--

11 (2) 2021

Contribution of TFP to economic growth of Dong Thap province: Current status and scenarios for the period 2021 - 2025


Author - Affiliation:
Dang Hoang Minh Quan - Hoa Sen University , Vietnam
Nguyen Kim Phuoc - Ho Chi Minh city Open University , Vietnam
Corresponding author: Nguyen Kim Phuoc - phuoc.nk@ou.edu.vn
Submitted: 26-02-2021
Accepted: 25-05-2021
Published: 14-08-2021

Abstract
The study aims to analyze the contribution of Total Factor Productivity (TFP) in Dong Thap ’province’s economic growth using the Cobb-Douglas production function method, based on the data from 2000 - 2020. The study results show that the contribution of capital (ε_K) is 0.3524, the contribution of labor (ε_L) is 0.6476. Dong Thap province’s average TFP growth rate in each period of 05 years 2011 - 2015 and 2016 - 2020 is 2.31% per year and 1.93% per year, respectively, and ’TFP’s contribution to economic growth is 34.51% and 30.01%, respectively. Based on the status analysis of the period 2011 - 2015 and 2016 - 2020, the study proposes four growth scenarios associated with four productivity orientations for Dong Thap province in 2021 - 2025. This ’study’s results are the basis for organizational policies and orientations for socio-economic development, proposing provincial development guidelines and plans to 2025, oriented to 2030.

Keywords
Dong Thap province; economic growth; TFP; total factor productivity

Full Text:
PDF

Cite this paper as:

Dang, H. M. Q., & Nguyen, K. P. (2021). Contribution of TFP to economic growth of Dong Thap Province: Current status and scenarios for the period 2021 - 2025. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 11(2), 52-66. doi:10.46223/HCMCOUJS.econ.en.11.2.1461.2021


References

Arapova, E. Y. (2015). Measuring integration potential of free trade area of the Asia-pacific. Malaysian Journal of Economic Studies, 52 (2), 157-185.


Ascari, G., & Cosmo, V. D. (2005). Determinants of total factor productivity in the Italian regions (Scienze Regionali No. 10). Retrieved December 20, 2020, from https://www.researchgate.net/profile/Guido-Ascari/publication/23747949_Determinants _of_Total_Factor_Productivity_in_the_Italian_Regions/links/0c9605335474bce5ed000000/Determinants-of-Total-Factor-Productivity-in-the-Italian-Regions.pdf


Cardarelli, M. R., & Lusinyan, M. L. (2015). US total factor productivity slowdown: Evidence from the US states (International Monetary Fund No 15/116). Retrieved December 20, 2020, from https://books.google.com.vn/books?hl=vi&lr=&id=m8kaEAAAQBAJ&oi=fnd&pg= PA3&dq=Cardarelli,+M.+R.,+%26+Lusinyan,+M.+L.+(2015).+US+total+factor+productivity+slowdown:+Evidence+from+the+US+states.+Place:+International+Monetary+Fund.+&ots=2XztPz2yY9&sig=1GV0Q5RjKZdC2LEqZOxXx8S5J0s&redir_esc=y#v=onepage&q&f=false


Chand, R., Kumar, P., & Kumar, S. (2012). Total factor productivity and returns to public investment on agricultural research in India. Agricultural Economics Research Review, 25 (2), 181-194.


Corrado, C., Hulten, C., & Sichel, D. (2009). Intangible capital and US economic growth. Review of Income and Wealth, 55 (3), 661-685.


Dang, D. N., & Le, L. K. (2015). Total factor productivity and economic growth: Research for Khanh Hoa province. Journal of Economic Development, 26 (9), 86-100.


Dang, T. H., & Vo, D. T. (2011). Analysis of factors in impact on the growth of Can Tho City: The approach to total productivity factors. Can Tho University Scientific Journal, 17b (2011), 120-129.


Do, X. V., & Nguyen, D. H. (2017). TFP’s contribution to the economic growth of Kien Giang province in the period of 2001 - 2015. Can Tho University Scientific Journal, 50 (2017), 1-8.


