EMPIRICAL ANALYSIS OF TOTAL FACTOR PRODUCTIVITY IN THE CASE OF THE ALGERIAN MANUFACTURING INDUSTRY (1984-2018)

Abstract

This article, within the framework of the estimation of a Cobb-Douglas production function, analyzes the total factor productivity (TFP) and examines the reality of four branches of the Algerian manufacturing industry for the period from 1984 to 2018. The panel database used, relating to value added and the two factors of production, labor and capital, made it possible to carry out a series of tests and to study their stochastic characteristics. The estimation of the long-term relationship between value added and the two explanatory variables, namely capital and labor, suggests positive individual behaviors (PTF) in all the branches studied. This specification concludes with a positive and significant contribution of capital to value added. On the other hand, work is less significant and contributes negatively to the evolution of value added.