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Efficiency and TFP Growth in the Spanish Regions: The Role of Human and Public Capital
Author(s) -
Jiménez Maria del Mar Salinas
Publication year - 2003
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/1468-2257.00212
Subject(s) - total factor productivity , economics , human capital , technological change , production–possibility frontier , productivity , technical progress , production (economics) , frontier , public capital , capital deepening , capital (architecture) , technical change , labour economics , economic geography , macroeconomics , economic growth , capital formation , financial capital , archaeology , public investment , history
This paper analyzes the productivity growth of the Spanish regions between 1965 and 1995, decomposing productivity gains into technological progress and efficiency change by means of Malmquist indices. Once estimates of efficiency are obtained, the aim of this paper is to analyze the effects of human and public capital on growth in terms of their impact on Total Factor Productivity (TFP). Public capital is believed to increase the productivity of the private factors of production whereas human capital is thought to contribute to the production process as an additional input and to have a dynamic influence on growth through its impact on technological innovation (shifts in the production frontier) and technological diffusion (movements toward the frontier), which are the components of this TFP measure. Considering inefficiencies will then allow the effects of these variables on TFP growth to be estimated via technological progress and efficiency gains.