Total factor productivity

Through their influence on the cross-sectional distribution of productivity across firms and workers, job creation and destruction likely have an impact on the rate at which aggregate productivity changes over time. However, the nature of this effect is not, a priori, clear. Although a broad consensus has emerged suggesting that job destruction enhances productivity by eliminating inefficient production units, theories disagree with regard to the effect of job creation. If job flows represent the reallocation of labor from low- to high-productivity positions, job creation would boost productivity growth. If, instead, they represent changes in employment along a primarily low-skill dimension, the effect would be negative. This paper estimates the influence of job creation and destruction on total factor productivity (TFP) growth using annual data on four-digit U.S. manufacturing. As expected, the results reveal a positive association between job destruction and changes in TFP. Yet, t...

In this paper, we investigate the environmental regulation-productivity nexus for 14 OECD countries over the years 1990-2015 and discuss its main policy challenges. Our findings support the hypothesis that environmental policies generate positive productivity returns through innovation as suggested by Porter and . We find that environmental policies have a productivity growth-promoting effect. Both market and non-marked based policies exert a positive but differentiated impact on labour and multifactor productivity growth. Environmental policy measures generate also potentially mixed redistributive impacts. As for specific polices, green taxes display the largest effect on multifactor productivity although with potentially negative redistributive impact. We also find that environmental regulation exerts indirect positive effect on productivity growth fostering capital accumulation especially in high ICT intensive countries.

The present study examines the innovative behaviour of awardee farmers in the Konkan region of Maharashtra, recognising their role as potential change agents in agricultural development. The research was conducted across five districts viz., Thane, Palghar, Raigad, Ratnagiri and Sindhudurg and involved a sample of 40 farmers who had received state-level agricultural awards between 2012 and 2023. Respondents were selected through proportionate random sampling, and data were collected using a pre-tested interview schedule. An ex-post facto research design was employed to assess their innovative behaviour. The findings revealed that three-fourths of the respondents (75.00 per cent) fell within the medium to very high categories of innovative behaviour, while a quarter exhibited low or very low levels. This variation underscores both the achievements and the untapped potential of award-winning farmers in the region. The study highlights the need for targeted capacity-building programmes, farmer-to-farmer learning, and policy support to enhance the innovative behaviour of these farmers and promote wider diffusion of best practices.

This study examines the middle-income trap hypothesis, a concept widely debated in economic literature. This a situation in which economic growth slows down after reaching a middle level and the country is unable to move into the group of high-income countries for a long time. It occurs when the initial successes of industrialisation gradually become exhausted and new growth incentives are not formed quickly enough. But can we really be certain whether a country has fallen into the “trap”? The latter is not a rhetorical question — of the 92 countries classified as middle-income economies by the World Bank in 2000, 27 have moved into the high-income group.
The study aims to systematize numerous definitions of the concept and assess how definitional differences influence conclusions about development paths and income group transitions. An econometric analysis reveals that these differences have minimal impact on the factors affecting transition probabilities, making discussions about the fundamentals of trap formation largely definition-independent. Econometric testing also confirms a long-term relationship between sharp economic slowdowns and upward income transitions. At the same time, the definitional diversity complicates applying the hypothesis to specific countries.

This article presents an Analysis of Economic Growth Indices in Nigeria using the Solow's Model. The model uses key indices of economic growth such as Capital formation, Labor Supply and Total factor productivity to estimate the real Gross Domestic Product (GDP) per capita of the Nigerian economy. Nigeria's economic growth has fluctuated in recent decades, with periods of rapid expansion followed by stagnation. The study utilizes the Augmented Cobb-Douglas production function to model Nigeria's economic growth from 2005 to 2022. The research used MATLAB and Excel spreadsheet to simulate growth using 2005 as base year and to compare the results obtained with World Bank data. The results of the study showed that the model was able to track the trends in Nigeria's Labor Force data and Total Factor Productivity with a relatively stable growth rate of approximately 2.63% per year. But the model tends to overestimate observed Capital Formation, Original Research Article with an average annual growth rate of 14.49%. The Solow's model showed a growth pattern of Nigeria with an average growth rate of 4.53%, and an estimated real Gross Domestic Product (GDP) per capita of $20,190.50 in 2022, indicating the model's ability to predict the economic growth rate of Nigeria. Nigeria policymakers should adopt strategies that improves these key drivers of economic growth in order to boost the overall production of the country.

