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A Global Malmquist-Luenberger Productivity Index - an application to OECD countries 1990-2004

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  • Oh, Dong-Huyn

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

The aim of this paper is to introduce an alternative measure that incorporates the concept of a global Malmquist productivity index with a directional distance function. Unlike a conventional geometric mean form of the Malmquist-Luenberger productivity index, this global index is circular and free from linear programming (LP) infeasibility. It can also be decomposed into certain sources of productivity growth such as efficiency change and technical change. The suggested methodology is employed in the analysis of 28 OECD countries over the period of 1990-2004. The empirical result shows that the northern European countries are found to have a higher productivity growth rate when compared with the rest of the OECD countries. Furthermore, we found that the main source of the productivity growth is technical change.

Suggested Citation

  • Oh, Dong-Huyn, 2009. "A Global Malmquist-Luenberger Productivity Index - an application to OECD countries 1990-2004," Working Paper Series in Economics and Institutions of Innovation 164, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0164
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    References listed on IDEAS

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    1. Barros, Carlos Pestana, 2008. "Efficiency analysis of hydroelectric generating plants: A case study for Portugal," Energy Economics, Elsevier, vol. 30(1), pages 59-75, January.
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    Cited by:

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    More about this item

    Keywords

    Global Malmquist-Luenberger productivity index; Directional distance function; Productivity; Circularity;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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