UID:
edoccha_9960178323202883
Format:
1 online resource (22 pages)
ISBN:
1-4843-0349-0
,
1-4843-0353-9
Series Statement:
IMF Staff Country Reports
Content:
This Selected Issues paper analyzes productivity in the Eastern Caribbean Currency Union by exploring two complementary exercises. It computes total factor productivity by extending standard growth accounting frameworks with (1) the impact of natural disasters on the stock and productivity of physical capital; (2) human capital accumulation; and (3) the impact of out-migration on labor and human capital. The paper also analyzes labor productivity, including across economic sectors. The results indicate that the historical deceleration in growth was driven mostly by the declining contribution of total factor productivity, which resulted in stagnation in the aftermath of the global financial crisis. Labor productivity measures show that labor is largely allocated in the sectors with relatively lower productivity.
Note:
Cover -- CONTENTS -- PRODUCTIVITY AND POTENTIAL OUTPUT IN THE ECCU -- A. Historical Trends in Output and Factors of Production -- B. Measuring Productivity Trends -- C. Implications for Potential Output -- References -- FIGURES -- 1. Real GDP Growth vs. the Rest of the World -- 2. Growth Performance of Countries -- 3. Population Growth, Human Capital and Employment -- 4. Drivers of Capital Accumulation -- 5. Growth Decomposition, 1971-2014 -- 6. Total Factor Productivity -- 7. Wages and Productivity -- 8. Labor Productivity -- 9. Potential Output, 2016-21 -- FISCAL RULES FOR THE ECCU -- A. Limits of the Current Framework -- B. The Increasing Use of Fiscal Rules -- C. Designing Fiscal Rules for the ECCU -- References -- BOX -- 1. Fiscal Rules in Grenada and Jamaica.
Additional Edition:
ISBN 1-4843-0338-5
Language:
English