The need to reach one place from a place that is part of human life is provided by different modes of transportation according to the possibilities and needs that are available. Airline transport is also unique and has an important place in our lives with superior features compared to other modes of transportation. There are many elements within the air transport system in ensuring air transport. Airports are the mainstay of these elements. Today, assessing the performance of airport operators operating as a business is important to ensure efficiency. Through performance evaluation, useful information can be generated for managers to take decisions that will be of benefit to the business. In this study, taking into account all these 27 airports operated by the DHM in Turkey was subjected to performance evaluation under certain criteria. In this context, the productivity change between 2012-2016 of the selected airports with Malmquist-TFP productivity index which is a

Bayesian analysis is used to perform the probability estimation to examine the Japanese affiliates' market penetration by exporting from ASEAN4 (i.e. Indonesia, Malaysia, Philippines and Thailand) and China. The estimation is conducted for 13 manufacturing sub-sectors in 2001-2005 and 2006-2010. This study found that Japanese affiliates not only benefited from low cost production and low trade barriers but also seized the advantage of internalized global production network within ASEAN4 and China to export their goods. Production networking could have both favorable and adverse effects on exports of Japanese affiliates.

This paper analyzes the sources of U.S. labor productivity growth in the post-1995 period and presents projections for both output and labor productivity growth for the next decade. Despite the recent downward revisions to U.S. GDP and software investment, we show that information technology (IT) played a substantial role in the U.S. productivity revival. We then outline a methodology for projecting trend output and productivity growth. Our base-case projection puts the rate of trend productivity growth at 2.21% per year over the next decade with a range of 1.33 -2.92%, reflecting fundamental uncertainties about the rate of technological progress in IT-production and investment patterns. Our central projection is only slightly below the average growth rate of 2.36% during the 1995-2000 period.

Subordination of business to political influence has remains pervasive in China. We construct a Schumpeterian-type model of growth with managerial time allocation between productive activities and building up political connections. The model predicts the impact of different patterns of state ownership and/or political connectedness on firm productivity linked to a period of liberalization. We then investigate the relationship between political connections, state ownership, and total factor productivity (TFP) using firm-level data for China between 1998 and 2007. We find, consistent with the model, that the firms with the highest levels of TFP had low levels of political affiliation and/or state ownership.

Using a large firm-level dataset, this paper examines total factor productivity (TFP) and its determinants in China. Our preferred GMM estimation results indicate increasing returns to scale in most industries and a usually large positive trend representing technical change. Various firm characteristics such as age, ownership, political affiliation, export behavior, liquidity, and geographic location are included in the production function. Our results show that in the context of China's institutional background, including such factors is important when estimating TFP. The average TFP growth in Chinese industries is 9.6 % per annum during the period 1998-2007, and is mainly driven by firm entry. The subsector decomposition exercises show that the inter-firm resource reallocations are more prominent across industries than across provinces.

The aim of this paper is to analyze total factor productivity (TFP) growth and its components in Asian countries applying Stochastic Frontier Analysis (SFA) to the time series data of 44 Asian countries from 2000 to 2010. Using Battese and Coelli approach, TFP is divided into technical efficiency change and technical change. TFP decomposition using SFA method for the years 1998 to 2007 indicates that in 75 % of these economies, the role of technical change in productivity growth is negative. Only in 11 countries technical change had a positive role in productivity growth. The growth of TFP shows that Japan has the highest productivity growth (2.55 %) and Saudi Arabia, Korea and Hong Kong are located in subsequent positions. Furthermore, due to the lowest technical progress, newly independent countries, such as Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan have the slowest TFP growth.

