Total factory productivity

This paper is an exposition of the theoretical Cobb-Douglas production function, showing how Philippine growth patterns and productivity are compared with other ASEAN countries. The derivation of the aggregates of growth and productivity highlights the development of Cobb-Douglas production function as espoused by Samuelson. Data consideration follows Cobb and Douglas theoretical limits. Extension of the derivation is the empirically tested Solow Growth model. Cobb-Douglas production used in this paper is extended with Human capital. The interest on this section is the estimates of absolute levels of TFP as residuals that are closely related to levels of output per person. GDP growth is highly affected by technical or technological growth, aside from growth drawn from physical capital, labor and human capital. Singapore has a very low relative growth drawn from its physical capital, labor and human capital, but it has coped up through the industrialization it has experienced. Philip...

PurposeTotal factor productivity (TFP) change is an important driver of long-run economic growth in the construction sector. However, examining TFP alone is insufficient to identify the cause of TFP changes. Therefore, this paper employs the infrequently used Geometric Young Index (GYI) and stochastic frontier analysis (SFA) to measure and decompose the TFP Index (TFPI) at the firm-level from 2009 to 2018 based on Malaysian construction firms' data.Design/methodology/approachTo improve the TFPI estimation, normally unobserved environmental variables were included in the GYI-TFPI model. These are the physical operation of the firm (inland versus marine operation) and regional locality (West Malaysia versus East Malaysia). Consequently, the complete components of TFPI (i.e. technological, environmental, managerial, and statistical noise) can be accurately decomposed.FindingsThe results reveal that TFP change is affected by technological stagnation and improvements in technical eff...

Purpose
Total factor productivity (TFP) change is an important driver of long-run economic growth in the construction sector. However, examining TFP alone is insufficient to identify the cause of TFP changes. Therefore, this paper employs the infrequently used Geometric Young Index (GYI) and stochastic frontier analysis (SFA) to measure and decompose the TFP Index (TFPI) at the firm-level from 2009 to 2018 based on Malaysian construction firms' data.
Design/methodology/approach
To improve the TFPI estimation, normally unobserved environmental variables were included in the GYI-TFPI model. These are the physical operation of the firm (inland versus marine operation) and regional locality (West Malaysia versus East Malaysia). Consequently, the complete components of TFPI (i.e. technological, environmental, managerial, and statistical noise) can be accurately decomposed.
Findings
The results reveal that TFP change is affected by technological stagnation and improvements in technical efficiency but a decline in scale-mix efficiency. Moreover, the effect of environmental efficiency on TFP is most profound. In this case, being a marine construction firm and operating in East Malaysia can reduce TFPI by up to 38%. The result, therefore, indicates the need for progressive policies to improve long-term productivity.
Practical implications
Monitoring and evaluating productivity change allows an informed decision to be made by managers/policy makers to improve firms' competitiveness. Incentives and policies to improve innovation, competition, training, removing unnecessary taxes and regulation on outputs (inputs) could enhance the technological, technical and scale-mix of resources. Furthermore, improving public infrastructure, particularly in East Malaysia could improve regionality locality in relation to the environmental index.
Originality/value
This study contributes to knowledge by demonstrating how TFP components can be completely modelled using an aggregator index with good axiomatic properties and SFA. In addition, this paper is the first to apply and include the GYI and environmental variables in modelling construction productivity, which is of crucial importance in formulating appropriate policies.

Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Infl uential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country diff erences in output per worker is explained by diff erences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a fi rst-pass attempt at organizing the answer around two proximate determinants: factors of production and effi ciency. It answers the question "how much of the crosscountry income variance can be attributed to diff erences in (physical and human) capital, and how much to diff erences in the effi ciency with which capital is used''? In this article, we will outline framework for growth accounting to account for crosscountry diff erence in income of Republic of Srpska, Republic of Croatia and Republic of Serbia. Th e current consensus is that diff erences in income per worker across countries do not arise primarly from diff erences in quantities in capital or

Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Infl uential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country diff erences in output per worker is explained by diff erences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a fi rst-pass attempt at organizing the answer around two proximate determinants: factors of production and effi ciency. It answers the question “how much of the crosscountry income variance can be attributed to diff erences in (physical and human) capital, and how much to diff erences in the effi ciency with which capital is used’’? In this article, we will outline framework for growth accounting to account for cross-country diff erence in ...

