Total factor productivity growth in manufacturing: a regional approach using linear programming

Nonparametric linear programming methods are used to measure total factor productivity growth in state manufacturing from 1977-1989. Total factor productivity growth is decomposed into efficiency change and technological change where efficiency change measures "catching-up" to the isoquant and technological change measures shifts in the isoquant. The findings indicate that the slowdown in state manufacturing productivity growth may have ended during the period 1983-89 with all regions of the US experiencing productivity growth and technological progress. The technological progress in state manufacturing exhibited a labor-using bias during the slow growth period, 1977-83, and a capital-using bias during the recovery period, 1983-89. (C) 1999 Elsevier Science B.V. All rights reserved.