Journal
JOURNAL OF PRODUCTIVITY ANALYSIS
Volume 19, Issue 2-3, Pages 211-226Publisher
KLUWER ACADEMIC PUBL
DOI: 10.1023/A:1022857501478
Keywords
contemporaneous DEA; sequential DEA; TFP growth; Malmquist index
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The paper applies both the standard DEA methodology with contemporaneous frontiers and DEA with sequential frontiers to study changes in productivity and efficiency in manufacturing for a sample of eleven OECD countries over a twenty-year period. It uses a decomposition of the industrial Malmquist productivity indices to locate the sources of productivity growth: 'technical progress' and 'catching up.' The alternative indices are interrelated in a unifying framework that provides an interpretation to their difference. We argue that for manufacturing industries, in which technological regress is unlikely to occur, DEA with sequential frontiers provides a more adequate measure for the contribution of technical changes than standard DEA.
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