Total factor productivity and its determinants in the United States, the euro zone, China and India

We calculate the trend in total factor productivity (technological progress) in the United States, the euro zone, China and India. We find that total factor productivity: Is growing slightly, but a little faster in the recent period in the United States and the euro zone; Is growing quite quickly, but is decelerating in China; Is growing steadily in India. We link growth in total factor productivity (TFP) with the level of TFP, investment and R&D spending. We find no convincing explanation, valid for these four regions, for the growth in total factor productivity. R&D spending plays a role in the United States and the euro zone; the investment rate plays a role in India; the trend in total factor productivity remains unexplained in China.