A Two-Level Top-Down Decomposition of Aggregate Productivity Growth: The Role of Infrastructure

Luis Orea, Inmaculada Álvarez and Luis Servén

A chapter in Advances in Efficiency and Productivity II, 2020, pp 173-191 from Springer

Abstract: Abstract In this chapter, we provide evidence as to the effects of infrastructure provision on aggregate productivity using industry-level data for a set of developed and developing countries over the 1995–2010 period. A distinctive feature of our empirical strategy is that it allows the measurement of intra- and interindustry resource reallocations which are directly attributable to the infrastructure provision. To achieve this objective, we propose a two-level top-down decomposition of labor aggregate productivity that extends the decomposition introduced by Diewert (Journal of Productivity Analysis 43:367–387) using a time-continuous setting.

Keywords: Productivity growth; Resource allocation; Stochastic frontier analysis; Structural changes (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-3-030-41618-8_11

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DOI: 10.1007/978-3-030-41618-8_11

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