Sources of transport sector labor productivity performance in industrialized countries: Insights from a decomposition analysis

Khuong Vu and Kris Hartley

Transport Policy, 2022, vol. 129, issue C, 204-218

Abstract: This study examines patterns and sources of growth in the transport sector's labor productivity across 13 industrialized countries over the period 2000–2015. Through decomposition analysis – specifically, the growth accounting method and industry origin analysis – the study makes three principal findings. First, total factor productivity growth plays a crucial but often underleveraged role in driving the sector's growth and catch-up on labor productivity. Second, digital transformation – especially investment in software and database assets – is a significant source of the sector's labor productivity growth and catch-up, while innovation-related capital has a complementary effect. Third, subsector-level labor productivity improvement is the major driver of the sector's overall labor productivity growth, while the growth contribution of labor reallocation among subsectors is insignificant. The article concludes with a discussion of policy insights and implications.

Keywords: Transport sector; Labor productivity; Growth decomposition; ICT; Structural change; Industrialized countries (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:129:y:2022:i:c:p:204-218

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DOI: 10.1016/j.tranpol.2022.10.017

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