scholarly journals ECONOMIC PRODUCTIVITY: FACTOR APPROACHES

2021 ◽  
pp. 55-64
Author(s):  
Anton Filipenko
Keyword(s):  
Total Factor Productivity ◽  
Value Added ◽  
Output Growth ◽  
Total Output ◽  
Factor Productivity ◽  
Economic Productivity ◽  
Multifactor Productivity ◽  
Goods And Services ◽  
Capital Productivity ◽  
Residual Contribution

Abstract. The article focuses on economic productivity and have stressed the theory of marginal utility (productivity). In modern researches such aggregate indicators as a total factor productivity and a multifactor productivity prevail. Total Factor Productivity is measured by combining the effects of all there sources used in the production of goods and services (labour, capital, materials, energy, etc.) and dividing it into the output. Multifactor productivity (MFP) is the ratio of total output to a subset of inputs. A subset of inputs might consist of only labour and materials or it could include capital. MFP is the residual contribution to output growth of an industry or economy after calculating the contribution from all its factor inputs. The OECD methodology examines key single-factor (aggregated) indicators of labour and capital productivity, considering total output and costs and, most importantly, the value added, which reflects the real increase in the welfare of the nation.

Estimation of Total Factor Productivity Growth (TFPG) of Major Cereal Crops in Rajasthan

2021 ◽  
Keyword(s):  
Growth Rate ◽  
Total Factor Productivity ◽  
Production Function ◽  
Output Growth ◽  
Productivity Index ◽  
Cereal Crops ◽  
Total Output ◽  
Factor Productivity ◽  
Tfp Growth ◽  
Moderate Growth

Cereal crops provide essential nutrients and energy in the everyday human diet through direct human consumption and meat production since they comprise a major livestock feed. In the current study, the Tornqvist Theil Index was used to compute the total output index, total input index, and total factor productivity index. The Tornqvist Index is exact for the homogenous translog production function that can deliver a second-order approximation to an arbitrary twice differentiable homogenous production function. This study has indicated moderate TFP in wheat (1.45percent), and the contribution of TFP to output growth was high, about 87 percent for wheat in Rajasthan state. The annual compound growth rate of the TFP of barley increased at the rate of 1.65 percent per annum (moderate growth), and the contribution of TFP to output growth was average, at about 63.47. In comparison, the compound growth rate of TFP of annual maize crop increased at 1.80 percent per annum (moderate growth), while its TFP to output growth was about 73.09 percent. The annual compound growth rate of the TFP of bajra increased by 2.56 percent per year. The contribution of TFP to output growth was 61.29 percent for bajra in Rajasthan. The real cost of production of barley and maize increased by 0.88 and 1.59 percent, which decreased for wheat and bajra by -0.93 and -0.21 percent per annum, respectively. It was revealed that in the bajra crop, Rajasthan state showed good performance of TFP growth among the selected cereal crops. The technology, including agronomical practices, plant protection measures, and mechanization, helped to sustain TFP growth in the bajra crop.

scholarly journals Physical capital, total factor productivity, and economic growth in sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Giampaolo Garzarelli ◽  
Yasmina Rim Limam
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Physical Capital ◽  
Output Growth ◽  
Sub Saharan Africa ◽  
Total Output ◽  
Relative Importance ◽  
Factor Productivity ◽  
Sub Saharan ◽  
Ssa Countries

Background: A major question that received the attention of numerous theoretical and empirical studies during the past few decades relates to the issue of output growth decomposition and the sources of economic growth. The literature focuses on two sources of growth: factor accumulation (mainly physical capital) and total factor productivity (TFP) growth, presenting inconclusive results as to the relative importance of each.Aim: This article investigates the relative importance of physical capital accumulation and TFP in explaining output growth in 36 sub-Saharan African (SSA) countries over 1996–2014. The possibility of TFP-induced input effects is tested in order to better assess the role of TFP in total output growth.Setting: 36 SSA countries over the period 1996–2014.Method: The article uses a stochastic frontier analysis, an empirical methodology that decomposes total output growth into input growth, technological change and technical efficiency change.Results: The contribution of physical capital to total growth exceeds that of TFP in 22 out of the 36 countries. The result withstands issues of TFP-induced effects on inputs.Conclusion: A large share of growth in SSA is explained by factor inputs and not by TFP. There is therefore room for TFP to further increase growth in SSA. In order to create more opportunities for growth, SSA countries ought to invest in productivity-enhancing factors.

scholarly journals Pakistan’s Productivity Performance and TFP Trends, 1980–2015: Cause for Real Concern

2016 ◽  
Vol 21 (Special Edition) ◽  
pp. 33-63 ◽  
Author(s):  
Rashid Amjad ◽  
Namra Awais
Keyword(s):  
Economic Growth ◽  
East Asia ◽  
Total Factor Productivity ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Output Growth ◽  
Factor Productivity ◽  
Sustained Growth ◽  
Growth Prospects ◽  
High Output

This paper reviews Pakistan’s productivity performance over the last 35 years (1980–2015) and identifies factors that help explain the declining trend in labor productivity and total factor productivity (TFP), both of which could have served as major drivers of productivity growth – as happened in East Asia and more recently in India. A key finding is that the maximum TFP gains and their contribution to economic growth are realized during periods of high-output growth. The lack of sustained growth and low and declining levels of investment appear to be the most important causes of the low contribution of TFP to productivity growth, which has now reached levels that should be of major concern to policymakers vis-à-vis Pakistan’s growth prospects.

