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.

Exogenous or Endogenous Growth? The Industrial Revolution Reconsidered

1995 ◽  
Vol 55 (4) ◽  
pp. 745-772 ◽  
Author(s):  
N. F. R. Crafts
Keyword(s):  
Economic Growth ◽  
Eighteenth Century ◽  
Economic Development ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Research Agenda ◽  
Industrial Revolution ◽  
Growth Potential ◽  
Factor Productivity ◽  
Recent Developments

The British Industrial Revolution is reviewed in the light of recent developments in modeling economic growth. It is argued that ”endogenous innovation” models may be useful in this context particularly for understanding why total factor productivity growth rose only slowly. ”Macroinventions” were central to economic development in this period, however, and these are best seen as exogenous technological shocks. Although new growth theorists would easily identify higher growth potential in eighteenth-century Britain than in France, explaining the timing of the acceleration in growth remains elusive. A research agenda to develop further insights from new growth ideas is proposed.

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 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.

Productivity

2013 ◽  
Author(s):  
Stephen N. Broadberry ◽  
Claire Giordano ◽  
Francesco Zollino
Keyword(s):  
Economic Growth ◽  
Labor Productivity ◽  
Productivity Growth ◽  
The Other ◽  
Growth Accounting ◽  
Factor Productivity ◽  
International Context ◽  
Labor Productivity Growth ◽  
Catching Up ◽  
Productivity Dynamics

Italy's economic growth over its 150 years of unified history did not occur at a steady pace, nor was it balanced across sectors. Relying on an entirely new input (labor and capital) database, this chapter evaluates the different labor productivity growth trends within the Italian economy's sectors, as well as the contribution of structural change to productivity growth. Italy's performance is then set in an international context: a comparison of sectoral labor productivity growth rates and levels within a selected sample of countries (United Kingdom, United States, Germany, Japan, India) allows us to better time, quantify, and gauge the causes of Italy's catching-up process and subsequent more recent slowdown. Finally, the paper analyzes the proximate sources of Italy's growth, relative to the other countries, in a standard growth accounting framework, in an attempt also to disentangle the contribution of both total factor productivity growth and capital deepening to the country's labor productivity dynamics.

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.

PERANAN KEMAJUAN TEKNOLOGI TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI DKI JAKARTA DAN IMPLIKASI KEBIJAKANNYA

2013 ◽  
Vol 13 (1) ◽  
Author(s):  
Mien Askinatin
Keyword(s):  
Economic Growth ◽  
Correlation Coefficient ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Capital Stock ◽  
Political Stability ◽  
Factor Productivity ◽  
Growth Method ◽  
Technology Growth

Total Factor Productivity Growth (TFPG) is an approach to determine the role of technology progress on economic growth. The calculation of TFPG in this study is use the accounting growth method. Based on data in 1984-2007, TFPG of DKI Jakarta seen coincides with TFPG of Indonesia graphically. This is reinforced by the correlation coefficient value of 87.03 between them. DKI Jakarta provincial economy largely sustained by capital stock which is supported by the growth of TFP. For an accelerated economic growth throughsupport for a strong technology growth, required an atmosphere of economic, social and political stability in an effort to avoid a crisis as happened in 1998.

Total Factor Productivity Growth and the Role of Externalities

1997 ◽  
Vol 162 ◽  
pp. 99-111 ◽  
Author(s):  
Nicholas Oulton
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Physical Capital ◽  
Total Factor Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity ◽  
New Evidence

This paper argues that the greater part of economic growth can be accounted for by the accumulation of human and physical capital. The role of externalities is relatively small. This view is defended by reviewing the most sophisticated growth accounting studies and also by presenting some new evidence on the growth of total factor productivity in 53 countries over the period 1965 to 1990.

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