What explains the total factor productivity gap between OECD economies and the U.S.?

Chi Yung NG, Ying Chu NG*

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    4 Citations (Scopus)

    Abstract

    Since 2000, the total factor productivity (TFP) in most of the OECD economies relative to the United States has been declining. This article develops an empirical model to study the linkages between relative differences in TFP gap and relative differences in fundamental factors (factor gaps). Using panel data for 33 OECD countries, it finds that the machinery and equipment investment gap, the gap in information and communication technology penetration related to mobile phone subscriptions, the economic globalization gap and the institutional quality gap explain significantly the TFP gap between the OECD economies and the United States during 2000–2011.

    Original languageEnglish
    Pages (from-to)3005-3019
    Number of pages15
    JournalApplied Economics
    Volume48
    Issue number32
    DOIs
    Publication statusPublished - 8 Jul 2016

    Scopus Subject Areas

    • Economics and Econometrics

    User-Defined Keywords

    • aggregate productivity
    • globalization
    • OECD
    • productivity gap
    • TFP
    • Total factor productivity

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