Total Factor Productivity Growth Rate Research Articles

An empirical analysis of the impact of technological innovation on China’s total employment

Technological innovation represented by artificial intelligence and 5G networks has developed rapidly, since the reform and opening up, especially in recent years. Technological innovation promotes the upgrading of industrial structure, promotes the increase of employment in emerging industries, at the same time, eliminate the workers in backward industries, which will have an impact on overall employment. Therefore, this paper studies the impact of technological innovation on the total employment of China from an empirical perspective. Total Factor Productivity (TFP) and TFP growth rate calculated by the Solow residual method are used as indicators of the level of technological innovation, and the long-term cointegration regression model and short-term impulse response function are established with the number of employees and employment growth rate as the dependent variables, respectively. The study found that, the impact of technological innovation on employment levels has a stable promotion effect in the long run; in the short run, there is a destructive effect at first, but as time goes by, this destructive mechanism gradually occupies the peak, and the creative mechanism begins to take effect. The leading role, technological innovation has a steady promotion effect on employment.

Total Factor Productivity of Listed Companies in Manufacturing Industry: Study Based on Three Major Coastal Economic Zones in China

Su, H., 2020. Total factor productivity of listed companies in manufacturing industry: Study based on three major coastal economic zones in China. In: Liu, X. and Zhao, L. (eds.), Today's Modern Coastal Society: Technical and Sociological Aspects of Coastal Research. Journal of Coastal Research, Special Issue No. 111, pp. 183–186. Coconut Creek (Florida), ISSN 0749-0208.As terrestrial resources become increasingly scarce, human activities extend farther into the ocean. Coastal areas are blessed with rich aquatic resources, as well as the advantage of convenient shipping traffic. The manufacturing industry is a comprehensive symbol of a country's economic strength. Therefore, the improvement of the efficiency of manufacturing industry in the most developed coastal areas is the key of economic operation. This paper uses the Malmquist-Data Envelopment Analysis (DEA) model to analyze the total factor productivity (TFP) of listed manufacturing firms in China's three major coastal economic zones from 2009 to 2018. The result shows that the efficiency of manufacturing industry in China's three major coastal economic zones has maintained a relatively high level, and the growth rate of TFP is on a steady growth trend. A gap occurs between the actual level of manufacturing output and the level of frontier output in the three major coastal economic zones. Therefore, improving technological efficiency is one of the main issues to be faced. In the coming year, technological progress, the introduction of advanced technologies, and institutional innovations will be the main drivers of productivity growth.

Productivity change and its driving forces in Chinese healthcare sector.

Since the last medical reform in 2009, China’s public hospitals have been facing the changes in the institutional environment. However, the effects of reforms have not been received enough attention to deliver evidence-based implications. In this paper, we first assess the efficiency of regional public hospitals from 2011 to 2018, employing a proposed method based on an additive indicator and an aggregate directional distance function (DDF). The method applied allows for decomposing total factor productivity (TFP) indicator into three components, including technical efficiency change (TEC), total productivity (TP) and scale efficiency change (SEC). Second, following the efficiency assessment, we carry post-efficiency analysis to identify the determinants of efficiency of the public hospitals. The results show that annual average TFP growth rate is 1.38%, which is driven mainly by TEC. Regional disparities of public hospitals’ performance are expanding. Almost 75% of the regions considered show a positive TFP growth. The regression results show that the significant determinants of efficiency of regional public hospitals include the price of and demand for health services.

The devil is in the details: Capital stock estimation and aggregate productivity growth—An application to the Spanish economy

The variables that contribute to explaining the major puzzles and paradoxes in macroeconomics and economic growth literature always appear related, directly or indirectly, to capital stock and depreciation. Depreciation defined in a narrow sense refers only to physical wear and tear, but in a broader sense, it also includes economic deterioration and obsolescence. In this study, we explore the link between the two depreciation concepts of capital deepening and total factor productivity (TFP) growth. We propose a double growth accounting framework that allows us to establish a relationship between variables in statistical terms and variables in economic terms. Then, with Spanish data for 1964–2015, we first analyze the role played by capital intensity and TFP in explaining the evolution of labor productivity. The results are substantially different depending on whether we use statistical or economic measures of capital and depreciation. Second, we focus on the paradox of productivity, concluding that the apparent absence of a positive correlation between investment in information and communication technology and the TFP growth rate may be due to the delay effect associated with such investment combined with the statistical under-estimation of true economic depreciation.