Foreign direct investment (FDI) is considered a strategic policy to reduce unemployment in the host country. Through multinational companies, it is expected to be able to absorb new workers so that they can reduce the unemployment rate. Some studies show that FDI is not only related to capital transfers but also provides several key benefits such as reducing unemployment, transferring technology and managerial capabilities. But the benefits are again questioned, both for developing countries and for developed countries. Some studies have found that FDI can reduce unemployment but other studies have also found different things. So that the interrelationships between foreign direct investment and the unemployment rate are not fully clarified. This study aims to analyze the effect of FDI on the labour market in ASEAN 5. This research focuses on 5 founding countries of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Singapore, Malaysia, Thailand, and the Philippines. This study uses a series of Vector Error Correction Model (VECM) analyzes to analyze the effect of FDI on unemployment rates, both in the long and short term in each ASEAN 5 country. Through the Impulse Response Function (IRF) test in VECM analysis, it can also analyze the impact of FDI shocks on fluctuations in the unemployment rate. The data used is annual data covering the years 1975-2016. The results show that FDI can reduce unemployment in ASEAN 5 countries, but this result is only seen in the long term. While through the IRF it was explained that the results were different in each country.

Intellectual capital at the national level has recently emerged as a new area of research, where the focus is on understanding and measuring the intangible factors influencing national wealth creation. The paper analyses how such abstract concept is constructed and what characteristics prevail in recent national intellectual capital research. Different perspectives of national intellectual capital were identified. The prevailing one defines national intellectual capital as a static object, which could be measured and represented by structural factors. But national intellectual capital could be understood as a process, where the dynamic characteristics are the most important. In order to represent national intellectual capital, its elements and their structural relations should be analysed inseparably.

The average share of net exports to Indonesia's economic growth was only 1.01% in the last 30 years. The contribution and important role of manufacturing industry exports in total national exports ranged from 73.62 – 80.91% with an average of 78.30% in the last 10 years (2010 – 2020). This study aims to analyze the impact of manufacturing industry exports and investment on economic growth through the export-led growth hypothesis. The results show that there is a long-term relationship between foreign investment, domestic investment, employment, and manufacturing industry exports to GDP. Domestic investment and manufacturing exports have a positive effect on GDP, on the other hand, foreign investment and employment have a negative effect. An indication of the negative influence of FDI in Indonesia is due to the low rate of economic return. In addition, the negative effect of labor absorption is indicated by the unavailability of adequate employment opportunities.

A fter industrial revoluation 1970's, agriculture sector had become the second prominent sectors for economic growth in Pakistan. It is the main foundation for livelihood and development. Which contributes 18.5% to the total Gross Domestic Product, and important source of employment (38.5% to the total labor force) for country's people. However, with passage of time, agriculture sector production has been decreasing as compare to the other sectors. The industrial sector gets the raw material from ag-Abstract | The current research describes the Total Factor Productivity (TFP) of the agriculture sector and economic growth of the Pakistan from 1980-2018. To analyze the long run relationship among the variables, the Autoregressive Distributed Lag model was used. While constructing the production function, most of the common variables in the production function were utilized. In the construction of productivity and input quantity index, the data of input and output were employed respectively. The data of GDP, capital and labour was used in the agriculture sector for obtaining the agriculture TFP of Pakistan. In addition, the time-series data from 1980-2018 was taken from various publications and official resources. For the period study the estimated annual average of agriculture TFP growth was 2.14% and it contributes 58% to overall agriculture output. The findings explained that the TFP of the agriculture sector was remained highest at 2.86% for a few years and the minimum 0.96% in the 70s. In the 80s, followed by 90s the growing rate of agriculture TFP was 2.24 and 2.46%. During these decades, the TFP growth contributed around (33, 53 and 81%) to agriculture productivity. The analysis of TFP of the agriculture sector shows a significant variation in the TFP growth, due to climate change patterns, public interference, and macroeconomics strategies. The study recommends a dire need to increase capital stock, skilled labour, and cultivated land to boost and enhance agriculture growth as these are the key factors for the agricultural TFP and economic growth of country's.

