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Total Factor Productivity (TFP). By components

Total Factor Productivity (TFP). By components Catalonia. 2018
Índice (2010=100) Variation in volume (%)
Gross domestic product (GDP) 110.4 2.6
Contribution to the GDP growth of (1):
Total factor productivity (TFP) 107.2 0.0
Labour 90.5 1.8
Capital 113.7 0.7
Productivity factors:
Labour 99.2 3.3
Capital 108.0 1.6
Reference data:
Capital-labour relation 108.8 -1.8
Average productivity
Labour 111.3 -0.7
Capital 102.3 1.0
Source: Idescat and Ministry of the Vice-presidency and of the Economy and Finance.
Note: Rates of variation calculated in logarithmic terms.
(1) The indexes refer to the participation of each factor in the GDP; the variations show percentage points of variation in the GDP.
Total Factor Productivity (TFP). By components Spain. 2018
Índice (2010=100) Variation in volume (%)
Gross domestic product (GDP) 108.2 2.5
Contribution to the GDP growth of (1):
Total factor productivity (TFP) 104.8 0.6
Labour 93.7 1.5
Capital 108.7 0.5
Productivity factors:
Labour 101.4 2.5
Capital 106.2 1.2
Reference data:
Capital-labour relation 104.7 -1.3
Average productivity
Labour 106.7 0.1
Capital 101.9 1.3
Source: Idescat based on data of the European Commission. Directorate General for Economic and Financial Affairs (DG ECFIN).
Note: Rates of variation calculated in logarithmic terms.
(1) The indexes refer to the participation of each factor in the GDP; the variations show percentage points of variation in the GDP.

Date published: May 16, 2019.

Statistics PTF

Methodological note

Productivity and economic growth accounts were newly included in the Regulation by the European Parliament and Council on the European Union System of National and Regional Accounts, number 449/2013, of May 21, 2013. In order to measure the productivity of the economy, the Regulation recommends the use of the Total Factor Productivity (TFP).

Definitions

Total Factor Productivity (TFP)

The TFP can be interpreted as the difference between the growth rate of production and the mean growth rate of the factors used to obtain it, where the weighting factors are the share of each factor in the national income. In other words, the sum of contributions of the productive factors (labour and capital) and the TFP coincide with the rate of variation of the GDP. The latter rate is calculated in logarithmic terms, which could generate minor discrepancies compared to the data published in the Annual Economic Accounts in Catalonia.

Thus, the TFP includes the impact of any factor which shifts the production function: not only technical progress, but also organizational innovations, economies of scale, better training of employees and sectoral reallocation of resources, among other aspects. It is identified with what is referred to in the field of economic growth theory as the "Solow Residual".

Labour factor

Labour is measured in terms of full time equivalent jobs defined as the total number of hours worked divided by the mean annual hours worked in full time employment in the economic territory.

Given that the duration of a full-time job changes over time and differs in various areas of activity, it is necessary to determine the average hours of work for each branch of the economy. To obtain this information, the statistical reference source is the Active Population Survey, which allows for the differentiation of people employed, job posts and full-time equivalent job posts.

The total number of equivalent jobs is obtained by applying to the detailed accounting estimates of jobs of the Annual Economic Accounts in Catalonia the corresponding ratio between total and equivalent jobs, resulting principally from the Active Population Survey.

Capital factor

Capital stock is measured on a net basis and has been evaluated at constant prices since 2000, with separate treatment of housing stock. The data used to obtain this comes from the historical series of physical capital stock calculated by the BBVA Foundation and the Valencian Institute of Economic Research (IVIE). As of the update corresponding to the year 2016, the BBVA Foundation and the IVIE revised the series of capital stock in order to adapt them to the new European System of Accounts (ESA 2010).

Capital stock estimates of the IVIE comply with the OECD's guidelines for calculating the capital stocks of the member states, and are based on the flow of services offered by capital goods. Thus, the net capital stock is calculated using the perpetual inventory method, so that the net capital stock of a specific asset is calculated by adding to the capital stock of the previous period the value of the investment (measured in real terms) and subtracting the rate of depreciation that has affected the capital of the period.

Comparability of data

For reasons of statistical comparability with Spanish data, the TFP of Catalonia is calculated using the average units of the whole of the available sample period. In Spain, this period starts in 1960 and in Catalonia, in 1986.