The Determinants of Total Factor Productivity in European Union

Murat Akkaya () and Deniz Güvercin
Additional contact information
Murat Akkaya: Faculty of Economics and Administrative Sciences, T.C. İstanbul Arel Üniversitesi
Deniz Güvercin: Faculty of Economics and Administrative Sciences, T.C. İstanbul Arel Üniversitesi

Chapter Chapter 8 in Global Approaches in Financial Economics, Banking, and Finance, 2018, pp 171-189 from Springer

Abstract: Abstract The aim of this study is to investigate the effect of construction sector on Total Factor Productivity (TFP) in European Union economy by using panel data analysis and analyzing cross-sectional data of 24 European Union countries for the period 2003–2014. To this end, building permits, house prices, and construction index are used to examine the effect of housing sector dynamics and construction sector productivity on the total factor productivity in the general economy. The aim of study is to explain variation in the TFP across countries by the intensity of construction sector activities. It is observed that the coefficients of changes in nominal house prices and building permits are positive, and they have significant relationship with TFP as the coefficient of construction index is negative. Positive coefficients of changes in nominal house prices and building permits support our model. Construction index that measures that how costly the construction activity is also expected to have negative parameters that imply that as construction activity becomes more costly the contribution to TFP growth becomes less. That is, house construction and permits and house demand have positive effects on total factor productivity.

Keywords: Total factor productivity; Construction; Building permits; House prices; Panel data analysis (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:conchp:978-3-319-78494-6_8

Ordering information: This item can be ordered from
http://www.springer.com/9783319784946

DOI: 10.1007/978-3-319-78494-6_8

Access Statistics for this chapter

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