On the determinants of total factor productivity growth: evidence from Spanish manufacturing firms
On the determinants of total factor productivity growth: evidence from Spanish manufacturing firms
This paper explores the main determinants of productivity growth. The analysis is performed using Spanish firm-level data. We define a framework where the relative magnitudes of alternative, but not exclusive, sources of technical change are simultaneously estimated. Our main finding is that the average total factor productivity (TFP) growth is fully explained by embodied technical progress (i.e., either new capital goods or human capital). Our results contradict the existence of a positive contribution of economywide neutral technological progress in determining average TFP growth. They also leave little room for large, unpriced effects external to the firm, both at the aggregate and at the industry level. We find evidence of firm-specific learning by doing, short-lived and due to adoption of new processes.
tfp growth, technical change, human capital, learning by doing
501-530
Castiglionesi, Fabio
457b677d-44f5-4480-930c-7b02c6a8cb5b
Ornaghi, Carmine
33275e47-4642-4023-a195-39c91d0146b0
April 2013
Castiglionesi, Fabio
457b677d-44f5-4480-930c-7b02c6a8cb5b
Ornaghi, Carmine
33275e47-4642-4023-a195-39c91d0146b0
Castiglionesi, Fabio and Ornaghi, Carmine
(2013)
On the determinants of total factor productivity growth: evidence from Spanish manufacturing firms.
Macroeconomic Dynamics, 17 (3), .
(doi:10.1017/S1365100511000332).
Abstract
This paper explores the main determinants of productivity growth. The analysis is performed using Spanish firm-level data. We define a framework where the relative magnitudes of alternative, but not exclusive, sources of technical change are simultaneously estimated. Our main finding is that the average total factor productivity (TFP) growth is fully explained by embodied technical progress (i.e., either new capital goods or human capital). Our results contradict the existence of a positive contribution of economywide neutral technological progress in determining average TFP growth. They also leave little room for large, unpriced effects external to the firm, both at the aggregate and at the industry level. We find evidence of firm-specific learning by doing, short-lived and due to adoption of new processes.
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e-pub ahead of print date: 24 November 2011
Published date: April 2013
Keywords:
tfp growth, technical change, human capital, learning by doing
Organisations:
Social Sciences
Identifiers
Local EPrints ID: 338913
URI: http://eprints.soton.ac.uk/id/eprint/338913
ISSN: 1365-1005
PURE UUID: 5d3a1c17-4486-413d-9846-a673b634c7e5
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Date deposited: 17 May 2012 12:11
Last modified: 15 Mar 2024 03:21
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Author:
Fabio Castiglionesi
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