Productivity growth under economic integration, Guyana and the Rest of CARICOM

This study examined productivity growth, technological change and technical efficiency change between Guyana and the rest of the Caribbean [ROC] over the period 2008-2022 using the Malmquist index. Measures of productivity growth was found to be similar but the variation, measured by the standard deviation, over the years was greater in Guyana compared with the rest of the Caribbean [ROC]. Technological change in Guyana was slightly lower than in ROC, but so also was the fluctuation in technological change. Guyana showed a greater technical efficiency change than ROC. But the result did not show, not even in 2022, that oil production in Guyana has influenced productivity growth in Guyana. Regression results showed that five variables, market size, the literacy rate, access to credit, gross fixed capital formation, access to electricity, all have a greater positive impact on productivity growth in Guyana that in ROC. On the other hand, in ROC, the inflation rate, tax on incomes, profit and capital gains, tax on trade and the exchange rate had a less negative impact on productivity growth than in Guyana.