This paper --a product of thc Public Scctor Managemcnt anzd Private Scctor Development Divisionl, Country Economics Dcpartrmcnt -is part ol'a largercffori in P'RE to: (1) asscss the divcstiture expericice to datc; (2) detcrmine tihc factors thial lcd to its succcss or failurc; and (3) suggest how thic World Banki and its borrowers ma) effectivel) use divestiturc as a public policy teol to cnhancc cconomic development. This paper is a revised version of a research proposal that the World Bankls Researclh Committec has approved for funding. Workl implentiiiilng thic proposed methodology is underway in Chile, Mexico, tlle U.K., and Malaysia.Copies of this paper are available free from the World Bank, 1818 H Street NW, Washinigton DC 2(433. Please contact Gloria Orraca-Tettch ,room N9-069, extension 37646 (31 pages). Thc economic rationale for divestiture rests on Galal suggests that to tease causalitv out of iwo propositions: that it will improve firms' the limited data thiat exists on this rclatively productive efficicncy and that it will reduice the receint phicnomlcnol, anal) sts compare datl on: budgetary burden that public enterprises inipose. -Th.' same cnierprise before and al'tcr But there hias been almost no empirical divestiture. analysis of what actually happens after divestiture, of which cntcrprises arc desiraiblc candio Divested and undivcstcd fimis in the samc dates, and under wOhat conditicns divcstiture sector and samc country. might improve a counlr)y's economic perf-ormance. * The performancc of tic divested ftrm and an explicit countcrfactual (the hypothetical perfor-Galal provides an analytical frameAork mance of the firm had it remained public). (partial equilibrium analysis) for assessing tiese basic argumcnts anid evalualting thic lessons of * The performance of divested firms in cxperiencc. competitivc and noncompetitive markefs in thc same country. To avoid the shiortcomings of the few studies that have becn done, Galal says thrce qluestions he Tle pcrformance of divested firms in the must bc asked: What are the changes in ecosame industr) but diffcrent countries. nomic efficienc) and Fiscal incidence, if any" What possible factors explain divestiture outcomes'? What is the causal linlk betwcen outcomes and their hypothetical detenninants'? Thc PRE W orking Pdper Scries discmllnalin thc findings of work under \,a\ in thi Rank's Policy, Research, and Extecmal Affairs Complex.An objectis \ of the sCries is to get thesc findings out quickl'..e cn if presentations are less than fully polishe(l. The findings, interpreaions. and conmlusions in thesc papers do not necessarily represent official Rank policy. Pf.du ,c d ls thie PRl L)o 55in ialtnr ('Ceitcr

The nation's low productivity in producing food crops is a reflection of inefficiency and the use of antiquated technology, which further impedes attempts to make sustainable progress in food production and availability. This study used a structured questionnaire to gather cross-sectional data from 360 cassava-based farmers who were randomly selected using a multi-stage sampling method. The goal of the questionnaire was to estimate the Total Factor Productivity (TFP) of productive resources used in cassava-based farms in SouthWest Nigeria. Descriptive and inferential statistics, the gross margin and the total factor productivity index were used to assess the data. The results showed that the majority (82.2%) of cassava farmers were male and they were within the active age group given a mean of 47.9years with a mean household size of 6 persons. About 87.2% of the farmers were married and had an average farming experience of 13years while about 58.3% of them had secondary education. The cassava farmers had an average farm size of 3.4ha and many (72.2%) of them had no access to credit. According to the summary statistics on total factor productivity, 66.9% of farmers produced at high levels, with their total factor productivity indices being above the optimal range. It was discovered that a number of factors significantly influenced the productivity of cassava-based farmers, including age, gender, marital status, farming experience, farm size, access to financing, availability of extension agents, membership in a cooperative association, and total household income. It was also found that cassava-based production was a profitable enterprise and that the total variable cost, total cost, gross margin, profitability ratio, efficiency ratio, income expenditure ratio and return on investment were significant in determining the level of productivity of farmers. There was a significant difference between the socioeconomic characteristics of farmers who had low productivity and farmers who had high productivity. As a result, the report advises that the government give farmers with subsidized inputs such as agrochemicals and fertilizer, as well as loan facilities, to help farmers raise their scale of output and productivity.

This study constitutes a literature review of empirical research concerning AI and productivity, encompassing agricultural productivity, total factor productivity, and the productivity of publicly listed manufacturing firms. It includes instrumental variable regression analyses of AI and firm-level productivity, AI adoption in the United States, metrics of AI utilisation, determinants of AI adoption, data collection methodologies related to AI, the implications of the "productivity paradox" associated with AI, and the mechanisms through which AI impacts economic growth.

