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INTERNATIONAL COMPARISON OF TOTAL FACTOR PRODUCTIVITY: A REVIEW
Author(s) -
Islam Nazrul
Publication year - 1999
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1999.tb00362.x
Subject(s) - total factor productivity , economics , context (archaeology) , sample (material) , productivity , convergence (economics) , econometrics , macroeconomics , geography , chemistry , chromatography , archaeology
Several different approaches to international comparison of Total Factor Productivity (TFP) have now emerged. Among these are the time‐series approach, the panel approach, and the cross‐section approach. This paper compares methodologies of these different approaches and results that have been obtained from their application. The comparison of results is conducted in the context of two samples, namely the sample of G7 countries and a large sample that includes developing nations. It is found that while there are broad agreements in results, there exist considerable differences too. The analysis shows how these differences can be related, in part, to differences in methodology. The paper also shows how these different approaches to international TFP‐comparison can play a complementary role in enhancing our understanding of such important phenomena as technological diffusion and TFP‐convergence.