ABSTRACT
This chapter employs the specific model to systematically estimate the contribution of technology and regional factors to production and productivity growth. It presents the estimates of the growth equations and qualitative and quantitative interpretations. The chapter estimates the labor productivity growth equations and discusses the implications of the findings. According to production theory and growth theory, producer physical inputs and regional complemental and substitutive factors should all positively contribute to production growth, while regional diseconomies and disamenities should negatively contribute to production and growth. The corresponding share of the actual growth of the production that can be accounted for by the changes in the conventional inputs is 9.1% and 20.6% in the two groups respectively. Equivalently, the share of production growth attributable to embodied technological progress is 11.8% and 11.9% for textile-apparel and computer-electronics industries respectively. This is only a part of the contribution of embodied technology to output growth.
