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Productivity Growth in Services Industries: Is There a Role for Measurement?

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  • Anita Wölfl

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Abstract

Productivity growth has tended to be slower in service industries than in goods industries. Anita Wölfl of the OECD finds that measurement error may be responsible for slower productivity growth in the service sector. She notes that some service industries in certain OECD countries have experienced negative productivity growth over long periods, despite intensive use of Information and COmmunication Technologies (ICTs), exposure to international competition, and the existence of economies of scale. Wölfl discusses the several possible sources of measurement error that may lead to this unexpected result and quantifies the impact of correcting for measurement errors on aggregate productivity growth.

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File URL: http://www.csls.ca/ipm/8/wolfl-e.pdf
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File URL: http://www.csls.ca/ipm/8/wolfl-f.pdf
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Bibliographic Info

Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 8 (2004)
Issue (Month): (Spring)
Pages: 66-80

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Handle: RePEc:sls:ipmsls:v:8:y:2004:7

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Related research

Keywords: Productivity Growth; Service Industries; Services; Service Sector; Baumol’s Cost Disease; Measurement Error; Output Measurement;

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References

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  1. Anita Wölfl, 2003. "Productivity Growth in Service Industries: An Assessment of Recent Patterns and the Role of Measurement," OECD Science, Technology and Industry Working Papers 2003/7, OECD Publishing.
  2. Nadim Ahmad & François Lequiller & Pascal Marianna & Dirk Pilat & Paul Schreyer & Anita Wölfl, 2003. "Comparing Labour Productivity Growth in the OECD Area: The Role of Measurement," OECD Statistics Working Papers 2003/5, OECD Publishing.
  3. L. Slifman & C. Corrado, 1996. "Decomposition of productivity and unit costs," Staff Studies 1, Board of Governors of the Federal Reserve System (U.S.).
  4. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  5. Martin Neil Baily & Robert J. Gordon, 1988. "The Productivity Slowdown, Measurement Issues, and the Explosion of Computer Power," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 347-432.
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Cited by:
  1. Jula, Dorin & Jula, Nicoleta, 2007. "Inter-industries productivity gap and the services employment dynamics," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(2), pages 5-15, June.
  2. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
  3. Peter Havlik, 2005. "Structural Change, Productivity and Employment in the New EU Member States," wiiw Research Reports 313, The Vienna Institute for International Economic Studies, wiiw.
  4. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.

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