Abstract
This study discusses efficiency, productivity, and the existence of convergence in 34 OECD countries between 2000 and 2012. Physical capital per worker and human capital per worker are used as inputs to determine total factor productivity while gross domestic product per worker is used as the output. Analysis of productivity by using the Malmquist Index indicates that productivity was positive but increased less than 1% at the end of the period. Panel regression estimation is used for standard deviations of convergence and to determine beta convergence. However, the convergence effect of Total Factor Productivity values could not be determined. Similar results are reported for Sigma convergence.
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Notes
- 1.
The value of β coefficient is calculated using Barro et al. (1991) and Barro and Sala-i-Martin’s (1992) approach. \( \frac{1}{T} \log \left({y}_i/{y}_{i,t-T}\right)=x*+ \log \left({{\widehat{y}}^{*}}_i/{\widehat{y}}_{i,t-T}\right)\;\left(1-{e}^{-\beta T}\right)/T+{u}_{it} \)
In this equation, i represents economy, t represents time, yit represents output per capita, x* represents the steady state grow rate per capita, \( {\widehat{y}}_{it} \) is output per active labour, \( {\widehat{y}}_{it}^{*} \) is steady–state output level per active labour, and T is the observation interval. Inspired by this equation, we have achieved some results by adding other variables to the panel regression.
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Kutlar, A., Kabasakal, A., Gulmez, A. (2017). TFP and Possibility of Convergence in OECD Countries: The 2000–2012 Period. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Empirical Studies on Economics of Innovation, Public Economics and Management . Eurasian Studies in Business and Economics, vol 6. Springer, Cham. https://doi.org/10.1007/978-3-319-50164-2_15
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