The Total Factor Productivity (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 participations 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.
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 21st, 2013.
In order to measure the productivity of the economy, the Regulation recommends the use of so-called multi-factor productivity, or total factor productivity (TFP). The TFP encompasses the impact of any factor that alters the function of production, but not only technically-related progress, as it includes organisational innovations, economies of scale, better worker training, sectoral reassignment of resources, etc.
The data for Catalonia are annually prepared by Idescat and the Ministry of the Vice-presidency and of the Economy and Finance. The data for Spain is prepared by the European Commission.
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