ABSTRACT
Guidelines for the estimation of productivity data were adopted by the e Organisation for Economic Co-operation and Development (OECD) in 2001. Australia has followed OECD guidelines, although periodically experimental estimates are prepared to provide deeper analysis of the drivers of growth at the industry level. This chapter provides a review of empirical evidence that explains the drivers of capital productivity in OECD economies and the role that capital productivity plays in both labour and multifactor productivity performance with reference to the construction industry. International comparisons for capital productivity are difficult to calculate for OECD countries because of differences in methods used to deflate information and communication technology investment, issues with the pricing of constant quality price changes, and individual country approaches to calculating net capital stock, asset depreciation and productive service lives. Improving capital productivity is an ongoing challenge across most industries in the market sector in OECD countries.
