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The Determinants of Total Factor Productivity in the EU: Insights from Sectoral Data and Common Dynamic Processes

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  • Agnieszka Gehringer
  • Inmaculada Martinez-Zarzoso
  • Felicitas Nowak.Lehmann Danziger

Abstract

This paper examines the development of total factor productivity (TFP) and the drivers of TFP for a panel of 17 EU countries in the period of 1995-2007. We estimate aggregated and sectoral TFP for 17 EU countries by means of the augmented mean group estimator to control for endogeneity, cross-section dependence and heterogeneous production technology. We find that although wages are the main driver of TFP, ICT, extra-EU trade and human capital also play a role.

Suggested Citation

  • Agnieszka Gehringer & Inmaculada Martinez-Zarzoso & Felicitas Nowak.Lehmann Danziger, 2013. "The Determinants of Total Factor Productivity in the EU: Insights from Sectoral Data and Common Dynamic Processes," EcoMod2013 5343, EcoMod.
  • Handle: RePEc:ekd:004912:5343
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    References listed on IDEAS

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    Cited by:

    1. Daniel Gonçalves & Ana Martins, 2016. "The Determinants of TFP Growth in the Portuguese Manufacturing Sector," GEE Papers 0062, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2016.
    2. Ana Martins & Tiago Domingues & Catarina Branco, 2018. "The Determinants of TFP Growth in the Portuguese Service Sector," GEE Papers 0114, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2018.

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    Keywords

    17 EU countries ; Growth; Sectoral issues;

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