IMPACT OF CAPITAL, LABOR AND TOTAL FACTOR PRODUCTIVITY ON THE GROWTH OF THE INDUSTRIAL - CONSTRUCTION SECTOR IN DANANG CITY

Abstract

This study uses the Solow Growth Model to analyze the measure of Capital, Labor and Total Factor Productivity (TFP) on the growth of value added (VA) in the Industrial and Construction sector in Da Nang. Using time series data from 2010-2022, combined with the estimation and testing method with Generalized Least Squares (GLS), the findings show that the TFP factor has the largest contribution while Labor is the factor that staves off the recession, whereas, Capital does not contribute much to the growth of VA in the Industrial and Construction sector in Da Nang City. The recommendations proposed in this study can be a source of reference for leaders at all levels in managing the development of the Industrial - Construction sector as well as the development of Da Nang city in the coming time.