Mind the Gap! International Comparisons of Productivity in Services and Goods Production
In this paper, we make a comparison of industry output, inputs and productivity growth and levels between seven advanced economies (Australia, Canada, France, Germany, the Netherlands, United Kingdom and United States). Our industry-level growth accounts make use of input data on labour quantity (hours) and composition (schooling levels), and distinguish between six different types of capital assets (including three information and communication technology (ICT) assets). The comparisons of levels rely on industry-specific purchasing power parities (PPPs) for output and inputs, within a consistent input-output framework for the year 1997. Our results show that differences in productivity growth and levels can be mainly traced to market services, not to goods-producing industries. Part of the strong productivity growth in market services in Anglo-Saxon countries, such as in Australia and Canada, may be related to relatively low productivity levels compared with the United States. In contrast, services productivity levels in continental European countries were on par with the United States in 1997, but growth in Europe was much weaker since then. In terms of factor input use, the United States is very different from all other countries, mostly because of the more intensive use of ICT capital in the United States. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2007)
Issue (Month): (05)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1465-6485|
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.:
- Inklaar, Robert & Mahony, Mary O' & Timmer, Marcel, 2003.
"ICT and Europe's productivity performance industry-level growth account comparisons with the United States,"
GGDC Research Memorandum
200368, Groningen Growth and Development Centre, University of Groningen.
- Robert Inklaar & Mary O'Mahony & Marcel Timmer, 2005. "ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY-LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 505-536, December.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000.
"Raising the Speed Limit: U.S. Economic Growth in the Information Age,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
- Stephen D. Oliner & Daniel E. Sichel, 2000.
"The resurgence of growth in the late 1990s: is information technology the story?,"
Finance and Economics Discussion Series
2000-20, Board of Governors of the Federal Reserve System (U.S.).
- Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
- Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
- Someshwar Rao & Andrew Sharpe & Jeremy Smith, 2005. "An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 10, pages 3-23, Spring.
- Gordon, Robert J, 2004.
"Why Was Europe Left at the Station when America's Productivity Locomotive Departed?,"
CEPR Discussion Papers
4416, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 2004. "Why was Europe Left at the Station When America's Productivity Locomotive Departed?," NBER Working Papers 10661, National Bureau of Economic Research, Inc.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003.
"ICT and Productivity in Europe and the United States: Where Do the Differences Come From?,"
Economics Program Working Papers
03-05, The Conference Board, Economics Program.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo, vol. 49(3), pages 295-318.
- Oliner, Stephen D. & Sichel, Daniel E., 2003.
"Information technology and productivity: where are we now and where are we going?,"
Journal of Policy Modeling,
Elsevier, vol. 25(5), pages 477-503, July.
- Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 15-44.
- Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Finance and Economics Discussion Series 2002-29, Board of Governors of the Federal Reserve System (U.S.).
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003.
"Regulation, productivity and growth: OECD evidence,"
CEPR;CES;MSH, vol. 18(36), pages 9-72, 04.
- Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, Productivity and Growth: OECD Evidence," OECD Economics Department Working Papers 347, OECD Publishing.
- Jorgenson, Dale W. & Kuroda, Masahiro & Nishimizu, Mieko, 1987. "Japan-U.S. industry-level productivity comparisons, 1960-1979," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 1-30, March.
- Mary O'Mahony & Michela Vecchi, 2005. "Quantifying the Impact of ICT Capital on Output Growth: A Heterogeneous Dynamic Panel Approach," Economica, London School of Economics and Political Science, vol. 72(288), pages 615-633, November.
- Dirk Pilat, 1996. "Labour Productivity Levels in OECD Countries: Estimates for Manufacturing and Selected Service Sectors," OECD Economics Department Working Papers 169, OECD Publishing.
- Allen, Robert C & Diewert, W Erwin, 1981. "Direct versus Implicit Superlative Index Number Formulae," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 430-435, August.
- Hill, Robert & Timmer, Marcel, 2004.
"Standard errors as weights in multilateral price indices,"
GGDC Research Memorandum
200473, Groningen Growth and Development Centre, University of Groningen.
- Hill, Robert J. & Timmer, Marcel P., 2006. "Standard Errors as Weights in Multilateral Price Indexes," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 366-377, July.
- Susanto Basu & John G. Fernald, 2008.
"Information and communications technology as a general purpose technology: evidence from U.S. industry data,"
Federal Reserve Bank of San Francisco, pages 1-15.
- Susanto Basu & John Fernald, 2007. "Information and Communications Technology as a General-Purpose Technology: Evidence from US Industry Data," German Economic Review, Verein für Socialpolitik, vol. 8, pages 146-173, 05.
- Susanto Basu & John G. Fernald, 2006. "Information and communications technology as a general-purpose technology: evidence from U.S industry data," Working Paper Series 2006-29, Federal Reserve Bank of San Francisco.
- Robert J. Gordon, 2003. "Exploding Productivity Growth: Context, Causes, and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 207-298.
- D. S. Prasada Rao & Marcel P. Timmer, 2003. "Purchasing Power Parities for Industry Comparisons Using Weighted Elteto-Koves-Szulc (EKS) Methods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 491-511, December.
- repec:dgr:rugggd:200576 is not listed on IDEAS
- Francesco Daveri, 2004.
"Delayed IT Usage: Is It Really the Drag on Europe's Productivity?,"
CESifo Economic Studies,
CESifo, vol. 50(3), pages 397-421.
- Francesco Daveri, 2004. "Delayed IT Usage: Is it really the drag on Europe's productivity?," Working Papers 267, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Laurits R. Christensen & Dianne Cummings & Dale Jorgenson, 1980. "Economic Growth, 1947–73: An International Comparison," NBER Chapters, in: New Developments in Productivity Measurement, pages 595-698 National Bureau of Economic Research, Inc.
- Robert J. Hill, 1999. "Comparing Price Levels across Countries Using Minimum-Spanning Trees," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 135-142, February.
- Brynjolfsson, Erik & Hitt, Lorin M., 2004.
"Computing Productivity: Firm-Level Evidence,"
4210-01, Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Theo Eicher & Oliver Röhn, 2007. "Sources of the German Productivity Demise – Tracing the Effects of Industry-Level ICT Investment," CESifo Working Paper Series 1896, CESifo Group Munich.
- Robert Inklaar & Marcel Timmer, 2007. "International Comparisons of Industry Output, Inputs and Productivity Levels: Methodology and New Results," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 343-363.
- van Ark, Bart, 1998. "Productivity," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 171-174, June.
- Paul Schreyer, 2001. "The OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 2, pages 37-51, Spring.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Productivity, Volume 3: Information Technology and the American Growth Resurgence," MIT Press Books, The MIT Press, edition 1, volume 3, number 0262101114.
When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:8:y:2007:i::p:281-307. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.