Determinants of Productivity in the Cuban Industry
DOI:
https://doi.org/10.4067/S0718-88702024000100045Keywords:
Industry, productivity, total factor productivity, StataAbstract
In this article, I analyze the determinants that explained the growth in productivity of 30 producing companies in the Cuban iron and steel industry during the period 2016-2019. The study contributes to the empirical literature on the factors that explain the economic performance in the Cuban industry, specifically the iron and steel industry, for which there is scarce evidence. The results show that, during this period, this industry is characterized by a decrease in production (-9.1%), due to the decrease in the factors labor and materials and a small increase in Total Factor Productivity (1.3%) and physical capital (0.7%).
Downloads
References
ADIMRA. (2019). Guía para una producción sustentable: Sector metalmecánico [A guide to sustainable production: The metalworking sector] (1.ª ed.). Secretaría de Ambiente y Desarrollo Sustentable de la Nación.
Aigner, D., Lovell, C. A., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production model. Journal of Econometrics, 6(1), 21–37.
Álvarez, A. (2017). Descomposición del crecimiento de la productividad. Una aplicación a las regiones españolas [Decomposition of productivity growth. An application to the Spanish regions] [Ponencia]. XXIX Reunión de Estudios Regionales, Madrid, España.
Aza, C. (2016). Análisis de productividad y medición de la PTF por rama de actividad de la economía española (1995-2007): Relación con las TIC y otros determinantes [Productivity analysis and TFP measurement by branch of activity in the Spanish economy (1995–2007): Relationship with ICT and other determinants] [Tesis doctoral, Universidad Autónoma de Madrid].
Balk, B., Barbero, J., & Zofío, J. (2020). A toolbox for calculating and decomposing total factor productivity indices. Computers and Operations Research, (115), 1–23.
Battese, G., & Coelli, T. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics, 20, 325–332.
Beverinotti, J., Coj-Sam, J., & Solís, G. (2015). Dualidad productiva y espacio para el crecimiento de las PYMES en Costa Rica [Productive duality and room for SME growth in Costa Rica]. BID. https://doi.org/10.18235/0000133
Borrayo, R., & Mendoza, M. (2019). Productivity and technical efficiency of the regional manufacturing industry of Mexico, 1960-2013: A panel approach of stochastic frontier. Estudios Económicos, 34(1), 25–60.
Campano, C., Aguirre, M., Correa, N., & Herrera, M. (2016). Total factor productivity in Chilean manufacturing sector. Revista de Economía Institucional, 18(35), 229. https://doi.org/10.18601/01245996.v18n35.12
Combary, O., & Savadogo, K. (2014). Les sources de croissance de la productivité globale des facteurs dans les exploitations cotonnières du Burkina Faso [The sources of total factor productivity growth in the cotton farms of Burkina Faso]. Revue d'Économie du Développement, (22), 61–82.
Cribeiro, Y. (2011). Contribución de la fuerza de trabajo calificada al crecimiento económico en Cuba. Principales determinantes [Contribution of the skilled labor force to economic growth in Cuba. Main determinants] [Tesis doctoral, Universidad de La Habana].
Doimeadiós, Y. (2007). El crecimiento económico en Cuba: Un análisis desde la productividad total de los factores [Economic growth in Cuba: An analysis from the standpoint of total factor productivity]. UNAM, Instituto de Investigaciones Económicas; CEPAL.
Doimeadiós, Y., & Sánchez, D. (2015). Productividad y eficiencia en la economía cubana: Una aproximación empírica [Productivity and efficiency in the Cuban economy: An empirical approach]. Economía y Desarrollo, 153(1), 90–107.
Dunham, J. (2018). The economic impact of the American iron and steel industry. American Iron and Steel Institute.
Gal, P. (2013). Measuring total factor productivity at the firm level using OECD-ORBIS (OECD Economics Department Working Paper N.º 1049). OECD.
Galtés, I. (2015). Diferenciación salarial y productividad en Cuba [Wage differentiation and productivity in Cuba]. Economía y Desarrollo, 153(Número Especial), 108–125.
Garzón, M. (2018). Panorama económico de la industria metalmecánica [Economic overview of the metalworking industry]. Reportero Industrial. Axioma B2B Marketing.
GESIME. (2020). GESIME. https://www.sime.cu
Godden, D. (2019). The role of steel manufacturing in the global economy. A report for the World Steel Association. Oxford Economics.
Gómez-Mejía, A. (2020). Maximum likelihood model. Libre Empresa, 17(2), 121–138.
Gonçalves, D., & Martins, A. (2016). The determinants of TFP growth in the Portuguese manufacturing sector (GEE Paper N.º 0062). Gabinete de Estratégia e Estudos, Ministério da Economia.
González, R. (2014). Heterogeneidad productiva en Cuba. El caso de la industria manufacturera [Productive heterogeneity in Cuba. The case of the manufacturing industry] [Tesis de maestría, Universidad de La Habana].
Guillén, E. (2016). Estudio para determinar la competitividad de la industria metalmecánica de la Canacintra [Study to determine the competitiveness of Canacintra's metalworking industry]. Cámara Nacional de la Industria de Transformación.
Gujarati, D. (2003). Basic econometrics (4th ed.). McGraw-Hill.
