Total Factor Productivity in Korean Manufacturing Industries

Abstract

In this study, parametric and non-parametric methods are employed to measure the total factor productivity (TFP) growth in the Korean manufacturing industry from 1993 to 2003. The analysis period contains both periods before and after the Asian financial crisis. The TFP growth rate is decomposed into different components. Also different elasticities are reported. By classifying the results by period and classifying a number of time invariant firm characteristics, such as sector, size, and location of firms, we observe systematic heterogeneity for each characteristic. We discuss the underlying causal factors. The results from a non-parametric approach are also compared with those of a parametric approach.     

Building the dynamic linkages between R & D and productivity growth

This study attempts to integrate the dynamic and spillover characteristics of R & D into the explanation of total factor productivity growth. To characterize the dynamic feature of R & D, the dynamic growth model is reformulated to explicitly consider the contribution of R & D. The two different types of spillover effects are characterized as one that can be used directly and the other that needs to be assimilated by firms' own investment. Empirical application of the theoretical methodology facilitates investigating factors contributing to the growth of the manufacturing sector in Taiwan over the period 1980–1991. It is found that the scale-related components have a dominant contribution in the growth of total factor productivity contributing approximately 95.3% of the growth. Although the spillover effect is quite insignificant, accumulation of R & D capital contributes nearly half of the residual growth of the manufacturing sector.     

服务业全要素生产率测度及其省际差异

运用2005～2009年中国31省份服务业面板数据,采用非参数Malmquist指数方法,对中国服务业全要素生产率的变动原因、空间差异与变动趋势进行考察,并将全要素生产率进一步分解为技术效率和技术进步。研究结果表明,中国服务业整体仍表现为粗放型的增长方式,全要素生产率呈现负增长,但增长速度有所放缓;服务业发展水平的空间差异明显,东部地区服务业发展水平高于中西部地区,其中西部和东北地区服务业发展水平较落后,且技术进步和技术效率对中国及各区域服务业的全要素生产率在时间和空间上有不同的影响。     

基于DEA-Malmquist指数法的宁夏制造业全要素生产率分析研究

运用2009-2018年10个行业的面板数据,使用数据包络分析（DEA）和Malmquist指数法的合成模型对宁夏回族自治区制造业及其十个细分行业的综合效率和全要素生产率变化进行分析。运用软件DEAP2.1进行数据的动态分析,得出了宁夏制造业生产率指数按不同时期和不同行业的分解。结果表明：宁夏制造业生产率年均增长为1.1%,而技术效率和规模效率出现年均0.6%和1.4%的衰退,对生产率产生了负面影响。因此,为了保证宁夏制造业生产率的增长,本文结合Malmquist指数法的分析结果从政府层面、企业层面和产业层面三个方面提出了合理的建议。     

Manufacturing productivity in China and India: The role of institutional changes

In this paper we undertake a comparative study of productivity in the manufacturing sector for China and India using data from survey of manufacturing industries for the two countries. We find that productivity of manufacturing industries in China relative to that in India improved substantially over the 1998–2003 period. Specifically, the average total factor productivity (TFP) growth for the manufacturing sector over this period was about 11% higher in China than in India. We document two substantial changes in government policies in China that were not witnessed in India. First, the late 1990s saw an enormous wave of ownership restructuring due to the formal endorsement of private property rights by the Chinese central government. Second, in 1997 a large scale labour retrenchment program was launched to address the long standing problem of labour redundancy in the public sector. Using data from the Chinese survey of manufacturing industries, we quantify the impact of these large scale institutional changes on TFP of Chinese manufacturing industries. We find that these policy changes can explain about 30% of the growth in TFP of manufacturing industries. Hence we conclude that these institutional changes in China can account for a significant part of the gains in productivity of manufacturing industries in China relative to that in India over the 1998–2003 period.     

