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Revisiting the Determinants of Productivity Growth - What’s new?


  • Boileau Loko
  • Mame Astou Diouf


This paper studies the main determinants of total factor productivity (TFP) growth using principal component analysis and a dynamic panel data model and, through a case study, explores key areas where accelerated reforms in the Maghreb countries would boost TFP gains. The results reveal that reforms targeted at attracting foreign direct investment and rationalizing government size, shifting resources from low-productivity sectors to higher ones, and encouraging women to enter the work force, could accelerate TFP gains. Equally important are reforms aimed at strengthening human capital, increasing the volume of trade, and improving the business environment.

Suggested Citation

  • Boileau Loko & Mame Astou Diouf, 2009. "Revisiting the Determinants of Productivity Growth - What’s new?," IMF Working Papers 09/225, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:09/225

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    References listed on IDEAS

    1. Chang, Roberto & Kaltani, Linda & Loayza, Norman V., 2009. "Openness can be good for growth: The role of policy complementarities," Journal of Development Economics, Elsevier, vol. 90(1), pages 33-49, September.
    2. Ayhan Kose, M. & Prasad, Eswar S. & Terrones, Marco E., 2009. "Does openness to international financial flows raise productivity growth?," Journal of International Money and Finance, Elsevier, vol. 28(4), pages 554-580, June.
    3. Selin Sayek & Laura Alfaro & Areendam Chanda & Sebnem Kalemli-Ozcan, 2003. "FDI Spillovers, Financial Markets, and Economic Development," IMF Working Papers 03/186, International Monetary Fund.
    4. Stephanie Seguino, 2010. "Gender, Distribution, and Balance of Payments Constrained Growth in Developing Countries," Review of Political Economy, Taylor & Francis Journals, vol. 22(3), pages 373-404.
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    6. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
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    8. Laura Alfaro & Sebnem Kalemli-Ozcan & Selin Sayek, 2009. "FDI, Productivity and Financial Development," The World Economy, Wiley Blackwell, vol. 32(1), pages 111-135, January.
    9. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    10. Helene Poirson Ward, 2000. "Factor Reallocation and Growth in Developing Countries," IMF Working Papers 00/94, International Monetary Fund.
    11. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    12. McGuckin, Robert & Ark, Bart van, 2005. "Productivity and participation: an international comparison," GGDC Research Memorandum 200578, Groningen Growth and Development Centre, University of Groningen.
    13. Udry, Christopher & Hoddinott, John & Alderman, Harold & Haddad, Lawrence, 1995. "Gender differentials in farm productivity: implications for household efficiency and agricultural policy," Food Policy, Elsevier, vol. 20(5), pages 407-423, October.
    14. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    15. International Monetary Fund, 2007. "Asia Rising; A Sectoral Perspective," IMF Working Papers 07/130, International Monetary Fund.
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    17. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
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    Cited by:

    1. Cho, Yoonyoung & Tien, Bienvenue N., 2014. "Sub-Saharan Africa's recent growth spurt : an analysis of the sources of growth," Policy Research Working Paper Series 6862, The World Bank.
    2. repec:cbu:jrnlec:y:2016:v:6:p:4-16 is not listed on IDEAS
    3. Maurer, Stephan E. & Potlogea, Andrei, 2014. "Fueling the gender gap? Oil and women's labor and marriage market outcomes," LSE Research Online Documents on Economics 60351, London School of Economics and Political Science, LSE Library.
    4. Su, Dan & Yao, Yang, 2016. "Manufacturing as the Key Engine of Economic Growth for Middle-Income Economies," ADBI Working Papers 573, Asian Development Bank Institute.
    5. repec:gam:jsusta:v:8:y:2016:i:2:p:153:d:63771 is not listed on IDEAS
    6. Chaofan Chen & Jing Han & Peilei Fan, 2016. "Measuring the Level of Industrial Green Development and Exploring Its Influencing Factors: Empirical Evidence from China’s 30 Provinces," Sustainability, MDPI, Open Access Journal, vol. 8(2), pages 1-20, February.
    7. Rina Bhattacharya & Hirut Wolde, 2010. "Constraintson Growth in the MENA Region," IMF Working Papers 10/30, International Monetary Fund.
    8. Mojgan Samandar Ali Eshtehardi & Seyed Kamran Bagheri, 2015. "Gender Gap in Patenting Activities: Evidence from Iran," LEM Papers Series 2015/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Concha Verdugo Yepes, 2011. "Compliance with the AM+L4776L/CFT International Standard; Lessons from a Cross-Country Analysis," IMF Working Papers 11/177, International Monetary Fund.
    10. Mwafaq M. Dandan & Ana Paula Marques, 2017. "Education, Employment and Gender Gap in Mena Region," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(6), pages 573-588, June.
    11. Andrea Caragliu & Peter Nijkamp, 2013. "Space and Knowledge Spillovers in European Regions," Tinbergen Institute Discussion Papers 13-148/VIII, Tinbergen Institute.
    12. Najia Saqib & Priyanka Aggarwal & Ms. Saima Rashid, 2016. "Women Empowerment and Economic Growth: Empirical Evidence from Saudi Arabia," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 6(5), pages 1-5.
    13. Chen, Guo, 2013. "Health costs, factor productivity and foreign direct investment flows," Master's Theses 157717, University of Minnesota, Department of Applied Economics.
    14. Edinaldo Tebaldi, 2016. "The Dynamics of Total Factor Productivity and Institutions," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(4), pages 1-25, December.


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