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Latin America: Total factor productivity and its components

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  • Araujo, Jair Andrade
  • Feitosa, Débora Gaspar
  • Silva, Almir Bittencourt da

Abstract

This article applies the stochastic-frontier model to examine total factor productivity (tfp) and its components in Latin America between 1960 and 2010. The likelihood-ratio test shows that, for a selection of Latin American countries over the 50 years analysed, the macroeconomic variables of technical inefficiency included in the model generally have a significant effect; and they allow for a better understanding of technical inefficiency throughout the region. The key variables explaining technical inefficiency in the selected countries are public expenditure and the inflation rate; and there is also an inverse relation between technical inefficiency and the extent to which local prices diverge from purchasing power parity.

Suggested Citation

  • Araujo, Jair Andrade & Feitosa, Débora Gaspar & Silva, Almir Bittencourt da, 2014. "Latin America: Total factor productivity and its components," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
  • Handle: RePEc:ecr:col070:37805
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    References listed on IDEAS

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    Cited by:

    1. Peguero, Felipe & Zapata, Samuel & Sandoval, Luis, 2019. "Agricultural Production of Central America and the Caribbean: Challenges and Opportunities," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 34(3), September.

    More about this item

    Keywords

    PRODUCTIVIDAD; MEDICION; ANALISIS MATEMATICO; MODELOS ECONOMETRICOS; PRODUCTIVITY; MEASUREMENT; MATHEMATICAL ANALYSIS; ECONOMETRIC MODELS;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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