We use the standard growth theory to evaluate the quantitative role of changes in the population growth rate, depreciation rate, tax rate on capital and labor income, and the TFP growth rate in explaining the decline in the saving rate and the current account balance in the U.S. Our …ndings suggest that the decline in the population growth rate and the increase in the depreciation rate play a signi…cant role in explaining the secular trends in the U.S. saving rate up to early 1990s. We also …nd that the model is capable of capturing the current account de…cit between the U.S. and the OECD countires, thus explaining one third of the overall U.S. current account de…cit. Our results indicate that di¤erences in the TFP growth rates between U.S. and it's trading partners may have been responsible for the secular decline in the U.S. current account.

which will appear three times a year. The bulletin will highlight the results of in-house research done at the Czech National Bank. Given that maintaining exchange rate stability in the context of joining the EU is one of the key concerns of the Czech National Bank, this first issue of the Bulletin is devoted to (equilibrium) exchange rate determination in the Czech Republic. First, Aleš Bulíř looks into the scope of nominal exchange rate fluctuations in Central European countries to establish the causes of those fluctuations. Next, Tomáš Holub investigates the factors of equilibrium real exchange rate appreciation in the Czech Republic, again from an international perspective. In this context, the effects of price convergence to the level of EU countries are analysed in more detail. Finally, Vladislav Flek discusses the impact of real catching-up with EU productivity levels, within the framework of the Balassa-Samuelson Effect. Since this is the inaugural issue of the Bulletin , an...

URL del artículo en la web de la Revista: https://www.upo.es/revistas/index.php/RevMetCuant/article/view/2375Se estudian econométricamente los mercados cambiarios y los tipos de cambio de Asia y Latinoamérica. Se utilizan análisis de cambio estructural endógeno y de cointegración y funciones de impulso-respuesta. Los hallazgos indican que: 1) la sincronización de largo plazo de los mercados cambiarios es baja; 2) no hay evidencia de sincronización en los mercados asiáticos; 3) un choque estocástico en un país latinoamericano tiene efectos de mayor magnitud y duración que un choque similar en un país asiático; y 4) no hay evidencia de que la Crisis Financiera Global haya inducido cambios estructurales en las dinámicas de los tipos de cambio. Se usan los tipos de cambio spot diarios de Argentina, Brasil, Chile, China, Colombia, Corea del Sur, India, Malasia, México y Tailandia, para el periodo del 5 de agosto de 2002 al 22 de enero de 2016.The exchange markets and the exchange rates o...

Agriculture remains the backbone of the Ethiopian economy, but productivity levels must improve to address food insecurity. In particular, enhancing the productivity and efficiency of teff cultivation could play a significant role in achieving food security. This study was conducted in the South Soddo District of the Gurage Zone in Central Ethiopia to determine the technical efficiency of smallholder teff farmers and identify factors affecting their inefficiency. The research gap identified is the lack of simultaneous estimation of production technology and the covariates of technical inefficiency, which are often addressed separately in existing studies. Using a two-stage random sampling technique, 196 sample households were selected, and a semi-structured questionnaire was employed to collect data on teff production during the 2021/22 season. The study used the Stochastic Frontier Analysis (SFA) method, specifically the Cobb-Douglas production function, to analyze the data, allowing for the distinction between random errors and inefficiency. This study found significant variations in efficiency among teff-producing farmers, with a mean technical efficiency score of 79.6%. These results suggest that teff production can be increased by 20.4% without extra inputs. Factors affecting inefficiency include age, education, land fragmentation, credit, contact with external creditors, tropical livestock, and crop rotation. The study recommends measures to improve education, establish a benevolent environment for farmers to share experiences, enhance credit service provision and enable more consistent and regular extension contacts. By addressing these factors, this study aims to contribute to a more accurate understanding of the inefficiency of teff production, ultimately supporting efforts to enhance food security in Ethiopia.

