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Economic Restructuring And Total Factor Productivity Growth: Tunisia Over The Period 1983-2001

Date Added: May 2010
Format: PDF

In this paper, the authors aim to measure and decompose the growth of frontier Total Factor Productivity (TFP) in Tunisia over the period 1983-2001. They define frontier TFP growth as the shift of the economy's production frontier, which they obtain by solving for each year a linear program, a sort of aggregate DEA analysis. They then decompose this aggregate frontier TFP growth into changes in technology, terms of trade, efficiency and resource utilization. They can also attribute frontier TFP growth to its main beneficiaries: labor, decomposed into five types, capital, decomposed into two types, and the allowable trade deficit.