Productivity Growth across the World, 1991-2003
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.
- A Model with Firm-Specific Time-Varying Technical Inefficiency
- Data and Empirical Results
- Concluding Observations