Heterogeneity of Green TFP in China’s Logistics Industry under Environmental Constraints

In the context of China’s supply-side structural reform and the concept of green development, we introduce the energy and environmental factors into the analytical framework of the total factor productivity (TFP) of the logistics industry and use the Global Malmquist–Luenberger index method to analyze the evolution trend and heterogeneity of green TFP in the logistics industry of 30 provinces (cities and districts) in China from 2003 to 2017. The results show that, firstly, the green TFP and traditional TFP of China’s logistics industry are both on the rise and the absence of energy and environmental factors will lead to the overestimation of TFP of the logistics industry. Whether it is green TFP or traditional TFP, the main source of its growth is technical progress. Secondly, there is obvious regional heterogeneity in green TFP of logistics industry. Under the three regional division standards, the average annual growth rate of green TFP is from high to low in the order of eastern, western, and central regions. Under the eight regional classification standards, the eastern coastal economic zone, the southern coastal zone, the northern coastal zone, the northeast region, the middle reaches of the Yellow River, the southwest region, the middle reaches of the Yangtze River, and the northwest region are in order from high to low. Thirdly, there is obvious interprovincial heterogeneity in green TFP of the logistics industry. The highest growth rate of green TFP is in Zhejiang, followed by Jiangsu and Guangdong, and the slowest growth rate is in Chongqing. The technical progress of logistics industry in most provinces contributes more to the growth of green TFP. Fourthly, the differences of green TFP in the three regions of the east, center, and west are shrinking, which may be σ convergence, but the differences among the three regions are expanding. Compared with the existing literature, this paper applies the measurement framework of green TFP to China’s logistics industry and investigates the regional and provincial heterogeneity of green TFP in logistics industry. The conclusions are significant to understand and grasp the heterogeneity of green TFP growth in China’s logistics industry under environmental constraints and how to promote the development of green logistics in China.

Imposing Regularity Conditions to Measure Banks’ Productivity Changes in Taiwan Using a Stochastic Approach

This paper develops a stochastic approach to impose regularity properties on a directional output distance function (DODF) and an output distance function, which can be estimated by maximum likelihood. We use the resulting parameter estimates to evaluate efficiency and total factor productivity (TFP) growth for Taiwan’s commercial banks over the period 2002–2015 and claim that the failure of considering the regularity restrictions and the exclusion of undesirables lead to miscalculated efficiency measures and productivity gains. The outcomes from the regularity-constrained DODF reveal that almost all data-points satisfy the regularity properties, that the managerial abilities of the banks improve after the subprime crisis of 2007, and that the sample banks’ TFP grow at an average rate of 1.93% per annum, whereby technical change is the driving force. However, our estimates show downward trends in the growth rate of TFP and technical change.

DO RECONSTRUCTION INVESTMENTS IMPROVE TECHNOLOGICAL PROGRESS IN AN EARTHQUAKE-STRICKEN AREA? EVIDENCE FROM THE WENCHUAN EARTHQUAKE

This study identified the impact of a seismic shock on technological progress in earthquake-stricken areas (ESAs) using a synthetic control method. Technological progress was measured using the total factor productivity (TFP) and the TFP growth rate. The ESAs after the Wenchuan Earthquake in China were used as an empirical case study; the Solow residual model was used to assess the TFP and the TFP growth rate in 16 districts. Counter-factual dynamics for the ESAs were constructed to exclude the effect of the macro-economy. The research findings indicate that technological progress in the ESAs after the Wenchuan Earthquake improved as a result of reconstruction investments. However, there were differences in the speed of technological progress between ESAs. These differences may be attributed to the differences in the industrial characteristics between ESAs. The study concludes that the technological progress of the secondary industry, such as the manufacturing industry and building industry, is more resilient. This refers to the capacity to resist economic losses after the seismic shock, compared to the tertiary industry, such as the service industry and tourist industry. However, there was a larger long-term advancement in the technological progress in the tertiary industry compared to the secondary industry after the earthquake. With this understanding, ESA governments can implement appropriate strategies to meet both short-term needs and sustainable economic growth.

