We propose a new decomposition method for analysing aggregate productivity changes. The main improvement in our proposed method is that we are clearly able to separate out pure productivity changes of a hypothetical average firm from changes in the share of output or value added between firms....

This paper employs a nonparametric approach to investigate the sources of growth in labor productivity for 77 countries and to decompose it in the following three components: (1) total factor productivity; (2) capital deepening; and (3) technological capabilities accumulation (a proxy of the...

This paper asks whether increasing productivity in the electricity sector can yield larger long-run GDP gains than suggested by electricity's small share of aggregate economic activity. We answer this question using a dynamic multi-sector model in which electricity is a strong complement to...

This paper combines development and growth accounting exercises with economic theory to estimate the relative importance of total factor productivity and the accumulation of factors of production in the economic development performance of Latin America. The region's development performance is...

This paper combines development accounting exercises with economic theory to assess the importance of total factor productivity and the accumulation of factors of production as engines of growth in Latin America. Using the new, drastically revised Penn World Table (PWT) and Barro-Lee datasets,...

Using a growth accounting framework, we find that developing Asia grew rapidly over the past three decades mainly due to robust growth in capital accumulation. The contributions of education and total factor productivity in the region's past economic growth remain relatively limited. We also...

This paper combines development and growth accounting exercises with economic theory to estimate the relative importance of total factor productivity and the accumulation of factors of production in the economic development performance of Latin America. The region’s development performance is...