Total Factor Productivity Growth at Sectoral Level: The Case of Singapore Hotel Industry

In this paper trends of total factor productivity (TFP) growth are examined in the ten major sectors of Singapore. Data are drawn from the Yearbook of Statistics, Singapore, (various issues) and Economic Survey of Singapore Series ranging from the year 1985 to 2000. Due to the non-availability of reliable input price data, this study uses data envelopment analysis (DEA) to obtain Malmquist TFP index. With this non-parametric methodology, this study hopes to identify the "best practice" sector and laggards in qualitative productivity improvements. Probable micro and macro factors affecting TFP are also discussed. This exercise will provide a platform for more detailed study on the sources of TFP growth in different sectors in Singapore, especially the hotel industry.