International technological knowledge differences and economic growth comparisons: USA versus West Germany and Sweden versus Norway, 1963–1988

Abstract

The main interest in this paper is governed by the methodology for making evolutive growth comparisons in the international context. The paper analysis differences in levels, and changes of these levels of aggregate output between the above mentioned countries, in terms of differences in factors input and levels of technological knowledge, for the period 1963–1988. Sources of economic growth in each country are also examined on an annual and average annual basis. Th conclusion is that technological knowledge differences between countries hold a central role in explaining output differences between them. A slight overtake of the technological lead is observed in comparing Sweden and Norway between 1977 and 1985 when a recovery by Sweden begining in 1986 is detected. A certain part of the output differences between the US and West Germany is explaining by the differences in technology between these two countries. However, capital intensity in the US is found to be almost double in 1988, and this accounts for a great part of the differences in output per unit of labour input between the two countries in that year. It is suggested that while technological knowledge or total factor productivity seems to hold the stage in explaining output differences over time and among the countries here analysed, technological developmment is itself a phenomenon to be explained, this being a part of a long intellectual ‘walk’ by the author.