Put simply, the rate of productivity change is merely the difference between the rate of change in outputs and the rate of change in inputs. [...] The outsourcing of manufacturing from the UK to Asia would show up as a decline in GVA, hours worked and emissions of UK manufacturing, and a structural change in the composition of the economy – all of which we will capture through the production measure. [...] The effects vary substantially by industry depending on the volume of emissions and pollutants relative to (measured) GVA, and the trend in the emissions and pollutants relative to the trend in real GVA. [...] This is because the inputs (e.g., hours worked by labour) are measured and included in the denominator of the productivity equation, but the corresponding output is not recorded in the numerator. [...] The unmeasured environmental protection output is combined with GDP in a chained volume measure (CVM), by using the weights of unadjusted-GDP and the unmeasured output in adjusted-GDP in the base period and the growth in the volumes of GDP and the unmeasured output respectively.
- Pages
- 59
- Published in
- United Kingdom
