TableĀ 6

Malmquist productivity index decomposition

CountryMean TFP changeMean efficiency changeMean technological change
Austria1.0271.0091.018
Belgium1.0231.0101.013
Bulgaria1.0161.0061.010
Croatia1.0141.0071.007
Cyprus1.0181.0081.010
Czech Republic1.0191.0091.010
Denmark1.0311.0151.016
Estonia1.0231.0111.012
Finland1.0281.0121.016
France1.0221.0101.012
Germany1.0261.0111.015
Greece1.0091.0041.005
Hungary1.0111.0061.005
Ireland1.0331.0151.018
Italy1.0171.0081.009
Latvia1.0131.0051.008
Lithuania1.0151.0071.008
Luxembourg1.0311.0131.018
Malta1.0211.0101.011
Netherlands1.0291.0141.015
Poland1.0181.0081.010
Portugal1.0221.0101.012
Romania1.0101.0031.007
Slovakia1.0131.0051.008
Slovenia1.0191.0091.010
Spain1.0211.0091.012
Sweden1.0341.0171.017
Brunei1.0121.0051.007
Cambodia1.0051.0021.003
Indonesia1.0091.0041.005
Laos1.0031.0011.002
Malaysia1.0161.0071.009
Myanmar1.0010.9991.002
Philippines1.0041.0021.002
Singapore1.0331.0161.017
Thailand1.0101.0041.006
Timor-Leste1.0021.0011.001
Vietnam1.0071.0031.004

Note(s): TFP Change greater than 1.0 denotes overall productivity improvement. The decomposition of TFP into efficiency and technological changes corroborates the regression findings: countries with strong digital investments and institutional support (reflected in higher DEA scores) generally experience more pronounced TFP gains, which is consistent with the improved labour market outcomes observed in Models 2 and 3

Source(s): Created by authors

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