The slowdown of TFP growth in developed countries has started in 2005, a few years before Great Recession in 2008. This sizeable decline in TFP has attracted a great deal concerns. Due to superb marginal contribution on reallocating resources and improving management by information and communication technology in the 1990s, Fernald (2014) refers reversal phenomenon of TFP growth since 2005 as “back to normal pace.” Despite of this downturn of TFP growth, researchers have identified that financial openness may result in positive impact of TFP growth (Kose et al, 2009; Bekaert et al, 2010). We found that information and communication technology (ICT) growth on total factor productivity (TFP) is uneven for more financial open and less financial open countries. The impact of ICT growth on TFP growth is more important in financial open economies, but ICT growth is somewhat negligible for TFP growth in less financial open countries. Trade openness has played positive impacts for TFP growth for all countries. Financial openness can be measured both de facto and de jure. And external liabilities have exhibited its positive impact on TFP growth but not external assets.
|Effective start/end date||2017/08/01 → 2018/07/31|
- Total factor productivity
- financial openness
- panel dynamic regression
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