Measuring Total Factor Productivity: A Comparative Analysis of Fixed Effect, LP, and OP Methods

In this study, Lu and Lian (2012) utilized the fixed effect method, LP method, and OP method to assess the total factor productivity, which signifies the efficiency of input-output utilization. Instead of using explanatory variables for regression, the researchers selected capital, labor, investment, and intermediate input as input indicators, and operating income as the output indicator. The findings are presented in columns (1)-(3) of Table 2.