Abstract
Summary In this paper, we analyse the sources of economic growth in Switzerland during the period 1991–2006. The results suggest that labour input and capital input contribute 0.52 pp and 0.57 pp, respectively, to the average annual GDP growth of 1.44%. The remaining 0.35 pp represent growth in multi-factor productivity which is calculated as a residual. The estimate of growth in multi-factor productivity is lower than in previous studies because our measure of labour input takes changes in labour quality into account. Changes in labour quality explain 0.39 pp of the 0.52 pp contribution from labour input.
Highlights
The purpose of this paper is to examine the sources of economic growth over the period 1991–2006
We describe the measurement of capital input and labour input, and we derive the index of multi-factor productivity
This is hardly surprising if we look at the list of factors which may influence the residual that is used as an estimate of growth in multi-factor productivity
Summary
The purpose of this paper is to examine the sources of economic growth over the period 1991–2006. Growth accounting is based on the idea that output growth is related to growth in the services derived from the factors of production – capital and labour. The residual provides an estimate of growth in multi-factor productivity (MFP). It measures the shift in the production function. Examples of growth accounting can be found in Tinbergen (1942) and Solow (1957). Jorgenson and Griliches (1967) developed the approach further, stressing that it is important to account for substitution between different types of capital and labour. Other important contributions by Jorgenson and various co-authors are collected in Jorgenson (1995). Useful summaries are provided by Hulten (2000) and the OECD (2001)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
