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Heterogeneity of total factor productivity across Latin American countries : evidence from manufacturing firms

Daniel Kapp 1, 2, Alan Sánchez 3

(2012-05)

We use a firm production function approach to generate estimates of total factor productivity (TFP) and labor productivity in the manufacturing sector for a group of Latin American countries. We exploit these estimates to study the relative position of countries within this sector and to explore the main correlates of firm productivity. We find that while the exact ranking of average TPF is sensitive to the underlying form of the production function, Chile and Argentina average level of TFP is found to be consistenly above that of other countries, while Bolivia firms always appears at the bottom of the distribution. While other aspects matter, the main factors explaining differences in productivity across firms are related to country-level, not firm-level, characteristics.

1:	Centre d'économie de la Sorbonne (CES)
	CNRS : UMR8174 – Université Paris I - Panthéon-Sorbonne
2:	Ecole d'Économie de Paris - Paris School of Economics (EEP-PSE)
	Ecole d'Économie de Paris
3:	Central Bank of Peru
	Economic Research Division

Research team: Axe Développement et Mondialisation

Subject

:

Humanities and Social Sciences/Economies and finances Humanities and Social Sciences/Methods and statistics Humanities and Social Sciences/Political science

Keyword(s): Total factor productivity – multi factor productivity – labor productivity – Latin America.

halshs-00707266, version 1

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From: Lucie Label <>

Submitted on: Tuesday, 12 June 2012 12:13:15

Updated on: Friday, 15 June 2012 17:15:27