Measurement and Determinants of Total Factor Productivity Convergence Hypothesis: A Case Study of Non-Oil Arab Countries | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Volume 16, Issue 1, January 2025, Pages 115-185 PDF (978.13 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2025.419460 | ||
| Author | ||
| Hasan Amin Mohamed Mahmoud* | ||
| Economics department, Faculty of Commerce, Aswan University | ||
| Abstract | ||
| The study aims to investigate absolute beta convergence through cross-sectional analysis, explore Comparable Total Factor Productivity (CTFP) convergence among Arab countries, and analysis the impact of economic variables on CTFP convergence. A combination of cross-sectional analysis, time series unit root tests, cointegration tests, and second-generation panel unit root tests (PURTs) is employed. The VARSEL method is utilized to identify determinants of CTFP growth. This study approved that the Cross-sectional analysis confirms absolute beta convergence. Long-term CTFP convergence and catch-up are observed in Egypt, with catch-up evident in Jordan. Stochastic Total Factor Productivity (TFP) convergence is detected through cointegration tests. Strong evidence of Stochastic CTFP convergence between Egypt and Jordan with the United States is provided via PURTs. Productivity per employment is the sole determinant of CTFP growth, while the population growth rate significantly influences Comparable Real Total Factor Productivity (RTFP) growth. The study recommends prioritizing institutional quality to enhance the positive impact of economic variables on TFP growth and convergence. It underscores the need for nuanced approaches to boost productivity in non-oil Arab countries, considering the limited influence of foreign direct investment inflows. | ||
| Keywords | ||
| Total factor productivity; Cointegration test; Institutional quality; Non-oil Arab countries | ||
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