How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam

One of the remaining challenges in explaining differences in total factor productivity is heterogeneity between sectors and within a specific sector in terms of labor and capital. This paper employs the generalized method of moments (GMM) to identify factors that affect total factor productivity acr...

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Main Authors: Quang-Thanh Ngo, Quang-Van Tran, Tien-Dung Nguyen, Trung-Thanh Nguyen
Format: Article
Language:English
Published: MDPI AG 2020-07-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/8/3/57
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author Quang-Thanh Ngo
Quang-Van Tran
Tien-Dung Nguyen
Trung-Thanh Nguyen
author_facet Quang-Thanh Ngo
Quang-Van Tran
Tien-Dung Nguyen
Trung-Thanh Nguyen
author_sort Quang-Thanh Ngo
collection DOAJ
description One of the remaining challenges in explaining differences in total factor productivity is heterogeneity between sectors and within a specific sector in terms of labor and capital. This paper employs the generalized method of moments (GMM) to identify factors that affect total factor productivity across 21 manufacturing sectors and to clarify the heterogeneous determinants of total factor productivity within manufacturing sectors for the period 2010–2015. Our estimations show that large firms have significantly greater total factor productivity levels than small firms in some fragmentations of firms in terms of both labor and total capital and in some manufacturing sectors. It is suggested that firm characteristics should be considered by the government in establishing relevant policies for enhancing firm productivity.
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spelling doaj.art-feb137bc3bf8418f8b004e4a40da6c062023-11-20T05:59:57ZengMDPI AGEconomies2227-70992020-07-01835710.3390/economies8030057How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from VietnamQuang-Thanh Ngo0Quang-Van Tran1Tien-Dung Nguyen2Trung-Thanh Nguyen3Center for Economic and Financial Research (CEFR), University of Economics and Law (UEL), Ho Chi Minh City 71309, VietnamCenter for Economic and Financial Research (CEFR), University of Economics and Law (UEL), Ho Chi Minh City 71309, VietnamUniversity of Economics and Law (UEL), Vietnam National University Ho Chi Minh City (VNU-HCM), Ho Chi Minh City 71309, VietnamSchool of Economics and Management, Leibniz University Hannover, 30167 Hannover, GermanyOne of the remaining challenges in explaining differences in total factor productivity is heterogeneity between sectors and within a specific sector in terms of labor and capital. This paper employs the generalized method of moments (GMM) to identify factors that affect total factor productivity across 21 manufacturing sectors and to clarify the heterogeneous determinants of total factor productivity within manufacturing sectors for the period 2010–2015. Our estimations show that large firms have significantly greater total factor productivity levels than small firms in some fragmentations of firms in terms of both labor and total capital and in some manufacturing sectors. It is suggested that firm characteristics should be considered by the government in establishing relevant policies for enhancing firm productivity.https://www.mdpi.com/2227-7099/8/3/57total factor productivitypanel causalityheterogeneitymanufacturing sectorVietnam
spellingShingle Quang-Thanh Ngo
Quang-Van Tran
Tien-Dung Nguyen
Trung-Thanh Nguyen
How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
Economies
total factor productivity
panel causality
heterogeneity
manufacturing sector
Vietnam
title How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
title_full How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
title_fullStr How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
title_full_unstemmed How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
title_short How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam
title_sort how heterogeneous are the determinants of total factor productivity in manufacturing sectors panel data evidence from vietnam
topic total factor productivity
panel causality
heterogeneity
manufacturing sector
Vietnam
url https://www.mdpi.com/2227-7099/8/3/57
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