Total Factor Productivity and Most Favored Nations Tariffs: Evidence from Croatia

2017 ◽  
Vol 7 (1) ◽  
pp. 61-70 ◽  
Author(s):  
Kladiola Gjini
Keyword(s):  
European Union ◽  
Trade Liberalization ◽  
Total Factor Productivity ◽  
Negative Relationship ◽  
Firm Characteristics ◽  
Factor Productivity ◽  
Present Evidence ◽  
Exporting Firms ◽  
Empirical Trade ◽  
Negative Link

Abstract One of the most important topics in empirical trade research is the link between productivity and trade liberalization. In this paper we will focus on the effect of MFN tariffs in the total factor productivity of Croatian firms over the period 2003-2012. This period is characterized by an increased openness toward European Union for Croatian firms. The aim of this paper is to present evidence on the negative link between productivity and tariffs by using the Levinsohn and Petrin (2003) method to estimate productivity of firms. Then we will use TFP as a dependent variable for firm characteristics and trade policy indicator (MFN tariffs). The results are in line with most other studies, confirming the negative relationship between TFP and tariffs. The results show that exporting firms have a higher productivity than non-exporting. We also conclude that up to a certain age productivity increases and then decreases.

Firm Characteristics and Total Factor Productivity: Evidence from Indian Manufacturing Firms

2017 ◽  
Vol 11 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Lopamudra D. Satpathy ◽  
Bani Chatterjee ◽  
Jitendra Mahakud
Keyword(s):  
Total Factor Productivity ◽  
Ordinary Least Squares ◽  
Jel Classification ◽  
Raw Material ◽  
Firm Characteristics ◽  
Manufacturing Companies ◽  
Factor Productivity ◽  
Size Of Firms ◽  
Specific Factors

Measurement of the productivity of firms is an important research issue in productivity literature. Over the years, various methods have been developed to measure firm productivity across the globe. But there is no unanimity on the use of methods, and research on the identification of factors which determine productivity has been neglected. In view of these gaps, this study aims to measure total factor productivity (TFP) and tries to identify firm-specific factors which determine productivity of Indian manufacturing companies. The study is based on data of 616 firms from 1998–99 to 2012–13. To measure TFP, the Levinsohn–Petrin (L-P) method has been employed, and the fully modified ordinary least squares (FMOLS) method has been used to identify factors that affect TFP. The results reveal that embodied and disembodied technology plays a crucial role in the determination of productivity overall in manufacturing and other sub-industries. Similarly, the size of firms and intensity of raw material imports are also important for the determination of productivity across the sub-industries. JEL Classification: C14, C33, D24, L60

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.

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.

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.

scholarly journals Empirical Cost of Electricity Outage on Labour and Capital Productivity in Nigeria

2022 ◽  
Vol 3 (1) ◽  
Author(s):  
Osinachi Iroh ◽  
Ijeoma Kalu ◽  
Alwell Nteegah
Keyword(s):  
Total Factor Productivity ◽  
Electricity Generation ◽  
Labour Productivity ◽  
Negative Relationship ◽  
Series Data ◽  
Electricity Pricing ◽  
Factor Productivity ◽  
Power Outages ◽  
Power Outage ◽  
The Impact

This study empirically examined the impact of electricity power outages on Nigeria’s capital and labour productivity.  The emphasis is on how frequent electricity outage reduces labour and capital effectiveness and other factors of production.  To achieve the above objective, annual time series data on Total Factor Productivity - a proxy for Nigeria’s factors productivity, Power Outage (electric power transmission and distribution losses as % of output), and other controlled variables were used to estimate the relationship and all data were from World Bank Development Indicators (WDI). The Fully Modified Ordinary Least Square (FOLS) technique was adopted for analysis.  The empirical results showed a negative relationship between power outages and factor productivity.  The result also reveals that electricity pricing has a significant negative impact on the factor productivity while both electricity generation and population have a significant positive impact on Nigeria’s total factor productivity.  The implication is that the substitution effect between labour and capital is positive, meaning that Nigeria exhibits a labour-intensive production function. In conclusion, the study is of the opinion that power outage and electricity pricing negatively impact factors productivity while electricity generation and population have a positive relationship with factors productivity in Nigeria.

AGRICULTURAL TOTAL FACTOR PRODUCTIVITY CHANGES IN THE NEW AND THE OLD EUROPEAN UNION MEMBERS

2015 ◽  
Author(s):  
Tomasz KIJEK ◽  
Anna NOWAK ◽  
Armand KASZTELAN ◽  
Artur KRUKOWSKI
Keyword(s):  
European Union ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Factor Productivity ◽  
Technological Changes ◽  
Total Productivity ◽  
The Eu

The aim of this study was the evaluation of agricultural total factor productivity changes between new member countries which have acceded to EU after 2004 and so-called ‘old 15’ EU members. The analysis covered the years 2007–2013. The study is based on Malmquist productivity index divided into technological change and changes in technical efficiency. The results showed a slight increase in the agricultural total factor productivity in the EU countries in the years 2007–2013 (0.1 %, which mainly resulted from a slight increase in technical efficiency in agriculture(0.4 % ), while at the same time adverse technological changes. Among all the countries of the ‘old 15’, only Denmark, the Netherlands, Finland, United Kingdom and Sweden reported increased index of productivity. In the group of countries that joined the EU after 2004, the total productivity growth took place in such countries as Bulgaria, Cyprus, Czech Republic, Malta, Slovakia and Hungary. The reason for this increase was primarily changes in technical efficiency.

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