Causality between total factor productivity and economic growth in Mexico, Indonesia, Nigeria and Turkey: a comparative analysis

Abstract

The study examines the direction of causality between total factor productivity and economic growth in Mexico, Indonesia, Nigeria and Turkey from 1960 to 2017. Data on total factor productivity and real gross domestic product are gathered from the Penn World Table, Version 9.1 as proposed by Feenstra et al. (2015). The study employs the Granger causality test to analyse the collected data. The results show that there is a unidirectional causality that runs from productivity growth to economic growth in Nigeria and from economic growth to productivity growth in Mexico and Indonesia. Contrarily, there is no evidence of causality running either way between economic growth and productivity growth in Turkey.