Productivity Measures for the Colombian Manufacturing Industry
The series Working Papers on Economics is published by the Office for Economic Studies at the Banco de la República (Central Bank of Colombia). The works published are provisional, and their authors are fully responsible for the opinions expressed in them, as well as for possible mistakes. The opinions expressed herein are those of the authors and do not necessarily reflect the views of Banco de la República or its Board of Directors.
In this paper we present estimates for the coefficients of a production function, and the corresponding total factor productivity (TFP) for the Colombian manufacturing industry during 2005{2013. We follow several structural microeconometric techniques to estimate the production function parameters. We compare the estimation results across methodologies, as well as their robustness to changes in our estimation sample, variable definitions, and/or weights used to aggregate the estimated firm-level TFP into an industry-level average TFP. Our results show that, in general, all estimation methodologies result in a similar growth pattern during our sample period. Moreover, the general growth trend is not affected greatly by the additional changes mentioned above. However, the level of productivity (and the estimated TFP growth) does depend on how the production function is estimated.
The series Borradores de Economía is published by the Economic Studies Department at the Banco de la República (Central Bank of Colombia). The works published are provisional, and their authors are fully responsible for the opinions expressed in them, as well as for possible mistakes. The opinions expressed herein are those of the authors and do not necessarily reflect the views of Banco de la República or its Board of Directors.
