Tfp growth is considered as a proxy for disembodied. Insights from sectoral data and common dynamic processes by agnieszka gehringer a, inmaculada martinezzarzoso a,b flicitas nowaklehmann danziger a abstract this paper examines the development of total factor productivity tfp and the drivers of tfp for a. Higher openness benefits total factor productivity. Analysis of green total factor productivity trend and its. Using global malmquistluenberger productivity indexes, we reestimate the provincial total factor productivity taking carbon emission into account, comparing different assumptions of returns to scale and considering.
Sayed timuno programme manager, macroeconomic and financial management institute of eastern and southern africa mefmi mentor. By utilizing the conventional growth accounting framework, this study first estimates the total factor productivity tfp in pakistan and then establishes its macro determinants. The model used to analysethe determinants of total factor productivity tfp is based on new endogenous growth theories where economic growth is driven by productivity initiatives. The results show that a large government sector and a high share of value added in agriculture negatively affect productivity growth whereas increasing the share of women in the labor force has a beneficial impact on total factor productivity tfp growth. This paper studies the main determinants of total factor productivity tfp growth using principal component analysis and a dynamic panel data model and. While empirical evidence supporting the importance of the former has been quite conclusive, the same has not been true in terms of the latter. Total factor productivity in thai agriculture measurement and determinants waleerat suphannachart and peter warr are working paper no. Macro determinants of total factor productivity in pakistan safdar ullah khan. Pdf macro determinants of total factor productivity in. Total factor productivity in thai agriculture measurement. In short, no attempts has been made to search for the main determinants of total factor productivity growth and its components, by exploring the e. Feb 01, 2021 this study measures and analyzes the impact of carbon emissions on chinas regional total factor productivity from 2000 to 2017. Samuel tarinda a technical paper submitted in partial fulfilment of the award of mefmi fellowship.
Determinants of total factor productivity in mexico, indonesia. This suggests that the reasons of the slowdown go beyond the effects of the great recession. Despite the recognised importance of total factor productivity tfp in explaining the remarkable economic performance of the highperforming asian economies hpaes, the study of tfp and its determinants has received little attention in the empirical literature on economic growth. The determinants of tfp growth in the portuguese manufacturing sector daniel goncalves1 and ana martins 2 abstract given the linkage between total factor productivity growth and economic growth, it becomes relevant to understand, at the firm level, which are the main determinants of such growth path. With continual population growth, a diminishing supply of arable land. Total factor productivity tfp accounts for a sizeable proportion of the income and growth differences across countries. Klenow and rodriguezclare 1997 estimate that roughly 90 percent of the differences in growth of income per capita can be explained by differences in total factor productivity. Total factor productivity and the role of entrepreneurship econstor. This thesis attempts to make a contribution in this area. Determinants of total factor productivity growth in nigeria. However, the study does not carry out any independent research. Pdf this research aims to analyse the main determinants of total factor productivity of selected developing countries in the mena region, with a focus. In parallel, the paper presents a measure of total factor productivity tfp, largely obtained from the penn world. Using a systemsgmm approach, it considers the role of the following four plant characteristics.
The determinants of total factor productivity in polish subregions. This paper examines the determinants of total factor productivity tfp using a gb plantlevel dataset. The role of total factor productivity growth in middleincome. Total factor productivity growth and its determinants in karnataka agriculture elumalai kannan abstract the present study has estimated tfp of ten major crops grown in the indian state of karnataka and analysed its determinants. How heterogeneous are the determinants of total factor productivity in manufacturing sectors. European journal of business and management, 4 3, 105114. Dawson the role of productivity in accelerating the pace of economic growth is well recognized in the literature. Explaining total factor productivity business school. Tfp is often referred to as the solow residual, and it is just that, namely a residual. Factor determinants of total factor productivity growth in. In this sense, tfp can be regarded as an indicator of the technological capacity of countries, because it measures how efficiently the production factors capital and.
