scholarly journals Roles Of Human Capital And Total Factor Productivity Growth As Sources Of Growth: Empirical Investigation In Thailand

2011 ◽  
Vol 8 (12) ◽  
Author(s):  
Paitoon Kraipornsak
Keyword(s):  
Time Series ◽  
Human Capital ◽  
Production Function ◽  
Technological Progress ◽  
Factor Productivity ◽  
Capital Input ◽  
Tfp Growth ◽  
Long Run ◽  
Residual Growth ◽  
Factor Input

Total Factor Productivity (TFP) growth has long been identified as an exogenous source of economic growth (the residual growth). Recently, there have been a number of economists who introduced and developed the view of endogenous growth model. An argument is that all important factors of source of growth are incorporated into the growth model, there should not present a significant exogenous residual growth. This paper presents an analysis on estimated TFP growth of which it could be considered as a factor of technological progress that is viable in the economy as it is believed. This study included human capital input into the estimated sectoral production function as an essential factor input that can explain capacity of knowledge advancement and an effective innovation in the economy. Human capital is therefore considered to play an essential role in modern growth theory. However, empirically, the effect of human capital on growth and productivity has been inconclusive probably due to the estimation problem. Frequently macroeconomic time series are often non stationary, this study cautiously dealt with the estimation in line with stationary time series econometrics. In this paper, human capital index was constructed based on the Mincerain wage equation and was augmented into the production function for the analysis of growth. The results of the estimation indicated the existence of long run positive contribution of the TFP growth in agriculture but insignificant long run contribution to growth in services. Human capital also positively contributed to growth in agriculture but it was insignificantly contributed to growth in industry and services. Remarkably, physical capital input was found the significant contribution to growth in all sectors. The study also estimated for the economy wide allowing all three sectors to interact among them and found that in the long run growth of industry can be traded off with those of agriculture and services. The TFP growth was also found significantly contributable to the long run growth of the economy. The finding is consistent with the new concept of endogenous growth hypothesis. The conventional concept of the TFP growth estimated from the two input production function was found inadequate to explain the contribution to growth. Human capital was found to be the third factor input that must be included in the estimation of production function. The residual growth or the shift of production function or the TFP growth in this study can mainly be explained by technological progress that is not represented by any other factor of advancement. Nevertheless, this technological progress or the TFP growth must be incorporated and be estimated at the same time in the model but not as being the residual of the regression equation. Therefore, the residual growth in line with the conventional concept must be insignificant. Additionally, because the findings excluded the essential factors, which is human capital input from the estimated standard two factor input models, it caused the residual growth to be significant, as found in the past.

scholarly journals The Determinants of Total Factor Productivity in Polish Subregions. Panel Data Analysis

2013 ◽  
Vol 15 (4) ◽  
pp. 17-29 ◽  
Author(s):  
Barbara Dańska-Borsiak ◽  
Iwona Laskowska
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Data Analysis ◽  
Panel Data Analysis ◽  
Factor Productivity ◽  
Factors Affecting ◽  
Tfp Growth ◽  
Long Run

The significant role of TFP in stimulating the long-run economic development induces researchers to seek for the sources of the TFP growth. The mail goals of the paper are: to estimate the level of TFP in the years 2003-2009 at the level of subregions, and to define the factors which determine this estimated TFP level. The first hypothesis being verified is, that the role of the quality of human capital in stimulating long-run economic growthis crucial and can be measured by the model. The second hypothesis is, that there are some factors affecting the TFP level which are common in all subregions.

