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Total factor productivity drivers in the selected EU countries: Cointegration approach

Author

Listed:
  • Zoran Boroviæ

    (Faculty of Economics, University of Banja Luka, Banja Luka, BiH)

  • Mladen Rebiæ

    (Faculty of Economics, University of East Sarajevo, Pale, BiH)

  • Dalibor Tomaš

    (Faculty of Economics, University of Banja Luka, Banja Luka, BiH)

Abstract

In this paper, we will present the results of our survey on TFP and its main drivers. For this purpose, our analysis is based on a sample of thirteen EU countries for the period 1995 - 2016. In the first iteration, we have estimated the TFP for selected countries. The main goal of this paper is to determine the existence of a long-run relationship, ie. cointegration between the TFP and its main drivers. To do so, in the second iteration we have used the relatively new panel ARDL (Autoregressive Distributed Lag) model proposed by Pesaran (1997) and Pesaran and Shin (1999). The obtained results in this paper reveal the existence of a long-term relationship, i.e. co-integration between the TFP on one hand, and R&D, and ICT, on the other hand, confirming the basic hypothesis that there is a long-term and statistically significant relationship, i.e. co-integration between the above-mentioned variables.

Suggested Citation

  • Zoran Boroviæ & Mladen Rebiæ & Dalibor Tomaš, 2020. "Total factor productivity drivers in the selected EU countries: Cointegration approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 295-315.
    • Handle: RePEc:rfe:zbefri:v:38:y:2020:i:1:p:295-315
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    References listed on IDEAS

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    More about this item

    Keywords

    growth; total factor productivity; foreign direct investment; research and development; information and communication technologies; Cobb-Douglas production function; cointegration;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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