DECOMPOSING PRODUCTIVITY OF MANUFACTURING FIRMS IN HAI PHONG CITY

Abstract

This study aims to analyze the growth of total factor productivity (TFP) of manufacturing firms in Hai Phong City in the years from 2015 to 2019. By applying the Malmquist productivity index (MPI) model on the enterprise census data of the General Statistics Office of Vietnam, the TFP estimation and decomposition results show that: Average TFP growth of Hai Phong's manufacturing industry reached 0.3% per year during this period. The main contribution to this growth is the technical progress change (TC) of firms, with the average contribution to TFP reaching 33.4% per year. Meanwhile, technical efficiency change (TEC) is the cause of inhibiting TFP growth of firms