Preface by the Organisation for Economic Co-operation and Development
Productivity growth is a central driver of long-term economic growth and living standards but, in recent years, its contribution to growth has declined significantly in most countries. The COVID-19 crisis has not helped, as heightened uncertainty has impacted investment, and slowed or even reverted the pace of globalisation. However, the crisis has also accelerated the digitalisation of economies, potentially boosting productivity. Reigniting the productivity engine is more important than ever if economies are to achieve sustainable, inclusive and resilient growth. To move in this direction, it is key to understand the role of productivity in economic growth as well as the underlying driving forces.
Since its creation in 1961, the Organisation for Economic Co-operation and Development (OECD) has been providing knowledge and advice to inform policy decisions in different areas, while offering a forum where governments can work together to address economic, social and environmental challenges. The release of the OECD Productivity Statistics database in the early 2000s and the publication of the Measuring Productivity OECD Manual in 2001 and the Measuring Capital OECD Manual in 2009 consolidated its position as an international reference for productivity measurement and analysis. More recently, the OECD Compendium of Productivity Indicators has been developed to bring together a set of cross-country comparable statistics on labour productivity, multifactor productivity (MFP) and numerous related indicators.
In October 2019, the Asian Productivity Organization (APO) and OECD signed a Memorandum of Understanding (MOU) to collaborate in developing improved, more comparable productivity statistics across APO and OECD member economies. This report represents the second outcome of that initiative. The report starts with a discussion on the potential impact of COVID-19 on productivity growth. It then examines the role of MFP as a major driver of economic growth and changes in living standards, and identifies the most important factors influencing MFP growth. It describes the most important challenges affecting the measurement of each of these factors as well as the estimation of their impact on MFP growth. It then provides key recommendations to improve the reliability and interpretation of the drivers of productivity performance.
The OECD looks forward to continuing its productive relationship with the APO, which we believe has and will continue to deliver significant value to the membership of both organisations.
