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Total factor productivity, its components and drivers

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  • Franz Haider

    (University of Vienna)

  • Robert Kunst

    (University of Vienna)

  • Franz Wirl

    (University of Vienna)

Abstract

We consider how the growth of total factor productivity (TFP) was affected by R&D, trade, information and communication technology, and catching-up for the period from 1990 to 2006. Our contributions are: Firstly, to decompose TFP growth into two distinct measures for catching-up and for innovation using the Malmquist index; secondly, to update related investigations. Summarizing our findings, catching-up effects are statistically important, whereas frontier shifts tend to be smaller with increasing distance to the frontier, and large differences exist and persist between sectors and countries.

Suggested Citation

  • Franz Haider & Robert Kunst & Franz Wirl, 2021. "Total factor productivity, its components and drivers," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(2), pages 283-327, May.
    • Handle: RePEc:kap:empiri:v:48:y:2021:i:2:d:10.1007_s10663-020-09476-4
    DOI: 10.1007/s10663-020-09476-4
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