TFP determinants in European Union member states in 2000-2014 in the light of panel study results
The aim of the article is to examine, whether and to what extent disparities in TFP levels in the group of 27 member states of the European Union in the period 2000- 2014 are the result of difference in factors determining them. In the light of the conducted panel data analysis, the countries of the UE-15 group with higher levels of TFP differ from the “new” UE countries in terms of determinants of TFP. In the first group of countries the key role in shaping TFP play human capital resources, in the second group- the degree of involvement in international exchange. Human skills and qualifications are found to be completely irrelevant determinants of TFP levels in the “new” UE members states.
Abdih Y., Joutz F.(2005). Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle. IMF Working Papers, No. WP/05/74.
Aghion P., Howitt P.(1998). Endogenous Growth Theory. Cambridge: MIT Press.
Aghton P., Howitt P. (1992). A model of growth creative destruction. Econometrica, Vol. 6, No. 2, pp. 323–351.
Ahn S.(2001). Firm Dynamics and Productivity Growth: A Review of Micro Evidence for OECD Countries. Economic Development Working Papers, No. 297.
Akkemik K.A.(2005). Labor Productivity and Inter-Sectoral Reallocation of Labor in Singapore (1965–2002). Forum of International Development Studies, No.30, pp. 1–22.
Alkino A.E. (2005). Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries. WIDER Research Paper, Vol. 39.
Aschauer S.(1989). Is public expenditure productive? Journal of Monetary Economics, Vol. 23, pp. 177–200.
Austria M.S. (1998). Productivity Growth in the Philiippines after Industrial Reforms. Philippine Institute for Development Studies-Discussion Paper Series, No. 98.
Barro J.R., Sala-i-Martin X. (1995). Economic Growth. New York: McGraw Hill.
Barro R.J. (1991). Government spending in a simple model of endogenous growth. The Journal of Political Economy, Vol. 98, No. 5, pp. 103–125.
Berthelemy J.C. (2001). The role of capital accumulation, adjustment and structural change for economic take-off empirical evidence from African growth episodes. World Development, No. 29, pp. 323−343.
Bils M., Klenow P.J.(2000). Does schooling cause growth? American Economic Review, Vol. 90, No. 5, pp. 1160–1183.
Bosworth B.P., Collins S.M. (2003). The empirics of growth: An update. Brookings Papers on Economic Activity, Vol. 2, pp. 113–179.
Brock A.W., Durlauf S.N. (2001). Growth Empirics and Reality. The World Bank Economic Review, Vol. 15, No. 2, pp. 229–272.
Cameron G., Proudman J., Redding S. (2005). Technological convergence, R&D, trade and productivity growth. European Economic Review, Vol. 49, pp. 775– 807.
Caselli F. (2005). Accounting for Cross-Country Income Differences, In Aghion P., Durlauf S.(Ed.). Handbook of Economic Growth. New York: Elsevier .
Caselli F., Tenreyro S. (2005). Is Poland the next Spain? Federal Reserve Bank of Boston, Public Policy Discussion Papers, No. 04–8.
Chen S., Jefferson G.H., Zhang J. (2011). Structural change, productivity growth and industrial transformation in China. China Economic Review, No. 22, pp. 133–150.
Chenery H.B., Robinson S., Syrquin M. (1986). Industrialization and growth: a comparative study. New York: Oxford University Press.
Comin D.(2002). R&D? A Small Contribution to Productivity Growth. Economic Research Reports, No. 2002-01, pp. 391–421.
Devarajan S., Swaroop V., Zou H. (1993). What do government buy? World Bank Working Papers, No. 1082.
Durlauf S.N., Quah D.T. (1996). The New Empirics of Economic Growth. NBER Working Papers, No.6422.
Evans P., Karas G.(1994). Are government activities productive?: Evidence from a panel of U.S. states. The Review of Economics Statistics, Vol.76, No. 1, pp. 1–11.
