Measuring the total factor productivity growth of the Philippine manufacturing sector: A multi-variable stochastic approach

• Main Authors: Cerdenia, Joseph Angelo A., Lampa, Niccolo Theo J., Pendon, Ronald Angelo P., Santos, Jose Justin T.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14445
• Institution: De La Salle University

This paper estimates the total factor productivity growth (TFP) of the Philippine manufacturing industries from 1980-1999. A stochastic frontier approach similar to Ikshan’s (2006) model specification has been used to decompose TFP growth into technical progress, changes in technical efficiency and the scale economics effect. This paper also addresses the issues regarding the reliability of data sources and its effects in the validity of TFP estimates. This study employs the use of census value added and book value as a measure of output and capital, respectively. Additionally, different measures of labor such as employee headcount, number of hours actually worked and labor compensation are used to arrive at different estimations of TFP growth. The different runs serve as a robustness check for the sensitivity of TFP estimation to changes in model specifications.