Total factor productivity growth and convergence in the petroleum industry : empirical analysis testing for convexity

While economic theory acknowledges that some features of technology (e.g., indivisibilities, economies of scale and specialization) can fundamentally violate the traditional convexity assumption, almost all empirical studies accept the convexity property on faith. In this contribution, we apply two alternative flexible production technologies to measure total factor productivity growth and test the significance of the convexity axiom using a nonparametric test of closeness between unknown distributions. Based on unique field level data on the petroleum industry, the empirical results reveal significant differences, indicating that this production technology is most likely non-convex. Furthermore, we also show the impact of convexity on answers to traditional convergence questions in the productivity growth literature.

Total Factor Productivity Growth and Output Growth in Indian Electronics Industry in the Liberalization Era: An Empirical Examination

This paper analyses the efficiency and productivity growth of Electronics industry, which is considered one of the vibrant and rapidly growing manufacturing industry sub-sectors of India in the liberalization era since 1991. The main objective of the paper is to examine the extent and growth of Total Factor Productivity (TFP) and its components namely, Technical Efficiency Change (TEC) and Technological Progress (TP) and its contribution to total output growth. In this study, the electronics industry is broadly classified into communication equipments, computer hardware, consumer electronics and other electronics, with the purpose of performing a comparative analysis of productivity growth for each of these sub-sectors for the time period 1993-2004. The paper found that the sub-sectors have improved in terms of economies of scale and contribution of capital.The change in technical efficiency and technological progress moved in reverse directions. Three of the four industry witnessed growth in the output primarily due to TFPG and the contribution of input growth to output growth had been negative/negligible, except for Computer hardware where contribution from both input growth and TFPG to output growth were prominent. The paper explored the possible reasons that addressed the issue of low technical efficiency and technological progress in the industry.

Total Factor Productivity in Indian Electronic Sector after Liberalisation: Sources and Outcomes

This paper analyses the efficiency and productivity growth of the Electronic Sector of India in the liberalization era since 1991. The study gives an insight into the process of the growth of one of the most upcoming sector of this decade. This sector has experienced a vast structural change along with the changing economic structures in India after liberalisation. With the opening up of this sector to foreign market and incoming of multinational companies, the environment has become highly competitive. The law that operates is that of Darwin’s ‘Survival of the fittest’. Existing industries experience a continuous threat of exit due to entrance of new potential entrants. Thus, it becomes inevitable for the existing industries in this sector to improve productivity growth for their survival. It is thus important to analyze how the industries in this sector have performed over the years and what are the factors that have contributed to the overall output growth.

Total factor productivity and efficiency in Australian colleges of advanced education

The former colleges of advanced education were an important component of the higher education sector in Australia. Uses the Malmquist total factor productivity index to investigate the efficiency and productivity of Australian colleges of advanced education during the 1980s. The results from this analysis indicate that these colleges recorded modest growth in technical change and total factor productivity, but did not fare all that well in terms of growth in technical and scale efficiency during the 1980s. As a group, however, the former colleges of advanced education had attained high levels of technical and scale efficiency.

Malmquist indices of total factor productivity changes in the Australian construction industry

Construction is an important industry and forms a vital part of national economics in the world. Factors affecting the productivity of the construction industry should be measured appropriately to reflect its development situation and economic performance. The Malmquist index method with a novel decomposition technique is employed to estimate the total factor productivity of the Australian construction industry during the period 1990-2007 and to analyse the factors affecting the technological change in the industry. Research results exemplified by two input variables and one output variable elaborate how construction technology, pure technical efficiency and scale economy take effect in the change of construction productivity. In addition, based on temporal and spatial comparisons, the analysis for construction productivities reveals their changes over time and across the country. Proposals and recommendations are expected to be beneficial for policy making and strategic decisions to improve the performance of the Australian construction industry.

Energy productivity and total-factor productivity in the Australian construction industry

There is urgent need to consider energy consumption when measuring total-factor productivity in the construction industry. This paper adopts the Malmquist index method to investigate the factors affecting the energy productivity of the Australian construction industry and compares them with those decomposed from the total-factor productivity. An input-oriented distance function and a contemporaneous benchmark technology are employed to develop the data envelopment analysis models. The Malmquist productivity index is decomposed into the technological change, pure technical efficiency change and activity effect to gain comprehensive insights into changes of construction productivity in the Australian states and territories over the past two decades. Research results show that both energy productivity and total-factor productivity improved in Australia, particularly related to technological development. The pure technical efficiency and activity indices changed slightly over time or across regions. This study demonstrates that there exists a linkage between energy productivity and total-factor productivity through their technological and technical efficiency changes. The Australian construction industry could enhance these two productivities by introducing advanced technologies and implementing them efficiently.

The effects of external and internal strikes on total factor productivity

This paper examines structural changes that occur in the total factor productivity (TFP) within countries. It is possible that some episodes of high economic growth or economic decline are associated with permanent productivity shocks, therefore, this research has two objectives. The Örst one is to estimate the structural changes present in TFP for a sample of 81 countries between 1950(60) and 2000. The second one is to identify, whenever possible, episodes in the political and economic history of these countries that may account for the structural breaks in question. The results suggest that about 85% of the TFP time-series present at least one structural break, moreover, at least half the structural changes can be attributed to internal factors, such as independence or a newly adopted constitution, and about 30% to external shocks, such as oil shock or shocks in international interest rates. The majority of the estimated breaks are downwards, indicating that after a break the TFP tends to decrease, implying that institutional rearrangements, external shocks, or internal shocks may be costly and from which it is very di¢ cult to recover.

Trade in intermediate goods and total factor productivity

We develop and calibrate a model where differences in factor endowments lead countries to trade intermediate goods, and gains from trade reflect in total factor productivity. We perform several output and growth decompositions, to assess the impact that barriers to trade, as well as changes in terms of trade, have on measured TFP. We find that for very poor economies gains from trade are large, in some cases representing a doubling of GDP. Also, that an improvement in the terms of trade - by allowing the use of a better mix of intermediate inputs in the production process - translates into productivity growth.

Gains from trade and measured total factor productivity

We develop and calibrate a model where diferences in factor en-dowments lead countries to trade di¤erent goods, so that the existence of international trade changes the sectorial composition of output from one country to another. Gains from trade re ect in total factor productivity. We perform a development decomposition, to assess the impact of trade and barriers to trade on measured TFP. In our sample, the median size of that e¤ect is about 6.5% of output, with a median of 17% and a maximum of 89%. Also, the model predicts that changes in the terms of trade cause a change of productivity, and that efect has an average elasticity of 0.71.

Evaluating policies to improve total factor productivity in four large Latin American countries

Includes bibliography.