IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v28y1998i2p19-34.html
   My bibliography  Save this article

Determinants of Total Factor Productivity, Technological Change, and Efficiency Differentials Among States, 1977-86

Author

Listed:
  • Domazlicky, Bruce R.

    (Southeast Missouri State University)

  • Weber, William, L.

    (Southeast Missouri State University)

Abstract

Significant differences in the growth rates of total factor productivity (TFP) exist among states. In this study, the sources of differences in TFP growth, technological change, and average efficiency levels for states in the period 1977-86 are identified. Rather than focusing on just the manufacturing sector, the present study is concerned with TFP growth and technological change for all (aggregated) sectors. Results from the study indicate that policies to attract manufacturing industries and private capital will increase TFP growth, primarily by increasing technological change. States with lower levels of production efficiency can move closer to their production frontiers by improving the quality of the labor force (education, for example), attracting private capital and, in the case of states with very large metropolitan areas, by encouraging the decentralization of economic activity.

Suggested Citation

  • Domazlicky, Bruce R. & Weber, William, L., 1998. "Determinants of Total Factor Productivity, Technological Change, and Efficiency Differentials Among States, 1977-86," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 19-34, Fall.
    • Handle: RePEc:rre:publsh:v:28:y:1998:i:2:p:19-34
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/28.2.2/pdf
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/28.2.2/369
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alicia H. Munnell, 1991. "Is there a shortfall in public capital investment? An overview," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 23-35.
    2. Mullen, John K. & Williams, Martin, 1990. "Explaining total factor productivity differentials in urban manufacturing," Journal of Urban Economics, Elsevier, vol. 28(1), pages 103-123, July.
    3. Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 69-112.
    4. Holtz-Eakin, Douglas, 1993. "State-specific estimates of state and local government capital," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 185-209, April.
    5. Kim McCoy & Ronald L. Moomaw, 1995. "Determinants Of Manufacturing Efficiency In Canadian Cities: A Stochastic Frontier Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 317-330, Winter.
    6. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    7. Martin Williams & Ronald L. Moomaw, 1989. "Capital and Labour Efficiencies: A Regional Analysis," Urban Studies, Urban Studies Journal Limited, vol. 26(6), pages 573-585, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boisso, Dale & Grosskopf, Shawna & Hayes, Kathy, 2000. "Productivity and efficiency in the US: effects of business cycles and public capital," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 663-681, December.
    2. Mohapatra, Souryabrata & Sharp, Basil & Sahoo, Auro Kumar & Sahoo, Dukhabandhu, 2022. "Decomposition of climate-induced productivity growth in Indian agriculture," MPRA Paper 122613, University Library of Munich, Germany.
    3. Rajeev K. Goel & Ummad Mazhar & Rati Ram, 2022. "Informal competition and firm performance: Impacts on input‐ versus output performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 418-430, March.
    4. Tsionas, Mike G. & Polemis, Michael L., 2019. "On the estimation of total factor productivity: A novel Bayesian non-parametric approach," European Journal of Operational Research, Elsevier, vol. 277(3), pages 886-902.
    5. Gregory Brock & Constantin Ogloblin, 2014. "Another look at technical efficiency in American states, 1979–2000," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 577-590, September.
    6. ADACHI Yusuke & OGAWA Hikaru & TSUBUKU Masafumi, 2019. "Productivity Dynamics during Major Crises in Japan: A Quantile Approach," Discussion papers 19015, Research Institute of Economy, Trade and Industry (RIETI).
    7. An, Donghwan & Kim, Kwansoo & Kwon, Oh Sang, 2004. "The Demand- and Supply-Side Spillovers in the Food Manufacturing Industry in Korea: An Empirical Evidence from Both Local Level and Individual Firm Level," 2004 Annual meeting, August 1-4, Denver, CO 20238, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Sharma, Subhash C. & Sylwester, Kevin & Margono, Heru, 2007. "Decomposition of total factor productivity growth in U.S. states," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 215-241, May.
