Economic growth is frequently explained by an increase in the quantity of production. However, economic growth is an increase in the productive capacity of an economy and it is explained by an outward shift of production possibility frontier. The aim of this study is to measure economic growth...

In the paper, the sources of productivity growth are investigated by an empirical analysis with micro data for West-German manufacturing firms. The theoretical framework corresponds to an augmented growth accounting approach based on a production function. The empirical results reveal that...