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Decompositions of productivity growth into sectoral effects

Author

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  • W. Diewert

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Abstract

The paper provides some new decompositions of labour productivity growth and total factor productivity (TFP) growth into sectoral effects. These new decompositions draw on the earlier work of Tang and Wang (Can J Econ 37:421–444, 2004 ). The economy wide labour productivity growth rate turns out to depend on the sectoral productivity growth rates, real output price changes and changes in sectoral labour input shares. The economy wide TFP growth decomposition into explanatory factors is similar but some extra terms due to real input price change make their appearance in the decomposition. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • W. Diewert, 2015. "Decompositions of productivity growth into sectoral effects," Journal of Productivity Analysis, Springer, vol. 43(3), pages 367-387, June.
  • Handle: RePEc:kap:jproda:v:43:y:2015:i:3:p:367-387
    DOI: 10.1007/s11123-014-0392-0
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    References listed on IDEAS

    as
    1. Diewert, W. Erwin & Mizobuchi, Hideyuki, 2009. "Exact And Superlative Price And Quantity Indicators," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S2), pages 335-380, September.
    2. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    3. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, vol. 46(4), pages 883-900, July.
    4. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
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    Citations

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    Cited by:

    1. Diewert, Erwin, 2014. "Decompositions of Productivity Growth into Sectoral Effects: Some Puzzles Explained," Economics working papers erwin_diewert-2014-48, Vancouver School of Economics, revised 03 Nov 2014.
    2. repec:eee:streco:v:46:y:2018:i:c:p:43-51 is not listed on IDEAS
    3. W. Erwin Diewert & Kevin J. Fox, 2017. "Decomposing Value Added Growth into Explanatory Factors," Discussion Papers 2017-02, School of Economics, The University of New South Wales.
    4. repec:eee:chieco:v:47:y:2018:i:c:p:219-233 is not listed on IDEAS
    5. Matthew Calver and Alexander Murray, 2016. "Decomposing Multifactor Productivity Growth in Canada by Industry and Province, 1997-2014," CSLS Research Reports 2016-19, Centre for the Study of Living Standards.
    6. Alexander Murray, 2017. "What Explains the Post-2004 U.S.Productivity Slowdown?," CSLS Research Reports 2017-05, Centre for the Study of Living Standards.

    More about this item

    Keywords

    Total factor productivity; Labour productivity; Index numbers; Sectoral contributions to growth; C43; C82; D24;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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