International comparison of sectoral energy- and labour-productivity performance; stylised facts and decomposition of trends

This paper simultaneously explores trends in energy- and labour productivity for 14 OECD countries and 13 sectors over the period 1970-1997. A principal aim of this paper is to trace back macroeconomic productivity developments to developments at the level of individual sectors, in order to correct trends in technology-driven productivity improvements for the impact of structural effects. First, we document trends in macroeconomic energy- and labour productivity performance, examining the role of the Manufacturing, Services, Transport and Agricultural sector. Second, we take a closer look at the role of 10 Manufacturing sectors in driving aggregate Manufacturing energy- and labour-productivity performance. A cross-country decomposition analysis reveals that in some countries structural changes contributed considerably to aggregate energy-productivity growth while in other countries they partly offset energy-efficiency improvements. In contrast, structural changes only play a minor role in explaining aggregate labour-productivity developments. We identify for each country the percentage contribution of each sector to aggregate structural and efficiency changes. Furthermore, we find labour productivity growth to be higher on average than energy productivity growth. Over time, this bias towards labour productivity growth is increasing in the Transport, Agriculture and aggregate Manufacturing sectors, while it is decreasing in Services and most Manufacturing sectors.

Impact of Trade on Labour Productivity and Wage Inequality in India

Abstract: The paper empirically estimates the impact of trade on labour productivity and wage inequality between skilled (white collar) and unskilled (blue collar) labour in Indian manufacturing. Analysis is undertaken using dynamic panel data estimations (GMM) for 58 manufacturing industries for the period 1998-99 to 2004-05. The results show that export intensity of industries has positively impacted productivity of unskilled labour while import competition has led to higher productivity of both skilled and unskilled labour. However, trade has led to increase in wage inequalities between skilled and unskilled labour implying that it has increased the wages of skilled labour more than the unskilled labour.Trade and Wage Inequality; labour productivity; wage inequality between skilled and unskilled labour; Wage Inequality; Indian manufacturing and labour productivity; Indian manufacturing and wage inequality; Labour productivity of unskilled labour

Is there a rural-urban divide? Location and Productivity of UK manufacturing

We compute the productivity gaps in manufacturing industries by urban, rural less sparse and rural sparse locations in the UK. This is done by using firm-specific total factor productivities, which are estimated by a semi-parametric algorithm within 4-digit manufacturing industries using FAME data over the period 1994-2001, by each location. We analyse the productivity differentials across locations by decomposing them into firm differences within the same industry and by differences that are explained by industry composition effects. Our analysis indicates that at the end of twentieth century a rural-urban divide in manufacturing productivity still remains but there is a tendency of convergence between rural and urban location categories. Even though industry productivity is different by location, industry composition effects are positively correlated with industry productivity by location suggesting that locations with high productivity are also characterised by industrial structures with higher productivity.Total factor productivity, structural estimation, rural-urban divides, UK manufacturing

Total Factor Productivity of Philippine Manufacturing Industries

As suggested by vast literature, the Philippine economy has performed poorly over the last three decades due to deterioration in productivity. This paper provides an updated productivity estimates for the manufacturing industries over the period 1956-1992. This paper decomposes this industry productivity growth into technical progress and technical efficiency. It also analyzes the patterns of industry productivity through results of regression method.total factor productivity, manufacturing sector, technical efficiency, output growth

Employment Flows with Endogenous Financing Constraints

Empirical studies document that resource reallocation across production units plays an important role in accounting for aggregate productivity growth in the U.S. manufacturing. Distortions in financial market could hinder the reallocation process and hencemay adversely affect aggregate productivity growth. This paper studies the quantitative impact of costly external finance on aggregate productivity through resource reallocation across firms with idiosyncratic productivity shocks. A partial equilibrium model calibrated to the U.S. manufacturing data shows that costly external finance causes inefficient output reallocation from high productivity firms to low productivity firms and as a result leads to a 1 percent loss in aggregate TFP.Costly external Finance; Reallocation; Output weighted aggregate productivity

The Structural Transformation and Aggregate Productivity in Portugal

We document the substantial process of structural transformation -the reallocation of labor between agriculture, manufacturing, and services- and aggregate productivity growth undergone by Portugal between 1956 and 1995. In this paper, we assess the quantitative role of sectoral productivity in accounting for these processes. We calibrate a model of the structural transformation to data for the United States and use the model to gain insight into the factors driving the structural transformation and aggregate productivity growth in Portugal. The model implies that Portugal features low and roughly constant relative productivity in agriculture and services (around 22 percent) and a modest but growing relative productivity in manufacturing (from 44 to 110 percent). We find that productivity growth in manufacturing accounts for most of the reduction of the aggregate productivity gap with the United States and that further substantial improvements in relative aggregate productivity can only be accomplished via improvements in the relative productivity of the service sector.productivity, structural transformation, relative sectoral productivity.

Human Capital Spillovers, Productivity and Growth in the Manufacturing Sector of Pakistan

Manufacturing is an important sector of Pakistan’s economy. The main focus of this paper is to analyse the major factors of value-added growth and productivity in the manufacturing sector by using Translog Production Technology over the period 1971-72 to 2004-05. The empirical findings show that the contribution of productivity and human capital is around one- third of the total value-added growth in manufacturing sector which is less than the contribution attributed to these factors in developed and many other developing countries. Conventional factors like capital and labour are still the mainstay in the value-added growth of Pakistan’s manufacturing sector.Human Capital Spillovers, Total Factor Productivity, Absolute and Relative Shares

Plant Size, Turnover and Productivity in Malaysian Manufacturing

Malaysian manufacturing has an asymmetrical structure: small and medium-sized enterprises dominate in numbers, but contribute relatively little to total output, employment, and exports as compared to their larger counterparts. In light of an increasingly competitive environment arising from globalization, a sound knowledge of turnover patterns within the sector by plant size and its potential impact on aggregate productivity growth is imperative. We find that turnover, particularly of large plants, makes a substantial contribution to overall productivity growth in manufacturing. Hence, from a policy perspective, facilitating turnover might be as important as supporting existing plants in promoting aggregate productivity growthPlant turnover; plant size; productivity; manufacturing; Malaysia

MEASURING FOOD MANUFACTURING PRODUCTIVITY: GROSS- OR NET-OUTPUT APPROACH?

The measured multifactor productivity index of the value of shipments shows a trend of declining and then moving up and down along the level of the base year 1975. The influence of technological changes to the output growth is rather limited. The measured labor productivity index of the value-added exhibits a trend of steady increase over years. The contribution of the food-manufacturing sector to the growth of GDP increased during 1975-97.Food manufacturing, multifactor productivity, labor productivity, Agribusiness, Productivity Analysis,