Productivity Growth across the World, 1991-2003

Publication | August 2010

This paper applies a stochastic frontier production model to data from 53 countries during 1991-2003 to estimate total factor productivity growth, and decompose it into technical efficiency change and technical progress. The empirical results indicate that world productivity growth was led by fast-growing newly emerging economies, whereas most developed countries experienced a decrease in productivity growth. Technical efficiency change significantly contributed to economic growth for many fast-growing countries, even though emerging economies still lag far behind developed countries in terms of technical efficiency.

Contents 

  • Abstract
  • Introduction
  • A Model with Firm-Specific Time-Varying Technical Inefficiency
  • Data and Empirical Results
  • Concluding Observations
  • References