 The Mystery of TFPInternational Productivity Monitor, 2016, vol. 31, 68-87 Abstract: The objective of this article is to critically examine explanations of Total Factor Productivity (TFP) growth. TFP growth is analysed at the sectoral and aggregate level, using data for 10 industry groups covering the market sectors of 18 countries over the period 1970-2007 drawn from the EU KLEMS dataset. In all countries resources have been shifting away from industries with high TFP growth towards industries with low TFP growth. Nevertheless structural change has favoured TFP growth in most countries. Errors in measuring capital or in measuring the elasticity of output with respect to capital are unlikely to substantially reduce the role of TFP in explaining growth. The article concludes that the mystery of TFP is likely to remain as long as measurement error persists. Keywords: Productivity; Productivity Growth; Total Factor Productivity; Measurement (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sls:ipmsls:v:31:y:2016:6 Ordering information: This journal article can be ordered from Access Statistics for this article International Productivity Monitor is currently edited by Andrew Sharpe, Executive Director More articles in International Productivity Monitor from Centre for the Study of Living Standards 170 Laurier Ave. W, Suite 604, Ottawa, ON K1P 5V5. Contact information at EDIRC. |
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