What is a Labor Productivity? and How is it important to economic growth? I?

if i want to do the report on this topic(Labor Productivity), what kind of Econometric Model should I use?
Every your ideas are welcome. Thank you very much

Dianadaina you made a mistake: the ratio of labor productivity is Q/L, L being the mass of active population/workers and Q the production/output from this population/workers.

- If a country 1 produces 6 tonnes of potatoe (Q1) with the same population than country 2 (L1=L2), while the country 2 produces only 3 tonnes (Q2), we can say that productivity of country 1 is twice bigger than country 2.

- Now imagin that the price of this potatoe is fixed and that all other goods have to be imported, we can assume that economic growth will be bigger in country 1, because less resource is used (so available for other activities) to produce the same output.

- You do not need a specific econometric model to study labor productivity as these macro economic aggregates are straightforward. I would use Stata or Eviews to do my model for different countries or same countries on a 10-20 years period.

Hope this helps
labour divided by output.

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