The solow model identified technological progress or improvements in total factor productivity. Of these, education, health, infrastructure, imports, institutions, openness, competition, financial development, geographical predicaments and absorptive capacity including capital intensity appear to be the most important. This is done for every year in the three decades spanning 19852015 and for more than 100 coun tries. Determinants of total factor productivity in the italian.
Introduction total factor productivity tfp has become the choice measure of productivity. How heterogeneous are the determinants of total factor. Abstractthis study analyzed the macroeconomic and institutional determinants of total factor productivity tfp in the mint mexico, indonesia, nigeria, and. We filter papers based on abstracts and main texts by choosing ones that focus on developing as well as developed countries and present a quantitative relationship between productivity and its determinants of interest. It follows that a successful theory needs to explain why some countries experience high productivity.
A wide range of results are obtained, most of which confirm earlier. Plantlevel determinants of total factor productivity in. Determinants of total factor productivity in indian. This project studied determinants of agricultural productivity in kenya.
Determinants of total factor productivity in the italian regions. An analysis of the determinants of total factor productivity in china by claudio tocco doctor of philosophy in economics durham university business school durham university december 2015 abstract in this study, i analyse total factor productivity tfp and its determinants in chinese industrial firms. Different works done related to this topic have miscalculated total factor productivity. The case of subsaharan african economies i introduction. Among such determinants, authors usually stressed the role played by fdi, ict capital and by imports.
Impact of macroeconomic factors on total factor productivity in subsaharan african countries. Additionally, it aimed to explore the macroeconomic determinants that affect total factor productivity. This allows the transfer of technology which, can permanently raise growth rate and tfp. In these notes, we discuss one interpretation of what is meant by. To emphasize just what this number implies, it says that the plant at the 90th percentile of the productivity distribution makes almost twice as much output with the same measured inputs as the.
In this paper we assess the determinants of total factor productivity tfp growth in a group of developed european countries, during the period. Total factor productivity in thai agriculture measurement and. This paper first contributes to that body of knowledge by examining the. Thirdly, from an empirical perspective like with the growth literature the existing. The determinants of total factor productivity in the eu. Total factor productivity growth and its determinants in. Pdf the determinants of total factor productivity across. Trade liberalization and productivity growth in korean manufacturing industries. Macro determinants of total factor productivity in pakistan. Accounting and determinants analysis of chinas provincial. Scale efficiency and allocative efficiency also exerted significant influences on total factor productivity. Durham etheses an analysis of the determinants of total. Determinants of total factor productivity karl whelan. Determinants of total factor productivity in pakistan.
Determinants of total factor productivity in mexico. The results confirmed that economic stability, trade openness, and human factor development have positive impacts on total factor productivity. Growth accounting method of tornqvisttheil index has been used for estimating tfp. Measurement and determinants boubaker dhehibi, roberto telleria, and adenawhassan abstract the paper analyses the patterns of agricultural productivity in tunisian agriculture during the period 19812007. It considers the role of the following four plant characteristics. In this working paper the impact of potential determinants of total factor productiv. Pdf this research aims to analyse the main determinants of total factor productivity of selected developing countries in the mena region, with. An empirical analysis of the determinants of total factor productivity growth in botswana. This study analyzed the macroeconomic and institutional determinants of total factor productivity tfp in the mint mexico, indonesia, nigeria, and turkey countries during the period 19802014. Interestingly, private credit by banks has a negative impact on saudi total factor productivity. The determinants of industrylevel total factor productivity in. Macro determinants of total factor productivity growth of agriculture in pakistan asghar ali, khalid mushtaq, muhammad ashfaq, abedullah, and p. In the literature, the importance of total factor productivity tfp is highlighted in order to.