Evaluation of Firm Performances in Emerging Markets

2020 ◽  
pp. 329-354
Author(s):  
Seda Ekmen Özçelik
Keyword(s):  
Emerging Markets ◽  
Total Factor Productivity ◽  
Labor Productivity ◽  
Value Added ◽  
Factor Productivity ◽  
Firm Level ◽  
Average Value ◽  
The World Bank ◽  
The World ◽  
Enterprise Surveys

This chapter provides basic understanding of firm performance in emerging markets by focusing on labor productivity and total factor productivity. In the study, labor productivity is measured in terms of average value added per worker. Total factor productivity is obtained from estimations of Cobb-Douglas production function where value added is a function of labor and capital. Data is obtained from the firm-level Enterprise Surveys by the World Bank. According to the results, differences in average labor productivities are significant among the sectors within each emerging region. Also, the value of factor elasticities changes across sectors as well as across regions. Moreover, the elasticity of capital is lower than the elasticity of labor for all sectors in regions. It implies that labor plays a more significant role and the firms are operating in a more labor-intensive production process in emerging markets.

scholarly journals Economic Efficiency and Its Influencing Factors on Urban Agglomeration—An Analysis Based on China’s Top 10 Urban Agglomerations

2019 ◽  
Vol 11 (19) ◽  
pp. 5380 ◽  
Author(s):  
Junwei Ma ◽  
Jianhua Wang ◽  
Philip Szmedra
Keyword(s):  
Total Factor Productivity ◽  
Influencing Factors ◽  
Economic Efficiency ◽  
Policy Implications ◽  
Factor Productivity ◽  
Urban Agglomerations ◽  
Capital Productivity ◽  
Industrial Specialization ◽  
New Findings ◽  
The Impact

Economic efficiency is the key issue of sustainable development in urban agglomerations. To date, more attention has been paid to the estimates of productivity gains from urban agglomerations. Differing from the previous studies, this paper focuses on the influencing factors and mechanisms of the economic efficiency of urban agglomerations, and check the effects of three different externalities (industrial specialization, industrial diversity and industrial competition) on the economic efficiency of urban agglomerations. The selected samples are multiple urban agglomerations, and the economic efficiency of urban agglomerations includes single factor productivity and total factor productivity. China’s top 10 urban agglomerations are selected as the case study and their differences in economic efficiency are portrayed comparatively. Firstly, a theoretical analysis framework for three different externalities effect mechanisms on the economic efficiency of urban agglomerations is incorporated. Secondly, economic efficiency measurement index system composes of labor productivity, capital productivity, land productivity and total factor productivity, and the impact of various factors on the economic efficiency of urban agglomerations is tested. The results confirm some phenomena (MAR externality, Jacobs externality and Porter externality) discussed or mentioned in the literature and some new findings regarding the urban agglomerations, derive policy implications for improving economic efficiency and enhancing the sustainability of urban agglomerations, and suggest some potentials for improving the limitations of the research.

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 BIASED TECHNICAL CHANGE, INTERMEDIATE GOODS, AND TOTAL FACTOR PRODUCTIVITY

2011 ◽  
Vol 16 (2) ◽  
pp. 184-203 ◽  
Author(s):  
Alessio Moro
Keyword(s):  
Total Factor Productivity ◽  
Production Function ◽  
Technical Change ◽  
Value Added ◽  
Intermediate Goods ◽  
Factor Productivity ◽  
Aggregate Production ◽  
Tfp Growth ◽  
Aggregate Production Function ◽  
The Impact

In this paper I show that the intensity at which intermediate goods are used in the production process affects aggregate total factor productivity (TFP). To do this, I construct an input–output model economy in which firms produce gross output by means of a production function in capital, labor, and intermediate goods. This production function is subject, together with the standard neutral technical change, to intermediates-biased technical change. Positive (negative) intermediates-biased technical change implies a decline (increase) in the elasticity of gross output with respect to intermediate goods. In equilibrium, this elasticity appears as an explicit part of TFP in the value added aggregate production function. In particular, when the elasticity of gross output with respect to intermediates increases, aggregate TFP declines. I use the model to quantify the impact of intermediates-biased technical change for measured TFP growth in Italy. The exercise shows that intermediates-biased technical change can account for the productivity slowdown observed in Italy from 1994 to 2004.

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.

scholarly journals Trends in Productivity Growth of Indian Pharmaceutical Industry: A Growth Accounting Analysis

2021 ◽  
pp. 437-446
Author(s):  
Ariful Hoque ◽  
Subhrabaran Das
Keyword(s):  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Decomposition Analysis ◽  
Output Growth ◽  
Growth Accounting ◽  
Series Data ◽  
Factor Productivity ◽  
Entire Study ◽  
Tfp Growth ◽  
Study Results

The pharmaceutical industry of India is one of the most rapidly expanding research-based industries of Indian manufacturing. This paper attempts to examine the trends in partial and total factor productivity (TFP) growth of India’s pharmaceutical industry using industry-level time series data covering a period of 25 years from 1993-94 to 2017-18, which is further divided into pre-product and post-product patent periods. Three alternative indices of growth accounting approach viz., Translog, Solow, and Kendrick have been used to measure the growth of total factor productivity with four input production framework. The study results indicate significant increasing trends in capital intensity as well as labour, energy and material productivity and a significant declining trend in capital productivity over the entire study period. This study also finds a positive turnaround in the TFP growth of Indian’s pharmaceutical industry during the post-product patent era. The decomposition analysis confirms that output growth in the pharmaceutical industry is input-driven rather than productivity-driven as TFP growth contributes only 8.5 percent to the observed output growth. From the policy standpoint, this paper also suggests greater emphasis on resource efficiency by improving the quality of factor inputs, particularly capital, through increased R&D activities and adoption of cutting-edge technology.

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