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Bounded learning-by-doing and sources of firm level productivity growth in colombian food manufacturing industry

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  • Apurba Shee

    (Environment and Production Technology Division, International Food Policy Research Institute)

  • Spiro E. Stefanou

    (University of Florida
    Wageningen University)

Abstract

This paper models the bounded learning concept with the learning progress function characterized by the degree of efficiency and the specification of the learning progress as a logistic function capturing both the slow start-up and the limit in learning progress. We differentiate learning efficiency from the technical efficiency. The endogeneity corrected stochastic frontier model is then used to decompose the factor productivity growth into components associated with technological change, technical efficiency, scale, and learning. This productivity growth decomposition provides useful information and policy level insight in firm-level productivity analysis. Empirical results based on plant-level panel data on the Colombian food manufacturing industry for the period 1982–1998 suggest that productivity growth not only stems from technical progress, technical efficiency change, and scale but also from significant learning effect. The relative importance of the productivity growth components provides perspective for efficient resource allocation within the firm.

Suggested Citation

  • Apurba Shee & Spiro E. Stefanou, 2016. "Bounded learning-by-doing and sources of firm level productivity growth in colombian food manufacturing industry," Journal of Productivity Analysis, Springer, vol. 46(2), pages 185-197, December.
    • Handle: RePEc:kap:jproda:v:46:y:2016:i:2:d:10.1007_s11123-016-0481-3
    DOI: 10.1007/s11123-016-0481-3
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    More about this item

    Keywords

    Colombian food manufacturing industry; Bounded learning-by-doing; Endogeneity corrected stochastic frontier; Firm-level productivity growth; Decomposition of productivity growth;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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