TOTAL FACTOR PRODUCTIVITY - INFLUENCE FACTOR OF THE ECONOMIC GROWTH POTENTIAL. PRACTICAL APPLICATION

Abstract

Adequate to the new requirements of economy, the economic research has achieved progresses in addressing the issues regarding the growth and development, the economists drawing a number of theories and models, in order to find resorts that lead to sustainable growth. The paper refers to the means of assessment and forecast of the potential growth of an economy, by using a mathematical model, whose production function takes into consideration the role of three factors, being highlighted the role of the Total Factor Productivity, as an element of influence on growth with the other two factors. The study includes an application of the model use, for the analysis of the growth potential of the economy, at national level.