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Bridging the Gap between Partial and Total Factor Productivity Measures Using Directional Distance Functions

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  • Channing Arndt
  • Thomas W. Hertel
  • Paul V. Preckel

Abstract

Technical dependencies as well as data constraints limit our ability to allocate inputs across sectors and hence our ability to measure sectoral productivity. We adapt a directional measure of efficiency to the measurement of sector-specific productivity that does not require allocating all inputs across sectors. Applied to the agricultural sector of a group of countries, the results show important differences in livestock and crops productivity growth. Commonly used partial factor productivity measures for livestock and crops tend to overestimate productivity growth in most developing countries while underestimating it in European countries. Copyright 2003, Oxford University Press.

Suggested Citation

  • Channing Arndt & Thomas W. Hertel & Paul V. Preckel, 2003. "Bridging the Gap between Partial and Total Factor Productivity Measures Using Directional Distance Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 928-942.
    • Handle: RePEc:oup:ajagec:v:85:y:2003:i:4:p:928-942
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00498
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