Analysis of Productivity Parameters of Qatar by Using Stochastic Frontier Production Function

Abstract

Results of assessments of total labor factor productivity TFP showed improvements where it recorded higher rate of 73.5% compared to previous periods. However, that was related with constant rate of returns as compared with variable rate of return. When technical efficiency was compared with technical change under the conditions of variable rate of return the average change in technical efficiency increased to 93.2% whereas technical change increased to 75.9%. The comparison during the period 1987-1992 of technical change and technical efficiency that recorded 86.2% and 113.1%, consecutively, there were decreases during the years 1993-1999 for technical change and technical efficiency of 67.1 and 76.1%, consecutively. The results reveal decreasing improvements over time, which were gained in previously assessed time periods.