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A Cross-Country, Cross-Industry Comparison of Productivity Growth

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Costello, Donna M
Abstract

This paper presents evidence on the nature of productivity growth for five major industries in six countries. Outp ut growth is found to be more correlated across countries than productivity growth. In addition, productivity growth is more correlated across industries within one country than across countrie s within one industry. Using an error-components model, the paper find s that a substantial fraction of changes in annual productivity can be attributed to nation-specific factors that are common across industries. The evidence suggests that short-run productivity growth is similar across industries in a nation but less similar across countr ies in any specific industry. Copyright 1993 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 101 (1993)
Issue (Month): 2 (April)
Pages: 207-22
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Handle: RePEc:ucp:jpolec:v:101:y:1993:i:2:p:207-22

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