Identifying the Main Drivers of Productivity Growth
This report represents the second outcome of the collaboration between the Asian Productivity Organization (APO) and the Organisation for Economic Co-operation and Development (OECD) to improve the measurement and analysis of productivity developments across APO and OECD member economies. The report...
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| Autor Corporativo: | |
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| Formato: | Libro electrónico |
| Idioma: | Inglés |
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Paris :
Organization for Economic Cooperation & Development
2022.
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| Edición: | 1st ed |
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| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009705021506719 |
Tabla de Contenidos:
- Intro
- Preface by the Asian Productivity Organization
- Preface by the Organisation for Economic Co-operation and Development
- Acknowledgements
- Executive summary
- Why is multifactor productivity so important to boost living standards?
- Policies and good governance can foster multifactor productivity growth
- Boosting innovation and experimentation of new knowledge and technologies
- Fostering the diffusion of existing technologies
- Contributing to efficient resource allocation
- Good governance is key
- Key findings
- 1 The impact of the COVID-19 crisis on productivity in the short and the long term
- Introduction
- What have been the short-term effects of the COVID crisis on productivity?
- The crisis affected both supply and demand and triggered reallocation
- Productivity growth surged in 2020 in most OECD countries, reflecting a fall in hours worked
- The aggregate figure masks heterogeneous productivity performance
- Services sectors were the hardest hit
- Small and informal firms were affected more severely
- Stabilisation policies have preserved employment and ease access to finance in the short term
- Adoption of digital technology and teleworking have cushioned the downturn
- The pace of digitalisation has accelerated
- The prevalence of teleworking has risen
- What long-term impact can be expected?
- A number of factors may hamper long-term productivity gains
- Elevated uncertainties and tightened financial conditions will deter investment
- Labour-market scarring can restrain productivity prospects
- The missing start-ups will slow technology diffusion
- Rising concentration in digital sectors may dampen productivity growth
- Slower integration in global value chains may limit productivity gains
- Digitalisation and new forms of work may support productivity gains.
- Digitalisation will continue, although perhaps at a slower pace than in 2020
- There are signs that the increase in teleworking is here to stay
- Long-term developments in productivity remain uncertain
- References
- 2 The importance of MFP for economic growth
- Introduction
- Solow's growth accounting framework is at the heart of MFP measurement
- The application of the growth accounting framework has led to diverging results regarding the importance of MFP for economic growth
- In order to assess the importance of MFP for economic growth, it is better to focus on labour productivity growth
- MFP underlies most changes in aggregate labour productivity growth over time
- The contribution of MFP to labour productivity growth is sensitive to the measurement of the volume of output and inputs
- Measuring the volume of output
- Accounting for the composition of labour
- Accounting for the composition of capital
- Extending the asset boundary to better account for intangible capital
- The distinction between the contributions of MFP and production factors to labour productivity growth is not as clear-cut as it seems
- In a steady state, MFP is at the origin of capital deepening
- Complementarities between assets may foster MFP growth
- Understanding productivity requires looking into the granular origins of MFP
- There is pervasive productivity heterogeneity across firms, including within narrowly defined industries
- Aggregate productivity growth depends on productivity growth within firms, as well as on reallocations between existing firms, and business creations and destructions
- Firm-level data shed new light on the origins of the aggregate productivity slowdown
- References
- Notes
- 3 The key drivers of MFP growth
- Introduction
- Research and development
- Measuring R&
- D is conceptually challenging.
- Estimates of returns to R&
- D are generally positive but vary widely
- Firms can benefit directly from their R&
- D investments
- R&
- D investments can spillover at home and abroad
- The benefits to R&
- D investment are greater when the right complements are available
- Does R&
- D boost MFP growth, or vice versa?
- Digitalisation, including ICT and other intangibles
- The growing digital economy needs to be accurately reflected in economic statistics
- ICT has a positive impact on productivity, but how large?
- Intangible assets make up more than half of capital in some countries
- Measuring intangibles is far from simple
- Data is a valuable resource in the information economy, but how can it be measured?
- Intangibles play a role in productivity growth
- Automation and AI promise growth, but are we measuring them properly?
- Human capital
- Human capital can be measured in a number of ways
- It is important to account for both the volume and composition of labour input
- Human capital acts as an engine for technological innovation and diffusion
- Firm-level evidence reinforces the connection between skills and productivity
- Management plays a key role in firm productivity
- A more diverse workforce is generally a more productive one
- Public infrastructure
- Measuring public infrastructure is still challenging
- There is no universally accepted definition nor a single measure of public infrastructure
- Accounting for net capital stocks
- Quantifying the productivity-infrastructure nexus: the empirical framework matters
- Several factors shape the role of public infrastructure on productivity
- Competition
- Competition is a complex notion that is difficult to measure
- Market concentration
- Policy measures of competition
- Performance indicators to measure competition.
- Other approaches to measure competition
- Digitalisation and new business models have altered the link between competition and productivity
- Competition has been typically associated with productivity improvements
- Initial conditions can alter the relation between competition and productivity
- Digitalisation and the emergence of new business models create challenges to competition, with still uncertain effects on productivity
- Globalisation
- Measuring engagement in international trade and investment has evolved over the years
- Measuring engagement in international trade
- Measuring integration in global value chains
- Measuring foreign direct investment
- Globalisation is estimated to be a key driver of productivity
- The relationship between trade openness and productivity growth varies depending on the stage of development and the sector considered
- Integration in global value chains is found to be a key source of productivity
- Evidence on the link between FDI and productivity is mixed
- Financial development
- Financial development has been measured through a variety of metrics
- Financial development has an impact on productivity
- Institutions
- Measuring the quality of the institutional framework is far from simple
- Institutions matter for productivity
- Institutions may enhance or undermine the role of other productivity drivers
- References
- Research and development
- Digital technologies, ICT and other intangibles
- Human capital
- Public infrastructure
- Competition
- Globalisation
- Financial development
- Institutions
- Notes.
