Multilateralisation of manufacturing sector comparisons : issues, methods and empirical results
AbstractThis paper examines the feasibility of constructing a consistent set of multilateral comparisons of manufacturing sector output and productivity within the framework of the ICOP project. A major objective of the paper is to construct truly multilateral comparisons using the existing data base of the ICOP project. This data base consists of data constructed essentially on the basis of detailed bilateral comparisons. Multilateral unit value ratios are built up from the lowest level possible (the product level). The second objective of the paper is to examine in-depth the problem of aggregation of unit value ratios. Various aggregation methods, both well-known methods and new ones, are applied and sensitivity of the results is examined. New multilateral aggregation methods are developed which take into account differences in number of matches of the underlying binary comparisons, as well as the Laspeyres-Paasche spread which is considered to be a general indicator of reliability. Finally, the paper presents empirical results derived from the application of the above procedures to data for eight countries for the 1987 benchmark year.
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Bibliographic InfoPaper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200047.
Date of creation: 2000
Date of revision:
Other versions of this item:
- Rao, D.S.P. & Timmer, M., 2000. "Multilateralisation of Manufacturing Sector Comparisons: Issues, Methods and Empirical Results," Papers 47, Groningen State, Institute of Economic Research-.
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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- Bart van Ark & Marcel Timmer, 2001. "The ICOP Manufacturing Database: International Comparisons of Productivity Levels," International Productivity Monitor, Centre for the Study of Living Standards, vol. 3, pages 44-51, Fall.
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