Naslov
Total Factor Productivity and Croatian Tourism Growth 1960-2000

Autori
Šergo, Zdravko ; Tomčić, Zdenko ; Ružić, Pavlo

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
2nd International Conference An Enterprise Odyssey : Building Competitive Advantage / Galetić, Lovorka - Zagreb : Graduate School of Economics and Business ; Mikrorad, 2004, 646-656

ISBN
953-6025-10-8

Skup
International Conference An Enterprise Odyssey : Building Competitive Advantage (2 : 2004)

Mjesto i datum
Zagreb, Hrvatska, 17.06.2004. - 19.06.2004

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
total factor productivity growth; Solow residual; Cobb-Douglas production function; CES; tourism and catering sector; Croatia

Sažetak
This paper presents the measurement of total factor productivity growth (TFP) for the tourism industry in Croatia. The objectives of this paper are: a) to estimate models measuring total factor productivity growth, scale and technical change effects at the tourism industry-level ; b) to evaluate the TFP, scale effect, technical change effect, input bias of technical change, and returns to scale to gauge the performance of tourism through time ; c) to analyse the impact of age effect on productivity growth patterns, along the lines proposed by the neo-classical growth theory using the raw data of capital and labour in tourism and catering sector during the years 1960-2000. From a long-run perspective Croatia's tourism performance has been impressive ; nevertheless, tourism as a one of main sector in Croatia and its output was cripled in the stagnant war's nineties. Production function estimates for social product are provided using Cobb-Douglas and the constant elasticity of substitution production function (CES). Econometric applications consist of the estimating four specifications of the C/D production function: (a), (b), (c), (d), and one specification of the CES production function: (e). An econometric testing is employed to investigate the long-run property of the estimated equations. Using the parameters of constant returns to scale production function (e.g. intensive form of Cobb-Douglas production function) we have estimated total factor productivity growth in tourism and catering sector. Growth accounting exercises show the growth rates of Solow residual (as a nearest calculable synonym of TFP) in tourism. The Solow residual is a measure of productivity shocks: it shows the change in output that cannot be explained by changes in capital and labour. In real business cycle theory, economic fluctuations are caused by productivity shocks, and that implies that the Solow residual should be highly correlated with output. We find that there are cyclical fluctuations in Solow residuals about trend growth in the Croatia's tourism and catering sector. The fluctuations in Solow residuals about trend are highly positively correlated with the fluctuations in tourist’ s output about trend. The evolution of TFP growth in tourism is furthermore analyse by the decomposition of TFP into cyclical and trend components. In this attempt we used Hodrick-Prescott filter to filtering the data of TFP.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA