The sensitivity of TFP growth in UK manufacturing

Dolores Anon Higon

Global Business and Economics Review, 2007, vol. 9, issue 4, 429-447

Abstract: This paper examines the sensitivity of Total Factor Productivity (TFP) estimates to alternative concepts of output and methods of estimation. On theoretical grounds, gross output is the superior concept to real output and econometric estimates of TFP growth are to be preferred to growth-accounting estimates under general assumptions. A panel regression on UK manufacturing industries reveals that controlling for market power and capacity utilisation adjustments, growth-accounting estimates of productivity growth are generally biased. The econometric results suggest that the recovery in productivity rates experienced in the 1980s by the UK manufacturing sectors and the slowdown in the 1990s was not as large as implied by the growth-accounting estimates.

Keywords: total factor productivity; TFP; gross output; competitiveness; capacity utilisation; UK manufacturing; United Kingdom; productivity growth. (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=15104 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:ids:gbusec:v:9:y:2007:i:4:p:429-447

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().