The failure of the neoclassical growth model to account for differences in output per worker across countries has suggested that these differences should be driven by cross-country differences in total factor productivity (TFP). This paper discusses various measures of productivity and its determinants for the OECD countries from different dimensions: (i) the measurement perspective; (ii) evidence on the evolution of productivity levels across OECD countries; and (iii) a critical review of the theoretical and empirical issues regarding the determinants of cross-country productivity differentials.

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