Determinants of total factor productivity growth: evidence from middle-income countries

Authors

DOI:

https://doi.org/10.11606/1980-5330/ea190528

Keywords:

total factor productivity, determinants of productivity, growth decomposition, middle-income countries, PMG

Abstract

This paper analyzes the impact of macroeconomic and institutional factors on Total Factor Productivity (TFP) growth for a sample of 52 middle-income countries. The Pooled Mean Group (PMG) model is employed. The results indicate that inflation negatively affects TFP growth, while more open economies exhibit higher growth. Among institutional factors, lower corruption was the only one contributing to higher aggregate productivity growth. The paper’s main contribution is to direct the analysis of the determinants of aggregate productivity toward middle-income countries, providing insights into reforms and policies capable of enhancing productive efficiency gains.

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Author Biographies

  • Jailson Rodrigues, Federal University of Espírito Santo

    Universidade Federal do Espírito Santo. E-mail: jailsonufal@gmail.com

    ORCiD: https://orcid.org/0000-0002-6050-1048

  • Anderson Moreira Aristides dos Santos, Federal University of Alagoas

    Universidade Federal de Alagoas. E-mail: anderson.santos@feac.ufal.br

    ORCiD: https://orcid.org/0000-0003-4234-8665

  • Camila do Carmo Hermida, Federal University of Alagoas
    Universidade Federal de Alagoas. E-mail: camila.hermida@feac.ufal.br ORCiD: https://orcid.org/0000-0002-7206-5132

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Published

2025-09-01

Issue

Vol. 29 No. 3 (2025)

Section

Papers

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How to Cite

Rodrigues, J., Santos, A. M. A. dos, & Hermida, C. do C. (2025). Determinants of total factor productivity growth: evidence from middle-income countries. Economia Aplicada, 29(3), 225-250. https://doi.org/10.11606/1980-5330/ea190528