https://www.bloomberg.com/news/articles/2017-07-13/this-is-china-s-real-economic-problem China’s GDP expanded 6.9% in the first three months of 2017, the fastest rate since the third quarter of 2015 However, total factor productivity, which grew on average of 2.7% a year from 1998 to 2007, has grown almost zero % since. By contrast, the US productivity growth has fallen from 1% to 0.5%…… Continue reading China’s slowing productivity
open trade and cross-border investment are key vectors for diffusion of new technologies and competition, which are central to achieving productivity gains and improving well-being Research published in conjunction with the Interim Economic Outlook suggests that a substantial part of the post-crisis slowdown in total factor productivity growth could be reversed if trade intensity were…… Continue reading OECD: Achieving and sharing the benefit of globalistion
https://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615-2.pdf stronger growth in labour productivity has worked to contain growth in labour costs Declining wage growth reflects spare capacity in the labour market, a decline in inflation expectations, a lower terms of trade, and the need for the real exchange rate to adjust to improve international competitiveness. Decline in ToT and fall in mining…… Continue reading Why Is Wage Growth So Low?