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The Measurement of TFP in Argentina, 1990-2004: A Case of the Tyranny of Numbers, Economic Cycles and Methodology

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  • Ariel Coremberg

Abstract

The aim of this study is to examine the main sources of growth in Argentina for the period 1990-2004 in order to identify the dominant growth profile: either extensive, which is associated with factor accumulation and utilisation, or intensive, which is based on productivity gains. The study proposes a methodology for identifying gains in total factor productivity (TFP) net of short-run fluctuations in relative prices and cyclical changes in factor utilisation. When applying this methodology to Argentina in the period 1990-2004, we find that economic growth appears to be extensive during the whole period, biased towards capital accumulation and utilisation during the 1990s and biased towards labour input after the 2002 devaluation. These results raise doubts as to whether the Argentine economy is able to generate long-run productivity gains independent of composition and quality effects and cyclical changes in factors utilisation, gains that are needed to achieve sustainable long-run growth.

Suggested Citation

  • Ariel Coremberg, 2008. "The Measurement of TFP in Argentina, 1990-2004: A Case of the Tyranny of Numbers, Economic Cycles and Methodology," International Productivity Monitor, Centre for the Study of Living Standards, vol. 17, pages 52-74, Fall.
    • Handle: RePEc:sls:ipmsls:v:17:y:2008:5
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    References listed on IDEAS

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    Cited by:

    1. Bert M. Balk, 2010. "An Assumption‐Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
    2. Ariel Coremberg, 2017. "Argentina Was Not the Productivity and Economic Growth Champion of Latin America," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 77-90, Fall.

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    More about this item

    Keywords

    TFP; Measurement; business cycles; Cyclicality;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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