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“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.
7 years ago
Economics Question asked by Lorraine

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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.
Growth rate
Present value minus past value divided by past value multiplied by hundred.
Total factor productivity
Output divided by weighted average of inputs.
Present value minus past value divided by past value multiplied by hundred.
Total factor productivity
Output divided by weighted average of inputs.
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.
is the Solow residual. If you need an explanation of this there is a great resource on the Bank of England website.