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Economic Growth Decomposition. An Empirical Analysis Using Bayesian Frontier Approach

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  • Kamil Makieła

    (Grand Valley State University)

Abstract

This paper presents an empirical analysis of economic growth in respect of its components, namely input change, technological progress and changes in efficiency. In this work the Bayesian Stochastic Frontier method as well as the output change decomposition procedure, are used in order to evaluate their influence on economic growth. The use of panel data in the study allows for a detailed analysis of economic growth in a given economy and enables the search for general patterns that govern the process. The study is carried using a set of sixteen countries over the period 1995 - 2005.

Suggested Citation

  • Kamil Makieła, 2009. "Economic Growth Decomposition. An Empirical Analysis Using Bayesian Frontier Approach," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 1(4), pages 333-369, December.
    • Handle: RePEc:psc:journl:v:1:y:2009:i:4:p:333-369
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    References listed on IDEAS

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    1. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. "The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-487, November.
    2. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
    3. Paul Schreyer, 2004. "Capital Stocks, Capital Services and Multi-Factor Productivity Measures," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 163-184.
    4. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. "Modeling the Sources of Output Growth in a Panel of Countries," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(3), pages 284-299, July.
    5. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
    6. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. "A Stochastic Frontier Analysis of Output Level and Growth in Poland and Western Economies," Economic Change and Restructuring, Springer, vol. 33(3), pages 185-202.
    7. Paul Schreyer, 2007. "Old and New Asset Boundaries: A Review Article on Measuring Capital in the New Economy," International Productivity Monitor, Centre for the Study of Living Standards, vol. 15, pages 75-80, Fall.
    8. Koop, Gary & Steel, Mark F.J. & Osiewalski, Jacek, 1992. "Posterior analysis of stochastic frontier models using Gibbs sampling," DES - Working Papers. Statistics and Econometrics. WS 3677, Universidad Carlos III de Madrid. Departamento de Estadística.
    9. Eiji Yamamura & Inyong Shin, 2007. "Technological Change and Catch-up and Capital Deepening: Relative Contributions to Growth and Convergence: Comment," Economics Bulletin, AccessEcon, vol. 15(3), pages 1-8.
    10. Gary Koop & Jacek Osiewalski & Mark F. J. Steel, 1999. "The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-487, November.
    11. repec:ebl:ecbull:v:15:y:2007:i:3:p:1-8 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Makieła, Kamil, 2016. "Bayesian inference in generalized true random-effects model and Gibbs sampling," MPRA Paper 69389, University Library of Munich, Germany.
    2. Makieła, Kamil & Marzec, Jerzy & Pisulewski, Andrzej, 2016. "Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach," MPRA Paper 80295, University Library of Munich, Germany.
    3. Jakub Growiec & Anna Pajor & Dorota Gorniak & Artur Predki, 2015. "The shape of aggregate production functions: evidence from estimates of the World Technology Frontier," Bank i Kredyt, Narodowy Bank Polski, vol. 46(4), pages 299-326.
    4. Giampaolo Garzarelli & Stephen M. Miller & Yasmina R. Limam, 2016. "Output Decomposition in the Presence of Input Quality Effects: A Stochastic Frontier Approach," Working Papers 72, Economic Research Southern Africa.
    5. Michael Danquah & Enrique Moral-Benito & Bazoumana Ouattara, 2014. "TFP growth and its determinants: a model averaging approach," Empirical Economics, Springer, vol. 47(1), pages 227-251, August.

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    More about this item

    Keywords

    economic growth decomposition; Bayesian frontiers; productivity analysis; models for panel data;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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