Productivity Growth and Spillover across European and American Industries: A Global Value Perspectiv

For every input transaction industries of the ten European economies greater than the threshold of 2.5 per cent and the United States increased by one- 2 The European countries include Austria, Belgium, the Czech Republic, Germany, Denmark, Finland, France, Italy, the Netherlands and Sweden, which along with the United States are the foci of productivity analyses in this article. [...] However, the tion network, Wsupply is row normalized, so price index from the PWT is at the na- that its element wij captures the share of tional level and thus the deflators for each the upstream industry j’s product in the to- industry are the same within each country. [...] It is im- the diagonal entries of the matrix derived portant to note that these parameters in from Equation (4b) and the indirect elas- the spatial Durbin model cannot represent ticity is computed by the mean of the row the output elasticities of the factor inputs sums of off-diagonal entries. [...] 11 The reason is that the index for capital input is capital services instead of the capital stock, wherein the former considers the user cost of the asset. [...] The electrical equipment industry in the The TFP growth rate in Belgium was United States, with the annualized average almost the same in 2000 and 2014, but TFP growth of 4.80 per cent, turned out to it also showed a similar trend with the have the most rapid TFP growth of all in- aforementioned four countries over the 14- dustries in 2000-2014.