Fagerberg J. (2000). Technological progress, structural change and productivity growth: a comparative study. Structural Change and Economic Dynamics, Vol. 11, No.4, pp. 393–411.
Fleisher B., Chen J. (1997). The coast-non coast income gap, productivity, and region and economic policy in China. Journal of Comparative Economics, Vol. 25, No. 2, pp. 220–236.
Fleisher B., Haizheng L., Minqiang Z. (2008). Human capital, economic growth, and regional inequality in China. IZA Discussion Paper, No. 3576.
Frankel J.A., Romer D. (1999). Does Trade Cause Growth? American Economic Review, Vol. 89, pp. 379–399.
Furman J.L., Hayes R. (2004). Catching up or Standing Still? National Innovative Productivity Among „Follower” Countries, 1997–1999. Research Policy, Vol. 33, pp. 1329–1354.
Garces-Ozanne A. (2006). A bounds test approach to study of level relationships in a panel of high-performing Asian economies. University of Otago Economics Discussion Papers, No. 0607.
Gomulka S.(1990). Innovation theory and economic growth. Warszawa: CASE
Gonzales G., Constantin S.(2009). Explaining TFP Growth Rates: Dissimilar Effect of Openness between Different Income Groups of Countries. MPRA Paper, No. 17584.
Griffith R., Redding S., Van Reenen J. (2000). Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries. CEPR Discussion Paper, No. 2457.
Guellec D., van Pottelsberghe de la Potterie B. (2001). R&D and Productivity Growth: Panel Data Analysis of 16 OECD Countries. OECD Economic Studies, No. 33, pp. 103–126.
Hansson P., Henrekson M. (1994). A new framework for testing the effect of government spending on growth and productivity. Public Choice, Vol. 81, pp. 381–401.
Hanushek E.A., Kimko D.D. (2000). Schooling, labour-force quality, and the growth of nations. American Economic Review, Vol. 90, No.5, pp. 1184–1208
Hulten C. (2000). Total Factor Productivity: A Short Biography. NBER Working Papers, No. 7471.
Irwin D.A., Tervio M. (2002). Does Trade Raise Income? Evidence from the Twentieth Century. Journal of International Economics, Vol. 58, pp. 1–18.
Isaksson A.(2001). The Importance of Human Capital for the Trade-Growth Link. UNIDO Working Paper, No. 2.
Jones C., Williams J. (1998). Measuring the Social Return to R&D. Quarterly Journal of Economics, Vol. 113, pp. 1119–1138.
Keller W., Yeaple S.R. (2003). Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States. NBER Working Paper, No. 9504.
Khan M.S., Kumar M.S.(1997). Public and private investment and the growth process in developing countries. Oxford Bulletin of Economics and Statistics, Vol. 59, No.1, pp. 69–88.
Khan S.U.(2006). Macro Determinant of Total Factor Productivity in Pakistan. State Bank of Pakistan Research Bulletin, No. 22, pp. 384–401.
Kim E. (2000). Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency. Journal of Development Economics, Vol. 61, pp. 55–83.
Krueger A.B., Lindahl M.(2001). Education for growth: Why and for whom? Journal of Economic Literature, Vol. 39, No. 4, pp. 1101–1136.
Kumar S., Pacheco G., Rossouw G. (2010). How to Increase the Growth Rate in South Africa. MPRA Paper, No. 26105.
Kutznets S. (1979). Growth and Structural Shifts. In Galenson W. (Ed.), Economic Growth and Structural Change in Taiwan. The Postwar Experience of the Republic of China, London: Cornell University Press.
Landau D.(1986). Government and economic growth in the less developed countries: An empirical study for 1960–1980. Economic Development and Culture Change, Vol.35, No.1, pp. 35–75.
Lee H.Y., Ricci L.A., Rigobon R. (2004). Once again, is Openness for Growth? Journal of Development Economics, Vol. 75, pp. 451–472.
