Is output growth of Chinese manufacturing firms input or productivity driven? A flexible production function approach with endogenous inputs

Subal Kumbhakar and Mingyang Li ()
Additional contact information
Mingyang Li: Huazhong University of Science and Technology

Empirical Economics, 2024, vol. 66, issue 4, No 13, 1819-1846

Abstract: Abstract In this paper, we focus on estimating output growth and its components attributed to quasi-fixed inputs, variable inputs, and productivity change, while treating variable inputs as endogenous. We consider two approaches. In the classical approach the time trend variable proxies for technical (productivity) change, while in the productivity (proxy variable) approach, we add a “productivity” term which is correlated with the variable inputs. Therefore, estimation strategies in the two models are different. Instead of using a Cobb–Douglas production function, we employ a translog production function to add flexibility. We showcase our theoretical results with Chinese manufacturing as an empirical exercise.

Keywords: Productivity; Growth components; Endogeneity; Proxy variable; Manufacturing (search for similar items in EconPapers)
JEL-codes: D22 L25 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-023-02505-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:empeco:v:66:y:2024:i:4:d:10.1007_s00181-023-02505-8

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-023-02505-8

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().