In this paper we demonstrate how the impure public good model can be converted into a pure public good model with satiation of private consumption, which can be handled more easily, by using a variation of the aggregative game approach as devised by . We point out the conditions for impure public good utility functions that allow for this conversion through which the analysis of Nash equilibria can be conducted in a unified way for the impure and the pure public good model and which facilitates comparative statics analysis for impure public goods. Our approach also offers new insights on the determinants for becoming a contributor to the public good in the impure case as well as on the non-neutral effects of income transfers on Nash equilibria when the public good is impure.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

The study investigates the determinants of total factor productivity in selected sectors of the Angolan economy for the period of 1995 and 2017. The empirical results indicate that foreign direct investment is positively and significantly associated with an increase in total factor productivity in all sectors. Moreover, openness of the economy and the exchange rate have a positive impact on total factor productivity in the manufacturing sector. However, the impact of these two variables is negative on total factor productivity in the primary and service sectors. Furthermore, the study results reveals that an increase in inflation causes a decrease in total factor productivity in the manufacturing and service sectors, whilst positively associated with an increase in total factor productivity in the primary sector. Finally, official development assistance has a negative effect on total factor productivity in the primary and service sectors, whilst having a positive effect on total factor productivity in the manufacturing sector. The results imply that to ensure sustainable total factor productivity growth, Angola should pursue policies that attract foreign direct investment. The effect of other variables such as openness of the economy, inflation, official development assistance and exchange rate depends on sectors. This suggest that it is important to come up with policies, which are sector-specific in order to improve total factor productivity growth.

Purpose -This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm's joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys. Design/methodology/approach -This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of and , proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models. Findings -The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit

We examine the contrast in the experience of ownership reforms between urban SOEs and rural TVEs using a panel of industrial enterprises in Nanjing municipality for the period from 1994 to 2001. Our objectives are twofold. First, we study how the reform program of "grasp the large and let go of the small" has been carried out in practice by comparing the patterns of enterprise restructuring in the SOEs and the TVEs. Second, we investigate how the alternative reform strategy has affected firm performance in terms of the growth of labor productivity, total factor productivity (TFP), profitability, and worker earnings. We find a sharp contrast in the reform strategies of the SOEs and TVEs in two respects. First, the changes in the SOE sector were more gradual and involved more limited transfer of property rights than did the reform of the TVEs. Secondly, the reforms in both sectors exhibited selection bias but in opposite directions, with worse performing ones being the principal targets of reforms, among SOEs, and better performing enterprises being more likely to be picked for privatization, among TVEs. Our analysis discerns strikingly strong, robust positive effects of ownership restructuring on the growth of labor productivity, TFP and profitability in the reformed SOEs, indicating that the evolutionary reform policy for the SOEs has successfully reversed the trends of declining productivity and profits in these enterprises in Nanjing. We also find that among reformed urban enterprises, those in which private ownership accounts for less than 50% of shares performed better than those in which the majority of shares are owned privately. We find mixed evidence for the TVEs: privatization had no effect on firm performance in a group fixed-effects model but significant, positive effects in a firm fixed-effects model.

O objetivo deste artigo é utilizar as técnicas de Análise de Fronteira Estocástica para se estimar crescimento ou decrescimento de ineficiências no tempo, assim como o método de programação linear Data Envelopment Analysis e o índice de Malmquist para se analisar as fontes de alterações da PTF nas principais lavouras de grãos brasileiras -arroz, feijão, milho, soja e trigo -durante o período 2001-2006. Dentre os resultados obtidos, embora tenha havido alterações positivas na PTF para as lavouras da amostra, houve declínio no componente referente às inovações tecnológicas para todas as principais lavouras de grãos brasileiras entre os anos 2005/2006 -período em que se observa queda na utilização de insumos na agricultura.

