Productivity Growth And Economic Performance: Essays On Verdoorn's Law

Productivity Growth and Economic Performance Essays on Verdoorn’s Law Edited by John McCombie, Maurizio Pugno and Bruno Soro Productivity Growth and Economic Performance P.J. Verdoorn Productivity Growth and Economic Performance Essays on Verdoorn’s Law Edited by John McCombie Fellow in Economics Downing College, Cambridge UK Maurizio Pugno Professor of Economics University of Trento Italy and Bruno Soro Associate Professor of Economic Policy University of Genoa Italy Editorial matter, selection and Chapter 1 © John McCombie, Maurizio Pugno and Bruno Soro 2002 Chapter 2 English translation © A.P. Thirlwall 2002 Chapter 3 © Bruno Soro 2002 Chapter 4 © John McCombie 2002 Chapter 10 © Maurizio Pugno 2002 Remaining chapters © Palgrave Macmillan Ltd 2002 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author(s) has/have asserted his/her/their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2002 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N. Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 0–333–96877–8 hardback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Productivity growth and economic performance: essays on Verdoorn’s law/edited by John McCombie, Maurizio Pugno, and Bruno Soro. p. cm. Includes bibliographical references and index. ISBN 0–333–96877–8 1. Labor productivity. 2. Industrial productivity. 3. Division of labor. 4. Economic development. I. McCombie, J.S.L. II. Pugno, Maurizio. III. Soro, Bruno, 1945– HC79.L3 P743 2003 338.9¢001–dc21 2002029400 10 9 8 7 6 5 4 3 2 1 11 10 09 08 07 06 05 04 03 02 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham and Eastbourne Contents vi List of Tables Notes on the Contributors vii Foreword by A.P. Thirlwall ix 1 Introduction John McCombie, Maurizio Pugno and Bruno Soro 2 Factors that Determine the Growth of Labour Productivity P.J. Verdoorn (English translation by A.P. Thirlwall) 3 ‘Fattori che regolano lo sviluppo della produttività del lavoro’ Fifty Years On Bruno Soro 37 Increasing Returns and the Verdoorn Law from a Kaldorian