Macroeconomic Determinants of Total Factor Productivity: An Analysis on the Example of OECD Countries

Nadide Yigiteli and Fahriye Ozturk ()
Additional contact information
Nadide Yigiteli: Social Security Institution, Ankara, Turkiye
Fahriye Ozturk: , Ankara Hacı Bayram Veli University, Faculty of Economics and Administrative Sciences, Department of Economics, Ankara, Turkiye

Istanbul Journal of Economics-Istanbul Iktisat Dergisi, 2022, vol. 72, issue 72-1, 293-328

Abstract: This study examines the macroeconomic determinants of total factor productivity (TFP), a critical factor for sustainable economic growth, within the scope of the dataset, including the 1990–2017 period and 27 OECD countries. The primary goal is to provide an up-to-date perspective on the literature within the scope of the analyzed period and country and provide an infrastructure for policy sets that will contribute to long-term economic growth. We use a two-stage empirical application in this context. First, the economic stability index, innovation index, technology diffusion index, education index, and economic freedom index are computed. Subsequently, the effect of these variables on TFP is investigated using panel regression methods. Results reveal that the technology diffusion index, which depicts the mechanisms of technology transfer from country to country, is the most important factor determining TFP. This variable is followed by the education and innovation indices. Another important finding of the study is that the economic stability and freedom indices have a significant impact on TFP. However, the magnitude of these effects is smaller than that of other variables.

Keywords: Productivity; Technology; Growth JEL Classification: D24; O00; O47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/F9589EB888374C938A393C72A37CFD23 (application/pdf)
https://iupress.istanbul.edu.tr/en/journal/ije/art ... orneginde-bir-analiz (text/html)

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:ist:journl:v:72:y:2022:i:1:p:293-328

DOI: 10.26650/ISTJECON2022-1086903

Access Statistics for this article

Istanbul Journal of Economics-Istanbul Iktisat Dergisi is currently edited by Gökhan Karabulut

More articles in Istanbul Journal of Economics-Istanbul Iktisat Dergisi from Istanbul University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Istanbul University Press Operational Team (Ertuğrul YAŞAR) ().