On the determinants of TFP growth: Evidence from Spanish manufacturing firms

F. Castiglionesi, C. Ornaghi

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper explores the main determinants of productivity growth. The analysis is performed using Spanish firm-level data. We define a framework where the relative magnitudes of alternative, but not exclusive, sources of technical change are simultaneously estimated. Our main finding is that the average total factor productivity (TFP) growth is fully explained by embodied technical progress (i.e., either new capital goods or human capital). Our results contradict the existence of a positive contribution of economywide neutral technological progress in determining average TFP growth. They also leave little room for large, unpriced effects external to the firm, both at the aggregate and at the industry level. We find evidence of firm-specific learning by doing, short-lived and due to adoption of new processes.
Original languageEnglish
Pages (from-to)501-530
JournalMacroeconomic Dynamics
Volume17
Issue number3
DOIs
Publication statusPublished - 2013

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Manufacturing firms
Total factor productivity growth
Technological progress
Industry
Firm-level data
Spanish firms
Human capital
Technical progress
Technical change
External effects
Learning-by-doing
Productivity growth

Cite this

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On the determinants of TFP growth : Evidence from Spanish manufacturing firms. / Castiglionesi, F.; Ornaghi, C.

In: Macroeconomic Dynamics, Vol. 17, No. 3, 2013, p. 501-530.

Research output: Contribution to journalArticleScientificpeer-review

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