Total Factor Productivity Growth: Definition, Importance, And Examples In An Essay.
DiscussionTotal factor productivity (TFP) is that portion of output that is not explained by the amount of input that is used in the production process. Concept of total productivity is considered critical for economic growth, economic fluctuation and differences in the cross country per capita income. The growth in TFP results due to endogenous innovation decision having considerable implication for business cycle. Solow residual measures tot…
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