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

2018 ◽  
Vol 4 (2) ◽  
pp. 192-217 ◽  
Author(s):  
Phillip Akanni Olomola ◽  
Tolulope Temilola Osinubi
Keyword(s):  
Human Capital ◽  
Total Factor Productivity ◽  
Negative Relationship ◽  
Annual Data ◽  
Factor Productivity ◽  
Distributed Lag ◽  
Long Run ◽  
The World ◽  
Government Stability ◽  
Short Run

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 1980–2014. Annual data covering the period between 1980 and 2014 were used. Data on real gross domestic product (real GDP), labor force, gross fixed capital formation, foreign direct investment (FDI), human capital, and inflation were sourced from the World Development Indicators published by the World Bank. Also, data on corruption, government stability, and law and order were obtained from the database of International Country Risk Guide. Panel autoregressive distributed lag (PARDL) regression technique was used to estimate the model. Results showed that TFP growth rate declined on average by 1.4 per cent and 1.8 per cent in Mexico and Turkey, respectively, while Indonesia and Nigeria did not experience productivity growth on the average. Results also showed that in the long run, human capital and government stability had positive and significant effects on TFP, while FDI and corruption had negative but significant effects on TFP. In the short run, there existed a significant negative relationship between TFP and inflation. However, the effects of human capital and corruption on TFP were positive and significant. The study concluded that human capital and corruption were key drivers of TFP in the MINT countries both in the long run and short run.

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 Technology Transfer, Development, Deployment and Productivity Performance in Pakistan

2021 ◽  
Vol 3 (1) ◽  
pp. 95-128
Author(s):  
Irfan Ali ◽  
Zafar Mahmood
Keyword(s):  
Human Capital ◽  
Technology Transfer ◽  
Technology Development ◽  
Interactive Effects ◽  
Foreign Technology ◽  
Know How ◽  
Technology Deployment ◽  
Tfp Growth ◽  
Long Run ◽  
Technology Absorption

Productivity (TFP) performance is not only influenced by the direct effects of human capital, R&D (technology development)), embodied and disembodied forms of technology transfer and know-how through capital imports, FDI and use of foreign IPRs (technology transfer activities), but importantly is indirectly affected by compo-nents like the interactive effects of machinery and equipment imports, royalties and licenses fee payments, FDI, human capital and technology deployment. In this context, we analyzed internal technology building capabilities, trade-related technology transf-er activities and foreign technology absorption capabilities. The ARDL technique demonstrates that stable long-run association exists amongst all the chosen variables. The results indicate that investment in human capital boost the TFP, in addition expenditures on R&D, imports of machinery are crucial determinants of TFP growth. Surprisingly, FDI appears with a negative sign but the indirect effect of FDI through its interaction with human capital is positive. This indicates that FDI in the presence of human capital plays a favourable role in enhancing TFP. Moreover, the imports of machinery directly and indirectly, in association with both human capital and R&D, increase the growth of TFP. These findings provide evidence that internal technology building capabilities enhances the TFP growth significantly; while, embodied form of technology transfer has a positive and significant impact on the growth of TFP; whereas, disembodied technology transfer exerts positive but statistically insignificant impact on TFP growth. Furthermore, the study lends support for the existence of strong foreign technology absorption capabilities.

scholarly journals Pricing of Agricultural Capital Input in Pakistan: An Analysis of Bound Testing Approach

2017 ◽  
Vol 3 (2) ◽  
pp. 101-110
Author(s):  
Hina Ali ◽  
Hira Tahir
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Capital Input ◽  
Distributed Lag ◽  
Integration Approach ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Testing Approach ◽  
Econometric Technique

Purpose: This study aims to raise the trouble of adjustment the price of capital input in Pakistan. The data that is take to estimate the analysis is time series which span over from 1974 to 2014. Yield, gross domestic product, exchange rate, land, price of capital, agriculture employment, agriculture imports and exports are variables that use in this study. Econometric technique of auto-regressive distributed lag (ardl) to co-integration approach are applied apply to estimate the long run and short run relationship among variables. Conclusion of this study shows that yield and price of capital are negative and insignificant both in short and long run.

Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness

2021 ◽  
pp. 001573252110454
Author(s):  
Thanh Dinh Su ◽  
Canh Phuc Nguyen
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Trade Openness ◽  
Public Spending ◽  
Factor Productivity ◽  
Jel Codes ◽  
Tfp Growth ◽  
Negative Factor ◽  
Catalytic Role

This study examines the catalytic role of trade openness in the relationships between human capital and public spending and total factor productivity (TFP) growth in 44 developing countries over the 1980–2014 period. Applying various estimation techniques to deal with autocorrelation, heteroscedasticity and cross-section dependence, the study finds that (a) the effect of human capital on TFP is nonlinear, (b) government consumption positively affects TFP but military spending is a negative factor and (c) trade openness significantly improves the positive influences of these factors on TFP. The results imply the important role of trade liberalisation in productivity evolution in developing countries. JEL Codes: F43, H52, O47

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.

