Measuring and decomposing total factor productivity change: a methodology and application to Asian economies

Willett, Matthew James (2011). Measuring and decomposing total factor productivity change: a methodology and application to Asian economies Honours Thesis, School of Economics, The University of Queensland.

       
Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
ECON6910_WILLETT_Matthew_thesis.pdf Full text application/pdf 1.58MB 24
Author Willett, Matthew James
Thesis Title Measuring and decomposing total factor productivity change: a methodology and application to Asian economies
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2011
Thesis type Honours Thesis
Supervisor A/Prof Chris O'Donnell
Dr. Fabrizio Carmignani
Total pages 111
Language eng
Subjects 340000 Economics
Formatted abstract

Total factor productivity (TFP) is an important issue to economic development as TFP change can be shown to represent the only sustainable source of economic growth, however its measurement has been the subject of much debate. This thesis explores these issues regarding TFP measurement and concludes that a Färe-Primont TFP index is the most suited for TFP measurement in developing countries and then computes and decomposes spatially and temporally transitive Färe-Primont TFP Indexes for a sample of seven East Asian economies for the period 1970 to 2007 as well as providing measures of reliability for the estimates. Economic factors driving the elements of this decomposition are also explored and, as expected, the majority of TFP change in these countries is found to be a result of technical change and scale-mix efficiency change. Changes in scale-mix efficiency can be found to coincide with policy changes or other economic events which influence relative prices. Additionally there appears to be evidence of a “natural rate” of technical inefficiency within each country which is able to be explained through economic factors. Furthermore the level of technical inefficiency differs across countries and I propose that the factors causing this difference can be shown to be the structure of an economy as well as the relative ability of agents within an economy to access finance.

JEL Classification: O47

Keyword Total Factor Productivity
Färe-Primont Index
Bayesian Stochastic Frontier
Decomposing TFP Change
Asian Economies
Economic Growth

 
Citation counts: Google Scholar Search Google Scholar
Created: Tue, 28 Feb 2012, 12:41:25 EST by Carmen Mcnaught on behalf of School of Economics