Total Factor Productivity: Estimates for Philippine Economy

---

This paper develops and constructs a database for TFP estimation at the aggregate level and at the nine major sectors. A comparison of TFP estimates for different countries is conducted. In addition, a methodology is developed for TFP computation, which is afterwards applied to existing Philippine data to facilitate new TFP estimates. Four methodologies are used to compute: traditional growth accounting, Divisia-translog, Econometric and Stochastic Frontier Approach. Results indicate that TFP improvement right after the 1980 crisis is not sustainable. Data on early 1990s show TFP being below zero. Focusing within the period, evidences of TFP differential across sectors are traced.