The law of increasing productivity
by Piero Mella
International Journal of Markets and Business Systems (IJMABS), Vol. 3, No. 4, 2018

Abstract: I propose the following 'law of increasing productivity': the search for the highest levels of return on equity necessary to produce value for the shareholders and meet the expectations of the firms' stakeholders gives rise to an improvement process whose macro effect is increasing levels of productivity and quality. This paper will try to demonstrate that productivity is the basis of all productive systems, which are viewed as transformers of utility and value, since the search for maximum productive efficiency is necessary to reduce production costs and thus to produce value. After presenting a coherent frame of reference, I shall examine the drivers of productivity and then move on to discuss the consequences of the continual growth in productivity. The paper concludes with a simple but significant model that seeks to illustrate the relationship between productivity and employment.

Online publication date: Fri, 22-Feb-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Markets and Business Systems (IJMABS):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com