Growth accounting

Updated: Aug 20, 2021

A method used to determine the contribution of each factor of production to the growth output. Any growth unexplained by factor growth is viewed as attributable to technicaal progress.

Growth accounting

The Solow residual is the part of growth that cannot be attributed to growth in the stock of capital or labour. This can be interpreted as the underlying growth in productivity due to technical progress.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.