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Citation Information

Type Working Paper - Enterprise Note Series
Title Total factor productivity across the developing world
Volume 23
Publication (Day/Month/Year) 2011
Page numbers 1-8
URL http://www.enterprisesurveys.org/~/media/FPDKM/EnterpriseSurveys/Documents/Enterprise​Notes/Productivity-23.pdf
Total factor productivity (TFP) is a crucial measure of efficiency and thus an important indicator for policymakers. Using micro level data from manufacturing industries in 80 developing countries, this note analyzes TFP performance at the firm-level. Among the countries surveyed during the same period across multiple regions—Eastern Europe and Central Asia, Latin America, Africa, and Asia—Hungary, Peru, Ethiopia and Indonesia have the highest aggregate productivities. A comparison of average productivities in each region shows that Moldova, Nicaragua, Ethiopia and Indonesia have the highest values among the countries surveyed. This note also discusses separate estimates of TFP values obtained at the industry level. These industry-level estimates are the most useful for policymakers in that they reveal comparative advantages of specific industries within countries. In the garments and chemicals industries, Brazil has the highest average productivity among all the countries surveyed.

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