Total Factor Productivity Measurement Using Fixed Effect, LP, and OP Methods: A Regression Analysis

Based on the research of Lu and Lian (2012), this study measures total factor productivity (TFP), representing input-output efficiency, using the fixed effect method, LP method, and OP method. These methods replace the explanatory variables in a regression analysis. The analysis employs capital, labor, investment, and intermediate input as input indicators and operating income as the output indicator. This approach provides a comprehensive assessment of firm-level productivity.