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Total Factor Productivity in Advanced Countries: A Longterm Perspective

Author

Listed:
  • Antonin Bergeaud
  • Gilbert Cette
  • Remy Lecat

Abstract

Changes in GDP during the 20th century have been mainly driven by total factor productivity (TFP). This article synthesizes results from our research based on the long period (1890-2015) productivity database we have constructed. In particular, we aim to refine our TFP measure by including the contribution of the improved quality of factor inputs and technology diffusion to TFP growth in four developed areas or countries: the United States, the euro area, the United Kingdom, and Japan. Two types of factor quality are considered: the average level of education and the average age of equipment. Two technological shocks corresponding to two general purpose technologies are investigated: electricity and information and communication technologies (ICT). However, even after these adjustments, long-term patterns of TFP growth do not change, with two major waves appearing over the past century and much of TFP growth remaining unaccounted for by quality-adjusted factors of production and technology diffusion. Our estimates show that the productivity impact of the recent ICT wave remains much smaller than that from the electricity wave, and that the post-1973 and the most recent slowdowns in TFP growth are confirmed.

Suggested Citation

  • Antonin Bergeaud & Gilbert Cette & Remy Lecat, 2017. "Total Factor Productivity in Advanced Countries: A Longterm Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 6-24, Spring.
    • Handle: RePEc:sls:ipmsls:v:32:y:2017:1
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    Citations

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    Cited by:

    1. Santos, João & Borges, Afonso S. & Domingos, Tiago, 2021. "Exploring the links between total factor productivity and energy efficiency: Portugal, 1960–2014," Energy Economics, Elsevier, vol. 101(C).
    2. Thomas Ziesemer, 2023. "Labour-augmenting technical change data for alternative elasticities of substitution: growth, slowdown, and distribution dynamics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(4), pages 449-475, May.
    3. Georges Daw, 2022. "Determinants of Wealth Disparities in the EU: A Multi-scale Development Accounting Investigation," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(2), pages 211-254, June.
    4. John Fernald, 2018. "Is Slow Productivity and Output Growth in Advanced Economies the New Normal?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 138-148, Fall.
    5. Oliver Kovacs, 2019. "Big IFs in Productivity-Enhancing Industry 4.0," Social Sciences, MDPI, vol. 8(2), pages 1-17, January.
    6. Gilbert Cette & Sandra Nevoux & Loriane Py, 2022. "The impact of ICTs and digitalization on productivity and labor share: evidence from French firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(8), pages 669-692, November.
    7. Gilbert Cette & Aurélien Devillard & Vincenzo Spiezia, 2022. "Growth Factors in Developed Countries: A 1960–2019 Growth Accounting Decomposition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(2), pages 159-185, June.
    8. Gordon, Robert J. & Sayed, Hassan, 2019. "The Industry Anatomy of the Transatlantic Productivity Growth Slowdown," CEPR Discussion Papers 13751, C.E.P.R. Discussion Papers.
    9. E. S. Uzyakova & R. M. Uzyakov, 2018. "Analysis of the Impact of Scientific and Technical Development on Economic Growth Using Input−Output Balance Tools," Studies on Russian Economic Development, Springer, vol. 29(6), pages 637-644, November.
    10. Robert J. Gordon & Hassan Sayed, 2019. "The Industry Anatomy of the Transatlantic Productivity Growth Slowdown," NBER Working Papers 25703, National Bureau of Economic Research, Inc.
    11. Sean Dougherty & Andrea Renda, 2017. "Pro-Productivity Institutions: Learning from National Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 196-217, Spring.
    12. Alessandro Bellocchi & Edgar J. Sanchez Carrera & Giuseppe Travaglini, 2021. "What drives TFP long-run dynamics in five large European economies?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 569-595, July.
    13. Consolo, Agostino & Cette, Gilbert & Bergeaud, Antonin & Labhard, Vincent & Osbat, Chiara & Kosekova, Stanimira & Anyfantaki, Sofia & Basso, Gaetano & Basso, Henrique & Bobeica, Elena & Ciapanna, Eman, 2021. "Digitalisation: channels, impacts and implications for monetary policy in the euro area," Occasional Paper Series 266, European Central Bank.

    More about this item

    Keywords

    Productivity; Canada; United States; OECD; Policies; Global Productivity; Total Factor Productivity; Wages; GDP; Electricity; Communication;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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