scholarly journals Decomposing Total Factor Productivity Growth in Manufacturing and Services

2017 ◽  
Vol 34 (1) ◽  
pp. 88-115 ◽  
Author(s):  
Neil Foster-McGregor ◽  
Bart Verspagen
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Value Added ◽  
Total Factor Productivity Growth ◽  
Aggregate Productivity ◽  
Factor Productivity ◽  
Input Output ◽  
Tfp Growth ◽  
The World ◽  
Asian Economies

Using the World Input–Output Database, this paper calculates total factor productivity (TFP) growth for a sample of 40 economies during the period 1995–2009 to show that TFP growth in Asian economies has been relatively strong. In a number of Asian economies, TFP growth in services has outpaced that in manufacturing. This paper presents a novel structural decomposition of TFP growth and shows that the main drivers of aggregate productivity growth, as well as differences in productivity growth between services and manufacturing, have been changing factor requirements. These effects tend to offset the negative productivity effect of a declining ratio of value added to gross output.

Total Factor Productivity Growth Based on Resource and Non Resource Based Industries of the Manufacturing Sector, 2000-2005

2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Noorasiah Sulaiman ◽  
Norfadila Fadzil
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Input Output ◽  
Intermediate Inputs ◽  
Industrial Manufacturing ◽  
Tfp Growth

This paper examines total factor productivity (TFP) growth in resource and non resource based industries of the Malaysian manufacturing sector. The growth in TFP is examined between 2000 and 2005. Unlike previous studies that use one source of data from Industrial Manufacturing Survey (IMS), this research combines two sources of data–Malaysian Input-Output Tables and IMS. The motivation for this study was brought about due to the need to present a different method for estimating TFP growth using the input-output methodology. The result from this study for resource and non resource based industries reveals that the TFP growth is relatively low for both industries. In addition, the major source of change in TFP of the both industries is contributed by intermediate inputs, while the contribution of labour and capital is substantially low. 

scholarly journals The Role of Agricultural Sector Productivity in Economic Growth: The Case of Iran’s Economic Development Plan

2018 ◽  
Vol 10 (1) ◽  
pp. 16 ◽  
Author(s):  
Morteza Tahamipour ◽  
Mina Mahmoudi
Keyword(s):  
Economic Development ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Agricultural Sector ◽  
Value Added ◽  
Total Factor Productivity Growth ◽  
Development Plan ◽  
Factor Productivity ◽  
Economic Development Plan

This study provides the theoretical framework and empirical model for productivity growth evaluations in agricultural sector as one of the most important sectors in Iran’s economic development plan. We use the Solow residual model to measure the productivity growth share in the value-added growth of the agricultural sector. Our time series data includes value-added per worker, employment, and capital in this sector. The results show that the average total factor productivity growth rate in the agricultural sector is -0.72% during 1991-2010. Also, during this period, the share of total factor productivity growth in the value-added growth is -19.6%, while it has been forecasted to be 33.8% in the fourth development plan. Considering the effective role of capital in the agricultural low productivity, we suggest applying productivity management plans (especially in regards of capital productivity) to achieve future growth goals.

scholarly journals Potential Output in Asia: Some Forward-Looking Scenarios

2016 ◽  
Vol 33 (2) ◽  
pp. 28-55
Author(s):  
Andrew Burns
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Output Growth ◽  
Total Factor Productivity Growth ◽  
Investment Climate ◽  
Participation Rates ◽  
Factor Productivity ◽  
Potential Output ◽  
Asian Economies ◽  
Potential Output Growth

This paper presents estimates of potential output growth for a sample of 26 Asian economies and projects potential output growth through 2040 under several scenarios. Results suggest that in the absence of further capital deepening, and assuming continued total factor productivity growth at recent rates, potential output growth across economies could slow from a median of 4.6% during 2010–2015 to 2.7% between 2035 and 2040. Demographic trends and an assumed stabilization in capital–output ratios account for most of the slowing. Much better outcomes are possible if trends are supported by policy. Better total factor productivity growth could raise potential output by between 11% and 24% by 2040, while lower unemployment and higher participation rates could boost potential output by 10% or more in some South Asian economies. An improved investment climate could add between 6% and 10% to potential output in most economies, while accelerating structural convergence (moving labor from lower to higher productivity sectors) could raise potential output by 10% or more in half of the examined countries.