Intellectual capital (IC) is a recent area of research that recognizes the importance of intangibles for wealth creation. Currently several IC models have been proposed for a national level. These models are ready to establish how national intellectual capital (NIC) should be optimized and directed to induce economic growth. The main threat from these proposals is whether NIC models are valid to identify economic effects and instrument inter-nation comparative analyses. The potential flaws for their validity are primarily hidden in specifity of emergence and development of NIC approach that has been replicated from micro studies and not yet conceptualized. On the other hand, NIC models are challenged to operationalize the complicated nature of NIC that allows for multi-dimensional interpretation in concepts and measurements. This thesis justifies current NIC models that respond to these conceptual and methodological challenges. The major notion of this justification is that NIC approach may receive solid support from long-established growth theories. The analysis conducted through the chosen validation framework provides insights for future research.

estimations are done using ARDL-BOUNDS library for EViews written by Mehmet Balcilar from Eastern Mediterranean University. We would like to thank him for sharing this library with us. We would like to thank two anonymous referees for their valuable comments and suggestions. Finally, we also would like to thank the co-editor Germán Coloma for his invaluable support.

The gap between marginal revenues and marginal costs of inputs (i.e., distortions or wedges) at establishments potentially lower aggregate total factor productivity (TFP) by preventing efficient allocation of resources among incumbents, deterring entry and exit, and affecting technology choices. We investigate the impacts of distortions on aggregate TFP, entry and exit, and establishment-level productivity growth using a rich dataset of Japanese establishments falling into manufacturing industries. Our main findings are the following. First, if capital and labor were reallocated in Japan to equalize marginal products to the extent observed in the United States, aggregate TFP would increase by 6.2%. Second, the efficient size distribution of establishments that would be realized without any distortions would be more dispersed than the actual one. Third, distortions have a significant impact on entry and exit as well as establishment-level productivity growth. Finally, we investigate ...

We evaluate the role of borrowing constraints in misallocation overall using a rich plant-level dataset of manufacturers in Japan. We first measure plant-level distortions and estimate the hypothetical TFP gains and plantsize distributions that would be achieved if all plant-level distortions were removed. Then we develop a dynamic general equilibrium model incorporating borrowing constraints, parameterize it using plant-level information, and estimate the hypothetical TFP gains and plant-size distributions that would be realized if borrowing constraints were removed. Comparing the modelbased counterfactual experiments with the measured misallocation overall, we find that borrowing constraints are a significant, but not a major source of misallocation overall in the manufacturing sector in Japan.

The comparative picture of TFP growth by sub-period-wise has revealed that the magnitude of TFP growth varied from 1.3 per cent per annum during the 1990s to 6.2 per cent per annum during the 1980s. During the entire period under study (1981-2000), TFP has been found growing at the rate of 5.4 per cent per annum. The results present a divergent picture of horticultural growth in the Konkan region during the period under study. Investment on research has been the major source in TFP growth. The returns to horticultural research were high pay-off to the tune of IRR 119 per cent.

This is a Working Paper and the author(s) would welcome any comments on the present text. Citations should refer to a Working Paper of the International Monetary Fund. The views expressed are those of the author(s) and do not necessarily represent those of the Fund.

Foreign direct investment (FDI) is considered a strategic policy to reduce unemployment in the host country. Through multinational companies, it is expected to be able to absorb new workers so that they can reduce the unemployment rate. Some studies show that FDI is not only related to capital transfers but also provides several key benefits such as reducing unemployment, transferring technology and managerial capabilities. But the benefits are again questioned, both for developing countries and for developed countries. Some studies have found that FDI can reduce unemployment but other studies have also found different things. So that the interrelationships between foreign direct investment and the unemployment rate are not fully clarified. This study aims to analyze the effect of FDI on the labour market in ASEAN 5. This research focuses on 5 founding countries of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Singapore, Malaysia, Thailand, and the Philippines. This study uses a series of Vector Error Correction Model (VECM) analyzes to analyze the effect of FDI on unemployment rates, both in the long and short term in each ASEAN 5 country. Through the Impulse Response Function (IRF) test in VECM analysis, it can also analyze the impact of FDI shocks on fluctuations in the unemployment rate. The data used is annual data covering the years 1975-2016. The results show that FDI can reduce unemployment in ASEAN 5 countries, but this result is only seen in the long term. While through the IRF it was explained that the results were different in each country.

