Cross-sectoral patterns of efficiency and technical change in manufacturing

This article uses data from 11 countries for 19 years to investigate the fo rces driving output change in 6 manufacturing sectors. A flexible model is adopted that allows for the decomposition of output changes into three type s of change: technical, efficiency, and input. This Framework allows, among other things, for the investigation of (1) the relative roles of the three components of output growth in each sector, (2) the manner in which effici ency change moves over the business cycle, and (3) potential technical spil lovers from one sector to another.