International dimensions of the productivity paradox

Abstract

In fact, Solow's observation applies equally well to other advanced economies as it does to the U.S. A slowdown in productivity growth has been the plight of other developed countries as well.The bot-tom half of Figure 1 displays the annual growth of labor productivity (output per worker) for the G-5 countries, the five largest economies in the world. 2 The overall trends for the five countries are similar, and in all cases labor productivity growth has slowed down to 1-2% in the 1990s, from somewhat higher levels in earlier time periods.This slowdown has 56

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