The objective of this paper is to apply a Cobb-Douglas, Translog Stochastic Production Function and Data Envelopment Analysis in order to estimate inefficiencies over time as well as respective TFP (Total Factor Productivity) sources for main Brazilian grain crops - namely, rice, beans, maize, soybeans and wheat - throughout the most recent data available comprising the period 2001-2006. The results indicate that, although positive changes exist in TFP for the sample analyzed, a decline in the use of technology has been evidenced for all grain crops in which it is observed a historical downfall in the use of inputs in Brazilian agriculture

The objective of this paper is to apply a Cobb-Douglas, Translog Stochastic Production Function and Data Envelopment Analysis -particularly the Malmquist index -in order to estimate increases or decreases of inefficiencies over time as well as the sources of TFP changes for the main Brazilian grain crops -namely, rice, beans, maize, soybeans and wheat -throughout the most recent data available comprising the period 2001-2006. According to the Cobb Douglas model, the greatest elasticity presented is that of harvested area, followed by agricultural credit and limestone. The Translog production function presents an amelioration of aggregate productivity over time and, in a decreasing order, the Brazilian regions that have presented the greatest relative degree of efficiency are the Northeast, North, Southeast, South and Center-West regions. The results indicate that, although there have been positive changes in TFP for the sample analyzed, a decline in the use of technology has been evidenced for all the principal Brazilian grain crops between 2005/2007 -period in which we observe a remarkable downfall in the use of inputs in Brazilian agriculture.

An identical two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that release leisure time and initially raise the relative price of human capital investment so as to favor it over goods production. Modified by having the ...

Abstract: The post-1983 moderation coincided with an ahistorical divergence in the money aggregate growth and velocity volatilities away from the downward trending GDP and inflation volatilities. Using an en dogenous growth monetary DSGE model, with micro-...

This research aimed to identify behavior of adopting technology innovation of local chicken farmers in Banyumas. Qualitative approach was applied to get a further examination on farmers’ characteristics and pattern of adopted maintenance system while domain, taxonomy and component analysis were further applied in accordance to innovation as the main goal. Purposive Random Sampling was used to determine 176 respondents from six groups of local chicken farmers in five selected sub districts. Result showed that maintenance systems applied by the farmers were traditional maintenance (39.77%), semi-intensive (52.27%), and intensive (7.96%). Intensification workshop, in conclusion did not always meet the result expectancy since many farmers still applied traditional and semi-intensive system. Keywords : adoption behavior, technology innovation, intensification, local chicken farmers Animal Production 14(2):118-122

Productivity is the essence of mediumand long-term economic growth in any economy; in this sense, we quantify the effects on economic activity in Colombia of productivity growth in the agricultural sector under a computable general equilibrium framework capable of incorporating determinants of its sources of growth of a more .endogenous"nature. The above, within an economy with heterogeneous firms and imperfect competition under the Melitz model, has 12 branches, 17 products, 16 trading partners, skilled and unskilled labor (informal or not), a fiscal framework with exogenous government and 20 types of households (half urban and half rural) that allows for distributional analysis. This analytical and quantitative tool is very useful for economic policy makers in that it allows them to contemplate a fairly complete picture of the Colombian economy in computational terms and to evaluate the different scenarios of the effects of the design and implementation of economic policies a...

Non-technical summary 1 Introduction 2 Analytical framework 2.1 The model 2.2 Calibration and simulation 3 Empirical framework 3.1 Empirical specifi cation for private sector wages 3.2 Empirical specifi cation for public sector wages 3.3 Econometric issues 4 Estimation results and discussion 4.1 Data and stylised facts 4.2 Private wage determinants 4.3 Public wage determinants 4.4 Robustness, including further dynamics 5 Conclusion References Tables and fi gures Appendices European Central Bank Working Paper Series CONTENTS 4 ECB Working Paper Series No 971

We are grateful to Simone Ruiz for assistance with the data, seminar participants at the ECB, and an anonymous referee for useful comments. The opinions expressed herein are those of the authors and do not necessarily reflect those of the ECB or the Eurosystem. Juan González Alegre thanks the Fiscal Policies Division of the ECB for its hospitality.

In the following manuscript we describe the implementation of a method for calculating relative free energies for a general force eld (A simple, robust and ecient method for calculating relative free energies). The following is a description of how to transform a group of similar molecules (e.g phenol derivatives) according to the method decribed in the article. Similar groups (e.g benzene and phenol derivatives) can either be grouped together or linked later on (preferably the second option) and so on.

