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Determinants of total factor productivity growth of Tunisian manufacturing firms

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  • Khaled Thabet

    (Higher school of economic and commercial sciences of Tunis)

Abstract

Using a panel of Tunisian manufacturing firms observed over the 1998–2006 period, The purpose of this paper was to decompose the total factor productivity (TFP) growth into technological progress and changes in technical efficiency taking advantage of the DEA-based Malmquist productivity index. Recent developments in bootstrapping techniques are used to give more insight concerning the significance of the point estimates from the linear programming and total factor productivity estimates. Results show that, in average, technical efficiency score is around 59% which implies that the firms in our sample can, on average, increase production by 41% using the same levels of inputs in order to match the frontier. Across industries, TFP growth has been heterogeneous. TFP of manufacturing sector increased in average by 7.55% over the period 1998-2006. This performance was due mainly to technical efficiency change (5.77%) and a relatively low technological change (1,67%).

Suggested Citation

  • Khaled Thabet, 2018. "Determinants of total factor productivity growth of Tunisian manufacturing firms," Economics Bulletin, AccessEcon, vol. 38(1), pages 336-348.
    • Handle: RePEc:ebl:ecbull:eb-16-00160
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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I1-P32.pdf
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    References listed on IDEAS

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    Cited by:

    1. Claudiu Tiberiu Albulescu & Serban Miclea, 2020. "Firm-level total factor productivity convergence in German electricity and gas industry," Working Papers hal-02512939, HAL.
    2. Zhiyang Shen & Vivian Valdmanis, 2022. "Assessing total factor productivity across Africa: an empirical investigation," Journal of Productivity Analysis, Springer, vol. 58(2), pages 239-253, December.

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    More about this item

    Keywords

    Total factor productivity; Technical change; Technical efficiency; Danta envelopement analysis; Bootstrap;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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