scholarly journals Oil Price Uncertainty, Globalization, and Total Factor Productivity: Evidence from the European Union

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3429
Author(s):  
Svetlana Balashova ◽  
Apostolos Serletis
Keyword(s):  
European Union ◽  
Total Factor Productivity ◽  
New Technologies ◽  
Innovation System ◽  
Price Volatility ◽  
Oil Price ◽  
Price Uncertainty ◽  
The European Union ◽  
Factor Productivity ◽  
Tfp Growth

This paper uncovers linkages between oil price uncertainty, total factor productivity (TFP) growth, and critical indicators of knowledge production and spillovers. It contributes to the literature by investigating the effects of oil price volatility on TFP growth, controlling for two different channels for TFP growth; benefits from the quality of the national innovation system and from adopting new technologies. We use an unbalanced panel for 28 European Union countries for the period from 1990 to 2018. We find that oil price uncertainty has a negative and statistically significant effect on TFP growth, even after we control for technological advancements and the effects of globalization. We also find that the scale of research and innovation and international trade are positive contributors to TFP growth.

Total Factor Productivity, Efficiency, and Technological Change in the European Regions: A Nonparametric Approach

2009 ◽  
Vol 41 (5) ◽  
pp. 1152-1170 ◽  
Author(s):  
Roberto Ezcurra ◽  
Belen Iraizoz ◽  
Pedro Pascual
Keyword(s):  
European Union ◽  
Technological Change ◽  
Total Factor Productivity ◽  
Malmquist Index ◽  
Geographical Location ◽  
The European Union ◽  
European Regions ◽  
Factor Productivity ◽  
Cross Sectional ◽  
Nonparametric Approach

This paper examines the global trend of total factor productivity, efficiency, and technological change in the European Union regions over the period 1986–2004, using the Malmquist index computed by data envelopment analysis. The results reveal the important role played by technical efficiency in explaining total factor productivity growth in the European Union. For this reason, in a second stage, we investigate existing regional disparities in efficiency levels across the European regions, using a nonparametric methodology that allows us to study the dynamics of the entire cross-sectional distribution. Estimates show the presence of a process of convergence in efficiency levels over the sample period, despite a relatively low degree of intradistribution mobility. In order to complete these results, factors such as the geographical location of the various regions, country-specific characteristics, or the sectoral composition of economic activity were examined for their role in explaining the observed disparities.

Germany’s Growth Prospects against the Backdrop of Demographic Change

2020 ◽  
Vol 240 (5) ◽  
pp. 565-605
Author(s):  
Sebastian Breuer ◽  
Steffen Elstner
Keyword(s):  
European Union ◽  
European Commission ◽  
Total Factor Productivity ◽  
Unemployment Rate ◽  
The European Union ◽  
Factor Productivity ◽  
Structural Unemployment ◽  
Potential Output ◽  
Labour Input ◽  
Growth Prospects

AbstractThis paper shows how the German Council of Economic Experts (GCEE) determines Germany’s potential output, and compares the results with those of the European Commission. The approach of the European Commission is a natural benchmark, as it provides the basis for the deficit and debt rules of the European Union. In comparison with the European Commission’s method, the GCEE’s method places greater emphasis on demographic factors in estimating labour input. Additionally, both approaches differ regarding how they estimate the structural unemployment rate and total factor productivity. Finally, this paper discusses the limitations of, and the different options for estimating potential output.

What are the drivers of total factor productivity in the European Union?

2015 ◽  
Vol 25 (4) ◽  
pp. 406-434 ◽  
Author(s):  
Agnieszka Gehringer ◽  
Inmaculada Martínez-Zarzoso ◽  
Felicitas Nowak-Lehmann Danzinger
Keyword(s):  
European Union ◽  
Total Factor Productivity ◽  
The European Union ◽  
Factor Productivity

Does foreign direct investment spillover total factor productivity growth? A study of Indian drugs and pharmaceutical industry

2017 ◽  
Vol 24 (7) ◽  
pp. 1937-1955 ◽  
Author(s):  
Nitin Arora ◽  
Preeti Lohani
Keyword(s):  
Foreign Direct Investment ◽  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Spillover Effect ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Content Type ◽  
Domestic Firms ◽  
Tfp Growth

Purpose Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry. Design/methodology/approach This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function. Findings The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry. Research limitations/implications The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework. Practical implications Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy. Social implications In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws. Originality/value The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

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