Gross domestic product (GDP) at market prices is an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes and minus any subsidies on products not included in the value of their outputs). The sum of the final uses of goods and services (all uses except intermediate consumption) is measured in purchasers’ prices less the value of imports of goods and services, or the sum of primary incomes distributed by resident producer units.

Two GDP series—GDPEKS and GDPGK—are available in the database. Both are in constant market prices and cover the period from 1950 to 2012. The GDPEKS series is based on PPPs for 2012, which cover 122 countries in the database, and it is updated with deflators from 2005 PPPs from the World/ICP PPP-round, but with adjustments obtained from Alan Heston (University of Pennsylvania, Penn World Tables). The GDPGK series is expressed in 1990 U.S. dollars, and it is available for all of the 123 countries in the database. It is converted at “Geary-Khamis” purchasing power parities (PPPs).  

Population is the annual average number of people present. Up to 1990, the population series are mostly derived from Angus Maddison’s Statistics on World Population, GDP and Per Capita GDP, 1-2008 AD (Last update: February 2010). From 1990 onwards, the series is mostly derived from the U.S. Census Bureau International Data Base. To extend the population series to the period before 1950, the series can be linked to Maddison’s historical series, which goes back to the nineteenth century and, in some cases, even further.

Employment figures should cover all persons engaged in some productivity activity that fall within the production boundary of the system. This group includes employees, the self-employed, unpaid family members that are economically engaged, apprentices, and the military. The production boundary follows the same domestic concept as the GDP, which includes all workers employed domestically, but not any nationals working abroad.

The employment data under National Accounts (domestic concept) in Eurostat New Cronos Database and OECD databases are the main sources used for advanced economies to ensure the consistency between measure of employment and GDP. A consistent and comparable measure of employment for countries not covered by OECD and Eurostat is not available. Instead, various international data sets are used (e.g., United Nations Economic Commission for Europe (UNECE), ILOSTAT database, etc.).

Total hours worked represent the aggregate number of hours actually worked as an employee or a self-employed person during the accounting period and when their output is within the production boundary.

The series of hours worked are currently available for 53 countries in the database with OECD and Eurostat National Accounts being the major data sources for recent years. Such data sources ensure that the total hours worked are within the production boundary and are consistent with the employment figures used in our database.

GDP per capita is obtained by dividing annual GDP by population. The two available series on real GDP per capita are based on GDPEKS and GDPGK.

To extend the GDP per capita series to the period before 1950, these series can be linked to the various historical series in Maddison’s Statistics on World Population, GDP and Per Capita GDP, 1-2008 AD (Last update: February 2010), which often go back to the nineteenth century and, in some cases, even further.

GDP per person engaged is obtained by dividing GDP by employment. It is one of the measures of labor productivity. The two available series on GDP per person engaged are based on GDPEKS and GDPGK.

GDP per hour is obtained by dividing GDP by total hours worked. It is one of the measures of labor productivity. The two available series on GDP per person engaged are based on GDPEKS and GDPGK.

Compared to GDP per person engaged, GDP per hour is the preferred measure of labor productivity because it measures labor intensity more adequately. However, the availability of this variable is restricted by the annual working hours data, which are currently available for 53 countries in the database.

The output for an economy can be measured by adding up all incomes, which must be either earned by factors of production (capital and labor) or taxed by government. Labor’s share in income is measured using compensation to employees and adding to it an adjustment (imputed wage compensation) for the self-employed.

Labor input in terms of total employment and total hour worked represents a series of labor quantity. In order to take the heterogeneity of the labor force into account in growth accounting analysis, an adjustment for the changes in the composition of labor is needed. The labor composition index is constructed on the basis of weighted measures of different skill-level groups in the labor force, using the Tornqvist index.

Growth in non-ICT capital services refers to the change in the flow of productive services provided by non-ICT assets. Three types of non-ICT assets are included—transport equipments; plant, machinery, and other non-ICT equipments; and construction, building and other structures.

The underlying capital stock series are calculated from the investment data using the perpetual inventory method. The aggregation of the growth in capital services over the different asset types is calculated using the user cost approach.

Growth in ICT capital services refers to the change in the flow of productive services provided by ICT assets. The three types of ICT assets included are computer hardware and equipment, telecommunication equipment, and computer software and services.

The underlying capital stock series are calculated from the investment data using the perpetual inventory method. The aggregation of the growth in capital services over the different asset types is calculated using the user cost approach.

Total factor productivity (TFP) growth accounts for the changes in output not caused by changes in labor and capital inputs. TFP growth represents the effect of technological change, efficiency improvements, and our inability to measure the contribution of all other inputs. It is estimated as the residual by subtracting the sum of two-period average compensation share weighted input growth rates from the output growth rate. Log differences of level are used for growth rates, and hence TFP growth rates are Tornqvist indexes.