One explanation of differences in total factor productivity is differences in labor's share of GDP.

Question

Quizplus · Accepted Answer

Differences in total factor productivity (TFP) are primarily attributed to variations in technology, innovation, efficiency, and institutional structures across countries, rather than differences in labor's share of GDP. Labor's share of GDP reflects the distribution of income between labor and capital, not the efficiency or productivity of these factors.

One Explanation of Differences in Total Factor Productivity Is Differences