scholarly journals THE DYNAMICS OF TOTAL FACTOR PRODUCTIVITY OFMEDIUM AND LARGE MANUFACTURING IN INDONESIA

2014 ◽  
Vol 16 (3) ◽  
pp. 259-288
Author(s):  
Ndari Surjaningsih ◽  
Bayu Panji Permono
Keyword(s):  
Total Factor Productivity ◽  
Technical Change ◽  
Manufacturing Sector ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Advance Technology ◽  
Catching Up ◽  
Manufacture Industry ◽  
Using Data

This paper calculates and decomposes the Total Factor Productivity (TFP) for large and medium scale industry in Indonesia covering the period of 2000-2009. By using Data Envelopment Analysis (DEA)  method, the result shows there is a shift of the supporting factors on the growth of TFP on manufacturing sector within the 2 (two) sample period. In the period of 2000-2004, efficiency change becomes the main contributor on the growth of TFP. Whereas in the period of 2005-2009, technical change becomes the main supporting factor of TFP,however it goes along with the growth of negative efficiency change or the decline of the company’s catching-up effect ability to adapt with the more advance technology. The grouping of the sample across subsectors, technical change and also efficiency change shows the declining amount of manufacture industry with superior productivity. Furthermore, the number of low and weakening catching-up industry is increasing.  Keywords: Indonesian manufacturing, total factor productivity, technical change, efficiency change, economic scale change, Data Envelopment AnalysisJEL Classification: L6, M11

scholarly journals DINAMIKA TOTAL FACTOR PRODUCTIVITY INDUSTRI BESAR DAN SEDANG INDONESIA

2014 ◽  
Vol 16 (3) ◽  
pp. 277-308
Author(s):  
Ndari Surjaningsih ◽  
Bayu Panji Permono
Keyword(s):  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Manufacturing Sector ◽  
Jel Classification ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Catching Up ◽  
Using Data

This paper calculates and decomposes the Total Factor Productivity (TFP) for large and medium scale industry in Indonesia covering the period of 2000-2009. By using Data Envelopment Analysis (DEA)  method, the result shows there is a shift of the supporting factors on the growth of TFP on manufacturing sector within the 2 (two) sample period. In the period of 2000-2004, efficiency change becomes the main contributor on the growth of TFP. Whereas in the period of 2005-2009, technical change becomes the main supporting factor of TFP,however it goes along with the growth of negative efficiency change or the decline of the company’s catching-up effect ability to adapt with the more advance technology. The grouping of the sample across subsectors, technical change and also efficiency change shows the declining amount of manufacture industry with superior productivity. Furthermore, the number of low and weakening catching-up industry is increasing.  Keywords: Indonesian manufacturing, total factor productivity, technical change, efficiency change, economic scale change, Data Envelopment Analysis JEL Classification: L6, M11

scholarly journals Decomposing total factor productivity of SMEs in agricultural sector in Aceh, Indonesia

2022 ◽  
Vol 951 (1) ◽  
pp. 012051
Author(s):  
M S A Majid ◽  
F Faisal ◽  
H Fahlevi ◽  
A Azhari ◽  
H Juliansyah
Keyword(s):  
Total Factor Productivity ◽  
Agricultural Sector ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Managerial Training ◽  
Aceh Province ◽  
The Government ◽  
Using Data ◽  
Different Levels

Abstract This study measures and decomposes the Total Factor Productivity (TFP) of the SMEs in the agricultural sector across 23 regencies/cities in Aceh province, Indonesia during the 2015-2019 period. Using Data Envelopment Analysis (DEA), the study found a low level of SMEs’ productivity during the study period. The SMEs in Aceh province recorded different levels of TFP. Overall, the SMEs’ TFP has slightly declined, contributed mainly by an increase in efficiency level and a decline in the technical efficiency change. These findings showed the importance of adopting advanced agricultural-related technologies and implementing good SMEs’ governance principles to further improve SMEs’ TFP. Finally, the government must prioritize promoting non-productive SMEs across the 23 regencies/districts in the province by offering sufficient financial aids and conducting professional managerial training programs.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

scholarly journals Growth in Agricultural Productivity and Its Components in Bangladeshi Regions (1987–2009): An Application of Bootstrapped Data Envelopment Analysis (DEA)

