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).
- 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 Valencian Institute of Economic Research (IVIE).
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.
2. 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.
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.
3. Further information
- Gross Domestic Product (GDP). Base 2010. Supply. Annual indicators. Idescat
- Fundació BBVA i Institut Valencià d'Investigacions Econòmiques. IVIE
- Annual macro-economic database (AMECO). European Commission. Directorate General for Economic and Financial Affairs
- Spanish economic structure indicators. Banco de España.
- Reglament (UE) núm. 549/2013 del Parlament Europeu i del Consell, de 21 de maig de 2013, relatiu al Sistema europeu de comptes nacionals i regionals de la Unió Europea
- "Measuring Productivity. OECD Manual. Measurement of aggregate and industry-level productivity growth". OECD (2001)