scholarly journals The Decline of British Manufacturing, 1973–2012: The Role of Total Factor Productivity

2019 ◽  
Vol 247 ◽  
pp. R19-R31 ◽  
Author(s):  
Richard Harris ◽  
John Moffat
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Intangible Assets ◽  
Factor Productivity ◽  
Tfp Growth ◽  
Manufacturing Productivity ◽  
Plant Level

This paper uses plant-level estimates of total factor productivity covering 40 years to examine what role, if any, productivity has played in the decline of output share and employment in British manufacturing. The results show that TFP growth in British manufacturing was negative between 1973 and 1982, marginally positive between 1982 and 1994 and strongly positive between 1994 and 2012. Poor TFP performance therefore does not appear to be the main cause of the decline of UK manufacturing. Productivity growth decompositions show that, in the latter period, the largest contributions to TFP growth come from foreign-owned plants, industries that are heavily involved in trade, and industries with high levels of intangible assets.

Agricultural Growth Accounting and Total Factor Productivity in Jordan

2020 ◽  
pp. 1709-1723
Author(s):  
Samia Nadeem Akroush ◽  
Boubaker Dhehibi ◽  
Aden Aw-Hassan
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Agricultural Research ◽  
Agricultural Productivity ◽  
Primary Source ◽  
Factor Productivity ◽  
Factors Affecting ◽  
Tfp Growth ◽  
Food And Agriculture ◽  
Food And Agriculture Organization

This article develops new estimates of historical agricultural productivity growth in Jordan. It investigates how public policies such as agricultural research, investment in irrigation capital, and water pricing have contributed to agricultural productivity growth. The Food and Agriculture Organization (FAO) annual time series from 1961 to 2011 of all crops and livestock productions are the primary source for agricultural outputs and inputs used to construct the Törnqvist Index for the case of Jordan. The log-linear form of regression equation was used to examine the relationship between Total Factor Productivity (TFP) growth and different factors affecting TFP growth. The results showed that human capital has positive and direct significant impact on TFP implying that people with longer life expectancy has a significant impact on TFP growth. This article concludes that despite some recent improvement, agricultural productivity growth in Jordan continues to lag behind just about every other region of the world.

scholarly journals The Procyclical Behavior of Total Factor Productivity in the United States, 1890–2004

2010 ◽  
Vol 70 (2) ◽  
pp. 326-350 ◽  
Author(s):  
Alexander J. Field
Keyword(s):  
United States ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
The United States ◽  
Real Business Cycle ◽  
Factor Productivity ◽  
Tfp Growth ◽  
Capital Services ◽  
Labor Hoarding ◽  
Statistical Artifact

Between 1890 and 2004 total factor productivity (TFP) growth in the United States has been strongly procyclical, while labor productivity growth has been mildly so. This article argues that these results are not simply a statistical artifact, as Mathew Shapiro and others have argued. Procyclicality resulted principally from demand shocks interacting with capital services which are relatively invariant over the cycle. This account contrasts with explanations emphasizing labor hoarding as well as those offered by the real business cycle (RBC) program, in which TFP shocks (deviations from trend) are themselves the cause of cycles.

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 What's the big deal?: the effect of corporate reforms on manufacturing productivity in Korea

2005 ◽  
Author(s):  
◽  
Hojong Kang
Keyword(s):  
Productivity Growth ◽  
Plant Size ◽  
Factor Productivity ◽  
Data Set ◽  
Before And After ◽  
Interaction Term ◽  
Manufacturing Productivity ◽  
Plant Level ◽  
Positive Effect ◽  
Do So

Although Korea has achieved striking economic success during last four decades, following the 1997-98 foreign exchange crisis, Korea's economy was in urgent need of restructuring amid a series of corporate bankruptcies and a paralyzing credit crunch. In this paper using an unpublished plant-level panel data set, I explore changes in total factor productivity and its growth before and after the crisis. In order to do so, I sort out eight industries that were most likely affected by the "Big Deal Program". The results suggest the Big Deal had a positive and significant effect on TFP levels. Bigger plants in Big Deal industries had differentially higher TFP levels However, these results are not robust to the bigger plants classified as being in the top 5% in terms of K/L ratio. Unlike the results for TFP levels, coefficient for the three variable interaction term ( DiTt[arrow][tau] Spt ) are all positive and significant with the plant-size specification. It means the bigger plants in eight Big Deal industries have more productivity growth even though they have lower TFP levels than the smaller plants after the reform. Depending on the plant-size specifications, the Big Deal program had a positive effect on the bigger plants in the Big Deal industries of 0.1 to 1.39 percents.

