Tutor HuntQuestions

Tutor Hunt Questions

I am trying to derive the growth rate and total factor productivity for the last five years in Kenya. I am trying to understand what formula to use and calculate this.
8 years ago

Economics Question asked by Lorraine

Know the Answer?

Please enter your response to the question below. The student will get a notification as soon your response has been approved by our moderation team.

Submit Answer

3 Answers

For growth rate, you can use Real GDP Growth of the country, or Real GDP Growth per head. For total factor productivity, you`ll have to find the portion of output generated by the amount of inputs used in production. It is usually made up of capital and labour, e.g TFP = 4Q+3L.
Answered by [Deleted Member]
+ 1    Rate Up  Rate Down     

Growth rate
Present value minus past value divided by past value multiplied by hundred.

Total factor productivity
Output divided by weighted average of inputs.
Answered by [Deleted Member]
    Rate Up  Rate Down     

The standard measure of total factor productivity growth
is the Solow residual. If you need an explanation of this there is a great resource on the Bank of England website.
Answered by [Deleted Member]
    Rate Up  Rate Down