1993-2005年广东农业生产率的变动与分解——基于Malmquist生产率指数的实证分析

本文使用非参数的Malmquist生产率指数方法,对广东省1993—2005年间农业全要素生产率（TFP）的变动趋势进行了考察,并把TFP的增长构成分解为技术进步、纯技术效率变化、规模效率变化三个部分。结果表明：13年间广东全省农业TFP的增长主要是由技术进步推动的,纯技术效率和规模效率的下降对TFP的增长造成了不利影响;农业TFP增长的地区水平差异显著,而且增长的结构也有所不同。最后是相应的政策建议。     

Productivity or Endowments? Sectoral Evidence for Hong Kong's Aggregate Growth*

The present paper provides sectoral evidence that sheds new light on the current debate regarding the sources of growth of the East Asian miracle. We test both the productivity‐driven and endowment‐driven hypotheses using Hong Kong's sectoral data. The results show that most of the growth of the service sector is driven by rapidly‐accumulating capital endowments, and not by productivity growth. In addition, productivity growth in the manufacturing sector is unimpressive. The manufacturing sector is revealed to be more labor intensive than the service sector and its growth is hindered by the reallocation of resources into the service sector as a result of the growth of capital endowments and imports. Overall, sectoral evidence supports the endowment‐driven hypothesis.     

Trade liberalization and productivity growth in Australian manufacturing industries

Although there has been a revival of interest in the trade-growth nexus, the impact of trade liberalization on productivity gains remains empirical, given the ambiguity in the literature on this issue. This paper examines the case for Australia using annual data of eight two-digit manufacturing industries from 1968–69 to 1994–95. Unlike earlier studies, total factor productivity growth is first decomposed into technological progress and gains in technical efficiency, and the effect of trade liberalization is then investigated separately on TFP growth, as well as on each of the components of TFP growth. The empirical finding that trade liberalization has a positive and significant effect on technological progress, but no significant effect on gains in technical efficiency, adds yet another dimension to the evaluation of trade liberalization policies.     

Real money balances and the productivity growth slowdown: The U.S. manufacturing sector, 1955–81

Summary and Conclusions The model of labor productivity for the U.S. manufacturing sector was developed in this paper within the context of a three-input production function where time entered as a proxy for technical change. The growth rate of labor productivity was found equal to the share-weighted contributions from growth in the capital-labor ratio, changes in the composition of the capital stock, growth in the money-labor ratio, and total factor productivity.The empirical results of this research yield three important conclusions. First, labor productivity growth has suffered a continuous and increasing retardation, the most severe of which occurred in the newly-examined 1978–81 time period. Second, real money balances were shown to have contributed to this slowdown in the same direction as, but somewhat less than, the contributions of either the capital-labor ratio or changes in the composition of the capital stock. Thirdly, a deletion of the monetary effect from the analysis results in an overestimation of the importance to productivity growth and its slowdown of both the capital-labor and the composition effect.Based upon these main empirical results, this study concludes that the real money balances held by firms in the U.S. manufacturing sector have played a non-passive role in that sector's labor productivity growth slowdown.This paper is part of the author's doctoral dissertation, written at West Virginia University.     

Efficiency and productivity analyses of Indonesian manufacturing industries

This study estimates the technical efficiencies and total factor productivity (TFP) growths in food, textile, chemical and metal products industries from 1993 to 2000 in Indonesia by using the stochastic frontier model. Furthermore, the determinants of inefficiency are also analyzed and TFP growth is decomposed into technological progress, a scale component, and efficiency growth. The results reveal that the food, textile, chemical and metal products sectors are on average 50.79%, 47.89%, 68.65% and 68.91% technically efficient, respectively. It is noted that ownership contributed to technical inefficiencies in the food sector; location and size contributed to technical inefficiencies in the textile sector, whereas size, ownership and age contributed to inefficiencies in the chemical and metal products sectors. We note that productivity in food, textile, and metal products sectors decreased at the rate of 2.73%, 0.26%, and 1.65%, respectively, but increased at a rate of 0.5% in the chemical sector. The decomposition of TFP growth indicates that the growths are driven positively by technical efficiency changes and negatively by technological progress in all four sectors.     

