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International Comparison of Total Factor Productivity: A Review

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  • Islam, Nazrul

Abstract

Several different approaches to international comparison of Total Factor Productivity (TFP) have now emerged. Among these are the time-series approach, the panel approach, and the cross-section approach. This paper compares methodologies of these different approaches and results that have been obtained from their application. The comparison of results is conducted in the context of two samples, namely the sample of G7 countries and a large sample that includes developing nations. It is found that while there are broad agreements in results, there exist considerable differences too. The analysis shows how these differences can be related, in part, to differences in methodology. The paper also shows how these different approaches to international TFP-comparison can play a complementary role in enhancing our understanding of such important phenomena as technological diffusion and TFP-convergence. Copyright 1999 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Islam, Nazrul, 1999. "International Comparison of Total Factor Productivity: A Review," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(4), pages 493-518, December.
  • Handle: RePEc:bla:revinw:v:45:y:1999:i:4:p:493-518
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    Cited by:

    1. Fitzgerald, Doireann & Hallak, Juan Carlos, 2004. "Specialization, factor accumulation and development," Journal of International Economics, Elsevier, vol. 64(2), pages 277-302, December.
    2. Stéphane Blancard & Jean-Philippe Boussemart & Walter Briec & Kristiaan Kerstens, 2007. "Technology Adoption in French Agriculture and the Role of Financial Constraints," INRA UMR CESAER Working Papers 2007/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    3. Castellacci, Fulvio & Archibugi, Daniele, 2008. "The technology clubs: The distribution of knowledge across nations," Research Policy, Elsevier, vol. 37(10), pages 1659-1673, December.
    4. Jesus Felipe & John S. L. McCombie, 2007. "Is A Theory Of Total Factor Productivity Really Needed?," Metroeconomica, Wiley Blackwell, vol. 58(1), pages 195-229, February.
    5. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    6. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
    7. MG. Ladu, 2006. "Total Factor Productivity Estimates: Some Evidence from European Regions," Working Paper CRENoS 200606, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. M. Danquah & B. Ouattara, 2014. "Productivity Growth, Human Capital And Distance To Frontier In Sub-Saharan Africa," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 27-48, December.
    9. Audra Bowlus & Haoming Liu & Chris Robinson, 2002. "Business Cycle Models, Aggregation, and Real Wage Cyclicality," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 308-335, Part.
    10. Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
    11. Charles R. Hulten & Sylaja Srinivasan, 1999. "Indian Manufacturing Industry: Elephant or Tiger? New Evidence on the Asian Miracle," NBER Working Papers 7441, National Bureau of Economic Research, Inc.
    12. Fulvio Castellacci, 2011. "Closing the Technology Gap?," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 180-197, February.
    13. Veloso, Fernando A. & Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu, 2004. "On the tyranny of numbers: East Asian miracles in world perspective," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 569, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    14. Mishra, Tapas & Jumah, Adusei & Parhi, Mamata, 2008. "Age-structured Human Capital and Spatial Total Factor Productivity Dynamics," Economics Series 226, Institute for Advanced Studies.
    15. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.
    16. Rosa Bernardini Papalia & Silvia Bertarelli, 2013. "Nonlinearities in economic growth and club convergence," Empirical Economics, Springer, vol. 44(3), pages 1171-1202, June.
    17. Maria Gabriela Ladu, 2010. "Total Factor Productivity Estimates: Some Evidence from European Regions," WIFO Working Papers 380, WIFO.
    18. Rumen Dobrinsky, 2003. "Convergence in Per Capita Income Levels, Productivity Dynamics and Real Exchange Rates in the EU Acceding Countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 305-334, September.
    19. Amjad Naveed & Nisar Ahmad, 2016. "Labour productivity convergence and structural changes: simultaneous analysis at country, regional and industry levels," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-17, December.
    20. R. Pala & E. Marrocu & R. Paci, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    21. repec:spr:empeco:v:53:y:2017:i:3:d:10.1007_s00181-016-1161-x is not listed on IDEAS
    22. Gong, Binlei & Sickles, Robin C., 2016. "Non-structural and Structural Models in Productivity Analysis: Study of the British Isles during the 2007-2009 Financial Crisis," Working Papers 16-004, Rice University, Department of Economics.

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