Foreign direct investment (FDI) is considered a strategic policy to reduce unemployment in the host country. Through multinational companies, it is expected to be able to absorb new workers so that they can reduce the unemployment rate. Some studies show that FDI is not only related to capital transfers but also provides several key benefits such as reducing unemployment, transferring technology and managerial capabilities. But the benefits are again questioned, both for developing countries and for developed countries. Some studies have found that FDI can reduce unemployment but other studies have also found different things. So that the interrelationships between foreign direct investment and the unemployment rate are not fully clarified. This study aims to analyze the effect of FDI on the labour market in ASEAN 5. This research focuses on 5 founding countries of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Singapore, Malaysia, Thailand, and the Philippines. This study uses a series of Vector Error Correction Model (VECM) analyzes to analyze the effect of FDI on unemployment rates, both in the long and short term in each ASEAN 5 country. Through the Impulse Response Function (IRF) test in VECM analysis, it can also analyze the impact of FDI shocks on fluctuations in the unemployment rate. The data used is annual data covering the years 1975-2016. The results show that FDI can reduce unemployment in ASEAN 5 countries, but this result is only seen in the long term. While through the IRF it was explained that the results were different in each country.

Background: Pulses, supplemented with cereals, provide a perfect mix of vegetarian protein of high biological value. The productivity of pulses in India is less than half of the productivity levels in the USA and Canada. Present investigation was aimed to Total Factor Productivity (TFP) growth in three pulse crops in the state of Rajasthan from 2000-01 to 2017-18. Methods: 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. The translog function does not require perfect substitutes for inputs. If the relative price of input increases, the producer decreases its use (substituting other inputs) until all marginal productivities are proportional to the new prices. Result: The results of this study has indicates low TFP in gram (0.98%) despite a 59.23 per cent share in the total pulse output of the state. The annual compound growth rate of TFP of black gram increased at the rate of 1.11 per cent per annum (moderate growth) and the contribution of TFP to output growth was low; at about 41.63. Whereas, the compound growth rate of TFP of annual green gram crop increased at the 2.38 per cent per annum (high growth) while its TFP to output growth was about 66.43 per cent. The real cost of production of gram, black gram and green gram crop increased by 0.77, 1.49 and 1.57 per cent per annum, respectively.

provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research. The Institute is funded through income from an endowment fund with additional contributions to its work programme from Finland, Sweden, and the United Kingdom as well as earmarked contributions for specific projects from a variety of donors.

Background: Pulses, supplemented with cereals, provide a perfect mix of vegetarian protein of high biological value. The productivity of pulses in India is less than half of the productivity levels in the USA and Canada. Present investigation was aimed to Total Factor Productivity (TFP) growth in three pulse crops in the state of Rajasthan from 2000-01 to 2017-18. Methods: 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. The translog function does not require perfect substitutes for inputs. If the relative price of input increases, the producer decreases its use (substituting other inputs) until all marginal productivities are proportional to the new prices. Result: The results of this study has indicates low TFP in gram (0.98%) despite a 59.23 per cent share in the total pulse output of the state. The annual compound growth rate of TFP of black gram increased at the rate of 1.11 per cent per annum (moderate growth) and the contribution of TFP to output growth was low; at about 41.63. Whereas, the compound growth rate of TFP of annual green gram crop increased at the 2.38 per cent per annum (high growth) while its TFP to output growth was about 66.43 per cent. The real cost of production of gram, black gram and green gram crop increased by 0.77, 1.49 and 1.57 per cent per annum, respectively.

