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The sensitivity of estimates of UK manufacturing TFP to definition and measurement
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Higón, Dolores Añón (2004) The sensitivity of estimates of UK manufacturing TFP to definition and measurement. PhD thesis, University of Warwick.
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Official URL: http://webcat.warwick.ac.uk/record=b1709568~S1
Abstract
This thesis is concerned with the sensitivity of Total Factor Productivity (fFP) estimates in
UK manufacturing industries to the use of alternative output concepts -gross output vs.
value added- and estimation methods -growth accounting vs. econometrics. The departure
point is that differences in methods and assumptions can lead to very different TFP growth
estimates. The interpretation of these estimates can be problematic when they reflect
factors beyond the theoretical concept of TFP. The central goal of this thesis is to evaluate
whether and to what extent these factors have an impact on the measurement of TFP
growth, on the estimation of any relationship between TFP and Research and Development
(R&D) investment and, finally, on the measurement of the UK manufacturing productivity
gap differential.
The empirical results suggest that: First, TFP growth estimates in UK manufacturing are
sensitive to both the output concept used and the assumptions underlying the method used
to estimate them. It was found when tested for that the assumptions of perfect competition
and instantaneous adjustment, which underlie the growth accounting framework, are not
valid. Adjusting for the measurement bias associated with the presence of these factors, it is
found that the recovery experienced in the 1980s in UK manufacturing productivity growth
rates was not as spectacular as implied by the traditional growth accounting approach.
Second, adjusting for measurement bias does not affect markedly the results found in
related studies with respect to the relationship between TFP and R&D efforts. The results
suggest that R&D investment from the industry itself and from other national industries has
a positive impact on the industry's productivity but there is no gain from R&D investment
undertaken abroad.
Third, the results indicate that the bias in traditional TFP estimates does not impact greatly
on the British productivity gap at the aggregate manufacturing level but does so at a more
dis aggregated level. Finally, despite the concerns about measurement bias, the results show
that the productivity gap still remains significant and the productivity of UK manufacturing
still trails behind that achieved in the US, France and Germany, regardless of the sector.
Item Type: | Thesis (PhD) | ||||
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Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
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Library of Congress Subject Headings (LCSH): | Industrial productivity -- Great Britain, Industrial productivity -- Econometric models, Industrial productivity -- Measurement, Manufacturing industries -- Great Britain, Research and development projects | ||||
Official Date: | January 2004 | ||||
Dates: |
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Institution: | University of Warwick | ||||
Theses Department: | Warwick Business School | ||||
Thesis Type: | PhD | ||||
Publication Status: | Unpublished | ||||
Supervisor(s)/Advisor: | Stoneman, Paul | ||||
Sponsors: | Banco de España; Fundación Ramón Areces; Warwick Business School | ||||
Extent: | x, 243 leaves | ||||
Language: | eng |
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