A major international transmission channel of productivity increases is trade in intermediate products and services …-output linkages between industries in different countries. Our results using this novel approach confirm the productivity effects from … manufacturing sectors’ inputs, our results indicate significant positive productivity effects from innovations in this sector …

economy to achieve full employment in the face of (positive) productivity shocks and changes in the available labour force …. This issue is further explored in section 4 in the context of changing (exogenous) growth rates of productivity and the … wage equation features also the impact of the unemployment rate. Hence, as the economy absorbs a (positive) productivity …