Total factory productivity

The theory of intellectual capital has experienced a boom in the first decade of 21st century. Most of the research work in this area focuses on enterprises and organizations, although there is an effort, especially lately, to provide answers concerning development of national economy. This theory has a lot of potential to create new insights and it is expected that it becomes even more incorporated into mainstream economics. This paper is an attempt to incorporate intellectual capital theory insights into endogenous growth theory as part of modern macroeconomics. In this paper, simple AK endogenous growth model is used as a basis. The intellectual capital growth model presented here also takes "A" or Total Factor Productivity as an average total productivity but with one fundamental distinction. It is using the logic of Calculated Intangible Value and/or Knowledge Capital Earnings by Baruch Lev where higher than average returns indicate higher intellectual capital. The model presented here applies this logic to Total Factor Productivity. In cases where TFP is equal to the average, the intellectual capital performance is also equal to the average, and the model is with constant returns as the AK model. But in cases where TFP is larger than average, the intellectual capital performance is also better than average, and the model is with increasing returns, and in cases where TFP is less than average, the intellectual capital performance is worse, and the model is with diminishing returns. The most important implication of the model is that savings and investments have a long-term effect on growth only if intellectual capital performance is equal or better than average. If intellectual capital is worse than average there is no such an effect because of diminishing returns. In such a situation the policy should be first to increase intellectual capital to at least average performance and then to increase investments.

Este artículo busca medir el crecimiento de la productividad multifactorial o productividad de factor total (PFT) en Corea sin tener en cuenta las diferencias en la calidad en el factor trabajo. Por lo tanto, asumiendo que la teoría del crecimiento endógeno de Lucas es correcta, la medida de PFT estará sobreestimada e incluirá el impacto del capital humano en el crecimiento económico. Por ello, regresando el crecimiento de la PFT contra medidas del capital humano se obtendrán estimaciones del impacto del capital humano en el crecimiento económico de Corea. El principal resultado del estudio muestra que entre 1980 y 2004 la economía Coreana creció a una tasa anual del 6.7% y la acumulación de capital humano dio cuanta de 1.3 puntos porcentuales de dicha tasa.

Foreign direct investment (FDI) is more important source of growth in many literatures. By the supply-side literature, it helps host countries in the aspect of technological transfers both direct and indirect methods. When the foreign investors trained local workers, transfer the management strategies to the local manager and import the machines and equipments which are embedded with more advanced production technology when they set up their factories and headquarters in the host countries are direct way of technological transfers of foreign direct investment. Technological spillovers or indirect technological transfer can be in case of local companies copying the technology, imitating the machines in the production process, or using the same management strategies because they hired the workers or managers who used to work for multinational corporations. Technological transfer usually have some externalities, spillover to other sectors related both backward and forward linkages. By backward linkages, the other sectors that supply inputs and factors of production could learn from the sector that create the spillovers. For the forward linkages, the other sectors that depend on the inputs from the sector which create the technological spillovers can also get benefits from this spillovers. The indirect effect from spillovers helps increase productivity in other sectors. Higher productivity in the context of competitive input markets implies higher returns to factors of production and higher national income and growth.

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.

Total factor productivity indicates the contribution of non inputs to the growth of agricultural productivity. In this study, estimation of total factor productivity in ragi crop and returns to investment in ragi research in Karnataka is attempted.The result indicates that The Total Factor Productivity index of ragi grew at 4.75 per cent per annum. Public research significantly contributed to TFP growth in ragi. The additional investment of one rupee in ragi research generated additional income of Rs. 26.84, indicating substantial rate of returns to investment on research in ragi in Karnataka.