The sources of economic growth in OECD countries

This chapter1 presents an overview of growth performance in OECD countries over the past two decades. Special attention is given to developments in labour productivity, allowing for human capital accumulation and multi-factor productivity (MFP), allowing for changes in the composition and quality of physical capital. The chapter suggests wide (and growing) disparities in GDP per capita growth, while differences in labour productivity have remained broadly stable. Countries that have managed to improve their growth performance share some common elements: improvements in labour utilisation; a generalised enhancement of human capital; and a rapid adoption of the new information and communication technology by many industries. THE SOURCES OF ECONOMIC GROWTH IN THE OECD COUNTRIES – ISBN 92-64-19945-4 – © OECD 2003 27 1. ECONOMIC GROWTH: THE AGGREGATE EVIDENCE