Dong Thap’s Provincial Bureau of Statistics. (2021). Statistical yearbook. Retrieved December 10, 2020, from https://www.gso.gov.vn/wp-content/uploads/2021/05/Nien-giam-TC-2021.pdf


Harberger, A. C. (1988). Perspectives on capital and technology in less-developed countries (Estudios de Economía (Chile)). Retrieved December 20, 2020, from https://agris.fao.org/agris-search/search.do?recordID=XL2012005174


Isaksson, A. (2007). Determinants of total factor productivity: A literature review (Research and Statistics Branch, UNIDO, Working Paper). Retrieved December 20, 2020, from http://www.rrojasdatabank.info/87573_determinants_of_total_factor_productivity.pdf


Le, B. X., & Nguyen, A. T. T. (2006). Vietnam’s economic growth - 15 years (1991 - 2005) from an analytical perspective of production factors. Hanoi, Vietnam: Science and Technology Publishing House.


Meeusen, W., & Broeck, J. V. D. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review, 18 (2), 435-444.


Nachega, J. C., & Fontaine, T. (2006). Economic growth and total factor productivity in Niger (IMF Working Paper, No. 06). Retrieved December 20, 2020, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=941270


Nehru, V., & Dhareshwar, A. (1993). A new database on physical capital stock: Sources, methodology and results. Revista de Análisis Económico, 8 (1), 37-59.


Nguyen, A. T. T., & Le, B. X. (2005). Quality of economic growth - some initial assessment for Vietnam. Hanoi, Vietnam: Social Sciences Publishing House.


Nguyen, C. T. (2009). Vietnam’s economy through development indicators and the effects of integration. Journal of Economic Development, 21, 11-17.


Nguyen, N. V., & Tran, D. T. (2006). The speed and quality of economic growth in Vietnam. Hanoi, Vietnam: Social Sciences Publishing House.


Nguyen, P. H. (2009). The effectiveness of official development aid (ODA) for economic growth in Vietnam (Vietnam Development Forum (VDF) report). Retrieved December 10, 2020, from https://www.grips.ac.jp/vietnam/VDFTokyo/


Nguyen, P. V., Nguyen, H. M., Le, L. B., Le, Q. T. T., Bui, T., Cao, N. M., & Le, H. T. (2000). Investment efficiency in Ho Chi Minh City (HCM) - which industry is effective and competitive? Ho Chi Minh City, Vietnam: HCM City publishing house.


Nguyen, T., Nguyen, H. T. T., & Nguyen, D. C. (2012). Vietnam’s economy in the period 2006 - 2012 and the outlook for 2011 - 2020. Hanoi, Vietnam: Social Sciences Publishing House.


Park, J. (2012). Total factor productivity growth for 12 Asian economies: The past and the future. Japan and the World Economy, 24 (2), 114-127.


Pham, D. V., & Nguyen, T. D. (2012). The trend of declining efficiency and productivity of ’Vietnam’s economy. In the Vietnam Economic Annual Report 2012: Facing the challenge of economic restructuring (pp. 63-88). Hanoi, Vietnam: Hanoi National University.


Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70 (1), 65-94.


Tang, K. V. (2005). The rate of productivity increase factors synthesizes calculation and application methods. Hanoi, Vietnam: Statistics Publishing House.


The Ministry of Finance. (2018). Circular of the Ministry of Finance on the depreciation period of each asset type & the I/O (Circular45/2018/TT-BTC) . Retrieved December 20, 2020, from https://thuvienphapluat.vn/van-ban/Doanh-nghiep/Thong-tu-45-2018-TT-BTC-huong-dan-tinh-hao-mon-khau-hao-tai-san-co-dinh-tai-co-quan-nha-nuoc-370741.aspx


The Ministry of Planning and Investment. (2012). Circular No. 02/2012/TT-BKHĐT of the Ministry of Planning and Investment: Regulations on 2010 as the base year instead of the 1994 base year to calculate statistical indicators at comparative prices. Retrieved December 20, 2020, from http://vanban.chinhphu.vn/portal/page/portal/chinhphu/ hethongvanban?class_id=1&_page=4&mode=detail&document_id=159573


Tran, D. T. (2010). Economic growth during the period of innovation in Vietnam. Hanoi, Vietnam: National Economics University.


Vietnam Productivity Centre. (2020). Viet Nam Productivity Report (VEPR & GRIPS). Retrieved January 10, 2021, from https://www.grips.ac.jp/forum/pdf20/[EN] VNProductivityReport_PreliminaryFinal2020_0904.pdf


Vu, V. H. (2019). Improving TFP of Vietnam in the comparison with Asean countries. Socio – Economic and Environmental issues in development. In 10th neu-kku international conference: Socio-economic and environmental issues in development (pp. 284-295). Hanoi, Vietnam: Labour - Social Publishing House.



DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.11.2.1461.2021
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.