R The debate about whether technical progress causes technological unemployment, as the Luddites argued in the early 19 th century, has recently resurfaced in the context of new technologies and automation and the so-called Fourth Industrial Revolution. We review the main issues and then consider in detail the studies of Autor and Salomons (2017, 2018). They find that after both direct and indirect effects are accounted for, technical change is, on the aggregate, employment-augmenting. They find no evidence that technical change (proxied by the growth of productivity) reduces employment growth. We demonstrate that the regressions they estimate are problematic because they approximate an accounting identity. One or two variables in the identity (output growth or both output growth and capital growth) are omitted, which implies that the coefficient of productivity growth suffers from omitted-variable bias. As the omitted variable is known, we can have a good idea of what the statistic...

In recent years a vast literature has been devoted to estimate the degree of misallocation in different countries, sectors and time periods using Hsieh & Klenow (2009) -henceforth HK- framework. Even if we take the HK model at face value, such estimations still depend (heavily) on the assumed production technologies and elasticity of substitution. How much of the estimated TFP gain from eliminating distortions is due to actual TFPR dispersion among firms and how much is related to the specific parameterization of the model? We propose a decomposition of the inferred distortions that allows us to isolate the effect of “average” distortions (which depend on the parameterization and are defined at the industry level) from that of “dispersion” distortions (which are unaffected by the parameters and operate at the firm level). Using a newly available administrative dataset with the universe of Chilean firms between 1999 and 2015, we show that TFP gains from eliminating misallocations usi...

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Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Infl uential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country diff erences in output per worker is explained by diff erences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a fi rst-pass attempt at organizing the answer around two proximate determinants: factors of production and effi ciency. It answers the question “how much of the crosscountry income variance can be attributed to diff erences in (physical and human) capital, and how much to diff erences in the effi ciency with which capital is used’’? In this article, we will outline framework for growth accounting to account for cross-country diff erence in ...

This study investigates whether the Canada-U.S. Free Trade Agreement (CUSFTA) reduced resource misallocation in Canada. The implementation of CUSFTA can be viewed as a natural experiment, which makes it an ideal setting for estimating the causal effect of trade policy on the misallocation of resources. I perform this estimation using a dynamic panel data model with data from the Canadian Annual Surveys of Manufactures (ASM) for the period from 1980 to 1996. I use tariff rates from Trefler (2004) and measure resource misallocation using the dispersion in revenue total factor productivity (TFP) within industries. I find that CUSFTA did reduce resource misallocation by approximately four percent and, consequently, increased TFP by around four percent in Canada. This increase in TFP translates into a contribution of 23 percent to the overall TFP growth of Canada's manufacturing sector.

Economic growth and competitiveness of countries are mainly based on intangible resources which can be viewed as a success factor that decides economic performance. So, the purpose of this study is to assess the importance of intangible capital and examine its role in enhancing economic performance measured by both of gross domestic product and global competitiveness index. The empirical analysis revealed that there is a strong relation between countries' economic performance and intangible capital indices. Our study aims to examine this relation based on data from thirty countries which can be classified to developed countries, developing countries and emerging countries.

The development in Indonesia regions has been unbalance over the years. In Indonesia, significant differences on local governance capacities and natural resources lead to variation of regional economic development. Following economic theory, technology and innovation are expected to solve regional unbalanced development through optimizing local endowments and human capital. This paper aims to explore the role of technology and knowledge in regional economic development. The total factor productivity (TFP) measurement and econometrics analysis are conducted to explore technology contributions on regional economic development in Indonesia regions. The paper finds that technology level contributes significantly to economic growth, complementary with manufacturing industry. In addition, regional expenditure on education and research and development (R&D) are insignificant to economic growth. These findings confirm the role of industries in regional economic development.

This paper provides a detailed analysis of the patterns of misallocation in Italy since the early 1990s. In particular, we show that the extent of misallocation has substantially increased since 1995, and that this increase can account for a large fraction of the Italian productivity slowdown since then. We gather evidence on the evolution of firm level misallocation both within and between various categories of firms, in particular those based on geographic areas, industries, and firm size classes. We do so both for firms in manufacturing and for firms in non-manufacturing. Overall, looking at the distribution of firm productivity, we uncover a thickening of the left tail as the share of firms with low productivity has increased over the period. This implies not only a decrease in average firm productivity, but also an increase in its dispersion. We show that the increase in misallocation has come mainly from higher dispersion of productivities within different firm size classes an...