Economies ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 37 ◽  
Author(s):  
Mita Bagchi ◽  
Sanzidur Rahman ◽  
Yao Shunbo
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Technical Change ◽  
Bias Correction ◽  
Technological Progress ◽  
Agricultural Extension ◽  
Data Envelopment ◽  
Crop Diversification ◽  
Factor Productivity ◽  
Efficiency Change

The present study applies a bootstrapped data envelopment analysis (DEA) procedure to compute bias-corrected measures of agricultural total factor productivity (TFP) change and its components (technical change and technical efficiency change) using a panel data of 19 regions of Bangladesh covering a 23-year period (1987–2009), thereby overcoming the limitation of the lack of statistical inference of the conventional non-parametric DEA. Results revealed that overall productivity grew at a modest rate of 0.03%, mainly powered by technological progress at 0.03% and a negligible decline in technical efficiency at 0.004% with large disparities amongst regions. Six regions in the middle order shifted ranks with regard to TFP change following bias correction. The estimated confidence intervals demonstrated that many regions underwent either progress or regress in productivity performance over time. Investments in research and development (R&D), agricultural extension, and crop diversification are suggested to improve regional inequality and declining technical efficiency.

scholarly journals TOTAL FACTOR OF PRODUCTIVITY AND ITS COMPONENTS: EVIDENCE FROM CEMENT - AND ENERGY SECTORS OF PAKISTAN

2018 ◽  
Vol 9 (1) ◽  
pp. 55 ◽  
Author(s):  
Razzi Abbas Jafri ◽  
Shahbaz Khan ◽  
Muhammad Haroon Shah ◽  
Nida Baig
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Change ◽  
Annual Reports ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Financial Firms ◽  
Tfp Growth ◽  
Time Period ◽  
Dea Method

This study employs “Data Envelopment Analysis (DEA)” method to calculate the “Total Factor Productivity (TFP)” growth and its components of 19 non-financial firms from Cement and Energy sectors of Pakistan listed on ISE-100 Index during the time period 20052011. The research focuses on to identify the factors like, technical change and technical efficiency change tends to influence the TFP of cement -and energy sectors of Pakistan. We use hand collected data from the annual reports of these non-financial firms included in our sample. Results show that cement sector has an overall positive TFP growth of 9.7%, and energy sector has an overall TFP growth of 1.5% during the study period. The study may assist us to recognize the extent to which these components can affect the TFP of a sector, and will further help us to explore new ways to boost up the productivity of these sectors which in turn may be beneficial to move country towards a sustainable path.

scholarly journals Distinction between Informal and Unorganized Sector: A Study of Total Factor Productivity Growth for Manufacturing Sector in India

2011 ◽  
Vol 3 (5) ◽  
pp. 296-310
Author(s):  
Indrajit Bairagya
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Informal Sector ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Total Factor Productivity Growth ◽  
Scale Efficiency ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Unorganized Sector

Since its very onset, the concept and definition of the informal sector has been a subject of debate both at the national and international levels. Existing literature uses the terms ‘informal sector’ and ‘unorganized sector’ interchangeably. However, in India, the characteristics of enterprises in the informal and non-informal unorganized manufacturing sectors are different and, thus, it is not justifiable to consider the informal and unorganized sector interchangeably for the manufacturing sector. Thus, the objective of this paper is to test the hypothesis on whether or not the total factor productivity growth (TFPG) of the informal manufacturing sector is different from the non-informal unorganized manufacturing sector. TFPG is decomposed into technical efficiency change and technological change. Later, technical efficiency change is further decomposed by pure efficiency change and scale efficiency change. Results show that the average TFPG of the non-informal sector is higher than the informal sector. The informal sector heavily concentrates in own account small enterprises, whereas the non-informal unorganized sector concentrates only in directory manufacturing enterprises (DME). Due to large in size, DME avails the advantages of economies of scale, which, in turn, helps the units for more growth in terms of total factor productivity growth. The main reason for productivity decrease of the enterprises, besides technology regress and the lack of adequate investments, is the limitation of activities and scale along with the optimal allocation of resources. This study provides a basis on how policies can be designed for enhancing the total factor productivity growth of the informal sector.

