Discussion Papers 2021
CIRJE-F-1171 | "Tech-Driven Secular Low Growth: Cross-Country Evidence" |
---|---|
Author Name | Takahashi, Yuta and Naoki Takayama |
Date | June 2021 |
Full Paper | |
Remarks | Revised in March 2022 |
Abstract |
---|
We investigate the role of technology on the global secular stagnation of average labor produc- tivity (ALP). In the last decade, equipment-specific technological progress has been stagnated significantly across developed countries, reflected in the movement of the relative equipment prices. Using a multi-capital growth model, we quantify the effect of the equipment-specific technological stagnation on the ALP growth rates. Our analysis shows that the technological stagnation alone accounts for 71% of the declines in the US ALP and a bulk fraction of other developed countries. We discuss several possible causes behind the global equipment-specific technological stagnation. |
Keywords: Economic Growth, Secular Stagnation, Technology, Relative Investment Price, Equipment |