FOREWORD
Total factor productivity
(TFP) as a measure of overall productivity has
been gaining recognition and acceptance not only
for its theoretical correctness but also for its
practicality among policy makers and economic
analysts. Some governments have begun to include
the TFP growth rate as a target in national development
plans. Against this background, the APO conducted
a survey in 10 member countries in 1998. The basic
objective of that first survey project was to
develop a common understanding of TFP as well
as to select and adopt a common approach for measuring
and comparing TFP among member countries. For
this purpose, the participating countries compiled
TFP data at the macro level using a common framework.
It was hoped that the estimation and use of TFP
growth would become a widely adopted practice
in member countries. The first survey was followed
by a symposium in which the results of the survey
were discussed along with the experiences of other
member countries that did not participate in the
survey. The symposium also deliberated on various
issues to make TFP measurement an instrument for
policy formulation.
The symposium recommended that measurement should
be undertaken periodically to provide necessary
inputs to decision makers. The necessity for further
analysis of TFP, especially of which factors determine
TFP growth, for sustained economic progress was
recognized.
The APO embarked on a second survey project
in 2001 as a follow-up to the first project to
improve TFP estimation and to identify the determining
factors of TFP growth. Twelve countries participated
in this project. The results were discussed at
a workshop held in Kuala Lumpur in November 2002.
This publication is a compilation of the finalized
version of the national survey reports and findings
presented at the workshop by the experts of the
participating countries. We hope that this publication
will prove useful to policy makers in member countries
by helping them better understand the process
of TFP growth, allowing them to formulate policies
that will nurture an environment for TFP growth
and ultimately achieve higher economic growth.
Our special thanks are due to Dr. Noriyoshi
Oguchi, Chief Expert of this survey, for his total
commitment and effective leadership during the
survey and for bringing the survey and publication
to completion.
– TAKASHI TAJIMA, APO Secretary-General,
Tokyo, January 2004
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