Determinants of Total Factor Productivity: A region wise study
Using data for 6 geographic regions of the world we have checked the determinants of total factor productivity. TFP is calculated with Solow Residuals while for generating the capital stock series perpetual inventory method is used. In this study monetary & fiscal, trade and human capital related determinants are included. Study shows that Trade Openness is contributing positively to the TFP growth of South Asia, Middle East & North Africa and Latin America. Foreign direct investment is benefiting South Asia and Sub Sahara regions in terms of total factor productivity growth. Monetary and Fiscal variables have positive role in TFP of East Asia & Pacific, South Asia and Latin America. Financial Depth has negative impact on total factor productivity of Middle East & North Africa, Sub Sahara, Latin America and Europe. Education is contributing positively to the total factor productivity of Middle East & North Africa and Sub Sahara Supervisor:- Dr. Attiya Yasmin Javid
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