The skill and quality of workers were the most important determinants of technical efficiency, whereas foreign ownership, imports, and employee quality underpinned technical progress. Hall and jones, 1999 demonstrate that total factor productivity tfp is the key driver of longrun income growth. Macro determinants of total factor productivity in pakistan, state bank of pakistan, working paper number 10. Oct 07, 2020 potential determinants of total factor productivity include measures of openness, trade orientation, and human capital. Annual data covering the period between 1980 and 2014 were used. Panel data analysis abstract the significant role of tfp in stimulating the longrun economic development induces researchers to seek for the sources of the tfp growth. The analysis can beconducted using pooled approach of a a fixed effect technique. Determinants of total factor productivity in indian agriculture. In the literature there is a large body of knowledge on the determinants of total factor productivity tfp at the aggregate level and sectorial level in cross country studies. Exploring this aspect of tfp is therefore of great importance to many. Determinants of total factor productivity in the middle east and. Pdf determinants of total factor productivity growth in malaysia. Determinants of total factor productivity in microfinance.
A contribution to the determinants of total factor. Productivity patterns and determinants across the world 10. Mar 19, 2015 this paper examines the determinants of total factor productivity tfp using a british plantlevel dataset. Revisiting the determinants of productivity growth international. Revisiting the determinants of productivity growth. Solow model identi ed total factor productivity tfp as the key determinant of growth in the long run. We analyze factors that determine tfp in order to identify and suggest direct policy measures towards its improvement. In the context of agricultural productivity, typical factors that have been found to influence tfp are public and private agricultural research, extension services. Price protection, market power and scale efficiency. Pdf this paper attempts to analyse the total factor productivity tfp growth rate in malaysia during 1971 2004 and to discuss factors that. Covering the sample from 1960 to 2003, the results confirm.
This paper examines the development of total factor productivity tfp and the drivers. Determinants of total factor productivity the solow model identi ed technological progress or improvements in total factor productivity tfp as the key determinant of growth in the long run, but did not provide any explanation of what determines it. Unlike the conventional function of production and other indices, this index distinguishes two sources of productivity increase changes in technical efficiency. Total factor productivity tfp measures the total resource cost of producing economic outputs. An empirical analysis of the determinants of total factor. Productivity patterns and determinants across the world.
The determinants of industrylevel total factor productivity. Sep 27, 2017 total factor productivity change of ethiopian microfinance institutions mfis. Tfp as the key determinant of growth in the long run, but did not. In most countries of the region, a considerable share of output growth is attributed to growth in the solow residual, or total factor productivity tfp. Oct 25, 2017 search terms are total factor productivity, economic growth, and determinants. Pdf the determinants of total factor productivity across mena.
Determinants of total factor productivity in the italian regions, macroeconomics 0511009, university library of munich, germany. Most of the studies on estimating the total factor productivity are relatively huge in number than the other research works in relation to agricultural productivity determinants in the background of pakistan. In this paper, a panel regression analysis with dea windows is used to study the spatiotemporal trends of the levels of gtfp. Therefore, the aggregate production function is seen as follows. These contributions are rather fragmented and, only in a.
Openness of developing countries to international trade and foreign investments has always been a topic of controversy for researchers as well as policy makers. To analyse the determinants of total factor productivity, the data on government expenditure on research and education, extension and farmers training, rural literacy, canal irrigation, rainfall and fertiliser consumption have been compiled from published sources. Pdf determinants of total factor productivity in canada. To undertake this analysis we examined own and cross price.
Determinants of total factor productivity growth in. This paper attempts to analyse the total factor productivity tfp growth rate in malaysia during 1971 2004 and to discuss factors that determine tfp growth. Other factors of total factor productivity growth by income and transition country groups. International journal of innovation, creativity and change. Some findings on total factor productivity and its determinants in indian agriculture. Macroeconomic determinants of saudi total factor productivity. Institutions and other determinants of total factor. Agricultural total factor productivity change and its determinants in european union countries 1275 productivity changes over a period of time trueblood and coggins, 2003. Usual as well as rather innovative determinants are considered.
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