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Factors affecting TFP formation in manufacturing in Poland. Application of a dynamic panel model[1]

Barbara Dańska-Borsiak 

Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny, P.O.W. 3/5, Łódź 90-255, Poland

Abstract

The article attempts to estimate total factor productivity (TFP) for sectors included in section D „manufacturing”. TFP is an unobservable variable and its value is estimated using two alternative methods. The one described in the article takes advantage of a production function. More precisely, sectors’ TFP was sought by estimating the parameters of the Cobb-Douglas production function. TFP was assumed to be a function of time and technological progress was understood as defined by Hicks. The assumption about the sectors’ different productivity was realized using a constant diversification procedure. The parameters of the productivity function were estimated with panel data, using a groupwise heteroskedasticity model.

The last stage of the analysis consisted in constructing and estimating a model describing TFP formation by sector. The model’s explanatory variables were the alternative measures of human capital, physical capital, R&D expenditures, and technology transfer via international trade. The TFP formation model was a dynamic panel data model. To estimate the model, the Arellano-Bond first-differenced GMM and Blundell-Bond system GMM were applied. The SGMM-based results should be viewed as satisfactory.

[1] Research project N111 0938 33 financed from the funds allocated to scientific activities in the years 2007-2009.

 

Auxiliary resources (full texts, presentations, posters, etc.)
  1. FULLTEXT: Factors affecting TFP formation in manufacturing in Poland. Application of a dynamic panel model^{[1]}, Microsoft Office Document, 0.1MB
 

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Related papers

Presentation: Poster at First International Conference Quantitative Methods in Economics, Poster session, by Barbara Dańska-Borsiak
See On-line Journal of First International Conference Quantitative Methods in Economics

Submitted: 2009-06-01 11:45
Revised:   2009-07-21 22:37