Productivity: A Nation’s Means to Higher Standards of Life

(Introduction) To say that productivity is a very important part of every economy is an understatement. For a country, having good productivity is absolutely critical for economic prosperity. Production can be regarded as a cause of poverty in some countries and a microcosm of the cause of wealth in other countries. Higher production means more quantity of goods and services, which in turn raises the standard of living. If all countries have higher productivity, the world will be better, but the reason why this expected effect was not achieved is obvious.

The core countries own and manage the major production materials of the world, mainly performing the advanced production work. Neighboring countries have little production information in the world (even if they are located in neighboring countries) and provide less skilled workforce. Like the class system with the nation, the rank of the class in the world economy leads to unequal distribution of remuneration and resources. The core country has the largest share of surplus production and the surrounding country has the smallest share. In addition, while the core country can purchase raw materials and other goods from non-core countries at low cost, it also requires exporting higher prices to non-core countries.

Wallerstein's three-part world system theory is a socialist opinion because it gives priority to differences in position and conflict.

The only meaningful concept of competitiveness at national level is productivity. The main purpose of the country is to create a high standard of living for its citizens. Its ability depends on the country's labor force and capital productivity. Productivity is either labor output or capital unit production. Productivity depends on product quality and characteristics (which determines the price they can manage) and its productivity. Productivity is a major determinant of the country's long-term standard of living, which is the fundamental cause of per capita income. The productivity of human resources determines the wages of employees and determines the remuneration that capital productivity will give to holders.

The standard of living of a citizen is usually the total amount of goods and services produced by each population, so-called per capita gross domestic product (GDP) (or gross national product - gross national product per capita, net income from overseas) This is measured this time by the number of people employed and the productivity. Economic growth in a country refers to an increase in the production of goods and services produced in that country during the accounting period (usually 1 year) (Thirlwall 2006). If a country grows at a rate of 5% per year, it means that its gross domestic product (GDP) will grow at the same rate.