This paper explores sources of growth in the Turkish economy by performing growth accounting exercises over the 1960-2004 period and relevant subperiods. It also analyzes the role of a number of important policy-related factors, such as infrastructure investment, macroeconomic instability, and imports, on total factor productivity (TFP) by performing cointegration and impulse response analyses. The results suggest that both TFP and capital accumulation were crucial sources of growth during the sample period. Nevertheless, TFP growth displayed enormous variation from 1960 to 2004. The descriptive and empirical evidence suggests that TFP is positively affected by imports and public infrastructure investment and negatively affected by macroeconomic instability.

This paper explores sources of growth in the Turkish economy by performing growth accounting exercises over the 1960-2004 period and relevant subperiods. It also analyzes the role of a number of important policy-related factors, such as infrastructure investment, macroeconomic instability, and imports, on total factor productivity (TFP) by performing cointegration and impulse response analyses. The results suggest that both TFP and capital accumulation were crucial sources of growth during the sample period. Nevertheless, TFP growth displayed enormous variation from 1960 to 2004. The descriptive and empirical evidence suggests that TFP is positively affected by imports and public infrastructure investment and negatively affected by macroeconomic instability.

This article measures the productivity of Ethiopian public universities and identifies the factors that influence it. Using a quantitative research approach and secondary data, the study targeted Ethiopian public universities to assess their total factor productivity (TFP). The researchers used a non-parametric approach, specifically the Malmquist productivity index, to measure TFP performance. They then used a parametric approach, or multiple regression analysis, to examine the factors affecting TFP change. In this study total factor productivity change was used as a proxy to measure productivity of universities and pure efficiency, technical efficiency and scale efficiency were considered as independent variable. The findings showed an overall decline in university productivity over the study period. However, the analysis also revealed a positive trend of yearly productivity improvement. The study found that all selected variables-technical change, pure efficiency change, and scale efficiency change has a positive and statistically significant effect on the productivity of education expenditure. The researcher would like to suggest the university community to focus work on the efficiency improvement to enhance the productivity of the university.

The study endeavors to break down output growth in the Indian sugar industry into the 'perspiration' component that corresponds to factor accumulation and the 'inspiration' component that corresponds to the total factor productivity (TFP) growth. The bootstrapped Malmquist productivity index has been used as a technique to obtain the TFP growth from the period 1974/75 to 2004/05. Empirical analysis reveals that output growth in the Indian sugar industry is equally driven by the inspiration component (i.e., TFP growth) and the perspiration component (i.e., factor accumulation), but in opposite directions. The inspiration component is observed to contribute to output growth positively, whereas the perspiration component contributes negatively. Given substantial TFP growth, the potential output growth in the Indian sugar industry has been restricted primarily by the negative growth of inputs during the entire study period and particularly in the post-reform period.

This paper explores the crosscountry variation in output per worker, focusing on institutional quality as a foundational determinant of productivity. Utilizing panel data for 80 countries from 2000 to 2022 and a newly constructed Social Infrastructure Index (SII), we employ fixed-effects and two-stage least squares (2SLS) regressions to identify the causal impact of governance on productivity. Our findings show that a one-point increase in the SII is associated with a 4.98% rise in output per worker, controlling for capital intensity and educational attainment. To reinforce these results, we apply Synthetic Control Methods (SCM) to three country case studies-Egypt, Qatar, and Rwanda-demonstrating productivity gains of 6-12% following institutional reforms. This study extends the literature by integrating ESG dimensions into institutional analysis and presenting a transparent, replicable framework for measuring and evaluating governance-driven productivity. The results inform current debates on inclusive growth, state capability, and sustainable development strategies.

This study aims to investigate the renewable energy (RE) productivity of European Union (EU) countries for 2013-2022. For this purpose, the study focuses on 26 EU member states and uses the Hicks-Moorsteen productivity index (HMPI) method. Because of the analysis, it is determined that Luxembourg, Malta, the Netherlands, Belgium, and Ireland are the leaders in RE productivity, while the RE productivity of other countries, except Hungary, Romania, Latvia, Croatia, and Bulgaria, has increased in the said period. Moreover, the HMPI values of EU countries for 2013-2022 vary between 0.968 and 1.182. When analyzing the annual averages by country, the average HMPI value for the relevant period is 1.040. Considering the index components, the increase in productivity across the EU is primarily driven by technological change (1.025), whereas efficiency change (1.018) contributes less to this increase.

