... includes the impact of capital and other inputs.34 Nevertheless, because labor productivity is easier to calculate, it is available much faster than MFP and has the added advantage of being ... over the past two decades. The result has been tremendous growth in the competitive capacity of China, India, Korea, and Taiwan. But this rapid growth in Asia has reduced rates of growth for ... Fig. 4 by the fact that real wages track MFP, not labor productivity. These slower rates of growth in MFP and real labor incomes are a more accurate indicator of the rate of adaption to the growing...