DMCA
TFP Growth and its Determinants: Nonparametrics and Model Averaging ∗ (2012)
BibTeX
@MISC{Danquah12tfpgrowth,
author = {Michael Danquah and Enrique Moral-benito and Bazoumana Ouattara},
title = {TFP Growth and its Determinants: Nonparametrics and Model Averaging ∗},
year = {2012}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
Total Factor Productivity (TFP) accounts for a sizable proportion of the income differences across countries. Two challenges remain to researchers aiming to explain these differences: on the one hand, TFP growth is hard to measure empirically; on the other hand, model uncertainty hampers consensus on its key determinants. This paper combines a non-parametric measure of TFP growth with Bayesian model averaging techniques in order to address both issues. Our empirical findings suggest that the most robust TFP growth determinants are time-invariant unobserved heterogeneity and trade openness. We also investigate the main determinants of two TFP components: efficiency change (i.e. catching up) and technological progress.
Keyphrases
tfp growth model averaging total factor productivity technological progress robust tfp growth determinant time-invariant unobserved heterogeneity bayesian model model uncertainty hamper key determinant sizable proportion trade openness tfp component non-parametric measure empirical finding income difference efficiency change main determinant
