Manufacturing TFP growth crucial for economic growth, study finds.
The study looked at how the growth of manufacturing and non-manufacturing industries affects economic growth in developed countries. They found that manufacturing TFP growth directly contributes to economic growth, while non-manufacturing TFP growth does not have the same impact. This means that even though manufacturing makes up a smaller part of the economy, it is still crucial for overall economic growth. The results suggest that focusing on improving productivity in manufacturing industries can help boost the economy.