Total factor productivity growth and its decomposition in the Chinese construction industry since China's accession to the World Trade Organization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuhe Wang ◽  
Gui Ye ◽  
Chenli Zheng ◽  
Shilian Zhang
Keyword(s):  
World Trade Organization ◽  
Construction Industry ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
World Trade ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Content Type ◽  
The World

PurposeSince China's accession of the World Trade Organization (WTO), its construction industry has attained unprecedented growth. However, for the sources of this enormous growth, a controversy regarding the total factor productivity growth (TFPG) still remains in production practice and extant studies. In view of this, the purpose of this paper is to measure TFPG and to explore its sources in the industry post-WTO accession.Design/methodology/approachThis study presents an innovative source analysis of TFPG. Stochastic frontier approach is adopted to measure TFPG and to explore its sources by decomposing TFPG into technical progress (TP), technical efficiency change (TEC), allocative efficiency change (AEC) and scale efficiency change (SEC). Although China joined WTO in 2001, to provide an effective baseline, the study period is from 2000 to 2017.FindingsThe empirical results reveal that TFPG presented an overall downward evolutionary trend, but it still maintained a high growth post-WTO accession. From the perspective of decomposition, TP was the main source of TFPG. Furthermore, as a neglected source, interaction effects among TP, TEC, AEC and SEC have been demonstrated to have a significant influence on the cumulative TFPG.Practical implicationsTo make the results be reliable, the authors discuss the empirical findings mainly by revealing the reasons behind the evolutions of TFPG and its sources. Based on these revealed reasons, government and policy makers can further refine and summarize some more detailed and targeted policy implications to improve TFPG.Originality/valueBy providing many empirical evidences to solve the aforesaid TFPG controversy, this paper, therefore, enriches the body of knowledge on growth theories, especially at the level of industrial economics.

scholarly journals Efficiency Dynamics of Sugar Industry of Pakistan.

2009 ◽  
Vol 48 (4II) ◽  
pp. 921-938
Author(s):  
Abdul Raheman Haq ◽  
Abdul Qayyum ◽  
Talat Afza
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Stock Exchange ◽  
Sugar Industry ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Managerial Decision ◽  
Managerial Efficiency ◽  
Tfp Growth ◽  
The World

Pakistan is the 15th largest producer of sugar in the world, 5th largest in terms of area under sugar cultivation and 60th in yield. The sugar industry is the 2nd largest agro based industry which comprises of 81 sugar mills. With this scenario, Pakistan has to import sugar which exposes it to the effects of shortage and rising prices in the world. The present sugar crisis has opened up new avenues for researcher to analyse the performance and efficiency of the firms in this sector. Total factor productivity plays a significant role in measuring the performance of a firm which ultimately affects the shareholder’s value. This paper analyses the performance of sugar firms in Pakistan and estimate/calculate the Malmquist total factor productivity growth indices using non-parametric approach. TFP growth is further decomposed into technical, scale and managerial efficiency change using balanced panel data of 20 sugar firms listed on Karachi Stock Exchange for the period 1998 to 2007. The results reflect a tormenting picture for the sugar industry. Overall sugar industry improved technological progress by 0.8 percent while managerial efficiency change put a negative effect on the productivity by a same percentage; as a result the overall total factor productivity during 1998-2007 remained almost static with a decline of 0.1 percent. The analysis of TFP and its sources in individual year for overall sugar industry also presents divergent trend. The research suggests that sugar industry is facing serious productivity growth problems where no increase is recorded in total factor productivity during 1998 to 2007. The sugar industry is lacking in terms of managerial efficiency which could be explained by a general reduction in the quality of managerial decision-making among the best practice firms. Regardless of the reason for this decline, it has potentially serious implications for the longer-term financial viability of these sugar firms. The pattern of TFP growth tends to be driven more by technical change (or technical progress) rather than improvements in technical efficiency.

Total Factor Productivity Growth of Cashew Research in Konkan Region of Maharashtra

2020 ◽  
pp. 524-527
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Road Density ◽  
Tfp Growth ◽  
Output Index ◽  
Research Investment ◽  
Productivity Indices

The total factor productivity indices of cashew estimated using the Tornqvist index for the period 1998-99 to 2017-18. TFP index was promising. It indicated that the inputs were efficiently allocated in cashew plantation. TFP increased at 3.13 percent per annum. During the same period, the output index grew by 2.18 percent per annum and the input index declined at the rate of 0.92 percent per annum. The improvement in the total factor productivity may be due to non-input factors such as research investment and extension efforts. The results indicated that research investment (0.23), rainfall (0.84), road density (0.56) and rural literacy (1.62) had significantly contributed to TFP growth in cashew

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