A decomposition analysis of total factor productivity growth in MENA countries: stochastic frontier analysis approach

Author(s):  
Mushtaq Ahmad Malik ◽  
Tariq Masood
Author(s):  
Auro Kumar Sahoo ◽  
Dukhabandhu Sahoo ◽  
Naresh Chandra Sahu

This paper has estimated the Total Factor Productivity (TFP) growth of Indian mining Industry for the period 1989-2014 based on a decomposed formulation of stochastic production frontier. Productivity growth and its decomposed components have been compared over the study period. It is found that the annual average TFP growth of mining industry rose up from 3.66 % during 1989-2005 to 8.76 % during 2006-2014. Further, the result of decomposition reflects that the major source of productivity growth has changed from Technological Progress (TP) in initial years to Technical Efficiency Change (TEC) in recent years. In view of this, it could be suggested that mining industry in India requires to focus on investment in innovation and up-gradation of existing technology to further enhance productivity. Keywords: Total Factor productivity; Mining Industry; Panel data; Stochastic Frontier Analysis (SFA) 


2020 ◽  
Vol 99 (8) ◽  
pp. 3853-3864
Author(s):  
Elysée M. Houedjofonon ◽  
Nestor R. Ahoyo Adjovi ◽  
Sylvain Kpenavoun Chogou ◽  
Barthélemy Honfoga ◽  
Guy A. Mensah ◽  
...  

2015 ◽  
Vol 44 (1) ◽  
pp. 124-148 ◽  
Author(s):  
Magnus A. Kellermann

This study examines in an empirical comparison how different econometric specifications of stochastic frontier models affect the decomposition of total factor productivity growth. We estimate nine stochastic frontier models, which have been widely used in empirical investigations of sources of productivity growth. Our results show that the relative contribution of components to total factor productivity growth is quite sensitive to the choice of econometric model, which points to the need to select the “right” model. We apply various statistical tests to narrow the range of applicable models and identify additional criteria upon which to base the choice of non-nested models.


2022 ◽  
pp. 1-23
Author(s):  
Noor Aini Khalifah

Abstract Does “openness” determine “catching-up” of establishments to frontier technology and total factor productivity (TFP) in Malaysia's electrical and electronic (E&E) industries? We contribute to this debate by applying a new measurement of processing trade intensity. Utilizing stochastic frontier analysis and Levinsohn and Pertrin (LP) TFP, we investigate determinants of technical efficiency (TE) and TFP. The results show that processing trade intensity and not export intensity determines TE and TFP for the overall sample and subsample of foreign establishments. In the processing trade subsample, export intensity is negatively related to TE and unrelated to TFP, obtaining an unconventional result that exporters are inefficient and not associated with TFP. The results show that higher foreign ownership shares of establishments are negatively associated with LP TFP.


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