Productivity growth in the large-scale manufacturing of Greece: a non parametric approach

The paper measures and decomposes Total Factor Productivity (TFP) growth in Greek manufacturing for the period 1975-96 using the non parametric Malmquist productivity change index. The average rate of TFP growth for the sector as a whole was 1.8 percent per annum, although considerable differences existed in this respect among the various industrial groups. Technical change appeared to be the major determinant of TFP growth while the role of technical efficiency changes was limited. Evidence of Hicks input non neutral technical change was found for certain industries. Scale inefficiency in many cases was associated with operation at a sub-optimal scale.