Sectoral TFP developments in the OECD

Arjan Lejour ()

CPB Memoranda from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The development of the sectoral Total Factor Productivity (TFP) in the OECD between 1970-1990 is described. Based on the ISDB data of the OECD, we confirm the stylised fact that TFP growth is relatively high in agriculture and relatively low in services. Within manufacturing, the TFP growth in chemicals and in capital goods is high whereas it is low in food processing, paper and publishing and metals. The TFP growth in services sectors like construction, financial services and other (government) services seems to be zero or even negative, while it is relatively high in transport and communication. These sectoral pictures are not universal. Differences between countries are rather large. Also, the TFP growth per year appears to be non constant over time. We use the results from this study in our dynamic CGE model WorldScan to model differences in productivity growth between the sectors. In particular, we employ this mechanism in the European long term scenarios.

Keywords: production; productivity; total factor productivity; TFP; technological change; OECD; Worldscan (search for similar items in EconPapers)
JEL-codes: O0 O3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-eec

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