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Capital and Labour Efficiencies: A Regional Analysis

Author

Listed:
  • Martin Williams

    (Center for Governmental Studies, Northern Illinois University, DeKalb, Illinois 60115)

  • Ronald L. Moomaw

    (Oklahoma State University, Stillwater, Oklahoma 74078)

Abstract

We use Sato's factor-augmenting technical progress approach to calculate rates of growth of capital efficiency, labour efficiency, and efficiency-based total factor productivity growth in manufacturing by state. Capital efficiency gains, but not labour efficiency gains, have accompanied the rapid output growth of southern and western states. Regression analysis indicates that variables measuring scale effects, education, urbanisation, capital intensity, and research and development activity are directly associated with productivity and/or input-efficiency growth and that variables measuring regulation, interest-group effects, and unionisation effects are inversely associated.

Suggested Citation

  • Martin Williams & Ronald L. Moomaw, 1989. "Capital and Labour Efficiencies: A Regional Analysis," Urban Studies, Urban Studies Journal Limited, vol. 26(6), pages 573-585, December.
    • Handle: RePEc:sae:urbstu:v:26:y:1989:i:6:p:573-585
    DOI: 10.1080/00420988920080681
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    References listed on IDEAS

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    1. Judge, G G & Bock, M E & Yancey, T A, 1974. "Post Data Model Evaluation," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 245-253, May.
    2. John W. Kendrick, 1973. "Postwar Productivity Trends in the United States, 1948–1969," NBER Books, National Bureau of Economic Research, Inc, number kend73-1, March.
    3. Sato, Ryuzo, 1970. "The Estimation of Biased Technical Progress and the Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(2), pages 179-208, June.
    4. John W. Kendrick, 1973. "National Productivity Trends," NBER Chapters, in: Postwar Productivity Trends in the United States, 1948–1969, pages 35-63, National Bureau of Economic Research, Inc.
    5. Lianos, Theodore P., 1976. "Factor augmentation in Greek manufacturing, 1958-1969," European Economic Review, Elsevier, vol. 8(1), pages 15-31, June.
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    Cited by:

    1. Domazlicky, Bruce R. & Weber, William, L., 1998. "Determinants of Total Factor Productivity, Technological Change, and Efficiency Differentials Among States, 1977-86," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 19-34, Fall.
    2. Vicente German-Soto & Gregory Brock, 2022. "Overall US and Census Region β-Convergence 1963–2015 Controlling for Spatial Effects," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 44-67, March.
    3. Yung Joon Lee & Hyoungsoo Zang, 1998. "Urbanisation and Regional Productivity in Korean Manufacturing," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 2085-2099, November.
    4. David Rigby & Jurgen Essletzbichler, 2000. "Impacts of Industry Mix, Technological Change, Selection and Plant Entry/Exit on Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 333-342.
    5. Shelby Gerking, 1993. "Measuring Productivity Growth in U.S. Regions: A Survey," International Regional Science Review, , vol. 16(1-2), pages 155-185, April.
    6. Brock, Gregory & German-Soto, Vicente, 2017. "Regional industrial informality and efficiency in Mexico, 1990–2013," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 928-941.
    7. Vladimir Shatrevich & Valentina Strautmane, 2015. "Industrialisation factors in post-industrial society," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 3(2), pages 157-172, December.
    8. Gregory Brock, 2001. "An Econometric Look at Inefficiency Among U.S. States, 1977-1986," The Review of Regional Studies, Southern Regional Science Association, vol. 31(1), pages 95-107, Summer.
    9. Bruce R. Domazlicky & William L. Weber, 2006. "The Measurement of Capital and the Measurement of Productivity Growth and Efficiency in State Manufacturing," International Regional Science Review, , vol. 29(2), pages 115-134, April.

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