Presentations - 3rd Growth and Resilience Dialogue With Social Partners

The Productivity Challenge

Why?...Lower Total Factor Productivity Growth (TFPG)

Underlying the relative decline is the relatively worse performance of total factor productivity. (Ruprah and Sierra 2014) Empirical evidence: About half of the variation in income levels and growth rates among countries is due to differences in total factor productivity (Hall and Jones, 1999). Research findings: Investment in Research and Development (R&D) explains up to 75% of the differences in total factor productivity growth rates (Griliches, 1979).

1.1

1

0.9

0.8

0.7

Ratio

0.6

0.5

ROSE

Caribbean-C

Caribbean-T

C6

0.4

Economic growth = change in human capital + change in physical capital + TFPG