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

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  • 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
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. 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.
    4. 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.
    5. 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).
    6. 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).
    7. 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.
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    9. 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.

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