Measuring the World Rate of Profit: A Marxian Approach

Abstract

This study applies multiple measures of profit rate, including those based on the Marxian concept of productive labor, to different data sources to control for data and definition impacts. Using a sample of thirty-two countries, the study finds a downward trend in the world rate of profit between 1952 and 2019, driven by technological change. A rising rate of surplus value acted as a countertendency and supported a partial recovery in the 1980s–1990s. The falling tendency has been common among most developed and developing countries. The falling profitability, together with declining productive and total worked hours and rising share of depreciation in the global value added, point to slower growth ahead.