| Abstract: | This paper examines the relationship between technical change and partial and total factor productivity measurement in an n-sector input-output economy. The level of productivity is shown to increase if there is technical change and constant final demands. However, the aggregate level of productivity can fall if there is technical change and if final demands alter. The relationship between technical change and productivity is complicated and counterintuitive results can occur. When the rate of growth of productivity is analyzed, it is found that productivity growth can decline when there is technical change and accelerating technical change, even if final demands are constant. Implications for intranational and international productivity comparisons are discussed. |
