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Bridging the Gap between Partial and Total Factor Productivity Measures Using Directional Distance Functions
Author(s) -
Nin Alejandro,
Arndt Channing,
Hertel Thomas W.,
Preckel Paul V.
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00498
Subject(s) - productivity , total factor productivity , livestock , partial productivity , agricultural productivity , agriculture , bridging (networking) , economics , measure (data warehouse) , econometrics , computer science , economic growth , geography , computer network , archaeology , database , forestry
Technical dependencies as well as data constraints limit our ability to allocate inputs across sectors and hence our ability to measure sectoral productivity. We adapt a directional measure of efficiency to the measurement of sector‐specific productivity that does not require allocating all inputs across sectors. Applied to the agricultural sector of a group of countries, the results show important differences in livestock and crops productivity growth. Commonly used partial factor productivity measures for livestock and crops tend to overestimate productivity growth in most developing countries while underestimating it in European countries.