Productivity refers to the average measure of production efficacy. Economic productivity is determined by the input in relation to the factors of production and the output value. Productivity is the main determinant of how the economy of a country thrives. Higher productivity means a higher gross domestic product and a high per capita income. There are many factors that productivity of an economy depends on (Sowell, 2001).
Education is one of such factors which are seen in economics as an investment in people, known as human capital. An economy of a country which has a high level of education at the country level and also individual level has proven to be highly productive. Countries that invest most in education tend to have higher rates of growth in their per capita output, and also these countries tend to have their economies grow fast.Want an expert to write a paper for you Talk to an operator now
Education in this context includes formal schooling, training required for the job and the necessary work experience. The evidence that education is considered as a crucial part of economic productivity is the fact that more educated people earn better salaries, as the industry could not pay so much where they are not productive in their output (Bureau of Labor Statistics, 1993).
Research into the best methods of production, its improvement and also how to make new products also lead to the economic growth. For instance, scientific research has discovered new corn seeds which are highly productive when farmed, and consequently the corn is exported in greater volumes thereby increasing the GDP.
Technology is another underlying factor for the productivity of an economy. The right type of applied technology can increase the productivity. Fiber optics, for instance, has made internet connections faster, and therefore internet transactions are done in a quicker way. In addition, technology has opened global market for the products beyond geographical boundaries.
Increase of inputs leads to the increased output which results in the significant growth in productivity. Education, researches and technological advances are vital factors for increasing productivity and therefore, if backed by national policies, could see extensive growth in the economy.