Improving Productivity Measurement in World Bank Group Interventions

This note aims to help teams implementing interventions to employ firm productivity measures in their projects. It does so by providing guidance on: (a) measuring firm productivity, (b) strengthening theories of change as they relate to firm productivity, and (c) attributing productivity changes to projects. The note begins by first introducing the various productivity measures that can be used. It then discusses how project interventions may be linked to effects on firms and any measure of productivity, through a theory of change. Further, it provides guidance on productivity estimation in practice, before discussing how to attribute actual changes in productivity to project interventions. Finally, the note summarizes the key dos and don’ts for teams working on productivity.