo
Crespi, Gustavo A.
Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
geographic_facet Mexico
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description In this article, we study how firm heterogeneity influences productivity catching up using plant-level data from Mexico. The article addresses three issues: first, it evaluates the process of convergence towards the global versus the local technological frontier in a middle-income country such as Mexico. Second, it systematically evaluates the role of technological efforts in determining the speed of convergence towards each of these technological frontiers. Third, it assesses the role of openness and trade integration in determining the speed of convergence and presents a horse race between integration and technological effort in explaining the determinants of heterogeneity in influencing the process of convergence toward both the domestic and the global technological frontier. Our results suggest that building firm-level technological capabilities is important for catching up with the global frontier. A policy focused on trade alone will facilitate convergence towards the best technological practices available locally, but it will fall short of encouraging convergence with the global frontier.
format Journal Article
author Iacovone, Leonardo
Crespi, Gustavo A.
author_facet Iacovone, Leonardo
Crespi, Gustavo A.
author_sort Iacovone, Leonardo
title Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
title_short Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
title_full Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
title_fullStr Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
title_full_unstemmed Catching Up with the Technological Frontier: Micro-level Evidence on Growth and Convergence
title_sort catching up with the technological frontier: micro-level evidence on growth and convergence
publishDate 2012
url http://hdl.handle.net/10986/5860
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