Total Factor Productivity (TFP)

Definition

A measure of productivity that captures the effects of technology, innovation, management quality, and other intangible factors that increase output beyond what can be explained by the quantity of labour and capital inputs used. TFP is calculated as GVA divided by a weighted combination of labour and capital inputs.

Related Terms

Tag-Along Rights Tangible Asset Tax Amortisation Benefit (TAB) Technology Transfer Term Sheet

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