Foreign aid, workers’ remittances and economic growth in Jordan

2019 ◽  
Vol 46 (4) ◽  
pp. 532-548 ◽  
Author(s):  
Jamal G. Husein
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Economic Policy ◽  
Human Capital ◽  
Foreign Aid ◽  
Empirical Evidence ◽  
World Bank ◽  
Macroeconomic Policy ◽  
Content Type ◽  
Long Run

Purpose The purpose of this paper is to investigate the long-run impact of foreign aid and workers’ remittances on Jordanian economic growth using time series data for the period 1970–2014. Following the most recent literature, the author also assess whether economic policy enhances economic growth and whether aid effectiveness is conditional on levels of economic policy. Design/methodology/approach The author employs unit root tests that allow for endogenously determined structural breaks (Perron, 1997) and properly utilize the autoregressive distributed lag (ARDL) or bounds testing approach to cointegration by applying both the F- and the t-test statistics (Pesaran et al., 2001). The analysis is applied to 12 different models that incorporates the various types and sources of foreign aid. Findings Empirical results suggest that aid and its various components, and workers’ remittances have had a positive and significant long-run impact on economic growth. Empirical results also show: no evidence supporting the hypothesis that aid is only or more effective in spurring economic growth during periods of “good” macroeconomic policy, i.e., when Jordan has undertaken World Bank Structural Adjustment Programs (SAPs); no robust evidence supporting the World Bank’s claim that SAPs are growth enhancing. Moreover, the author found strong empirical evidence suggesting that exports and human capital are also major determinants of long-run growth in Jordan. Research limitations/implications Although Jordan and the region at large have experienced periods of major political instability that may have had a varying impact on the economy, lack of a reliable and lengthy time series measure that accounts for political instability is not available to include in the study. Practical implications Using cointegration analysis, our empirical evidence reveals that foreign aid, labor remittances, exports and human capital have had a robust positive long-run impact on economic growth. Hence, the Jordanian government should promote policies that encourage donor countries and agencies to further extend aid to Jordan. Moreover, policies that promote exports and facilitate labor mobility to neighboring countries should also be encouraged and promoted. Originality/value Despite receiving a significant amount of foreign aid and labor remittances in the last 50 years, the author found no time series study that tested the long-run impact of these external financing sources on growth in Jordan. This study fills that gap and extends the analysis to test whether macroeconomic policy is growth enhancing and whether aid (and several of its components) are only effective or more effective in promoting growth during periods of “good” macroeconomic policy, i.e., when Jordan has undertaken a World Bank SAP.

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 The macroeconomic determinants of technological progress in Nigeria

2011 ◽  
Vol 14 (3) ◽  
pp. 282-297 ◽  
Author(s):  
Olusegun Ayodele Akanbi
Keyword(s):  
Time Series ◽  
Technological Progress ◽  
Time Series Data ◽  
Series Data ◽  
Growth Theory ◽  
Time Varying ◽  
Factor Productivity ◽  
Endogenous Growth Theory ◽  
Macroeconomic Determinants ◽  
Douglas Production Function

This study empirically examines the macroeconomic determinants of technological progress (total factor productivity) in Nigeria that is consistent with the endogenous growth theory. The estimations are carried out with time-series data from 1970 to 2006 using the Johansen estimation techniques. The study is distinct from most of the existing literature since it made an attempt in generating a time-varying technological progress. It employs the Kalman filter technique to determine the evolution of the Solow residual estimated from a Cobb-Douglas production function. The results conform to the existing literature that macroeconomic instability, the level of financial development, and the level of human development are highly significant determinants of technological progress in Nigeria.

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