Essays on total factor productivity, international trade, business cycles and mark-up
Essays on total factor productivity, international trade, business cycles and mark-up
Recently, the relationship between total factor productivity (TFP), economic growth and other macroeconomics activities has generated intense research interest. This thesis, which consists of three papers, makes a further contribution to the empirical literature in this area. This thesis begins with an empirical study of the relationships between primal and dual TFP growth in the presence of market power (MP) and non constant returns to scale (NCRTS) in the context of Malaysia’s manufacturing industry.
In Chapter 2, the major findings are first, that primal and dual TFP accounting are proved to be equal mainly because the factor shares in value added are relatively constant. Second, the assumptions of constant returns to scale (CRTS) and perfect competition (PC) are essential for both primal and dual TFP in measuring TFP growth. Third, this research sheds light on the debate between Young (1992, 1995) and Hsieh (1999, 2002) who argued that the discrepancies at the aggregate level for primal and dual TFP are mainly driven by data issues.
Chapter 3 investigates the impact of international trade on the strength of the mark-up (price over marginal cost). The estimation is based on the Dynamic Heterogeneous Panel Data Estimation technique. The major findings are first, that mark-ups are statistically significant greater than one, implying the existence of MP. Second, increased import penetration ratios serve to decrease industry mark-ups. Third, the overall effects of import penetration ratios on the mark-up lead to an increase in price competition, thus decreasing the size of the mark-ups.
Chapter 4 assesses the behaviour of the mark-up, and the effect of the business cycle and turnover rate on the mark-up.
University of Southampton
Nawi, Abdol Samad
1ea13c15-752f-4786-a383-41e83250beb7
2007
Nawi, Abdol Samad
1ea13c15-752f-4786-a383-41e83250beb7
Nawi, Abdol Samad
(2007)
Essays on total factor productivity, international trade, business cycles and mark-up.
University of Southampton, Doctoral Thesis.
Record type:
Thesis
(Doctoral)
Abstract
Recently, the relationship between total factor productivity (TFP), economic growth and other macroeconomics activities has generated intense research interest. This thesis, which consists of three papers, makes a further contribution to the empirical literature in this area. This thesis begins with an empirical study of the relationships between primal and dual TFP growth in the presence of market power (MP) and non constant returns to scale (NCRTS) in the context of Malaysia’s manufacturing industry.
In Chapter 2, the major findings are first, that primal and dual TFP accounting are proved to be equal mainly because the factor shares in value added are relatively constant. Second, the assumptions of constant returns to scale (CRTS) and perfect competition (PC) are essential for both primal and dual TFP in measuring TFP growth. Third, this research sheds light on the debate between Young (1992, 1995) and Hsieh (1999, 2002) who argued that the discrepancies at the aggregate level for primal and dual TFP are mainly driven by data issues.
Chapter 3 investigates the impact of international trade on the strength of the mark-up (price over marginal cost). The estimation is based on the Dynamic Heterogeneous Panel Data Estimation technique. The major findings are first, that mark-ups are statistically significant greater than one, implying the existence of MP. Second, increased import penetration ratios serve to decrease industry mark-ups. Third, the overall effects of import penetration ratios on the mark-up lead to an increase in price competition, thus decreasing the size of the mark-ups.
Chapter 4 assesses the behaviour of the mark-up, and the effect of the business cycle and turnover rate on the mark-up.
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Published date: 2007
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Local EPrints ID: 466338
URI: http://eprints.soton.ac.uk/id/eprint/466338
PURE UUID: ddb05d9c-87c5-466f-b5f6-913e6c826bac
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Date deposited: 05 Jul 2022 05:11
Last modified: 16 Mar 2024 20:38
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Author:
Abdol Samad Nawi
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