Sources of TFP Growth: Occupational Choice and Financial Deepening

Hyeok Jeong () and Robert M. Townsend

No 05.28, IEPR Working Papers from Institute of Economic Policy Research (IEPR)

Abstract: We develop a method of growth accounting based on the integrated use of transitional growth models and micro data. We decompose total factor productivity (TFP) growth into the occupational-shift effect, financial-deepening effect, capital-heterogeneity effect, and sectoral-Solow-residuals. Applying this method to Thailand, which experienced rapid growth with enormous structural changes between 1976 and 1996, we find that 73 percent of TFP growth is explained by occupational shifts and ?nancial deepening, without presuming exogenous technical progress. Expansion of credit is a major part. We also show the role of endogenous interaction between factor price dynamics and the wealth distribution for TFP.

Keywords: Total Factor Productivity; Occupation Choice; Financial Deepening (search for similar items in EconPapers)
JEL-codes: O47 O16 J24 D24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-eff
Date: 2005-03, Revised 2005-05
View list of references View citations in EconPapers

Published in Review of Economics, March 1999, pages 1-23

Downloads: (external link)
http://www.usc.edu/dept/LAS/economics/IEPR/Working ... eong,Townsend%5D.pdf First version, 2005 (application/pdf)
http://www.usc.edu/dept/LAS/economics/IEPR/Working ... eong,Townsend%5D.pdf Revised version, 2005 (application/pdf)

Related works:
Journal Article: Sources of TFP growth: occupational choice and financial deepening (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:scp:wpaper:05-28

Access Statistics for this paper

More papers in IEPR Working Papers from Institute of Economic Policy Research (IEPR)
Contact information at EDIRC.
Series data maintained by Farideh Motamedi ().