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International Journal of Frontiers in Engineering Technology, 2020, 2(1); doi: 10.25236/IJFET.2020.020102.

Comparison and Analysis of Measurement Methods of Total Factor Productivity


Dandan Li1,*,Doudou Li2

Corresponding Author:
Dandan Li

1. Business School ,Northwest University of political science and law, Xi'an 710122, China
2. Business School ,Northwest University of political science and law, Xi'an 710122, China
*Corresponding author e-mail:[email protected]


The traditional method of measuring TFP is mainly to use provincial or industrial data from the macro level. However, when estimating the total factor productivity of an enterprise, the traditional methods will produce endogenous problems, which will lead to inconsistencies in the estimation results. Through sorting out and comparing the advantages and disadvantages of the latest estimation methods of micro production function, the results show that: OP model and LP model of semi parametric method can solve the problems of simultaneous bias and sample selection bias; ACF model setting is more general than OP model; De Loecker model can solve the estimation of TFP in incomplete competitive market. Therefore, it is very important to choose a suitable TFP estimation method.


TFP, enterprise; estimation method, production function

Cite This Paper

Dandan Li,Doudou Li. Comparison and Analysis of Measurement Methods of Total Factor Productivity. International Journal of Frontiers in Engineering Technology (2020), Vol. 2, Issue 1: 18-30. https://doi.org/10.25236/IJFET.2020.020102.


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