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Explaining Economic Growth: Factor Accumulation, Total Factor Productivity Growth, and Production Efficiency Improvement

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Author Info
Yasmina Reem Limam (COMETE-Engineering, Tunis)
Stephen M. Miller (University of Nevada, Las Vegas, and University of Connecticut)

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Abstract

This paper examines cross-country patterns of economic growth by estimating a stochastic frontier production function for 80 developed and developing countries and decomposing output change into factor accumulation, total factor productivity growth, and production efficiency improvement. In addition, this paper incorporates the quality of inputs in analyzing output growth, where the productivity of capital depends on its average age, while the productivity of labor depends on its average level of education. Our growth decomposition involves five geographic regions - Africa, East Asian, Latin America, South Asia, and the West. Factor growth, especially capital accumulation, generally proves much more important than either the improved quality of factors or total factor productivity growth in explaining output growth. The quality of capital positively and significantly affects output growth in all groups. The quality of labor, however, only possesses a positive and significant effect on output growth in Africa, East Asia, and the West. Labor quality owns a negative and significant effect in Latin America and South Asia.

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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-20.

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Length: 42 pages
Date of creation: Mar 2004
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Handle: RePEc:uct:uconnp:2004-20

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Related research
Keywords: Productivity; Efficiency; Growth Accounting;

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nkamleu, Guy Blaise & Sylla, Kalilou & Zonon, Abdoulaye, 2008. "What accounts for growth in African agriculture," MPRA Paper 11102, University Library of Munich, Germany, revised 2008. [Downloadable!]
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