scholarly journals A New Method for Measuring Total Factor Productivity Growth Based on the Full Industry Equilibrium Approach: The Case of the Greek Economy

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 114
Author(s):  
Nicholas Tsounis ◽  
Ian Steedman
Keyword(s):  
Total Factor Productivity ◽  
Output Growth ◽  
New Method ◽  
Factor Productivity ◽  
Real World Data ◽  
Heterogeneous Labor ◽  
Labor Inputs ◽  
Greek Economy ◽  
Industry Equilibrium ◽  
Comparison Of The Results

A new method of identifying the sources of output growth and measuring total factor productivity (TFP) is proposed, with an application to data from the Greek economy. The price accounting approach, based on the full industry equilibrium (FIE) framework introduced by Opocher and Steedman, where technical progress not only increases outputs relative to inputs but also reduces output prices relative to input rewards, is used. The contributions of this paper are that, first, it amends the FIE TFP measurement approach to account for heterogeneous labor inputs, imported inputs, and indirect taxes, and applies the method to real-world data from the Greek economy; second, it provides a comparison of the results with those found by the use of the neoclassical approach to TFP measurement arguing that the FIE approach measures better sectoral TFP change, and third, it provides an estimate of the effects of sectoral research and development (R&D) expenditures and R&D diffusion from other sectors on TFP change for the Greek economy.

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.

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.

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 Time and Work in Eighteenth-Century London

1998 ◽  
Vol 58 (1) ◽  
pp. 29-58 ◽  
Author(s):  
Hans-Joachim Voth
Keyword(s):  
Eighteenth Century ◽  
Total Factor Productivity ◽  
Industrial Revolution ◽  
Working Hours ◽  
New Method ◽  
Historical Time ◽  
Time Budgets ◽  
Factor Productivity ◽  
Labor Input ◽  
Annual Working

Witnesses' accounts are used to analyze changes in working hours between 1750 and 1800. Two findings stand out. The article demonstrates that the information contained in witnesses' accounts allows us to reconstruct historical time-budgets and provides extensive tests of the new method. Estimates of annual labor input in 1749/63 and 1799/1803 are presented. It emerges that the number of annual working hours changed rapidly between the middle and the of the eighteenth century. These findings have important implications for the issue of total factor productivity during the Industrial Revolution.

Decomposition of Output and Productivity Growth in the Organised Manufacturing Industries in India: An Inter-State Analysis

2018 ◽  
Vol 66 (1-2) ◽  
pp. 25-41
Author(s):  
Prasanta Kumar Roy
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Output Growth ◽  
Manufacturing Industries ◽  
Growth Effect ◽  
Major Contributor ◽  
Factor Productivity ◽  
Reform Period

This article examines and applies the theoretical foundation of the decomposition of output and total factor productivity growth (TFPG) of the aggregate manufacturing industries in 15 major industrialised states in India as well as in all-India during the period from 1981–1982 to 2010–2011, during the entire period, during the pre-reform period (1981–1982 to 1990–1991) and post-reform period (1991–1992 to 2010–2011), and also during two different decades of the post-reform period, that is, during 1991–1992 to 2000–2001 and 2001–2002 to 2010–2011. Output growth is decomposed into input growth effect and TFPG where the three attributes of TFPG are adjusted scale effect, technological progress (TP) and technical efficiency change. A stochastic frontier model with a translog production function is used to estimate the growth attributes of output and total factor productivity (TFP). The empirical results show that input growth is the major contributor to output growth, whereas TP is found to be the major contributor to TFPG and the decline in TFPG of the organised manufacturing sector in India and in its major industrialised states during the post-reform period is mainly due to the decline in TP of the same during that period. JEL Codes: C23, D24, L6, O47

scholarly journals Total Factor Productivity Growth in Indian Agriculture

2010 ◽  
Vol 6 (4) ◽  
pp. 286-298 ◽  
Author(s):  
Amarnath Tripathi
Keyword(s):  
Total Factor Productivity ◽  
Economies Of Scale ◽  
Time Series Data ◽  
Market Access ◽  
Output Growth ◽  
Series Data ◽  
Factor Productivity ◽  
Indian Agriculture ◽  
The People ◽  
Future Growth

n this study, time series data has been related to broad agricultural outputs which included farming, livestock, forestry, and fisheries and 3 conventional inputs: labour, land, and capital, to construct an index of total factor productivity (TFP) between 1969-70 to 2005-06. A TFP index is simply the ratio of an output index to an input index. Therefore, growth in TFP is the residual share of output growth after accounting for changes in land, labor, and other conventional agricultural inputs. Changes in TFP can be interpreted as a measure of the collective contribution of non-conventional inputs in agriculture, such as improvements in input quality, market access, economies of scale, and technology. What emerges from this exercise is a picture that raises concern about future growth in Indian agriculture, and the welfare of the people who depend on agriculture for their livelihood. Agricultural productivity in India appeared to stagnate in the late 1990s after enjoying two decades of rapid growth.

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 AGRICULTURAL MODELS IN EU FADN REGIONS AND CHANGES IN FARM PRODUCTIVITY AND INCOMES

2019 ◽  
Vol 50 (4) ◽  
Author(s):  
Łukasz Kryszak
Keyword(s):  
Total Factor Productivity ◽  
Malmquist Index ◽  
Industrial Agriculture ◽  
Basic Income ◽  
Factor Productivity ◽  
Land Productivity ◽  
Farm Productivity ◽  
Labor Inputs ◽  
Total Productivity ◽  
High Level

The purpose of this paper is to present and comparethe level of and changes in (total and partial) productivityand basic income categories in FADN regions. The regionswere grouped into 4 clusters where relatively similar types ofagriculture predominate. Changes in total factor productivity(TFP) were evaluated using the Malmquist index and Tokarski’smethod. The research showed that regions with extremelyintensive agriculture achieved a high level of productivityand income. However, while there is little potential for productivitygrowth (especially through improved technical efficiency)in these areas, local farms implement technologicalprogress. Regions with ‘industrial’ agriculture generally demonstratelow levels of TFP, which is however accompanied bygrowth due to advances in both efficiency and technology. Inregions where less developed or more traditional agriculturepredominates, low to medium levels of incomes and of partialand total productivity were observed whereas the growth ratesfor labor and land productivity were relatively high. Also, thekey economic category for the farming sector, i.e. incomefrom labor inputs, was observed to grow at a relatively highpace. Note that an analysis of productivity and profitability inagricultural holdings based on only one measure or researchmethod can lead to hasty conclusions.

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