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The French-German Productivity Comparison Revisited: Ten Years after the German Unification

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Author Info
Laurence Nayman
Deniz Unal-Kesenci

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Abstract

This study compares manufacturing output and productivity levels between France and Germany since the German unification. Taking as a benchmark the year 1997, the relative price level is calculated with the industry-of-origin method. The French level of productivity in terms of labour, capital and their combination is below the German one in 1997. However, with respect to cost competitiveness, France takes advantage of lower unit labour costs than Germany. Over the 90s, the factor productivity catch-up France achieved is significant. Disparities between the eastern and the western Länder that resulted in a lesser productivity growth remain large. But the commitment of the east into more high-tech production processes using skilled labour could turn in the future into competitiveness gains for all Germany.

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Paper provided by CEPII research center in its series Working Papers with number 2001-14.

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Date of creation: Dec 2001
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Handle: RePEc:cii:cepidt:2001-14

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Related research
Keywords: Relative price level; sectoral productivity; unit labour costs; growth accounting; German unification; desinflation competitive policy;

Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Gersbach, Hans & Ark, Bart van, 1994. "Micro Foundations for International Productivity Comparisons," GGDC Research Memorandum 199411, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
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  2. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD, Economics Department. [Downloadable!]
  3. Henning Klodt, 1999. "Industrial Policy and the East German Productivity Puzzle," Kiel Working Papers 943, Kiel Institute for the World Economy. [Downloadable!]
  4. Ark, Bart van & Timmer, Marcel & Inklaar, Robert, 2002. "The Canada-U.S. manufacturing productivity gap revisited: new ICOP results," GGDC Research Memorandum 200251, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
  5. Dirk Pilat, 1996. "Labour Productivity Levels in OECD Countries: Estimates for Manufacturing and Selected Service Sectors," OECD Economics Department Working Papers 169, OECD, Economics Department. [Downloadable!]
  6. Lionel Fontagne & Michael Freudenberg & Nicholas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center. [Downloadable!]
  7. Christopher Gust & Jaime Marquez, 2000. "Productivity developments abroad," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Oct, pages 665-681. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. M.Carmen Guisan & Eva Aguayo & A. David Carballas, 2004. "Human Capital, Industry, Tourism and Economic Development of EU25 Regions," ERSA conference papers ersa04p468, European Regional Science Association. [Downloadable!]
  2. M.Carmen Guisan & M.Teresa Cancelo, 2004. "Wages, Employment and Productivity in EU and USA," ERSA conference papers ersa04p460, European Regional Science Association. [Downloadable!]
  3. Aguayo, Eva & Guisan, Maria-Carmen, 2004. "Employment and Population in European Union: Econometric Models and Causality Tests," Economic Development 80, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics.. [Downloadable!]
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