Productivity Growth in Different Plant‐size Groups in the Malaysian Manufacturing Sector*

In the present study, we develop a stochastic frontier production model that allows for different groups of firms to have different patterns of technical efficiency over time. We apply our model to the Malaysian manufacturing sector to decompose total factor productivity growth into technical efficiency change and technical progress for different plant size groups (e.g. large and small) in seven industries during 2000–2004. Our empirical results indicate that technical efficiency has worsened across all industries and plant‐size groups. In contrast, we find evidence of substantial technical progress in all industries. In fact, technical progress has been larger than technical efficiency deterioration in most industries and plant‐size groups, leading to total factor productivity growth. Our analysis identifies the industries and plant‐size groups that lag the most in terms of productivity, and thus have the greatest scope for policies that facilitate productivity growth.     

Productivity growth, technological progress, and efficiency change in chinese agriculture after rural economic reforms: A DEA approach

This study applies a data envelopment analysis (DEA) approach to analyze total factor productivity, technology, and efficiency changes in Chinese agricultural production from 1984 to 1993. Twenty-nine provinces in China were classified into advanced-technology and low-technology categories. The Malmquist (1953) productivity measures were decomposed into two components: technical change index and efficiency change index. The results show that total factor productivity has risen in most provinces for both technology categories during the 1984–1993 period. Technical progress was mostly attributed to Chinese agricultural productivity growth after the rural economic reforms. The deterioration in technical efficiency in many provinces indicates China has great potential to increase productivity through improved technical efficiency. Enhancing rural education and research and development (R&D) in agriculture may also help farmers to improve technical efficiency and productivity in agricultural production.     

资源环境约束下的城市经济效率测度与差异研究——基于中部与长江经济带14市的比较

将资源和环境因素同时纳入效率研究框架中,运用SBM模型以及Malmquist指数方法测度了2006—2013年14个城市的经济效率、全要素生产率（TFP）,并将全要素生产率变动分解为技术效率和技术进步,实现了TFP增长的动态分解。研究结果表明,大多数城市存在效率改进空间;当考虑资源环境约束时,城市绿色TFP较低,技术进步是推动绿色TFP增长的主要源泉,而技术效率的作用并不明显。在生产效率的核算中,如果忽略资源环境因素的刚性约束,有可能导致经济增长效率被高估,由此得出的政策建议会带有一定的误导性。     

Markup Variation and Productivity Measurement in Singapore*

Conventional measures of total factor productivity using growth accounting may not be appropriate when there is variation in markups across industries. The existence of market power implies that total factor productivity contains an endogenous component related to the variation in markups. I examine the variation of markups at the industry level for the manufacturing and services sectors in Singapore from 1983 to 2003. Using two different measures, I find that the markups in Singapore are significant in most industries, at around 28 and 55percent for the manufacturing and services sectors, respectively. Markups for the services sector declined during the period, while the markups for the key manufacturing industries increased after the Asian financial crisis in 1997. Accounting for variation in markups suggests that improvement in technological progress tends to be underestimated by 0.5–1.0percent per year. The underestimation is more severe in industries with relatively high markups.     

Imperfect Competition, Economic Miracle, and Manufacturing Productivity Growth: Empirical Evidence from Taiwan

Several recent studies on total factor productivity (TFP) concluded that the East Asian economies benefited little from TFP growth. This study claims that the failure by previous studies to consider the effect of net indirect taxes and market imperfections resulted in the underestimation of the share of the contribution of labor input to factor income, which consequently led to the overestimation of capital share and understatement of TFP growth. Therefore, this study has modified the conventional approach of calculating factor shares by taking account of net indirect taxes and market imperfections and used the modified approach to estimate TFP growth in 16 Taiwanese manufacturing industries during the period 1979–1999. The conclusion drawn by the study is that TFP growth was the driving force behind the success of Taiwan's manufacturing industries, although many of these industries experienced a sharp decline in TFP during the 1990s.     

