Contribution of productivity and firm size to value-added: Evidence from Vietnam
AbstractA new indexing method is developed to decompose the contributions of productivity, prices and firm size to a firm's value-added. The method introduces an error term into the decomposition equation to capture measurement biases which are caused by using the deflator instead of the observed price and all other sorts of measurement error. An application of the method is given using private small and medium manufacturing firm level data in Vietnam from 1996 and 2001. The error index decomposition method provides a comparison of performance of all firms to the hypothetical representative firm. The analysis allows firms and policy makers to realize the key factors contributing to the success or failure of a firm and suggest strategies to improve firm economic performance.
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 Elsevier in its journal International Journal of Production Economics.
Volume (Year): 121 (2009)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Total factor productivity Indexing decomposition method Value-added;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
- Fox, Kevin J. & Grafton, R. Quentin & Kirkley, James & Squires, Dale, 2003.
"Property rights in a fishery: regulatory change and firm performance,"
Journal of Environmental Economics and Management,
Elsevier, vol. 46(1), pages 156-177, July.
- Kevin J. Fox & R. Quentin Grafton & James Kirkley & Dale Squires, 2002. "Property Rights in a Fishery: Regulatory Change and Firm Performance," Economics and Environment Network Working Papers 0205, Australian National University, Economics and Environment Network.
- W.E. Diewert & Catherine J. Morrison, 1985.
"Adjusting Output and Productivity Indexes for Changes in the Terms of Trade,"
NBER Working Papers
1564, National Bureau of Economic Research, Inc.
- Diewart, W Erwin & Morrison, Catherine J, 1986. "Adjusting Output and Productivity Indexes for Changes in the Terms of Trade," Economic Journal, Royal Economic Society, vol. 96(383), pages 659-79, September.
- Antonio Estache & Tim Coelli & Sergio Perelman & Lourdes Trujillo, 2003.
"A Primer on Efficiency Measurement for Utilities and Transport Regulators,"
ULB Institutional Repository
2013/44106, ULB -- Universite Libre de Bruxelles.
- Tim Coelli & Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," World Bank Publications, The World Bank, number 15149, March.
- Kevin J. Fox & R. Quentin Grafton & Tom Kompas & Tuong Nhu Che, 2003. "Productivity and capacity reduction: the case of a fishery," International and Development Economics Working Papers idec03-2, International and Development Economics.
- Hemlin, Maud & Ramamurthy, Bhargavi & Ronnås, Per, 1998. "The Anatomy and Dynamics of Small Scale Private Manufacturing in Vietnam," Working Paper Series in Economics and Finance 236, Stockholm School of Economics.
- Ramamurthy, Bhargavi, 1998. "The Private Manufacturing Sector in Vietnam: An Analysis of the Winners," Working Paper Series in Economics and Finance 251, Stockholm School of Economics.
- Gordon, Robert J & Griliches, Zvi, 1997. "Quality Change and New Products," American Economic Review, American Economic Association, vol. 87(2), pages 84-88, May.
- Timothy F. Bresnahan & Robert J. Gordon, 1996. "The Economics of New Goods," NBER Books, National Bureau of Economic Research, Inc, number bres96-1.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
- Hill, Robert J, 1997. "A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 49-69, March.
- Timothy F. Bresnahan & Robert J. Gordon, 1996. "Introduction to "The Economics of New Goods"," NBER Chapters, in: The Economics of New Goods, pages 1-26 National Bureau of Economic Research, Inc.
- Christensen, L. R. & Cummings, D. & Jorgenson, D. W., 1981. "Relative productivity levels, 1947-1973 : An international comparison," European Economic Review, Elsevier, vol. 16(1), pages 61-94.
- Allen, Robert C & Diewert, W Erwin, 1981. "Direct versus Implicit Superlative Index Number Formulae," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 430-35, August.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.