Hofman, A., Mas, M., Aravena, C., & Guevara, J. (2017). Crecimiento económico y productividad en Latinoamérica. El proyecto LA-KLEMS [Economic growth and productivity in Latin America. The LA-KLEMS project]. El Trimestre Económico, 84(334), 259–306. https://doi.org/10.20430/ete.v84i334.302
Jaimes, L., Luzardo, M., & Rojas, M. (2018). Factores determinantes de la productividad laboral en pequeñas y medianas empresas de confecciones del área metropolitana de Bucaramanga, Colombia [Determinants of labor productivity in small and medium-sized apparel firms in the Bucaramanga metropolitan area, Colombia]. Información Tecnológica, 29(5), 175–186. https://doi.org/10.4067/S0718-07642018000500175
Kalai, M., & Helali, K. (2020). Total factor productivity growth, technological progress and technical efficiency changes: Productivity change dimensions in Tunisia. Journal of Quantitative Methods, 4(2), 76–100.
Konak, A., & Kamacı, A. (2019). Effects of iron-steel sector on global competition, economic growth and unemployment. Yönetim ve Ekonomi, 26(1), 49–70.
Kumbhakar, S., Wang, H., & Horncastle, A. (2015). A practitioner's guide to stochastic frontier analysis using Stata. Cambridge University Press. https://doi.org/10.1017/cbo9781139342070
Levinsohn, J., & Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70(2), 317–341. https://doi.org/10.1111/1467-937x.00246
Levinsohn, J., & Petrin, A. (2004). Production function estimation in Stata using inputs to control for unobservables. The Stata Journal, 4(2), 113–123. https://doi.org/10.1177/1536867x0400400202
Malik, M., Masood, T., & Sheikh, M. A. (2021). Econometric analysis of total factor productivity in India. The Indian Economic Journal, 1, 1–17. https://doi.org/10.1177/0019466220988066
Méndez, J., Méndez, J., & Hernández, H. (2013). Total factor productivity, technical change, technical efficiency and potential GDP in Latin America. Semestre Económico, 16(34), 65–92.
Monge, R. (2019). Productividad y crecimiento económico: Experiencias de algunos países de reciente desarrollo: Estudios sobre productividad [Productivity and economic growth: Experiences of some recently developed countries: Studies on productivity] (Vol. PV-03-2019, pp. 9–52). Academia de Centroamérica.
OECD. (2021). Labour productivity growth, total economy.
Olley, S., & Pakes, A. (1996). The dynamics of productivity in the telecommunications industry. Econometrica, 64(6), 1263–1298. https://doi.org/10.2307/2171831
Palacios, J. C. (2013). Determinantes y restricciones estructurales del crecimiento económico en Cuba [Structural determinants and constraints of economic growth in Cuba]. Revista de la CEPAL,, 7–29.
Redondo, M., Ramos, H., & Díaz, C. (2016). Factores del crecimiento económico [Factors of economic growth] (1.ª ed.). Universidad Libre Seccional Pereira.
Reuters. (2021). Productividad de EE.UU. en segundo trimestre aumenta a su ritmo más rápido en 11 años [U.S. productivity in the second quarter rises at its fastest pace in 11 years].
Sardiñas, J. (2019). Factores determinantes del crecimiento del PIB per cápita de Cuba en el periodo 1996-2017 [Determinants of the growth of Cuba's GDP per capita in the period 1996–2017] [Tesis de grado, Universidad de La Habana].
Solow, R. (1957). Technical change and the aggregate production function. Review of Economics and Statistics, 39(3), 312–320. https://doi.org/10.2307/1926047
Song, L. (2020). State-owned enterprise reform in China: Past, present and perspectives (pp. 345–367). ANU Press.
Syverson, C. (2011). What determines productivity? Journal of Economic Literature, 49(2), 326–365.
Van Beveren, I. (2008). Total factor productivity estimation: A practical review. LICOS Centre for Institutions and Economic Performance.
Vidal, P. (2017). ¿Qué lugar ocupa la economía cubana en la región?: Una medición a la tasa PPA de las brechas de ingreso y productividad [Where does the Cuban economy stand in the region?: A PPP-rate measurement of income and productivity gaps] (Resumen de Políticas N.º IDB-PB-269). BID.
Vidal, P., & Fundora, A. (2008). Relación comercio-crecimiento en Cuba: Estimación con el filtro de Kalman [The trade-growth relationship in Cuba: Estimation with the Kalman filter]. Revista de la CEPAL,, 101–120.
Zhang, S., Chang, T.-P., & Liao, L.-C. (2020). A dual challenge in China's sustainable total factor productivity growth. Sustainability, 12(13), 5342. https://doi.org/10.3390/su12135342
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Sandra Guerra Castillo

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Article usage
- ViewsTimes this article's page was opened since the journal started recording statistics. One person can visit more than once.
- 113
- DownloadsTimes the full text of this article (usually the PDF) was opened or downloaded.
- 75
All time, as recorded by the journal.
Last 2 years: 83 views, 55 downloads.
0.66 downloads per view (journal average 1.66).Downloads of the full text for every abstract view of this article, compared with the whole journal.
Explore the journal's metrics
