The Misinterpretation of Productivity Measures

Given the way productivity indicators at sector and country level are actually defined and determined by statistical agencies, and scholars, the resulting figures –for comparisons among countries or sectors, as well as over time (‘productivity growth’)– do not actually have the implicit meaning that financial media and experts transmit to us: that of ‘an increase in the index indicates that the country’s (sector’s) companies are producing more with the same quantities of resources .., etc.’ The ‘official’ figures regularly published depend only partially on the level of productivity itself, but mainly on other socioeconomic and markets variables, as argued here