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Extra info for The Sources Of Economic Growth In Oecd Countries

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46 THE SOURCES OF ECONOMIC GROWTH IN THE OECD COUNTRIES – ISBN 92-64-19945-4 – © OECD 2003 1. 4), and are partially left in the productivity residual; and ii) for a number of countries, available data do not allow the assessment of the direct or indirect effects of ICT (nor other compositional/quality changes in capital) but, again, these are captured by the productivity residual. e. not adjusted for changes in the quality of labour and capital inputs). This is the broadest measure of productivity growth that incorporates the effects of progress in human capital as well as embodied (in physical capital) and disembodied technological progress.

3 per cent a year on average. The recent revisions of GDP growth by the US Department of Commerce incorporate improved estimates of the real value of unpriced banking services, thus better capturing productivity growth in this industry (Moulton, Parker and Seskin, 1999; BEA, 1999). 52 THE SOURCES OF ECONOMIC GROWTH IN THE OECD COUNTRIES – ISBN 92-64-19945-4 – © OECD 2003 1. ECONOMIC GROWTH: THE AGGREGATE EVIDENCE The evidence presented in this chapter suggests that cross-country disparities are, at least partially, related to differences in the patterns of labour utilisation and skill upgrading of the workforce.

Furthermore, in most countries the upskilling of the workforce played a significant role in boosting labour productivity but, in those with poor employment performance, this was partially due to the fact that the-low skilled were kept out of work. There are also some new factors behind the observed disparities in growth performance across the OECD countries, largely related to the spread of ICT. g. Australia, Ireland). The contribution of ICT to aggregate MFP growth was initially “disembodied”, resulting from rapid technological progress within the ICT-producing industry.

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