Lichtenberg F.R., Siegel D.(1991). The Impact of R&D Investment on Productivity: New Evidence Using Linked R&D-LDR Data. Economic Inquiry, Vol. 29, pp. 203–228.
Loayza N., Fajnzylber P., Calderon C.(2004). Economic growth in Latin America and in the Caribbean: Stylized Facts, Explanations Forecasts. Central Bank of Chile Working Papers, No.265.
Lucas R.E. (1993). Making A Miracle. Econometrica, No. 61, pp. 251−272.
Mahmood A., Afza T. (2008). Total Factor Productivity Growth i East Asia: A Two Pronged Approach. European Journal of Economics, Finance and Administrative Sciences, Vol. 14, pp. 93–111.
Mayer J.(2001). Technology Diffusion, Human Capital and Economic Growth in Developing Countries. Discussion Papers, No. 154.
Miller M.S., Upadhay M.P. (2002).The Effect of Openness, Trade Orientation, and Human Capital on Total Factor Productivity. Journal of Development Economic, Vol. 632, pp. 399–423.
Młynarzewska-Borowiec I. (2018). Łączna produktywność czynników produkcji (TFP) i jej zróżnicowanie w krajach Unii Europejskiej. Acta Universitatis Lodziensis. Folia Oeconomica, Vol. 3, pp. 109–122.
Muendler M. (2004). Trade, Technology and Productivity: A Study of Brazilian Manufacturers 1986–1998. CESifo Working Paper, No. 1148.
Nelson R.R., Phelps E.S.(1966). Investment in humans, technological diffusion, and economic growth. American Economic Review, Vol. 56, No.2, pp. 69–75.
Ngai L.R., Pissarides C.A.(2007). Structural Change in a Multisector Model of Growth. The American Economic Review, Vol. 97, No.1, pp. 429−443.
Peneder M. (2003). Industrial structure and aggregate growth. Structural Change and Economic Dynamics, Vol. 14, No. 4, pp. 427–448.
Prescot E.C. (1997). Needed: The Theory of Total Factor Productivity. Federal Reserve Bank of Minneapolis, Research Department Staff Report 242.
Pritchett L. (2001). Where has all the education gone? The World Bank Economic Review, Vol. 15, No. 3, pp. 367–391.
Ram R.(1986). Government size and economic growth: a new framework and some evidence from cross-section and time-series data. The American Economic Review, Vol. 76, pp. 191–203.
Romer R.(1991). Human capital and growth: theory and evidence. Carnegie Rochester Conference Series on Public Policy, Vol. 32, No. 1, pp. 251–186.
Thomas Y., Wang V. (1993). Market supplying versus market fostering interventions: China, East Asia and other developing countries. China Economic Review, Vol. 4, No. 2, pp. 243–258.
Ulku H. (2004). R&D, Innovations, and Economic Growth: An Empirical Analysis. IMF Working Paper, No. WP/04/185.
Upadhay M.P.(2002). The Effect of Openness, Trade Orientation, and Human Capital on Total Factor Productivity. Journal of Development Economic, Vol. 632, pp. 399–42.
Vandenbussche J., Aghion P., Meghir C. (2006). Growth, distance to frontier and composition of human capital. Journal of Economic Growth, Vol. 11, No. 2, pp. 97–127.
Verspagen B. (1993). Uneven Growth between Interdependent Economies: an Evolutionary View on Technology Gaps, Trade and Growth. Aldershot: Aldershot Publishing.
Wang J-C, Tsai K-H (2003). Productivity Growth and R&D Expenditure in Taiwan’s Manufacturing Firms. NBER Working Paper, No. 9724.
Wyatt G.J.(2005). Government consumption and industrial productivity scale and compositional effects. Journal of Productivity Analysis, No. 23, pp. 341–357.
Xu B., Wang V. (1999). Capital Goods Trade and R&D Spillovers in the OECD. Canadian Journal of Economics, Vol. 32, pp. 1258-1274.