The sensitivity of TFP growth in UK manufacturing Online publication date: Thu, 13-Sep-2007
by Dolores Anon Higon
Global Business and Economics Review (GBER), Vol. 9, No. 4, 2007
Abstract: This paper examines the sensitivity of Total Factor Productivity (TFP) estimates to alternative concepts of output and methods of estimation. On theoretical grounds, gross output is the superior concept to real output and econometric estimates of TFP growth are to be preferred to growth-accounting estimates under general assumptions. A panel regression on UK manufacturing industries reveals that controlling for market power and capacity utilisation adjustments, growth-accounting estimates of productivity growth are generally biased. The econometric results suggest that the recovery in productivity rates experienced in the 1980s by the UK manufacturing sectors and the slowdown in the 1990s was not as large as implied by the growth-accounting estimates.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com