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The Determinants of TFP Growth in the Portuguese Manufacturing Sector

Author

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  • Daniel Gonçalves

    (Gabinete Estratégia e Estudos Ministério Economia / Office for Strategy and Studies - Ministério da Economia / Ministry of Economy)

  • Ana Martins

    (Gabinete Estratégia e Estudos Ministério Economia / Office for Strategy and Studies - Ministério da Economia / Ministry of Economy)

Abstract

Given the linkage between Total Factor Productivity growth and economic growth, it becomes relevant to understand, at the firm level, which are the main determinants of such growth path. We use an extensive panel data covering Portuguese manufacturing firms, between 2010 and 2014, in order to assess which are the main determinants of the Total Factor Productivity. Through a second stage estimation we present a fixed-effects model that captures different dimensions of firm level characteristics that impact TFP growth, suggesting policy recommendations amid the model’s results. Our results show that age and debt influence negatively TFP growth, whereas size, exports and training expenses prompt TFP growth.

Suggested Citation

  • Daniel Gonçalves & Ana Martins, 2016. "The Determinants of TFP Growth in the Portuguese Manufacturing Sector," GEE Papers 0062, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2016.
    • Handle: RePEc:mde:wpaper:0062
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    References listed on IDEAS

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    2. Abeer Elshennawy & Mohamed Bouaddi, 2018. "Sources of Heterogeneity in Labor Productivity and Total Factor Productivity in Egyptian Manufacturing," Working Papers 1276, Economic Research Forum, revised 26 Dec 2018.
    3. Segundo Camino‐Mogro & Natalia Bermudez‐Barrezueta, 2021. "Productivity determinants in the construction sector in emerging country: New evidence from Ecuadorian firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2391-2413, November.
    4. Ana Martins & Tiago Domingues & Catarina Branco, 2018. "The Determinants of TFP Growth in the Portuguese Service Sector," GEE Papers 0114, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2018.
    5. Paulo Matos & Pedro Neves, 2020. "The Determinants of Total Factor Productivity in the Portuguese Quaternary Sector," GEE Papers 0149, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Apr 2020.
    6. Santos, Eleonora & Khan, Shahed, 2018. "Public Policies, Innovation and Convergence," EconStor Preprints 183508, ZBW - Leibniz Information Centre for Economics.
    7. Frederico Oliveira Torres, 2019. "Firm heterogeneity and exports in Portugal - Identifying export potential," GEE Papers 0118, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Apr 2019.
    8. Pedro Carvalho, 2018. "Competition and Firm Productivity: Evidence from Portugal," GEE Papers 00108, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2018.
    9. Wang, Manyu & Huang, Ying & An, Zidong & Wei, Chu, 2023. "Reforming the world's largest heating system: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 117(C).
    10. Pedro Carvalho, 2018. "Competition and Firm Productivity: Evidence from Portugal," GEE Papers 00108, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2018.
    11. Abdoulaye Kané, 2022. "Measurement of total factor productivity: Evidence from French construction firms," EconomiX Working Papers 2022-9, University of Paris Nanterre, EconomiX.

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    More about this item

    Keywords

    Total Factor Productivity; LEVPET; Industry;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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