TFP Growth and its Determinants: A Model Averaging Approach

M. Danquah, E. Moral-Benito, B. Ouattara

Research output: Contribution to journalArticlepeer-review


Total Factor Productivity (TFP) accounts for a sizable proportion of the income differences across countries. Two challenges remain to researchers aiming to explain these differences: on the one hand, TFP growth is hard to measure empirically; on the other hand, model uncertainty hampers consensus on its key determinants. This paper combines a non-parametric measure of TFP growth with Bayesian model averaging techniques in order to address both issues. Our empirical findings suggest that the most robust TFP growth determinants are time-invariant unobserved heterogeneity and trade openness. We also investigate the main determinants of two TFP components: efficiency change (i.e., catching up) and technological progress.
Original languageEnglish
JournalEmpirical Economics
Issue number1
Early online date23 Jul 2013
Publication statusPublished - 2014

Research Beacons, Institutes and Platforms

  • Global Development Institute


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