Productivity of Nations: A Stochastic Frontier Approach to TFP Decomposition
Table 4
Sources of economic growth per group of countries and subperiods: % change.
Variable
Group of countries*
Annual averages in the sub-periods
Annual average
Accumulated
1966–1970
1971–1975
1976–1980
1981–1985
1986–1990
1991–1995
1996–2000
GDP growth
Developed
5.33
3.92
3.44
2.30
3.62
2.04
3.57
4.04
228.22
Developing
5.29
5.14
5.64
1.93
3.38
4.12
2.90
4.74
301.10
Difference
0.03
−1.16
−2.08
0.37
0.23
−2.00
0.65
−0.67
−18.17
Capital accumulation
Developed
5.58
5.84
4.34
3.14
2.99
2.44
2.53
4.48
272.60
Developing
6.54
6.72
6.59
5.04
3.85
4.13
3.59
6.09
489.67
Difference
−0.90
−0.83
−2.11
−1.81
−0.82
−1.63
−1.02
−1.52
−36.81
Labor expansion
Developed
0.97
1.19
0.89
0.77
0.59
0.85
0.65
0.98
34.14
Developing
2.95
2.82
2.81
2.68
2.41
2.15
1.91
2.96
139.92
Difference
−1.93
−1.59
−1.87
−1.86
−1.78
−1.27
−1.24
−1.92
−44.09
Change in GDP per worker
Developed
4.32
2.70
2.53
1.52
3.01
1.17
2.91
3.03
144.68
Developing
2.27
2.25
2.76
−0.73
0.95
1.92
0.98
1.73
67.18
Difference
2.00
0.43
−0.22
2.27
2.04
−0.74
1.91
1.28
46.36
Change in capital per worker
Developed
4.57
4.59
3.42
2.35
2.39
1.57
1.87
3.46
177.76
Developing
3.49
3.79
3.68
2.30
1.40
1.94
1.65
3.04
145.78
Difference
1.05
0.77
−0.25
0.05
0.98
−0.36
0.22
0.41
13.02
Change in TFP
Developed
1.32
1.56
1.34
1.04
0.97
0.68
0.59
1.25
45.14
Developing
0.07
−0.10
−0.23
−0.11
−0.16
−0.35
−0.37
−0.21
−6.11
Difference
1.25
1.66
1.58
1.15
1.14
1.03
0.97
1.46
54.58
Technical progress
Developed
0.54
0.44
0.33
0.21
0.09
−0.04
−0.17
0.23
7.22
Developing
0.04
−0.06
−0.16
−0.28
−0.41
−0.53
−0.66
−0.34
−9.76
Difference
0.50
0.50
0.49
0.49
0.50
0.49
0.49
0.58
18.82
Change in technical efficiency
Developed
0.56
0.53
0.49
0.46
0.43
0.40
0.38
0.54
17.63
Developing
0.43
0.40
0.37
0.35
0.33
0.31
0.29
0.41
13.13
Difference
0.13
0.13
0.12
0.11
0.10
0.10
0.09
0.13
3.98
Change in scale efficiency
Developed
0.05
0.06
0.06
0.06
0.07
0.07
0.07
0.07
2.25
Developing
0.01
0.07
0.10
0.10
0.13
0.14
0.14
0.12
3.53
Difference
0.04
0.00
−0.04
−0.04
−0.07
−0.07
−0.07
−0.04
−1.24
Change in allocative efficiency
Developed
0.17
0.52
0.45
0.30
0.38
0.24
0.31
0.39
12.50
Developing
−0.40
−0.50
−0.54
−0.28
−0.21
−0.26
−0.14
−0.39
−10.99
Difference
0.57
1.02
1.00
0.59
0.59
0.49
0.45
0.78
26.40
* The values in this table were calculated by taking simple arithmetic averages over the countries comprising each group of the rates of change for each subperiod. The accumulated effects as well as the annual average numbers were computed by compounding (or discounting) rates. The relative factor prices and relative marginal productivity of each period used in our calculations refers to the last year of the 5-year interval; for example, the values of , , , and used to estimate the allocative efficiency changes between 1966 and 1970 refer to 1970.
