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Sequential Malmquist Indices of Productivity Growth: An Application to OECD Industrial Activities

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  • Victoria Shestalova

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Abstract

The paper applies both the standard DEA methodology with contemporaneous frontiers and DEA with sequential frontiers to study changes in productivity and efficiency in manufacturing for a sample of eleven OECD countries over a twenty-year period. It uses a decomposition of the industrial Malmquist productivity indices to locate the sources of productivity growth: 'technical progress' and 'catching up.' The alternative indices are interrelated in a unifying framework that provides an interpretation to their difference. We argue that for manufacturing industries, in which technological regress is unlikely to occur, DEA with sequential frontiers provides a more adequate measure for the contribution of technical changes than standard DEA. Copyright Kluwer Academic Publishers 2003

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  • Victoria Shestalova, 2003. "Sequential Malmquist Indices of Productivity Growth: An Application to OECD Industrial Activities," Journal of Productivity Analysis, Springer, vol. 19(2), pages 211-226, April.
  • Handle: RePEc:kap:jproda:v:19:y:2003:i:2:p:211-226
    DOI: 10.1023/A:1022857501478
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