National Productivity
In order to measure productivity of a nation or an industry, it is necessary to operationalize the same concept of productivity as in a production unit or a company, yet, the object of modelling is substantially wider and the information more aggregate. The calculations of productivity of a nation or an industry are based on the time series of the SNA, System of National Accounts. National accounting is a system based on the recommendations of the UN (SNA 93) to measure total production and total income of a nation and how they are used. (Saari 2006, 9)
Productivity is considered a key source of economic growth and competitiveness and, as such, is basic statistical information for many international comparisons and country performance assessments. There are different measures of productivity and the choice between them depends either on the purpose of the productivity measurement and/or data availability. One of the most widely used measures of productivity is Gross Domestic Product (GDP) per hour worked. (OECD 2008,11)
Another productivity measure is so called multi factor productivity (MFP) also known as total factor productivity (TFP). It measures the residual growth that cannot be explained by the rate of change in the services of labour, capital and intermediate outputs, and is often interpreted as the contribution to economic growth made by factors such as technical and organisational innovation. (OECD 2008,11)
Productivity measures are key indicators of economic performance and there is strong interest in comparing them internationally. The OECD publishes an annual Compendium of Productivity Indicators that includes both labor and multi-factor measures of productivity. Several statistical offices publish productivity accounting handbooks and manuals with detailed accounting instructions and definitions. For example the following:
- Measuring Productivity - OECD Manual
- Office for National Statistics (UK) Productivity handbook
- Bureau of Labor Statistics, Productivity Statistics (U.S.)
Read more about this topic: Productivity
Famous quotes containing the words national and/or productivity:
“Not one of our national officers ever has had a dollar of salary. I retire on full pay!”
—Susan B. Anthony (1820–1906)
“It is ultimately in employers’ best interests to have their employees’ families functioning smoothly. In the long run, children who misbehave because they are inadequately supervised or marital partners who disapprove of their spouse’s work situation are productivity problems. Just as work affects parents and children, parents and children affect the workplace by influencing the employed parents’ morale, absenteeism, and productivity.”
—Ann C. Crouter (20th century)