1991/02/01 by Ronald L. Moomaw, Martin Williams · 1 citation
Economics, Econometrics and Finance · #Business #Differential (mechanical device) #Economic Growth and Productivity #Economics #Fiscal Policy and Economic Growth #Labour economics #Macroeconomics #Manufacturing #Manufacturing sector #Productivity #Regional Economics and Spatial Analysis #Total factor productivity #Wage #Wage growth
paper · doi:10.1111/j.1467-9787.1991.tb00128.x
openalex publication_date 1991/02/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/11
ABSTRACT In this paper, we first develop a measure of total factor productivity (TFP) growth and summarize a source‐of‐growth analysis for the manufacturing sector of 48 states. As have others, we find little association between TFP growth differentials and output growth differentials for census regions. At the staterather than the regional level, however, we find a positive association between TFP growth and output growth. We use cross‐sectional data to estimate the determinants of the variation in TFP growth. Two results emerge that are important for regional policy and for understanding national productivity trends. First, state investments in education and in transportation infrastructure may affect TFP growth. Second, energy price increases in the early 1970s had no differential effects on productivity growth across states. We also explore the determinants of manufacturing output growth and find that TFP growth, demand growth, wage growth, wage levels, and state corporate income tax rates are significant.