Measures of productivity and international competitiveness are used frequently to compare Australia’s performance in the international economic arena.
Conventionally, productivity gauges how efficiently labour, capital and technology combine to produce goods and services, whereas competitiveness reflects an economy’s ability to sell these goods and services to the rest of the world. Hence one focuses on the supply side of the economy, the other on the demand side.
Read the whole article by Professor Tom Makin in The Australian.