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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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    References listed on IDEAS

    as
    1. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    2. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, vol. 46(4), pages 883-900, July.
    3. Diewert, W. Erwin & Mizobuchi, Hideyuki, 2009. "Exact And Superlative Price And Quantity Indicators," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S2), pages 335-380, September.
    4. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
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    Citations

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    Cited by:

    1. Alexander Murray, 2017. "What Explains the Post-2004 U.S.Productivity Slowdown?," CSLS Research Reports 2017-05, Centre for the Study of Living Standards.
    2. Diewert, Erwin, 2014. "Decompositions of Productivity Growth into Sectoral Effects: Some Puzzles Explained," Economics working papers erwin_diewert-2014-48, Vancouver School of Economics, revised 03 Nov 2014.
    3. repec:eee:streco:v:46:y:2018:i:c:p:43-51 is not listed on IDEAS
    4. 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.
    5. repec:eee:chieco:v:47:y:2018:i:c:p:219-233 is not listed on IDEAS
    6. 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

    Total Factor Productivity; labour productivity; index numbers; sectoral contributions to growth.;

    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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