Introduction

Introduction

Productivity Growth in Chinese Medical Institutions during 2009–2018

China is the most populous nation and considerations of economic efficiency in the social sectors is important for maintaining the wellbeing of such a large population. This is especially true when gauging the performance of the healthcare sector treating the population. In this paper, we examine the total factor productivity (TFP) growth in Chinese medical institutions during the period 2009–2018, which experienced a systemic healthcare reform. In order to identify the contribution from each component of TFP indicators and from each provincial or regional medical institutions, a generalized decomposition of productivity gains is applied to analyze hospital operations based on an aggregate directional distance function (DDF). The results show that the annual average TFP growth rate in Chinese medical institutions is 1.87% that is mainly driven by technological progress (0.75%, per annum), while less contributed by technical efficiency change (0.65%, p.a.) and scale efficiency change (0.47%, p.a.). Disparities of provincial hospital performances are observed that may provide policy implications for decision makers.

Study on Production Efficiency of Flue-cured Tobacco in China Based on DEA-Malmquist Model

Based on the input-output data of flue-cured tobacco production in 18 provinces of China from 2005 to 2016, the flue-cured tobacco production efficiency was calculated and analyzed. The results show that: Firstly, the total factor productivity (TFP) of flue-cured tobacco in China shows a growth trend, the main reason of the growth is the growth of the scale efficiency. The pure technical efficiency and the technical progress play a negative role to the promotion of total factor productivity. Secondly, in the provinces where total factor productivity declines, the leading factors of total factor productivity declines are different. For the provinces where total factor productivity increases, the leading factor of total factor productivity growth is the improvement of technical efficiency. Thirdly, the change of annual total factor productivity growth rate is unstable because of the uncoordinated change of technological progress and technological efficiency. We can improve the flue-cured tobacco productivity by large-scale production, improving management level, introducing advanced production technology and strengthening technological innovation.

Total Factor Productivity Growth at the Firm-Level: The Effects of Capital Account Liberalization

This paper is the first to provide firm-level evidence of the effect of capital account liberalization on firms’ total factor productivity (TFP) growth. We find that a one standard deviation increase in capital account liberalization is significantly associated with 0.16 to 0.17 standard deviations increase of the firms’ total factor productivity growth rates. The productivity-enhancing effects are stronger for sectors with higher external financial dependence and capital-skill complementarity and are persistent in the six-year post-liberalization window. Moreover, we show that the transmission mechanisms could be improved financing conditions, technology upgrades, and more use of skilled labor. The direction and asset category of capital account liberalization matter. Additionally, heterogeneous effects exist across firms and countries based on their foreign bank relationship, size, tradability, institutional quality, and economic development.

Productivity growth in Indian telecommunications equipment industry

This study has analysed whether the high growth rate in telecommunications service sector has a favourable impact on productivity growth rates of the telecommunications equipment industry in India. In this study, the total and partial factor productivity growth rates are measured for the telecommunications equipment industry during 1999-2016. The translog index is used to estimate the total factor productivity (TFP) growth rate of this industry in a five input KLEMS - framework. The period of study is divided into two sub-periods, i.e., 1999-2007 (sub-period I) and 2008-2016 (sub-period II). The annual growth rate of total factor productivity is estimated to be 3.56% in sub-period I and 2.22% in sub-period II. It has been observed that the growth rate of gross value added (GVA) has decelerated between two sub-periods as the industry has become more import-centric due to implementation of the information technology agreement.

Productivity Growth in Indian Telecommunications Equipment Industry

This study has analysed whether the high growth rate in telecommunications service sector has a favourable impact on productivity growth rates of the telecommunications equipment industry in India. In this study, the total and partial factor productivity growth rates are measured for the telecommunications equipment industry during 1999-2016. The translog index is used to estimate the total factor productivity (TFP) growth rate of this industry in a five input KLEMS - framework. The period of study is divided into two sub-periods, i.e., 1999-2007 (sub-period I) and 2008-2016 (sub-period II). The annual growth rate of total factor productivity is estimated to be 3.56% in sub-period I and 2.22% in sub-period II. It has been observed that the growth rate of gross value added (GVA) has decelerated between two sub-periods as the industry has become more import-centric due to implementation of the information technology agreement.

