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Searching for the "Productivity Slowdown": Some Surprising Findings from West German Manufacturing

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  • Flaig, Gebhard
  • Steiner, Viktor

Abstract

The authors test the hypothesis of a negative long-term trend and/or a structural break in total factor productivi ty after the first oil price shock for West German manufacturing industries within an econometric model based on a flexible cost function with capital as a quasi-fixed factor. After adjusting total factor productivity growth for scale economies and varying capacity utilization, this hypothesis is not supported by their empirical findings for the grea t majority of industries studied, whereas the hypothesis that the (log-)level of total factor productivity follows a random walk with drift is not rejected by various statistical tests. Copyright 1993 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 75 (1993)
Issue (Month): 1 (February)
Pages: 57-65

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Handle: RePEc:tpr:restat:v:75:y:1993:i:1:p:57-65

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Catherine L. Mann, 1997. "Globalization and Productivity in the United States and Germany," Working Paper Series Working Paper Special (1), Peterson Institute for International Economics.
  2. Klaus Weyerstrass & Johannes Jaenicke, 2011. "Is more competition conducive to the macroeconomic performance in the euro area?," Empirica, Springer, vol. 38(3), pages 351-380, July.
  3. Nerlinger, Eric A. & Berger, Georg, 1995. "Technologieorientierte Industrien und Unternehmen: Alternative Definitionen," ZEW Discussion Papers 95-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Guenter Lang, 2002. "Innovative Slowdown, Productivity Reversal? - Estimating the Impact of R&D on Technological Change," Discussion Paper Series 218, Universitaet Augsburg, Institute for Economics.
  5. Louis Amato & Christie Amato, 2001. "The Effects of Global Competition on Total Factor Productivity in U.S. Manufacturing," Review of Industrial Organization, Springer, vol. 19(4), pages 405-421, December.
  6. Steiner, Viktor & Wagner, Kersten, 1997. "Relative Earnings and the Demand for Unskilled Labor in West German Manufacturing," ZEW Discussion Papers 97-17, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Fitzenberger, Bernd & Franz, Wolfgang, 1997. "Flexibilität der qualifikatorischen Lohnstruktur und Lastverteilung der Arbeitslosigkeit: Eine ökonometrische Analyse für Westdeutschland," ZEW Discussion Papers 97-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Koebel, Bertrand M., 1996. "Tests of representative firm models: results for German manufacturing industries," ZEW Discussion Papers 96-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Brandt, Nicola, 2007. "Mark-ups, economies of scale and the role of knowledge spillovers in OECD industries," European Economic Review, Elsevier, vol. 51(7), pages 1708-1732, October.
  10. Andreas Kuhlmann, 2006. "German Productivity - A Reassessment via the New Ifo Productivity Database," Ifo Working Paper Series Ifo Working Papers No. 35, Ifo Institute for Economic Research at the University of Munich.
  11. Bhattacharyya, Anjana & Bhattacharyya, Arunava & Kumbhakar, Subal C., 1997. "Changes in Economic Regime and Productivity Growth: A Study of Indian Public Sector Banks," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 196-219, October.
  12. Guenter Lang, 2008. "Measuring the Returns of Research and Development: An Empirical Study of the German Manufacturing Sector over 45 Years," Working Papers 10, The German University in Cairo, Faculty of Management Technology.
  13. Rodriguez, X.A., 1999. "A proposal for decomposing and adjusting the conventional Divisia index for the measure of productivity," Economic Development 41, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics..
  14. Buscher, Herbert S. & Felder, Johannes & Steiner, Viktor, 1999. "Regional convergence and economic performance: a case study of the West German Laender," ZEW Discussion Papers 99-10, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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