Using a standard definition of productivity growth, it is shown that a country may have higher productivity growth than another country in each sector, but may have a lower productivity growth rate overall. Also, it is shown that popular methods for aggregating firm/industry estimates of productivity growth have a serious problem in that productivity of all firms/industries can go up, but aggre...

This paper is a survey of recent contributions to and developments in the relationship between efficiency and productivity via the production function. The objective is to provide a brief discussion on data and on the methods of measuring efficiency and productivity. First, we introduce the reader to the measurement of partial and total factor productivity in the context of static and firm - sp...

since the difference in productivity growth rates in different provinces is a result of regional inequality, efficiency criteria in the development of regional-scale agricultural activities is beneficial. therefore it is important that long-term movements in the provinces to identify differences in productivity levels to take effective measures such as investment more in infrastructure, researc...

We study the impact of bank credit supply on firm output and productivity. Exploiting a matched firm-bank database, covering all credit relationships of Italian corporations over more than a decade, we measure idiosyncratic supply-side shocks to firm credit availability. We use this to estimate a production model augmented with financial frictions, and show that an expansion of credit supply le...

The level of human capital affects not only effective labor but also the productivity. Because the coordination and interaction between individuals cause spillover effects on production, higher level of human capital leads to higher productivity growth. The extent of this effect on productivity growth also depends on the characteristics of the markets. Entrepreneurs may conduct their businesses...

Is productivity growth inimical to employment? Canonical economic theory says no, but much recent economic theory says ‘maybe’ — that is, rapid advances in machine capabilities may curtail aggregate labor demand as technology increasingly encroaches on human job tasks. We explore the relationship between productivity growth and employment using countryand industry-level data for 19 countries ov...

Since july 1991, major economic policy changes have been made under the economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment in which the companies operate. This paper makes a comparative analysis of productivity growth ...

Wages and Productivity Growth in a Dynamic Monopoly* This Paper studies the intertemporal problem of a monopolistic firm that engages in productivity-enhancing innovations to reduce its labour costs. If the level of wages is sufficiently low, the firm’s rate of productivity growth approaches the rate of wage growth and eventually the firm reaches a steady state where its unit labour cost remain...

This paper explores the relationship between patterns of productivity growth and the development stage of an industry, using firm-level data on the cotton-spinning industry in Japan in the late-nineteenth century. It is found that patterns of productivity growth depend on the development stage of the industry. In the earlier stage of industrial development, the productivity growth of each firm,...

This research analyzes manufacturing growth and decline across metropolitan and nonmetropolitan regions during the 1972–2002 period. We decompose real value added growth across local labor market areas in the lower 48 U.S. states into contributions from labor, capital, and total factor productivity. We then estimate a model describing the long-run growth of labor, capital, and productivity and ...