Estimating Productivity When Primal and Dual TFP Accounting Fail: An Illustration Using Singapore's Industries
AbstractFor both primal and dual TFP growth accounting to properly account for productivity growth, assumptions of constant returns to scale and perfect competition are necessary. This paper shows that without these assumptions, while both TFP growth accounting measures remain equal if factor shares are constant, they are also equally bad at measuring productivity growth. This paper proposes a structural regression to estimate productivity growth based on more general production and cost functions. Using Singapore's industries as illustrations, this paper finds that the assumptions are widely rejected, and the estimated productivity growth exceeds both the accounting measures. When the same methodology is applied to the aggregate Singapore data, the estimated productivity growth is 4.4 percent per year, significantly higher than that of Young's (1992) and Hsieh's (2002).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 4 (2004)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://www.degruyter.com
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kong Weng Ho & Hian Teck Hoon, 2006.
"Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore,"
Economic Growth centre Working Paper Series
0606, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
- Kong Weng Ho & Hian Teck Hoon, 2006. "Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore," Working Papers 15-2006, Singapore Management University, School of Economics.
- Kong Weng Ho & Hian Teck Hoon, 2006. "Growth Accounting for a Follower-Economy in a World of Ideas : The Example of Singapore," Development Economics Working Papers 22435, East Asian Bureau of Economic Research.
- Ho, Kong Weng & Hoon, Hian Teck, 2009. "Growth accounting for a technology follower in a world of ideas: The case of Singapore," Journal of Asian Economics, Elsevier, vol. 20(2), pages 156-173, March.
- Svetlana Demidova & Hiau Looi Kee & Kala Krishna, 2006.
"Do Trade Policy Differences Induce Sorting? Theory and Evidence from Bangladeshi Apparel Exporters,"
NBER Working Papers
12725, National Bureau of Economic Research, Inc.
- Demidova, Svetlana & Kee, Hiau Looi & Krishna, Kala, 2012. "Do trade policy differences induce sorting? Theory and evidence from Bangladeshi apparel exporters," Journal of International Economics, Elsevier, vol. 87(2), pages 247-261.
- Kee, Hiau Looi & Hoekman, Bernard, 2007.
"Imports, entry and competition law as market disciplines,"
European Economic Review,
Elsevier, vol. 51(4), pages 831-858, May.
- Hoekman, Bernard & Kee, Hiau Looi, 2003. "Imports, Entry and Competition Law as Market Disciplines," CEPR Discussion Papers 3777, C.E.P.R. Discussion Papers.
- Kee, Hiau Looi & Hoekman, Bernard, 2003. "Imports, entry, and competition law as market disciplines," Policy Research Working Paper Series 3031, The World Bank.
- Pablo, Agnese, 2009.
"Japan and her dealings with offshoring: An empirical analysis with aggregate data,"
16505, University Library of Munich, Germany.
- Agnese, Pablo, 2009. "Japan and her dealings with offshoring: An empirical analysis with aggregate data," IESE Research Papers D/793, IESE Business School.
- Agnese, Pablo, 2011. "Japan and Her Dealings with Offshoring: An Empirical Analysis with Aggregate Data," IZA Discussion Papers 5517, Institute for the Study of Labor (IZA).
- Dobrinsky, Rumen & Korosi, Gabor & Markov, Nikolay & Halpern, Laszlo, 2006. "Price markups and returns to scale in imperfect markets: Bulgaria and Hungary," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 92-110, March.
- Stefano Fachin & Andrea Gavosto, 2010. "Trends of labour productivity in Italy: a study with panel co-integration methods," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 755-769, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.