The total factor productivity growth (TFPG) analysis of potato for the state of West Bengal during 1980-81 to 2001-02 showed that the state recorded 6.19% growth of output index, 3.17% growth of input index and 2.92% growth in TFP index. The technological advancement in potato has occurred in West Bengal during the entire period.

Latin American countries have shown slow economic growth and low productivity in recent decades. In this context, it is important to study productivity to implement policies to boost growth and to improve economic conditions (Busso et al. 2013). Latin America and the Caribbean (LAC) countries stagnated in per capita income compared to the USA in the last 50 years (Pagés 2010). The low economic performance can be explained to a large extent by the slow growth of productivity in the region according to multiple studies (Crespi et al. 2014; Daude and Fernández-Arias 2010; Pagés 2010). GDP per capita growth between 1960 and 2011 was sustained by the accumulation of factors, not by the growth of aggregate TFP (Grazzi and Pietrobelli 2016). In fact, while US aggregate TFP grew by 1.2%, the TFP of the region remained stagnant in such period. The productivity of LAC compared to that of the USA decreased from 73% in 1960 to 51% in 2013. This generated a productivity gap between LAC and the USA (Grazzi and Pietrobelli 2016).

We analyze trends and persistence in the misallocation of labor and capital using firm-level panel data for the Netherlands in the period 2001-2017. We use the dispersion in marginal revenue products of labor and capital to measure the extent of misallocation. Compared to a counterfactual efficient allocation we find that misallocation has had a sizable negative impact on aggregate productivity. Especially capital misallocation has increased over time. The relatively high and rising capital misallocation is caused by a combination of small, highly productive firms facing relatively high capital wedges and large and unproductive firms facing relatively low capital wedges. Exploiting a panel data error components model we find that capital misallocation has a much more permanent character than labor misallocation. Moreover, it is the permanent component of capital misallocation that has increased over time. Finally, we show that in our sample the measurement of misallocation is largely insensitive to capital adjustment costs and alternative specifications of the production function. The contribution of heterogeneous markups to observed misallocation, however, is non-negligible.

This study examines the contribution of factor accumulation on Total Factor Productivity (TFP) growth in the eight ASEAN countries with specific reference to short-term and long-term estimation effect. Using Mean Group (MG) estimator on data between 1990 and 2018, this study found a significant relationship between capital accumulation and TFP growth. Our analysis suggests that the positive growth on TFP in most ASEAN countries was due to the short-run effect of capital accumulation. This study also found that the ASEAN economies have a relatively lower rate of capital utilization that adversely affects TFP growth in the long run. The contribution of TFP to output growth is paramount for the sustainability of long-term economic growth. Thus, ASEAN countries need to accelerate capital accumulation and technology adoption in the short-term and utilize idle capital in the long-term.

This paper examines the phenomenon of international R&D collaboration in the form of cross-national patenting. Using a unique dataset on patents from the USPTO for a maximum of 125 countries over the period 1975-2005, we show that, despite the potential for technological advancement arising from R&D collaboration with tier 1 countries, there is no evidence that relatively poor and open countries raise their technical efficiency by doing so. In fact, the overall picture is one in which a poor, open, developing country is hurt by tier 1 collaboration. We have also identified non-linearities in the effects of overall patenting on technical efficiency, indicating that a certain threshold in numbers of patents per capita must be reached before technical efficiency increases. These results can be attributed to the keen international competition for researchers and research investment and the inability of firms in the home country to take advantage of such patenting and attract investments.

Using a database of 23,000 firms in 45 economies, we test the quantitative importance of access to finance and access to public and private credit for the determination of misallocation. We first derive measures of factor market and size distortions, and then use these measures within a regression framework to test the significance of self-declared access-to-finance obstacles as well as the effect of access to a credit line issued by either a government-owned or private bank. We find that access-to-finance obstacles and private credit increase the dispersion of distortions. Public credit has a very small effect. For firms that do not face financial obstacles, public credit increases the dispersion of distortions; for firms that face financial obstacles, it slightly decreases dispersion. Public credit does not appear to compensate for the distortions that exist in private credit markets. Quantitatively, however, financial variables explain a very small part of the dispersion of facto...

