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World Productivity: 1996 - 2014

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  • Esfahani, Mehrdad
  • Fernald, John
  • Hobijn, Bart

Abstract

We use a new growth accounting method to quantify the drivers of world total factor productivity (TFP) growth during 1996-2014 and uncover four main results. World productivity growth is volatile from year to year. This mainly reflects reallocation of labor across country-industries. The contribution of country-industry level productivity growth to world productivity is relatively constant over time. This constancy masks that the increased importance of emerging economies offset a productivity slowdown in advanced economies; after 2008, this offsetting effect dissipated and world TFP growth declined. These conclusions are robust to the inclusion of markups in the analysis.

Suggested Citation

  • Esfahani, Mehrdad & Fernald, John & Hobijn, Bart, 2022. "World Productivity: 1996 - 2014," CEPR Discussion Papers 17452, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17452
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    1. Kevin Hjortshøj O’Rourke, 2021. "Capitalism: Worries of the 1930s for the 2020s," Working Papers 20210064, New York University Abu Dhabi, Department of Social Science, revised Apr 2021.

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    More about this item

    Keywords

    Growth accounting; Productivity; World economy;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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