Technological Change and Catch-up and Capital deepening: Relative Contributions to Growth and Convergence

The empirical results through a fixed effects regression model show that the initial level of productivity has a negative effect on the contribution of efficiency to productivity growth, which implies that technological catch-up has done much to cause economic convergence among countries. Further, we found that if we incorporate year dummy variables the relation between the initial level of productivity and the change in capital accumulation is not negative but positive. These results are contrary to the assertion of Kumar and Russell (2002)