Total Factor Productivity and Idiosyncratic Volatility Trends

Firms’ idiosyncratic stock return volatility has become more volatile in the US since the 1960s. This paper investigates why individual stocks became more volatile over the 1964–2013 period using firm-level total factor productivity (TFP). On average, the volatility of idiosyncratic TFP growth rate has increased, being associated with higher idiosyncratic return volatility. The connection between TFP growth and economic profits provides an explanation for the increase in the idiosyncratic volatility of fundamental cash flows. The results are robust when using time-series and panel regressions and controlling for cash flow and earnings variability, size, book-to-market, leverage, profitability, age, dividend yield, and stock illiquidity.

Research on TFP change and convergence of China’s regional real estate industry

The added value method is used to screen the input and output indicators of the real estate industry. The DEA-Malquist method was used to measure the total factor productivity (TFP) of the real estate industry in China’s 30 provinces from 2006 to 2017. Further, the convergence test of the real estate industry TFP in eastern, central and western China was conducted. It was found that the average growth rate of real estate industry TFP in China’s 30 provinces during the period was 3.3%. Technical efficiency was the main driving force for TFP growth, and the contribution of technological progress was relatively small. In the improvement of technical efficiency, pure technical efficiency is obviously improved, and the improvement of scale efficiency is limited. The absolute β convergence test was carried out. From the national perspective, the TFP gap in the real estate industry in each province has a significant narrowing trend; In terms of regions, the TFP gap in the real estate industry in the eastern provinces has a narrowing trend, but it is not significant; The growth of TFP in the real estate industry in the central region has a significant catch-up characteristic, and the TFP gap between provinces has gradually narrowed; The TFP gap in the real estate industry in the western provinces has significantly expanded.

Consequences of agricultural total factor productivity growth for the sustainability of global farming: accounting for direct and indirect land use effects

Most of the growth in agricultural output in the last thirty years comes from increases in the efficiency with which both land and non-land inputs are used. Recent work calls for a better understanding of whether this efficiency, known as total factor productivity (TFP), contributes to a more sustainable food system. Key to this understanding is the documented phenomenon that, instead of saving lands, the introduction of technologies that improve agricultural productivity encourage cropland expansion. We extend the results of a recently published econometric model of cross-country cropland change and TFP growth to explore the extent to which improvements in technology were associated with lower greenhouse emissions from land conversion to agriculture as well as with lower land conversion pressures in biodiversity-rich biomes. We focus on the decade of 2001–2010, a period in which our sample of 70 countries (≈75% of global croplands) experienced net land contraction. Except in sub-Saharan Africa and South and East Asia, regional TFP growth was associated with regional land expansion, thus confirming the existence of Jevons paradox in most regions of the world. However, such expansion was more than offset by indirect land use effects stemming from increases in productivity somewhere else. These indirect effects are far from trivial. In the absence of TFP growth, our estimates suggest that ≈125 Mha would have been needed to satisfy demand, half of which are in the four most biodiverse biomes of the world; estimated land use emissions from the ensuing changes in land use range from a lower bound of 17 Gt CO2eq to an upper bound of 84 Gt CO2eq, depending on whether the expansion would have occurred on pasturelands or forest, in contrast to the ≈1 to 15 Gt CO2eq imputed to observed cropland expansion. Our projections of the land needed to satisfy projected growth in TFP per capita during 2018–2023 indicate that current rates of TFP growth are insufficient to prevent further land expansion, reversing in most cases the in-sample trends in land contraction observed during 2001–2010.

