Estimating Total Factor Productivity Growth from the Input-Output Table: An Illustration in the Poultry Sector of the Philippines

Abstract

The overall objective of the paper is to demonstrate how the input-output table can be used to calculate total factor productivity growth for a particular sector or commodity. In particular, it describes the adjustments and additional data that are needed in the estimation process. Using the Tornqvist index, the paper illustrates the technique in the poultry sector of the Philippines. It finds that total factor productivity growth had a significant impact in explaining the increase in revenues and reduction in production costs for the sector.