Abstract
In this study, we use the stochastic frontier production approach to split the total productivity growth sources into technical progress and technical efficiency changes of the economic sectors in Tunisia between 1961 and 2014. Based on the sectors’ evolution, the analysis is centred on the technological progress trend, the technical efficiency change, and the role of productivity change in the economic growth. The empirical results show that the production factors have a significant effect on productivity. The review of the total factor productivity growth sources reveals that the contribution of technological progress is the main source of this growth.
Highlights
The economic production theory has prepared an analytical framework for most of the research on productivity
If we look at the explanation of the decomposition of productivity of the global economy, it could increase via two factors
Concerning the efficiency estimations, the average annual technical efficiency changes (TEC) in the Tunisian economy is absent because the null hypothesis, which states that technical efficiency (TE) is time-invariant, can be accepted
Summary
The economic production theory has prepared an analytical framework for most of the research on productivity. | 77 maximum producible outputs vector and another of production factors Both parametric and non-parametric historical studies defined the total factor productivity (TFP) growth as the change of the output level while controlling inputs (Sickles & Zelenyuk, 2019). Many observers (Ghali & Rezgui, 2008; Ghali, 2012; Jouini, 2014) agree that the Tunisian economy is down and that the challenges are complex and numerous Ahead all of these challenges, improving the overall productivity is crucial. It is worth stating that the repercussions of the political and economic conditions on productivity, considered a key factor in the proper functioning of the Tunisian national economy, are more than obvious. We try to decompose the Tunisian total factor productivity growth into technical progress, technical efficiency changes and scale elasticity effects using a stochastic frontier method covering the period 1961-2014.
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