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Intra-Sectoral Structural Change and Aggregate Productivity Development. A Robust Stochastic Nonparametric Frontier Function Approach

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  • Jens J. Krüger

    (Friedrich-Schiller-University Jena, Department of Economics)

Abstract

This paper investigates the sources of total factor productivity growth in the German manu- facturing sector, 1981-1998. Decomposition formulae for aggregate productivity growth are used to identify the effects of structural change and entry-exit on aggregate productivity growth. Documented is a substantial rise of productivity growth after the German reunifica- tion. The bulk of this rise can be attributed to structural change and entry-exit. Two methodo- logical refinements are implemented, the first is the application of a robust stochastic non- parametric approach to frontier function analysis and the second is the calculation of boot- strap confidence intervals for the components of the productivity decompositions.

Suggested Citation

  • Jens J. Krüger, 2008. "Intra-Sectoral Structural Change and Aggregate Productivity Development. A Robust Stochastic Nonparametric Frontier Function Approach," Jena Economics Research Papers 2008-038, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-038
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2008/wp_2008_038.pdf
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    Cited by:

    1. Antti Simola, 2018. "Government payments, market profits and structural change in agriculture," Journal of Evolutionary Economics, Springer, vol. 28(4), pages 837-857, September.

    More about this item

    Keywords

    productivity decomposition; structural change; manufacturing;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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