compared with the western region. Foreign direct investment (FDI) and information and communication technology (ICT) investment …

trend (purely external non-economic) as well as other exogenous (external economic) factors (technology shifters). We define … technology index based on the external economic factors which are indicators of ‘technology’. Thus our definition of production … function is amended to accommodate several technology shifters which are not separable from the traditional inputs. That is …

accommodate technology heterogeneity, variable nonstationarity and the breakdown of the standard crosssection independence … assumption. We focus on technology heterogeneity across sectors and countries and the potential for biased estimates due to … aggregation and empirical misspecification, relying on both theory and empirical evidence. Using data for a stylised aggregate …