Question

What have we learnt from the major studies of the critical role of productivity in economic growth?

Answer 1

The rise in the productivity affects the growth rate of economy positively. The growth is the sustained rise in the production of goods and services. When productivity rises, the same level of inputs are able to produce the more output level. It implies the rise in the productivities.

Thus productivity gives rise to the living standards of people.

Economy might slip into the low income trap if it does not make investment appropriately in the development of right technology.