In fact, enterprise productivity is the comprehensive function of enterprise technology upgrading, management mode improvement, product quality improvement and enterprise structure upgrading, and any realistic productivity is actually total factor productivity. Total factor productivity can also be called system productivity. Total factor productivity is productivity, and the improvement of total factor productivity is industrial upgrading and productivity development.
Examples of total factor productivity:
If factors of production such as labor, capital (including capital and property created by labor such as factory buildings, machinery and equipment, and inventories) and land (including all natural resources) are put into production, the total output will be $654.38+$0.5 million.
Then, the output of $654.38+$05,000 consists of two contributions, of which $654.38+$00,000 is caused by the input of production factors, and the remaining $500,000 is the contribution of TFP. If this year's output increases by 15% compared with the previous year, and factor input increases by 10%, the remaining 5% is the growth of total factor productivity.