scholarly journals Efficiency and Productivity Performance of the National Private Banks in Indonesia

2007 ◽  
Vol 9 (1) ◽  
pp. 1 ◽  
Author(s):  
Mohd. Azmi Omar ◽  
M. Shabri Abd. Majid ◽  
Ronald Rulindo
Keyword(s):  
Productivity Growth ◽  
Technical Change ◽  
Banking Industry ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Efficiency Change ◽  
Private Banks ◽  
Using Data ◽  
Efficiency And Productivity

This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.

scholarly journals Total factor productivity of manufacturing sector in India: A regional analysis for the State of Haryana

2012 ◽  
pp. 97-118
Author(s):  
Shallu Sehgal ◽  
Suparn Sharma
Keyword(s):  
Total Factor Productivity ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Regional Analysis ◽  
The State ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Liberalization Policy

Using pooled data for the period of 1981-82 to 2007-08 for different categories of organized sector’s manufacturing industries for the sample state of Haryana, the present undertaking seeks to analyze the inter-temporal and inter-industry comparison of total factor productivity (TFP) measured by Malmquist productivity index (MPI), which is an application of DEA to panel data to calculate the indices of TFP change, technology change, efficiency change. The general development pattern observed by the Haryana is definitely not a healthy sign of structural change in the economy. The analysis of the discussion reflects that while the tertiary sectors have maintained its lion’s share in GDP of India and Haryana as well, the declining trend in the share of primary sector and more or less stable contribution of the secondary sector is noticeable. The study reveals that technical efficiency change is the key driver of TFPG in the manufacturing sector of Haryana during pre reforms period, however, the picture has turned around during the post reforms period. A positive impact of liberalization policy on technological advancement of the manufacturing sector of the state has been experienced. But, during the post reforms period the state has realized inefficiency in the utilization of resources in hand and it is really an alarming sign indicating that the incapability of manufacturing sector of the state in question to cope up with the technological advancement.DOI: http://dx.doi.org/10.3126/ejdi.v13i0.7213 Economic Journal of Development Issues Vol.13 & 14 2011, pp.97-118

scholarly journals Total Factor Productivity and the Bio Economy Effects

2012 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Carlos Alberto Zuniga Gonzalez
Keyword(s):  
Technological Change ◽  
Total Factor Productivity ◽  
Economic Efficiency ◽  
Productivity Growth ◽  
Technical Change ◽  
Agricultural Production ◽  
Central American ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Catch Up

This paper develops a new measure of total factor productivity growth in agricultural Production which incorporates Bio Economic components effects.The new measure is called the Bio Economic-Oriented Total Factor Productivity (BTFP) index, and incorporates components of Bio Economic as liquid biofuels. BTFP measure changes in Bio Economic efficiency and can be decomposed into bio economy efficiency change (BEC), and Bio Economic technological change (BTC) components.An empirical analysis, involving 7 Central American countries-level during 1980-2007, is provided using DEA methods. The results have shown a positive annual growth in bio economy total factor productivity of 1.1 percent.  This change is explained by 0.03 percent per year in the bio economy efficiency change (or bio economy catch-up) and bio economy technical change (or bio ethanol frontier-shift) is providing 0.09 percent.

scholarly journals TOTAL FACTOR PRODUCTIVITY OF ECONOMIC SECTOR IN INDONESIA

2019 ◽  
Vol 17 (1) ◽  
pp. 20
Author(s):  
M Khoerul Mubin ◽  
Rudi Purwono
Keyword(s):  
Total Factor Productivity ◽  
Technical Change ◽  
Economic Sector ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Economic Sectors ◽  
Economic Productivity ◽  
Average Value ◽  
Positive Growth ◽  
Calculation Results

Activities sectors of the economy in Indonesia become the key of the Indonesian economy. Increasing economic productivity will become the driving factor of the country's economy. This study is aimed to quantify the level of productivity (Total Factor Productivity) of each sector of the economy by counting the productivity-forming component, in this case, the technical efficiency change, technical change and efficiency scale change. Calculation results show that the productivity of each sector of the economy showed positive growth rates, and so did its forming components. The average value of the TFP of 9 sectors of the economy is 2:28. The economic sectors that have the highest TFP are in the sectors of electricity, gas, and water.

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