Decomposing Total Factor Productivity Growth in Manufacturing and Services
Using the World Input–Output Database, this paper calculates total factor productivity (TFP) growth for a sample of 40 economies during the period 1995–2009 to show that TFP growth in Asian economies has been relatively strong. In a number of Asian economies, TFP growth in services has outpaced that...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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World Scientific Publishing
2017-03-01
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| Series: | Asian Development Review |
| Subjects: | |
| Online Access: | https://www.mitpressjournals.org/doi/pdf/10.1162/ADEV_a_00082 |
| _version_ | 1818696004289953792 |
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| author | Neil Foster-McGregor Bart Verspagen |
| author_facet | Neil Foster-McGregor Bart Verspagen |
| author_sort | Neil Foster-McGregor |
| collection | DOAJ |
| description | Using the World Input–Output Database, this paper calculates total factor productivity (TFP) growth for a sample of 40 economies during the period 1995–2009 to show that TFP growth in Asian economies has been relatively strong. In a number of Asian economies, TFP growth in services has outpaced that in manufacturing. This paper presents a novel structural decomposition of TFP growth and shows that the main drivers of aggregate productivity growth, as well as differences in productivity growth between services and manufacturing, have been changing factor requirements. These effects tend to offset the negative productivity effect of a declining ratio of value added to gross output. |
| first_indexed | 2024-12-17T13:54:28Z |
| format | Article |
| id | doaj.art-de5edca5742d412eb596dc4d5acee790 |
| institution | Directory Open Access Journal |
| issn | 0116-1105 1996-7241 |
| language | English |
| last_indexed | 2024-12-17T13:54:28Z |
| publishDate | 2017-03-01 |
| publisher | World Scientific Publishing |
| record_format | Article |
| series | Asian Development Review |
| spelling | doaj.art-de5edca5742d412eb596dc4d5acee7902022-12-21T21:45:58ZengWorld Scientific PublishingAsian Development Review0116-11051996-72412017-03-013418811510.1162/ADEV_a_00082ADEV_a_00082Decomposing Total Factor Productivity Growth in Manufacturing and ServicesNeil Foster-McGregor0Bart Verspagen1Neil Foster-McGregor (corresponding author): Research Fellow, United Nations University–Maastricht Economic and Social Research Institute on Innovation and Technology. E-mail: foster@merit.unu.eduBart Verspagen: Director, United Nations University–Maastricht Economic and Social Research Institute on Innovation and Technology. E-mail: verspagen@merit.unu.eduUsing the World Input–Output Database, this paper calculates total factor productivity (TFP) growth for a sample of 40 economies during the period 1995–2009 to show that TFP growth in Asian economies has been relatively strong. In a number of Asian economies, TFP growth in services has outpaced that in manufacturing. This paper presents a novel structural decomposition of TFP growth and shows that the main drivers of aggregate productivity growth, as well as differences in productivity growth between services and manufacturing, have been changing factor requirements. These effects tend to offset the negative productivity effect of a declining ratio of value added to gross output.https://www.mitpressjournals.org/doi/pdf/10.1162/ADEV_a_00082manufacturing and servicesstructural decompositiontotal factor productivity |
| spellingShingle | Neil Foster-McGregor Bart Verspagen Decomposing Total Factor Productivity Growth in Manufacturing and Services Asian Development Review manufacturing and services structural decomposition total factor productivity |
| title | Decomposing Total Factor Productivity Growth in Manufacturing and Services |
| title_full | Decomposing Total Factor Productivity Growth in Manufacturing and Services |
| title_fullStr | Decomposing Total Factor Productivity Growth in Manufacturing and Services |
| title_full_unstemmed | Decomposing Total Factor Productivity Growth in Manufacturing and Services |
| title_short | Decomposing Total Factor Productivity Growth in Manufacturing and Services |
| title_sort | decomposing total factor productivity growth in manufacturing and services |
| topic | manufacturing and services structural decomposition total factor productivity |
| url | https://www.mitpressjournals.org/doi/pdf/10.1162/ADEV_a_00082 |
| work_keys_str_mv | AT neilfostermcgregor decomposingtotalfactorproductivitygrowthinmanufacturingandservices AT bartverspagen decomposingtotalfactorproductivitygrowthinmanufacturingandservices |