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Decompositions of Productivity Growth into Sectoral Effects

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  • Diewert, Erwin

Abstract

The paper provides some new decompositions of labour productivity growth and Total Factor Productivity (TFP) growth into sectoral effects. These new decompositions draw on the earlier work of Tang and Wang (2004). The economy wide labour productivity growth rate turns out to depend on the sectoral productivity growth rates, output price effects and changes in sectoral labour input shares. The economy wide TFP growth decomposition is similar but some extra terms due to input price inflation make their appearance in the decomposition.

Suggested Citation

  • Diewert, Erwin, 2013. "Decompositions of Productivity Growth into Sectoral Effects," Economics working papers erwin_diewert-2013-12, Vancouver School of Economics, revised 06 Mar 2013.
    • Handle: RePEc:ubc:bricol:erwin_diewert-2013-12
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    File URL: http://faculty.arts.ubc.ca/ediewert/dp1305.pdf
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    Cited by:

    1. Dennis Fixler, 2014. "Priorities and Directions for Future Productivity Research: A BEA Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 27, pages 10-13, Fall.
    2. Diane Coyle & Jen‐Chung Mei, 2023. "Diagnosing the UK productivity slowdown: which sectors matter and why?," Economica, London School of Economics and Political Science, vol. 90(359), pages 813-850, July.
    3. Nicholas Crafts & Pieter Woltjer, 2021. "Growth Accounting In Economic History: Findings, Lessons And New Directions," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 670-696, July.
    4. Luis Orea & Inmaculada Álvarez-Ayuso & Luis Servén, 2024. "The Structural and Productivity Effects of Infrastructure Provision in Developed and Developing Countries," Advances in Econometrics, in: Essays in Honor of Subal Kumbhakar, volume 46, pages 265-308, Emerald Group Publishing Limited.
    5. Bart van Ark & Klaas de Vries & Abdul Erumban, 2021. "Productivity and the Pandemic - Short-Term Disruptions and Long-Term Implications. The impact of the COVID-19 pandemic on productivity dynamics by industry," Working Papers 007, The Productivity Institute.
    6. Orea, Luis, 2018. "Infrastructure, resource allocation and productivity growth: a mutually consistent decomposition of inter and intra-industry productivity effects," Efficiency Series Papers 2018/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    7. Betts, Caroline, 2021. "Accounting for Japan's Lost Score," MPRA Paper 109285, University Library of Munich, Germany.
    8. Oulton, Nicholas, 2020. "Measuring productivity: theory and British practice," LSE Research Online Documents on Economics 106473, London School of Economics and Political Science, LSE Library.
    9. Patieene Alves Passoni, 2022. "Prezzi relativi e deflazione delle tabelle input-output: implicazioni per l'analisi strutturale (Relative prices and deflation of relative prices and deflation of input-output tables: Implications for," Moneta e Credito, Economia civile, vol. 75(299), pages 307-325.
    10. Alexander Murray, 2017. "What Explains the Post-2004 U.S.Productivity Slowdown?," CSLS Research Reports 2017-05, Centre for the Study of Living Standards.
    11. W. Erwin Diewert, 2016. "Decompositions of Productivity Growth into Sectoral Effects: Some Puzzles Explained," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Robin Sickles & Michael Veall & Marcel-Cristian Voia (ed.), Productivity and Efficiency Analysis, edition 1, chapter 0, pages 1-13, Springer.
    12. Vu, Khuong & Hartley, Kris, 2022. "Effects of digital transformation on electricity sector growth and productivity: A study of thirteen industrialized economies," Utilities Policy, Elsevier, vol. 74(C).
    13. Zhao, Jingfeng & Tang, Jianmin, 2018. "Understanding agricultural growth in China: An international perspective," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 43-51.
    14. W. Erwin Diewert & Kevin J. Fox, 2017. "Decomposing Value Added Growth into Explanatory Factors," Discussion Papers 2017-02, School of Economics, The University of New South Wales.
    15. Zhao, Jingfeng & Tang, Jianmin, 2018. "Industrial structure change and economic growth: A China-Russia comparison," China Economic Review, Elsevier, vol. 47(C), pages 219-233.
    16. Sonam Choudhry, 2025. "Composition of Intermediate Inputs: Detangling Price and Quantity Effect," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 23(1), pages 137-157, March.
    17. Matthew Calver and Alexander Murray, 2016. "Decomposing Multifactor Productivity Growth in Canada by Industry and Province, 1997-2014," CSLS Research Reports 2016-19, Centre for the Study of Living Standards.

    More about this item

    Keywords

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    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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