Intersectoral spillover effect of technical progress: case study of Lithuanian manufacturing industry

ENThis article is directed at distinguishing the most appropriate methodology for intersectoral technological progress spillover effect measurement in manufacturing industry. Established methodology is applied for a case study of sectors in Lithuanian manufacturing industry. Technological progress evaluation and spillover effect assessment are formed on the basis of Solow neoclassical growth model with the help of time series regression analysis and Granger causality tests. Case study indicated that spillover effect of technological progress in Lithuanian manufacturing industry is preeminent with different amount of impact for each sector. Regression analysis indicated that interconnection with other sectors in Lithuanian manufacturing industry did not lead to greater values of technological progress. Keywords: granger causality test; manufacturing industry; spillover effect; technological progress; total factor productivity.