New Estimates of Total Factor Productivity Growth in Indonesian Manufacturing

Bibliographic Data

ID8416099
AuthorsVirginie Vial (0000-0002-6003-956X, Euromedic, corresponding author)
Year2006
Volume42
Issue3
Pages357-369
Publication date2006-12-01
Open AccessNo
TypeARTICLE
VenueBulletin of Indonesian Economic Studies (JOURNAL)
Journal identifiersISSN: 0007-4918 • E-ISSN: 1472-7234
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074910601053227
OpenAlexW2112639697
LanguageEN
Citations received8
References cited11

This paper estimates new elasticities of value added with respect to labour and capital in Indonesian manufacturing, controlling for the simultaneity problem that potentially exists between the choice of input levels and a productivity shock (such as an increase in productivity due to new production processes), for plant exit, and for quasi-constant unobservable plant characteristics. It does so by applying the Levinsohn and Petrin (2003) production function estimator to plant-level value added, fixed assets, labour, and electricity consumption data over the period 1988–95. This methodology allows us to revisit the previously used growth accounting based elasticities, and thereby improves total factor productivity (TFP) estimates. The results show that, in the period under study, aggregate TFP growth in Indonesian manufacturing was higher than had previously been estimated

Business · Consumption (sociology) · Econometrics · Economics · Estimator · Gross value added · Indonesian · Macroeconomics · Manufacturing · Microeconomics · Production (economics) · Production function · Productivity · Simultaneity · Statistics · Total factor productivity · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics · Mathematics

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