Does innovation matter for total factor productivity growth in India? Evidence from ARDL bound testing approach

2018 ◽  
Vol 13 (5) ◽  
pp. 1311-1329 ◽  
Author(s):  
Seenaiah Kale ◽  
Badri Narayan Rath
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity ◽  
Content Type ◽  
Tfp Growth ◽  
Innovation Activities ◽  
Long Run ◽  
Short Run ◽  
Testing Approach

Purpose The purpose of this paper is to examine whether innovation plays a significant role in the total factor productivity (TFP) growth in India at an aggregate level. Design/methodology/approach This study first estimates the TFP growth using a growth accounting framework. In the second stage, the authors examine the long-run and short-run impact of innovation on TFP growth using the ARDL bound testing approach. Findings The results indicate a cointegrating relationship between innovation and TFP growth. Further, coefficients of long-run elasticity show that the increase in overall innovation activities improves the TFP growth. Other factors such as human capital, financial development and FDI do not affect the TFP growth in the long run; however, these variables significantly affect the productivity growth in the short run. Practical implications Findings of the study suggest that the innovation-friendly policies such as the strengthening of intellectual property rights, R&D subsidies and innovation rebates may spur the productivity growth, and hence, good growth and prosperity as well. Originality/value Having devoted a large volume of literature to address the sources of economic growth, the present study focuses on the determinants of TFP growth in India which may fall in similar category but differ in several angles: First, the authors construct a TFP index using a growth accounting framework. Second, the authors construct an innovation index using principal component analysis which is new to the literature and also an innovation index. Third, given the scanty innovation activities in low developed countries like India and its widening role in the contemporary literature, special emphasis will be given to this aspect. Finally, the effect of the examined relationship on TFP growth in the long run and short run provides several implications for policy purpose to the developing nations like India.

scholarly journals Productivity Dynamics and Rural Industrialization in India

2019 ◽  
Vol 32 (1) ◽  
pp. 23-46
Author(s):  
Takahiro Sato ◽  
Aradhna Aggarwal
Keyword(s):  
Panel Data ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Rural Areas ◽  
Manufacturing Sector ◽  
Aggregate Productivity ◽  
Factor Productivity ◽  
Rural Industrialization ◽  
Plant Level ◽  
Productivity Dynamics

Since the late 1990s, industrialization in India has been driven by the rural organized manufacturing sector. This paper examines the effects of firms’ dynamics on rural industrialization in India, using plant-level panel data, to investigate the characteristics of rural industrialization in India in recent years. In particular, the paper focuses on productivity differences among continuing, entering, and exiting firms. The results show that both labour and total factor productivity of the organized manufacturing sector in rural areas increased during 2000–2006 and the aggregate productivity growth is supported by the productivity growth of the continuing firms, the entry of productive firms, and the exit of less-productive firms. The paper can conclude that firms’ productivity dynamics contributed to the current rural industrialization in India. JEL: O14, O47, O53

scholarly journals Total Factor Productivity Growth in Pakistan: An Analysis of the Agricultural and Manufacturing Sectors

2009 ◽  
Vol 14 (Special Edition) ◽  
pp. 1-16 ◽  
Author(s):  
Azam Amjad Chaudhry
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Average Rate ◽  
Output Growth ◽  
Production Functions ◽  
Gdp Growth ◽  
Factor Productivity ◽  
Manufacturing Sectors ◽  
Manufacturing Productivity ◽  
East Asian Economies

This paper uses Cobb-Douglas and translog production functions to calculate total factor productivity (TFP) in Pakistan over the period 1985 – 2005, first for the manufacturing and agricultural sectors individually, then for the economy as a whole. In manufacturing, productivity increased at an average of 2.4% per year with output growth being driven mainly by increases in capital. Despite the limitations of the available agricultural data, we have determined that productivity has grown at an average rate of 1.75% per year in this sector. The major drivers of growth in agriculture have been increases in labor and TFP. These estimates of sectoral TFP put Pakistan at par or above average as compared to other developing countries, but lagging behind the East Asian economies. For the economy as a whole, TFP has increased at an average rate of only 1.1% a year in Pakistan, resulting in almost three quarters of GDP growth attributed to increases in labor and the capital stock.

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.

scholarly journals Input Structure Effect of Total Factor Productivity Growth of Animal Husbandry

2021 ◽  
Vol 11 (4) ◽  
Author(s):  
LI Xiu-shuang ◽  
ZHAO Liang ◽  
YU Kang
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Animal Husbandry ◽  
Structure Effect ◽  
Factor Productivity ◽  
Plateau Region ◽  
Tfp Growth ◽  
Input Structure ◽  
Factor Decomposition ◽  
The Impact

This paper uses the input-output panel data of China's animal husbandry industry from 1997 to 2017, based on the total factor decomposition framework of total factor productivity (TFP), and uses the Hicks-Moorsteen index completely decompose the growth of animal husbandry TFP. By measuring the effect of mixed efficiency on the development of TFP in animal husbandry and then evaluating the input structure effect of TFP growth in animal husbandry. The results show that the impact of input structure on the TFP growth of animal husbandry has also changed from negative to positive. From 1997 to 2007, the input structure of the Huanghuaihai region alone contributed to the growth of TFP in animal husbandry, and the rest of the region was the opposite. From 2008 to 2017, the input structure of the Mengxin Plateau region hindered the growth of TFP in animal husbandry, while the rest of the region was the opposite.

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