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Estimation of technical change and TFP growth based on observable technology shifters
Jönköping University, Jönköping International Business School, JIBS, Economics. Department of Economics, Sogang University, Seoul, South Korea.ORCID iD: 0000-0002-7902-4683
Department of Agricultural Economics, University of Tabriz, Tabriz, Iran.
2019 (English)In: Journal of Productivity Analysis, ISSN 0895-562X, E-ISSN 1573-0441Article in journal (Refereed) Epub ahead of print
Abstract [en]

This paper models and estimates total factor productivity (TFP) growth parametrically. The model is a generalization of the traditional production function model where technology is represented by a time trend. It decomposes TFP growth into an unobservable time trend induced technical change, scale economies and an observable technology shifter index's components. The empirical results are based on unbalanced panel data at the global level for 190 countries observed over the period 1996-2013. It uses a number of exogenous growth factors in modeling four technology shifter indices to explore development infrastructure, finance, technology and human development determinants of TFP growth. Our results show that unobservable technical change remains the most important component of TFP growth. Our findings also show that technical changes and TFP growth are unexpectedly negative across all country income groups and years.

Place, publisher, year, edition, pages
Springer, 2019.
Keywords [en]
Technical change, Total factor productivity growth, Technology indicators, Technology shifters
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-46822DOI: 10.1007/s11123-019-00558-5ISI: 000492651600002Scopus ID: 2-s2.0-85074488542Local ID: ;IHHÖvrigtISOAI: oai:DiVA.org:hj-46822DiVA, id: diva2:1370103
Available from: 2019-11-14 Created: 2019-11-14 Last updated: 2019-11-14

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Heshmati, Almas

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