Productivity and Technical Change: The Case of Taiwan

R. Fare, Shawna Grosskopf and Lee W-F
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R. Fare: Southern Illinois Univ. at Carbondale

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: "Technical change" and "technical efficiency change" are two key factors to productivity growth that are associated with different sources; hence, different policies may be required to address them. Therefore, it is important to decompose productivity growth into these two components. Technical change may be further decomposed into output- and input-biases. These biases have impacts on factor income distribution and hence policy implications associated with them. It is therefore important to identify the output- and input-bias components of technical change and measure them empirically. In this paper, we explore the above issues for the disaggregate cases of 18 Taiwan manufacturing industries at the 2-digit level grouping during the period 1978-92. To pursue our goal we decompose the Malmquist total factor productivity (TFP) index into two components: technical change and technical efficiency change. Here, however, we further decompose the technical change component; in particular we define output bias, input bias and a magnitude term. In addition, we are able to identify the directions of the input biases.

JEL-codes: C6 D5 D9 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1995-09-29
Note: Type of Document - WordPerfect 5.1 for DOS; prepared on IBM PC; to print on HP LaserJet 3 (1Mb); pages: 33; figures: none. binary WordPerfect file FTP'ed; see all of our working papers at
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Productivity and technical change: the case of Taiwan (2001)
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