Definition of Growth accounting:
Growth accounting is a quantitative tool used to breakdown how specific factors contribute to economic growth. It was introduced in 1957 by Robert Solow. Growth accounting focuses on three primary factors, which include: the labor market, capital, and technology.
A framework for assessing various economic and business metrics to identify those that may most significantly influence growth in gross domestic production. Areas often evaluated in growth accounting include capital stock, available labor, and total factor productivity (a variable that measures outputs that occur above and beyond known inputs).
The concept of growth accounting was introduced by Robert Solow in 1957. Solow was an American economist and a Professor Emeritus at the Massachusetts Institute of Technology. His concept has also been referred to as the Solow residual.
How to use Growth accounting in a sentence?
- Growth accounting breaks down the contribution of factors to total GDP growth.
- Growth accounting was introduced by Robert Solow in 1957.
- The growth accounting equation primarily looks at three factors: labor, capital, and technology.
Meaning of Growth accounting & Growth accounting Definition