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Intrasectoral structural change and aggregate productivity development: robust stochastic nonparametric frontier function estimates

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  • Jens Krüger

Abstract

This paper investigates the sources of total factor productivity growth in the German manufacturing sector during 1981–1998. Decompositions of aggregate productivity growth are used to identify the effects of structural change and entry–exit on aggregate productivity growth. We find a substantial rise in productivity growth after the German reunification. The bulk of this rise can be attributed to structural change and entry–exit. Two methodological refinements are implemented. The first refinement is the application of robust stochastic nonparametric approaches to frontier function analysis, and the second is the calculation of bootstrap confidence intervals for the components of the productivity decompositions. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Jens Krüger, 2014. "Intrasectoral structural change and aggregate productivity development: robust stochastic nonparametric frontier function estimates," Empirical Economics, Springer, vol. 46(4), pages 1545-1572, June.
    • Handle: RePEc:spr:empeco:v:46:y:2014:i:4:p:1545-1572
    DOI: 10.1007/s00181-013-0727-0
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    More about this item

    Keywords

    Productivity decomposition; Structural change; Manufacturing; D24; O12; L60;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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