TOTAL FACTOR PRODUCTIVITY DETERMINANTS IN DEVELOPED EUROPEAN COUNTRIES

Abstract

In this paper we assess the determinants of total factor productivity (TFP) growth in a group of developed European countries, during the period 2000-2013. In this regard, starting from the existing literature, we considered as determinants of TFP, knowledge and technology, infrastructure development, education quality, health level, the intensity of capital use and the manifestation of the financial crisis. Our findings show that in the case of the analysed countries, accumulation and transmission of technology and knowledge, but also the infrastructure development have the most significant positive impacts on TFP growth. On the other hand, the manifestation of the financial crises and the low intensity of capital use have strong negative effects on TFP growth, while education quality and health play a small role in influencing productivity.

Keywords

• total factor productivity
• knowledge
• technology
• education
• infrastructure
• intensity of capital use
• crisis