Work detail

The Cross-Country and Cross-Sectoral Study of TFP and its Determinants

Author: Mgr. Michael Bogren
Year: 2017 - summer
Leaders: Ing. Vilém Semerák M.A., Ph.D.
Work type: Masters
Language: English
Pages: 69
Awards and prizes:
Abstract: This paper examines the impact of R&D and share of merchandise exports on total factor
productivity in the 15 OECD countries through 1996-2009. The paper also discusses the
inclusion of the human capital variable in influencing the TFP. The domestic R&D stocks are
based on domestic industry-specific R&D. The share of merchandising exports is sectorinvariant.
We use the random effects to control for unobserved heterogeneity. In this case, the
unobserved heterogeneity reflects the differences in trade and R&D policies. The main findings
we have obtained are: i) the R&D stocks have a positive impact on TFP based on the random
effects model, ii) the exports have a positive and significant impact on TFP, especially in the
manufacturing sector.


McKinsey & Company