Academic researchers consider total factor productivity(TFP) which takes into account all inputs including labor and capital to be a preferable indicator, however, I will focus on labor productivity here to avoid a complicated explanation.
It posits that between 2016 and 2020 the growth in Japan's total factor productivity, that is, the efficiency with which labour and capital are used, will leap from 1% a year to 2.2%, the level that prevailed during the go-go 1980s.
Main results of the preceding researches in the field Nickell(1996) finds, based on an analysis of around 670 U.K. firms, that competition is associated with higher rates of total factor productivity growth, while market power, as captured by market share, generates reduced levels of productivity.
For example, if such commitment supports changes in business structures and tapping new demand, and promotes business fixed investment that embodies new technology as well as research and development investment, it will be able to increase capital stock and heighten total factor productivity.
For example, Kimura and Kiyota(2006), based on firm-level data, conclude that a firm's total factor productivity(TFP) increases by 2.4% when it starts to export(See Row 4 of Table 4 in the respective paper.).
Three marine computer systems jointly developed with KEI System Ltd will be integrated to provide a robust, reliable and easy to operate control and monitoring platform for all elements of Aquarius Marine Renewable Energy MRE.
More importantly, by increasing the speed with which information is disseminated and shared inside and outside corporations, the IT revolution can drastically alter the combination of capital and labor, bring about greater efficiency in conducting business, facilitate corporate restructuring, induce a synergistic effect, and thus lead to productivity increases that cannot be attributed to either capital or labor total factor productivity.
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