This paper estimates the total factor productivity of the Italian health care sector using a modified bootstrapped Malmquist Index including the quality of the production process provided to the population. Decomposing the productivity process in three different components (efficiency change, technological change and quality change) we can detemine if the increasing/decreasing health care productivity of the 20 Italian regions is strictly related to any of the changes during 1999-2008. The results highlights also significant difference in the terms of North-South divide.

An influential explanation for the recent rise in the US current ac'count deficit is the boom in US productivity. Using a two country general equilibrium model, this paper quantitatively shows that the gap in pro'ductivity growth between the US and the Vrest of ...

The Cohesion Policy of the European Union is the primary tool for reducing economic disparities among European regions. One of its main characteristics is that it produces heterogeneous effects due to several factors, particularly regional economic structures and institutional frameworks. Using panel data from 2000 to 2018 for the EU-28 NUTS2 regions, we investigate the impact of European Structural and Investment Funds on regional economic growth, focusing on regional productive structures, and more specifically, on the division of economic activities into tradable and nontradable sectors. A distinctive feature of this analysis is the modelling of the impact of European Structural and Investment Funds on tradable and nontradable activities through a multi-input multi-output transformation function, taken from production analysis. We uncover important and novel empirical findings. Our evidence indicates that European Structural and Investment Funds influence the tradable and nontradable partition across regions with notable differences. The Cohesion Fund is positively associated with nontradables in new accession countries. Conversely, the ERDF shows a bias toward nontradables in the lagging areas of former EU member States but favours tradables in new accession countries and in the more advanced regions of the EU.

Productivity is one of the most crucial indicators of the economy because it measures efficiency in using inputs, such as labor and capital, in the production procedure (Anjum and Micheal, 2017). To be more precise, a rise in productivity growth rate reveals that higher output is produced either the same or lower inputs. In other words, the inputs are consumed more proficiently owing to the enhancement of prevailing Abstract | Most important goal of development economics and macroeconomic policies is achieving sustainable production growth. Continuous production growth is considered to be important for raising living standards. Agriculture's Total Factor Productivity (TFP) is one of the major sources of production growth. It assesses influence of the economic and technical efficiency in the production of the desired output by combining factor inputs. The study focused on estimating total factor productivity growth in Pakistan's economy and particularly in the agriculture sector. For this purpose, the study utilizes the growth accounting technique to obtain reliable estimates of total factor productivity. The study covered total factor productivity growth period from 1973-2020. Results indicated that the overall economy average TFP growth rate is higher from 1981 to 1990 in the agriculture sector of the country. The TFP growth of agriculture sector was higher in this decade. Comparison between the TFP with other sectors like industrial and services, having 1.51%, 4.01% and 4.12%. TFP has been lowest in the agriculture sector as compared to other sectors as per findings of the study. As a result, effective policies are needed to enhance agriculture total factor productivity growth by the government. The farmers' level of education makes a significant contribution to TFP development. It is concluded that education funding be increased for the farmers to accelerate TFP growth in Pakistan.

He has been engaged and interested in my work throughout the course of the M.Phil. and D.Phil. and provided much valuable feedback. I have also benefited greatly from discussing the issues raised in this thesis with Måns Söderbom, Markus Eberhardt and Courtney Monk. Quality data is critical for empirical work, and I am appreciative to the CSAE and the World Bank for collecting and making it available. The University of Tasmania and the Oxford-Australia Trust provided valuable financial support. Finally I would like to thank my mother, Miranda, and my partner, Justinian Habner, for their longstanding support and encouragement of my academic pursuits.

This paper evaluates various channels through which foreign technology diffuses to the manufacturing sector of selected developing economies. These economies carry out very little (if any) own R&D so they rely on foreign technology to a much larger extent than developed economies. We investigate the direct effect of foreign R&D, as well as technology embodied in imports of intermediate and capital goods and foreign direct investment, on the growth of manufacturing total factor productivity and value added in 32 developing economies during the 1965-1992 period. We find that foreign R&D typically has the biggest positive impact on domestic productivity and value added growth. Imports of technology goods and foreign direct investment also play a similar positive role but their effect is of smaller magnitude and is not always significant.