    9. Gregory Brock & Constantin Ogloblin, 2018. "Russian 1998–2007 TFP decomposed: some inspiration emerging from inherited Soviet legacy," Economic Change and Restructuring, Springer, vol. 51(2), pages 135-151, May.
    10. Bruce R. Domazlicky & William L. Weber, 2006. "The Measurement of Capital and the Measurement of Productivity Growth and Efficiency in State Manufacturing," International Regional Science Review, , vol. 29(2), pages 115-134, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:rre:publsh:v:35:y:2005:i:2:p:117-38 is not listed on IDEAS
    2. Bruce R. Domazlicky & William L. Weber, 2006. "The Measurement of Capital and the Measurement of Productivity Growth and Efficiency in State Manufacturing," International Regional Science Review, , vol. 29(2), pages 115-134, April.
    3. Haughwout, Andrew F., 2002. "Public infrastructure investments, productivity and welfare in fixed geographic areas," Journal of Public Economics, Elsevier, vol. 83(3), pages 405-428, March.
    4. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
    5. Dawson, John W. & Stephenson, E. Frank, 1997. "The link between volatility and growth: Evidence from the States," Economics Letters, Elsevier, vol. 55(3), pages 365-369, September.
    6. Christophe Kamps, 2006. "New Estimates of Government Net Capital Stocks for 22 OECD Countries, 1960-2001," IMF Staff Papers, Palgrave Macmillan, vol. 53(1), pages 1-6.
    7. Zhenhua Chen & Kingsley E. Haynes, 2015. "Regional Impact of Public Transportation Infrastructure," Economic Development Quarterly, , vol. 29(3), pages 275-291, August.
    8. Andrew M. Isserman, 1993. "State Economic Development Policy and Practice in the United States: A Survey Article," International Regional Science Review, , vol. 16(1-2), pages 49-100, April.
    9. Peterson, Steven K. & Jessup, Eric L., 2008. "Evaluating the Relationship Between Transportation Infrastructure and Economic Activity: Evidence from Washington State," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(2).
    10. Poot, Jacques, 1999. "A meta-analytic study of the role of government in long-run economic growth," ERSA conference papers ersa99pa171, European Regional Science Association.
    11. Nigel Spence & Antonis Rovolis, 2002. "Duality theory and cost function analysis in a regional context: the impact of public infrastructure capital in the Greek regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 55-78.
    12. Daniel Felsenstein, 2011. "Capital Deepening and Regional Inequality: An Empirical Analysis (refereed paper)," ERSA conference papers ersa10p759, European Regional Science Association.
    13. Pedro R. D. Bom & Jenny Ligthart, 2008. "How Productive is Public Capital? A Meta-Analysis," CESifo Working Paper Series 2206, CESifo.
    14. Holtz-Eakin, Douglas & Lovely, Mary E., 1996. "Scale economies, returns to variety, and the productivity of public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 105-123, April.
    15. Pedro R.D. Bom & Jenny E. Ligthart, 2014. "What Have We Learned From Three Decades Of Research On The Productivity Of Public Capital?," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 889-916, December.
    16. Shelby Gerking, 1993. "Measuring Productivity Growth in U.S. Regions: A Survey," International Regional Science Review, , vol. 16(1-2), pages 155-185, April.
    17. Zhenhua Chen & Kingsley E. Haynes, 2015. "Public surface transportation and regional output: A spatial panel approach," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 727-751, November.
    18. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2010. "Dynamic Macroeconomic Effects of Public Capital: Evidence from Regional Italian Data," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 69(1), pages 29-66, April.
    19. Bruce Domazlicky & William Weber, 2004. "Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(3), pages 301-324, July.
    20. Douglas Holtz-Eakin, 1993. "Correspondence," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 231-234, Fall.
    21. Boarnet, Marlon G., 1997. "Infrastructure Services and the Productivity of Public Capital: The Case of Streets and Highways," National Tax Journal, National Tax Association, vol. 50(1), pages 39-57, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:28:y:1998:i:2:p:19-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.