- Published: October 2, 2022
- Updated: October 2, 2022
- University / College: University at Buffalo SUNY
- Language: English
- Downloads: 15
Productivity sets a nation’s or region’s standard of living (wages, returns on capital, returns on natural resources) – Productivity depends both on the value of products and services (e.
g. uniqueness, quality) as well as the efficiency with which they are produced. – It is not what industries a nation or region competes in that matters for prosperity, but how firms compete in those industries – Productivity in a nation or region is a reflection of what both domestic and foreign firms choose to do in that location.
The location of ownership is secondary for national prosperity. – The productivity of “ local” industries is of fundamental importance to competitiveness, not just that of traded industries – Devaluation and revaluation do not make a country more or less “ competitive” • • Nations or regions compete in offering the most productive environment for business The public and private sectors should play different but interrelated roles in creating a productive economy
