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Global Trends of Multi-Factor Productivity

by 

Jeong Yeon Lee

East-West Center Working Papers, Economics Series, No. 136

Publisher:

Honolulu: East-West Center

Publication Date: March 2014
Binding: paper
Pages: 22
Free Download: PDF

 

Multi-factor productivity (MFP) compares the growth of gross domestic product with the growth of combined capital and labor inputs. The growth rate of MFP assumes theoretical significance because it represents the slope of the steady-state growth path, and hence is a major determinant of the long-term growth trend. This paper offers the balanced panel of the estimated growth rates of MFP for 24 OECD countries over 1986-2011. Based on the estimates of MFP growth, a number of notable trends in productivity growth are identified for the entire OECD area as well as three major economies--the United States, the Eurozone and Japan--within the OECD.