A general equilibrium model of structural change featuring three sectors (agriculture, manufacturing, services) and endogenous growth is presented to explain the evolution of agriculture in a growing market economy., Non-homothetic preferences, necessary to reproduce the Engel effect, as well as technological change occurring at different rates in the three sectors and origiqating in learning-by-doing constitute the main originalities of , the model. The analytical properties of the model are then shown to be consistent with one of the main regularities of the process of economic development: the continuous flow of labor out of agriculture and into the services sector. The model is then calibrated to France and the results of the simulations are compared to the pattern of structural transformations which has characterized the evolution of the French economy over the 1950-2000 period. The drastic reduction in agricultural workforce is reproduced as well as the phenomenon of de-industrialization (decrease in the relative importance of manufacturing) after 1970. The model is then used to analyze the evolution of the domestic competitiveness of the agricultural sector over the period considered and the negative effect on the farm sector of deteriorating domestic terms of trade is highlighted.

The goal of this paper is to investigate effects of national systems of entrepreneurship on the country level efficiency, on addition we find what macro factors affect efficiency as well. From a comprehensive database of 59 countries using GEM, WDI, WCI for 2018 using data envelopment analysis (DEA) we find the results support the theoretical grounding of Global Entrepreneurship Index (GEI) hypothesis. The GEI methodology has been designed to capture the core features of the National Systems of Entrepreneurship theory. It approaches country-level entrepreneurship as a systemic phenomenon, which is driven by the interaction between individual-level actions and country-level framework conditions. While discussing country level framework, we have depicted key macroeconomic indicators in the analysis along with GEI index. The DEA analysis followed this framework to assess the performance of the study countries. Though inefficiency widely varies across countries, while the group of factor-driven countries is the most inefficient while innovation-driven economies are the most efficient ones. Subsequently, we apply the Tobit model to explain efficiency. Based on the Tobit regression model, the DEA VRS technical efficient score could be improved through GDP per capita and social capital. From policy perspective, to promote economic growth policy makers should consider national systems of entrepreneurship as their priority so that entrepreneurs can allocate resources in the economy effectively.

as well as our discussants Gordon Phillips, Virgiliu Midrigan, Ilan Cooper, Vincenzo Quadrini and Cian Ruane for helpful comments and discussions. Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau or the National Bureau of Economic Research. All results have been reviewed to ensure that no confidential information is disclosed. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

acknowledged. Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The laws that regulate relations between firms and workers in Mexico distinguish sharply between salaried and non-salaried workers, and they are at the root of the existence of informality. This paper provides a clear definition of informality, distinguishing it from illegality. Using Mexico's Economic Census, the paper shows that the majority of firms are informal but legal, that there are more small formal firms than large ones, and that some large firms are informal. It also shows that informality and illegality increased in the period 1998-2008. Using a simple model of monopolistic competition to measure the productivity losses due to distortions that misallocate resources, the paper finds that one peso of capital and labor allocated to formal and legal firms is worth 28 percent more than if allocated to illegal and informal firms, and 50 percent more than if allocated to legal and informal firms. The paper concludes arguing that the distortions in the labor market created by informality reduce total factor productivity.

Direct Foreign Investment (FDI) has been considered as one of the important strategies in long-term economic development. FDI is seen not only as a capital transfer but also has an important effect on increasing the host economy. FDI then became popular in many countries, so it was interesting to analyze the effects produced, both positive and negative. This research focuses on countries in the Association of Southeast Asian Nations (ASEAN) with the aim of conducting empirical studies on opportunities for employment creation by FDI. However, due to limited data in several countries, this study only involved Indonesia, Singapore, Malaysia and Thailand. The type of data used in this study is annual data covering from 1980-2017. Using estimation Vector Error Correction Model (VECM) allows to see short-term and long-term effects. The test results prove that the influence between variables is more visible in the long run

FDI-employment relationship has been a major concern of many researchers due to it's various findings. FDI is stated that able to trigger growth in employment, however, on the other hand, some have found that employment conditions affect FDI inflow. Meanwhile, several studies found a bidirectional relationship, or even no-relationship. With a focus on youth employment, this study aimed to examine the link between FDI and youth employment in ASEAN-5 countries. From the results of the Granger Causality test, it was found that in Indonesia, Malaysia, Philippines, and Singapore the FDI inflow is leading to youth employment, while in Thailand, the relationship is vice versa. Overall, there is no bidirectional causal relationship between FDI and youth employment in ASEAN-5 countries.

