Total Factor Productivity Growth: Evidence from West African Economies

2019 ◽  
pp. 097215091985619 ◽  
Author(s):  
Isaac Abekah-Koomson ◽  
Pang Wei Loon ◽  
Gamini Premaratne ◽  
Teo Siew Yean
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Trade Openness ◽  
Stochastic Frontier ◽  
Spillover Effect ◽  
Political Stability ◽  
Optimal Level ◽  
West African ◽  
Factor Productivity ◽  
African Region

Since the 1990s, the economic growth of the West African region has been remarkable, with average GDP growth of 5 per cent annually. In view of that, this article investigates the Total Factor Productivity (TFP) performance for the Economic Community of West African States (ECOWAS) region, which takes into account the recent development on political stability and trade openness. There were also periods when TFP fell sharply, the most significant happened in the late 1990s and 2000s where TFP dropped significantly which might be attributed to the spillover effect of the Asian and global financial crises. Our results showed that TFP was performing well for the region as well as for each member countries for the period of the study. We acknowledged that the estimated TFP in our model captures other factors such as human capital, health and other institutional factors that could affect economic growth. We also estimated the Technical Efficiency (TE) for the ECOWAS region using the Stochastic Frontier Modelling and the result indicates that the TE performance is well below the optimal level of production.

Effects of inequality on total factor productivity : exploring the technical efficiency channel in South Africa

2020 ◽  
Vol 15 (4) ◽  
pp. 97-122
Author(s):  
Delphin Kamanda Espoir ◽  
Nicholas Ngepah
Keyword(s):  
South Africa ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Factor Productivity ◽  
Positive Effects

A number of empirical studies have attempted to understand the effects of inequality on productivity through various channels such as human capital and political stability but have overlooked the efficiency linkage. This study utilises a stochastic frontier approach and a single-stage maximum likelihood estimation of a true fixed effects and true random effects model to investigate the effects of inequality on total factor productivity across the 52 districts of South Africa. The results obtained from the baseline regressions indicate that inequality has positive effects on technical inefficiency. This implies that an increase in inequality would exerts a negative effect on technical efficiency and therefore total factor productivity. In order to mitigate the negative effects, the study suggests that a mixture of pro-poor policies should be accentuated, as they might positively increase the earnings of those who are at the bottom of the distribution.

PERANAN KEMAJUAN TEKNOLOGI TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI DKI JAKARTA DAN IMPLIKASI KEBIJAKANNYA

2013 ◽  
Vol 13 (1) ◽  
Author(s):  
Mien Askinatin
Keyword(s):  
Economic Growth ◽  
Correlation Coefficient ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Capital Stock ◽  
Political Stability ◽  
Factor Productivity ◽  
Growth Method ◽  
Technology Growth

Total Factor Productivity Growth (TFPG) is an approach to determine the role of technology progress on economic growth. The calculation of TFPG in this study is use the accounting growth method. Based on data in 1984-2007, TFPG of DKI Jakarta seen coincides with TFPG of Indonesia graphically. This is reinforced by the correlation coefficient value of 87.03 between them. DKI Jakarta provincial economy largely sustained by capital stock which is supported by the growth of TFP. For an accelerated economic growth throughsupport for a strong technology growth, required an atmosphere of economic, social and political stability in an effort to avoid a crisis as happened in 1998.

scholarly journals Spatial Effect Analysis of Total Factor Productivity and Forestry Economic Growth

Forests ◽  
2021 ◽  
Vol 12 (6) ◽  
pp. 702
Author(s):  
Dandan Gao ◽  
Bin Zhang ◽  
Shunlong Li
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Spillover Effect ◽  
Entropy Method ◽  
Factor Productivity ◽  
Spatial Agglomeration ◽  
Effect Analysis ◽  
Level Of Economic Development ◽  
Countermeasures And Suggestions ◽  
In The Beginning

This paper takes 31 provinces in China from 2009 to 2018 as the research object. The three-stage data envelopment analysis (DEA) model was used to measure the total factor productivity of forestry, and the entropy method was used to measure the level of economic development and ecological construction. We used the global Moran index to explore the spatial correlation of forestry economic growth, and the local Moran index to explore the spatial agglomeration of forestry economic growth. On this basis, the spatial Durbin model was constructed to explore the spatial spillover effect between forestry total factor productivity and forestry economic growth. The conclusion is as follows: the total factor productivity of forestry in China is increasing continuously, and there are obvious spatial differences. Forestry economic growth has a significant spatial autocorrelation, and an overall upward trend. However, the spatial agglomeration effect was relatively weak and in the beginning stage of its formation. Total factor productivity of forestry has significant direct effect on the growth of forestry economy and forms an indirect spillover effect. Based on this, the countermeasures and suggestions to promote the benign and coordinated development of the forestry economy were put forward.

Does foreign direct investment spillover total factor productivity growth? A study of Indian drugs and pharmaceutical industry

2017 ◽  
Vol 24 (7) ◽  
pp. 1937-1955 ◽  
Author(s):  
Nitin Arora ◽  
Preeti Lohani
Keyword(s):  
Foreign Direct Investment ◽  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Spillover Effect ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Content Type ◽  
Domestic Firms ◽  
Tfp Growth

Purpose Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry. Design/methodology/approach This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function. Findings The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry. Research limitations/implications The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework. Practical implications Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy. Social implications In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws. Originality/value The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

scholarly journals An Examination of Drivers of Financial development: Evidence in West African Countries.

2018 ◽  
Vol 6 (1) ◽  
pp. 132-143
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi ◽  
Buba Abdullahi
Keyword(s):  
Financial Development ◽  
Developing Economies ◽  
Negative Impact ◽  
Trade Openness ◽  
Government Expenditure ◽  
Political Stability ◽  
Vital Role ◽  
West African ◽  
African Countries ◽  
Panel Data Estimation

Financial development has been considered to play a vital role in promoting rapid growth and development of the developing economies. This paper examined the drivers of financial development in West African Countries. Benin Republic, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo over the period of 2000 to 2015, with the proper utilization of panel data estimation technique on the annual country data obtained from World Development Indicators (WDI) 2016 and Worldwide Governance Indicators (WGI) 2016. The results reveals that some important variables such as coefficient of rule of law, political stability, foreign direct investment, government expenditure, inflation and savings positively determined financial development. While, credit to private sector, GDP, interest rate, trade openness, and capital formation were found to negative impact on financial development. The study then recommends amongst others formulation and implementation of fiscal and monetary policies that foster financial development.

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