Biggest source of productivity weakness is slack investment: Decomposition of sources of productivity growth
| Labor quality upgrading | Capital-deepening (business investment) | Total factor productivity growth (technological advancements) | |
|---|---|---|---|
| 1947-73 | 0.18716% | 0.94065% | 2.00549% |
| 1973-79 | 0.05329 | 0.56208 | 0.77685 |
| 1979-95 | 0.36189 | 0.71227 | 0.42173 |
| 1995-2001 | 0.30980 | 1.19368 | 1.43182 |
| 2001-07 | 0.24916 | 1.02762 | 1.24151 |
| 2007-09 | 0.65694 | 1.91728 | -0.67764 |
| 2009-12 | 0.26453 | 0.59400 | 0.88477 |
| 2012-16 | 0.46385 | 0.17963 | 0.05633 |
Source: Data from Fernald (2016)
