How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam

Thanh Ngo, Quang- Van Tran, Tien-Dung Nguyen and Trung-Thanh Nguyen
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Quang- Van Tran: Center for Economic and Financial Research (CEFR), University of Economics and Law (UEL), Ho Chi Minh City 71309, Vietnam
Tien-Dung Nguyen: University of Economics and Law (UEL), Vietnam National University Ho Chi Minh City (VNU-HCM), Ho Chi Minh City 71309, Vietnam
Trung-Thanh Nguyen: School of Economics and Management, Leibniz University Hannover, 30167 Hannover, Germany
Authors registered in the RePEc Author Service: Trung Thanh Nguyen

Economies, 2020, vol. 8, issue 3, 1-25

Abstract: One of the remaining challenges in explaining differences in total factor productivity is heterogeneity between sectors and within a specific sector in terms of labor and capital. This paper employs the generalized method of moments (GMM) to identify factors that affect total factor productivity across 21 manufacturing sectors and to clarify the heterogeneous determinants of total factor productivity within manufacturing sectors for the period 2010–2015. Our estimations show that large firms have significantly greater total factor productivity levels than small firms in some fragmentations of firms in terms of both labor and total capital and in some manufacturing sectors. It is suggested that firm characteristics should be considered by the government in establishing relevant policies for enhancing firm productivity.

Keywords: total factor productivity; panel causality; heterogeneity; manufacturing sector; Vietnam (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:8:y:2020:i:3:p:57-:d:381052

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