Application of the dynamic array data model of total factor productivity to analyse the contribution of TFO to labor productivity growth in food industry in Vietnam
Keywords:Total factor productivity, Labor productivity, Dynamic production function model, Semi-parametric method, Dynamic system with array data
The objective of the study is to estimate the contribution of total factor productivity (TFP) to labor productivity growth in the food processing and beverage industries in Vietnam. To accomplish this goal, the study estimated TFP by the semi-parametric method proposed by Olley-Pakes (1996) and modified by Levinsohn - Petrin (2003). To consider the dependence of current labor productivity on previous labor productivity in estimating the contribution of TFP and factor productivity to labor productivity, the study developed and used dynamic system model with array data on the relationship between labor productivity with TFP. In the experiment, the study has overcome the indigeneity of the input factors when estimating the production function and TFP by semi-parametric technique. The study uses the General Statistics Office's enterprise survey data from 2010-2017 and has found the contribution of TFP to labor productivity in the food industry, food production and processing subsectors, and the corresponding beverage industry is 90.14%, 92.44%, 80.36%.
1. Viện Năng suất Việt Nam: Báo cáo năng suất Việt Nam năm 2015, 2016, 2017, 2018, 2019.
2. Tổng cục Tiêu chuẩn Đo lường Chất lượng, (2010). Đóng góp của yếu tố khoa học và công nghệ vào TFP và tốc độ tăng GDP, Đề tài nghiên cứu khoa học.
3. Trần Thọ Đạt (2010). Tăng trưởng kinh tế thời kỳ đổi mới ở Việt Nam (sách chuyên khảo), Nxb. Đại học Kinh tế Quốc dân.
4. Arellano, M., and S. Bond (1991). “Some tests of specification for panel data: Monte Carlo evidence and an application to employment”. Review of Economic Studies, 58, 277-297.
5. Arellano, M. & O. Bover (1995) “Another look at the instrumental variable estimation of error-components models”. Journal of Econometrics 68, 29-51.
6. Aurkust, O (1959). “Investment and economic growth”. Production Measurement Review, 16: 35-53.
7. Balestra, P., and M. Nerlove (1996). “Pooling cross-section and time series data in the estimation of a dynamic model: the demand for natural gas”. Econometrica, 34:585-612.
8. Baltagi, B.H., and D. Levin (1986). “Estimating dynamic demand for cigarettes using panel data: the effects of bootlegging taxation, and advertising reconsidered”. Review of Economic Studies, 68, 148- 155.
9. Baltagi, B.H. (2005). Econometric analysis of panel data. John Wiley & Sons, Ltd.
10. Blundell, R. & S.R. Bond (1998) “Initial conditions and moment restrictions in dynamic panel data models”. Journal of Econometrics 87, 115-143.
11. Chen, E.K.Y. (1997). “The total factor productivity debate: determinants of economic growth in East Asia”. Asian-Pacific Economic Literature, Vol.11, No .1:18-38.
12. Holtz-Eakin, D. (1988). “Testing for individual effects in autoregressive models”. Journal of Econometrics 30: 297-307.
13. Intriligator, M.D., Bodkin, R.G., and Hsiao, C. Econometric Models, techniques and applications. Prentice -Hall International, Inc.
14. Islam, N. (1995). “Growth empirics: A panel data approach”. Quarterly Journal of Econometrics 110:1127-1170.
15. Levinsohn, J., and Petrin, A (2003). “Estimating production function using inputs to controls for un observable”. Review of Economic Studies, 70(2), 317-41.
16. Nguyen.K.M and Giang T.L. (2007). Technical efficiency and productivity growth in Vietnam: Parametric and Nonparametric Approaches (Hanoi, Polishing House of Social Labor).
17. Nguyen, K. M and Giang T. L (2008). “Factor productivity and efficiency of the Vietnamese economy in transition”. Asian-Pacific Development Journal, Vol.15, No .1.
18. Olley, S., and Pakes, A. “The dynamics of productivity in the telecommunications equipment industry”. Econometrica, 64(6): 1263-97.
19. Solow, R. M. (1960). “Investment and technical progress”. In K.J. Arow, Skarlin., and Suppes. F, Eds. Mathematical Methods in the Social Science, 1959. Stanford, Calif: Stanford University Press.
20. Tinakorn, P and C. Sussangkarn (1998) Total factor productivity growth in Thailand: 1980-1995 (Bangkok, Thailand Development Research Institute Foundation).
21. Tran. T. D., Nguyen, Q.T., and Chu, Q.K (2005) Sources of Vietnam’s Economic Growth 1986-2004. Hanoi, National Economics University.
22. Tran Tho Đat (2002), “Determinants of TFP growth in Vietnam in the period 1986-2000”, Survey Report - APO.
23. Ziliak, J.P. (1997). “Efficient estimation with panel data when instruments are predetermined: an empirical comparison of moment- condition estimators” Journal of Business Statistics 15: 419-431.
How to Cite
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).