Factor Determinants of Total Factor Productivity Growth in Malaysian Manufacturing Industries: a decomposition analysis

To decompose total factor productivity growth into technical progress, technical efficiency change, allocative efficiency change, and scale efficiency change, a stochastic frontier approach was applied to Malaysian manufacturing data covering the period 2000 to 2004. The results show that total factor productivity was driven mainly by technical progress but was hurt by deteriorating technical efficiency. Scale efficiency and allocative efficiency also exerted significant influences on total factor productivity. The skill and quality of workers were the most important determinants of technical efficiency, whereas foreign ownership, imports, and employee quality underpinned technical progress. The impact of firm size on scale economies differed across industries.     

Exporting and Productivity in the USA

Exporting is often touted as a way to increase economic growth.This paper examines the interaction between exporting and productivitygrowth in US manufacturing. While exporting plants have substantiallyhigher productivity levels, there is no evidence that exportingincreases plant productivity growth rates. The higher productivityof exporters largely predates their entry into exporting. However,within the same industry, exporters do grow faster than non-exportersin terms of both shipments and employment. Exporting is associatedwith the reallocation of resources from less efficient to moreefficient plants. In the aggregate, these reallocation effectsare quite large, making up over 40 per cent of total factorproductivity growth in the manufacturing sector. Half of thisreallocation to more productive plants occurs within industriesand the direction of the reallocation is towards exporting plants.     

Understanding the role of trade agreements in Indonesia’s FDI

In this paper, we develop the hypothesis that trade agreements influence foreign direct investment (FDI). We extend the conventional model of FDI determinants to accommodate the role of trade agreements. Fitting Indonesian data to this model, we discover strong evidence that, while both bilateral and multilateral trade agreements positively influence Indonesia’s FDI, multilateral agreements have a larger effect. We further distinguish FDI by sector and find sector-specific trade agreements play an active role: these agreements positively influence FDI in the primary and service sectors, but not in the manufacturing sector. We also find that trade agreements positively influence FDI through the export and total factor productivity channels, and less so through the economic growth channel.     

The Impact of Economic Reform on Productivity Growth in Chinese Industry: A Case of Xiamen Special Economic Zone

China's industrial and trade reforms were expected to stimulate growth in output and welfare by increasing the capacity of industry to absorb surplus factors of production, and by utilizing labour, capital, energy and materials more efficiently. The impact of the special economic zone reform policies on productivity and growth is assessed by studies of China's overall industrial sector performance and case studies in Xiamen and Shanghai Beijing, which is not subject to special policy initiatives, is used as a control. Although there were data limitations, several conclusions may be drawn. An increase in total factor productivity was found to have occurred in Xiamen during the reform period, but the creation of the special economic zone does not appear to have had a significant impact on productivity. Productivity performance in Beijing's state-owned industry was considerably poorer than that of total Xiamen industry, including state, collective and firms jointly owned with foreign investors, and was also lower than the productivity performance of Xiamen's state sector. The productivity performance of Xiamen's joint ventures and collectively owned firms was, however, considerably superior to the state sectors in both cities. Due to data constraints, the analysis of productivity in Shanghai was for a shorter period. Most of Shanghai's state-owned industry did better than the state-owned sector in Beijing but did not perform as well as the non-State sector in Xiamen over this period. Factor productivity in Shanghai industry was stagnant, Beijing's industrial productivity generally declined, but Xiamen's productivity improved considerably over the decade. One of the major strengths of this study is its access to new and more accurate disaggregated price indices to deflate capital investments on an industry by industry basis. Hence, the availability of the new capital stock deflator series should improve the total factor productivity estimates considerably.     

江苏经济增长因素分析及政策建议

全要素生产率方法是研究经济增长质量的重要方法。文章对江苏20年来的经济增长因素进行了实证研究,将促进江苏经济发展的全要素生产率因素分解为：产业结构的调整、所有制的变迁以及金融深化,并根据柯布—道格拉斯生产函数建立计量分析模型。回归结果表明：传统要素投入的增长已经不再是江苏经济增长的主要驱动力,取而代之的是产业结构的不断调整以及非公有制经济的迅速崛起,而金融深化对现阶段的经济增长并未产生重要影响。文章最后提出了相关的政策建议。