Biased technological change boosts productivity when matching local resources, study finds.
Technological change isn't neutral - it can boost productivity in some countries but not in others. A study looked at 12 OECD countries from 1970 to 2003 and found that new technologies can either help or hurt total factor productivity (TFP) depending on the local resources available. When new technologies match what a country has a lot of, TFP goes up. But if the new tech needs things a country doesn't have much of, TFP doesn't increase as much.