Assessing the efficiency of schistosomiasis control programs in Jiangsu Province from 2005 to 2015 using data envelopment analysis (Malmquist index method)

To assess the total factor productivity (TFP) of schistosomiasis control programs in Jiangsu Province, so as to provide insights into sustainable schistosomiasis control. The data envelopment analysis-Malmquist index method was employed to analyze the human resources and financial investments in schistosomiasis control programs from health sectors in each schistosomiasis-endemic city of Jiangsu Province from 2005 to 2015, and assess the outputs of each schistosomiasis control project. The overall productive efficiency of schistosomiasis control programs in Jiangsu Province showed an increasing tendency, and the mean fluctuation of annual TFP was 2.3%. The comprehensive technical efficiency, including pure efficiency and scale efficiency, appeared a steady increase with minor fluctuations, and the mean fluctuation of annual comprehensive technical efficiency was 3.8%. The growth rate of technical progress fluctuated greatly from 2005 to 2011, and showed a steady increase from 2012 to 2015, which became a major contributor to the growth of TFP. A higher growth rate of TFP was seen in Huai ' an and Changzhou cities, which showed a greater comprehensive technical efficiency, and a large fluctuation was observed in the growth rate of technical progress in Yancheng, Nanjing, Huai ' an and Yangzhou cities. There is a continuous improvement in the technical level of schistosomiasis control programs in Jiangsu Province, and technical application and supervision and management capacity also show a steady increase. In addition, the application of new techniques and new strategies contributes greatly to TFP growth. In the future, the investment into new techniques and new strategies should be increased to ensure the sustainable schistosomiasis control in Jiangsu Province.

The Grouping Policy in Japan’s Coastal Shipping Market

This study aims to analyze the market structure of the coastal shipping industry in Japan. Based on 153 observations using balanced panel data for the period 2000–2016, we estimate the market-wide cost function and total factor productivity (TFP) growth rate, and then provide some policy implications from the results. We also estimate the long-term total cost function and analyze the economies of scale and the TFP growth rate. The results indicate that the grouping policy is conducive to achieving economies of scale. Hence, we conclude that it is worth continuing the grouping policy for the benefits it provides in terms of management efficiency.

Are China’s regional agricultural productivities converging: How and why?

This article tests the hypotheses of convergence to a single level of total factor productivity (TFP), and a steady state of TFP growth rate in China’s agricultural sector. Based on multilateral TFP estimates we found that China’s agricultural sector has rebounded in recent years from a slower TFP growth in the 2005–2007 period. While convergence test results confirm a “catch-up” effect that provinces with lower TFP levels tend to grow faster than others, estimated rates of β convergence are conditional on how we capture the heterogeneity effect across regions. The rates of β convergence range from 0.016 to 0.039 under different model specifications. Estimates show that higher growth rates of educational attainment, R&D, and intermediate goods density (per unit of labor) can enhance TFP growth. Unfortunately, there is no evidence of an overall σ convergence, indicating that TFP levels are not converging except in the South region. It implies that to catch up with leading provinces, it would require extra efforts for those lagging behind by increasing their region-specific research investment, promoting rural educational attainment, and enhancing embodied technical change.

Which factors stimulate industrial green total factor productivity growth rate in China? An industrial aspect

AbstractAs an important evaluation transformation index, exploring green total factor productivity (GTFP) trend and related key factors is significant for China's economy entering into high‐quality development and green transformation. In this study, stochastic frontier analysis (SFA) and kernel density function are used to evaluate GTFP growth trend for 36 China's industrial sectors during 2000–2016, and system generalized method of moment is used to explore their key driving factors. The results are as follows: First, SFA supplies efficient estimation for GTFP growth information. The 36 industrial sectors are classified into three emission types, that is, high‐, moderate‐, and low emission. Second, GTFP growth differs significantly in three types of sectors. With kernel density results for 36 sectors, the curve of GTFP growth has shifted upward and toward the left since 2010. For high‐emission type sectors, their kernel curve has also moved upward and toward the left. The curve of moderate‐emission type sectors significantly shifted toward the left, whereas the curve of low‐emission type moved upward. Third, based on regression estimation results, environmental regulatory policy, resource input structure, foreign direct investment, and energy‐type structure significantly influence GTFP growth. Technology innovation makes insignificant impact on GTFP for industrial sectors. In conclusion, sectorial heterogeneity should be paid more focus in order to improve their growth, especially for high‐emission type sectors. Green technology innovation is the most potential factor in the future to stimulate GTFP growth in China. © 2019 Society of Chemical Industry and John Wiley & Sons, Ltd.