Models of Manufacturing Sectors by Technology Level
DOI:
https://doi.org/10.18778/0208-6018.294.10Abstract
This paper presents a model for the Polish manufacturing, which is desaggregated into the sectors of different level of technological advancement. It complements the simulation model W8D-2010 of the Polish economy, mainly through a fuller endogenization of technical progress. The most important element of the proposed sub-model are the equations explaining TFP changes in those areas of the economy that are considerably related to the accumulation of new knowledge. The model also includes equations for the other production factors: labour and capital. On the basis of the proposed model it is possible to estimate the potential output of each of the analyzed sectors assuming full utilization of production factors. The proposed model, even though it is a separate system, can be connected to the simulation model W8D-2010 via total factor productivity or by means of an identity relating to the supply side of the Polish economy.
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