Total Factor Productivity Estimation in Peru: Primal and Dual Approaches

Produced by: 
Pontificia Universidad Católica del Perú
Available from: 
May 2014
Paper author(s): 
Nikita Céspedes (Central Bank of Peru and Pontificia Universidad Católica del Perú)
Nelson Ramírez-Rondán (Central Bank of Peru)
Macroeconomics - Economic growth - Monetary Policy

In this paper we estimate total factor productivity (TFP) growth for the Peruvian economy using the primal and dual methods for the period 2003 - 2012. According to the primal method, a procedure that uses the Solow residual as an indicator of productivity, TFP grew at an average annual rate of 1.6%, adjusted for the quality and usage of the factors of production. According to the dual method, a procedure that considers estimations of the marginal productivities of the factor of production, TFP grew at an annual rate of 1.7%.


Research section: 
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