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A Two-Level Top-Down Decomposition of Aggregate Productivity Growth: The Role of Infrastructure

In: Advances in Efficiency and Productivity II

Author

Listed:
  • Luis Orea

    (University of Oviedo)

  • Inmaculada Álvarez-Ayuso

    (Universidad Autónoma de Madrid)

  • Luis Servén

    (World Bank)

Abstract

In this chapter, we provide evidence as to the effects of infrastructure provision on aggregate productivity using industry-level data for a set of developed and developing countries over the 1995–2010 period. A distinctive feature of our empirical strategy is that it allows the measurement of intra- and interindustry resource reallocations which are directly attributable to the infrastructure provision. To achieve this objective, we propose a two-level top-down decomposition of labor aggregate productivity that extends the decomposition introduced by Diewert (Journal of Productivity Analysis 43:367–387) using a time-continuous setting.

Suggested Citation

  • Luis Orea & Inmaculada Álvarez-Ayuso & Luis Servén, 2020. "A Two-Level Top-Down Decomposition of Aggregate Productivity Growth: The Role of Infrastructure," International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor & Joe Zhu (ed.), Advances in Efficiency and Productivity II, pages 173-191, Springer.
    • Handle: RePEc:spr:isochp:978-3-030-41618-8_11
    DOI: 10.1007/978-3-030-41618-8_11
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