We examine the effects of an important technology diffusion channel-foreign direct investment (FDI)-on the growth of total factor productivity (TFP) and the role played by natural resources in this relationship. Based on cross-sectional data from 71 developing countries, we found that the net effect of FDI on TFP growth decreases with rents provided by natural resources. This result highlights the phenomenon of the natural resource curse applied to foreign direct investment and the non-linearity of the effect of FDI on the TFP growth.

Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Infl uential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country diff erences in output per worker is explained by diff erences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a fi rst-pass attempt at organizing the answer around two proximate determinants: factors of production and effi ciency. It answers the question “how much of the crosscountry income variance can be attributed to diff erences in (physical and human) capital, and how much to diff erences in the effi ciency with which capital is used’’? In this article, we will outline framework for growth accounting to account for cross-country diff erence in ...

The importance of intellectual capital for creating and sustaining competitive advantage of firms has been well established and confirmed in theory and practice. Intellectual resources proved to be the most valuable resources in the process of value creation for various stakeholders. Starting from 1980s onwards, both researchers and practitioners have focused on finding the best solution for measuring intellectual capital in order to enable efficient management and reporting on intellectual capital. Soon after that, their attention switched from an organisational level to the level of cities, regions and national economies. The intellectual capital of a nation has become the most important driver of national wealth. Therefore, the aim of the paper is to examine the concept of national intellectual capital, as well as various measurement methodologies available for valuing the intangible resources of nations. Critical assessment of presented methodologies will give an overview to the policy makers how to identify and value the national intellectual capital in order to increase their national wealth and improve the well-being of their citizens.

Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Infl uential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country diff erences in output per worker is explained by diff erences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a fi rst-pass attempt at organizing the answer around two proximate determinants: factors of production and effi ciency. It answers the question “how much of the crosscountry income variance can be attributed to diff erences in (physical and human) capital, and how much to diff erences in the effi ciency with which capital is used’’? In this article, we will outline framework for growth accounting to account for cross-country diff erence in ...

Compared to other regions of the world, the potential for information technology penetration in sub-Saharan Africa (SSA) is very high. Unfortunately, productivity levels in the region are also very low. This study investigates the importance of information technology in influencing the effect of foreign direct investment (FDI) on total factor productivity (TFP) dynamics. The focus is on 25 countries in SSA. Information technology is measured with mobile phone penetration and internet penetration, while the engaged TFP productivity dynamics are TFP, real TFP, welfare TFP, and real welfare TFP. The empirical evidence is based on the Generalised Method of Moments. The findings show that, with the exception of regressions pertaining to real TFP growth for which the estimations do not pass postestimation diagnostic tests, it is apparent that information technology (i.e. mobile phone penetration and internet penetration) modulate FDI to positively influence TFP dynamics (i.e. TFP, welfare TFP, and welfare real TFP). Policy and theoretical implications are discussed.

Summary: Why are some countries so much richer than others? Why do some countries produce so much more output per worker than others? Influential works by Klenow & Rodriguez-Clare (1997), Hall and Jones (1999), and Parente & Prescott (2000), among others, have argued that most of the cross country differences in output per worker is explained by differences in total factor productivity. Total factor productivity measurement enables researchers to determine the contribution of supply-side production factors to economic growth. Development Accounting is a first-pass attempt at organizing the answer around two proximate determinants: factors of production and efficiency. It answers the question “how much of the cross-country income variance can be attributed to differences in (physical and human) capital, and how much to differences in the efficiency with which capital is used’’?In this article, we will outline framework for growth accounting to account for cross-country difference in ...