An empirical study on technological progress, technical efficiency change and economic growth in North-East of China

Author(s):  
Liu Ganzhou
Economies ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 37 ◽  
Author(s):  
Mita Bagchi ◽  
Sanzidur Rahman ◽  
Yao Shunbo

The present study applies a bootstrapped data envelopment analysis (DEA) procedure to compute bias-corrected measures of agricultural total factor productivity (TFP) change and its components (technical change and technical efficiency change) using a panel data of 19 regions of Bangladesh covering a 23-year period (1987–2009), thereby overcoming the limitation of the lack of statistical inference of the conventional non-parametric DEA. Results revealed that overall productivity grew at a modest rate of 0.03%, mainly powered by technological progress at 0.03% and a negligible decline in technical efficiency at 0.004% with large disparities amongst regions. Six regions in the middle order shifted ranks with regard to TFP change following bias correction. The estimated confidence intervals demonstrated that many regions underwent either progress or regress in productivity performance over time. Investments in research and development (R&D), agricultural extension, and crop diversification are suggested to improve regional inequality and declining technical efficiency.


2021 ◽  
Vol 2 (2) ◽  
pp. 118-138
Author(s):  
Miguel Angel Esquivias Padilla

This study estimates Technical Efficiency (TE) and Total Factor Productivity (TFP) to analyze the sources of growth in the province of East Java in Indonesia. Technological progress, technical efficiency change, and scale effects are estimated through a stochastic frontier analysis (SFA) to break up different sources of growth within manufacture. This study looks at patterns of output expansion by differentiating gains from conventional sources –input growth and technological progress- and non-conventional sources –technical efficiency change and scale effects-. Results are aggregated based on tech-intensity, firm size, capital to output ratio employed, and labor skills. It also compares East Java with the other five provinces in the Java Island, the manufacturing corridor of the country. As expected, manufacturing sector is growing through input growth effects and tech progress-conventional sources- but underperforming in productivity by having negative efficiency change and negative scale effects. Labor has the largest elasticity to output (0.436), capital and raw materials have a much lower elasticity, and energy has a large negative one (-3.097) also causing a sharp increase in the cost of production. Low-tech firms, higher skills, and medium in size perform 72% better than average (TFP). MLT firms with labor-intensive and medium-size firms perform 58% better than average. However, champion industries have lower skills, good access to materials, and are less intensive in energy use. Some features of firm performance are: firm with larger portions of human skills capture the largest TE and higher TP values; those under high skills report larger losses due to negative scale effects; labor-intensive firms have larger TFP (less efficient but less exposed to energy prices).


2010 ◽  
Vol 14 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Behrooz Hassanpour ◽  
Mohd Mansor Ismail ◽  
Zainalabidin Mohamed ◽  
Nitty Hirawaty Kamarulzaman

1996 ◽  
Vol 35 (3) ◽  
pp. 215-228
Author(s):  
Karamat Ali ◽  
Abdul Hamid

Technical change has been considered as one of the most important determinants of economic growth. In developed economies, a proportionately higher percentage of GDP growth is attributable to technological progress and technical efficiency. However, technical change in developing countries is in its early stages and increased use of factor inputs is still the dominant source of economic growth. An attempt has been made in this paper to analyse technological progress and technical efficiency and their contribution to economic growth along with other factors of production by using more efficient methods in the manufacturing and agriculture sectors of Pakistan. There are a few studies on technological growth and technical efficiency change in Pakistan but they suffer from certain limitations. Most of them use the terms of technical change and productivity synonymously. Further, all of them use Hicks’s formula of neutral technical change and assume that technical change is happening at a constant rate. We have attempted to measure technical change, technical efficiency, and productivity in the form of the Hicks neutral technical change as well as in the form of variable and continuous and discrete technical change. Besides, this paper also analyses the impact of technical change on input demand (i.e., its impact on labour and capital demand) and examines the issue of technical change being either labour-saving or capital-saving. We found that technical change was taking place at a continuous and variable rate. The major contributor to the growth of output and value-added in both sectors was capital, contributing over 50 percent. Labour share was about 20 percent in the agriculture sector and about 10 percent in the manufacturing sector. Technical change share was very significant in manufacturing but not so in agriculture. The manufacturing sector in Pakistan has grown at an annual rate of about 6 percent during 1970s and at 8.7 percent during 1980s, and its share in GDP has increased from 16.5 percent to about 19 percent, but it has failed to generate new employment opportunities for the labour force. The employment growth rate is only about 2 percent.


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