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Multilateral Comparisons of Output, Productivity, and Purchasing Power Parities in Manufacturing

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  • Pilat, Dirk
  • Rao, D S Prasada

Abstract

This paper presents multilateral comparisons of output, productivity, and purchasing power parities in manufacturing for 1975 and 1987. Two multilateral approaches are considered, namely the Geary-Khamis method and the generalized Theil-Tornqvist method based on the EKS procedure. The paper discusses the problem of lack of additive consistency of the generalized Theil-Tornqvist index and the absence of constant price comparisons within this framework. Some procedures that lead to near additive consistency are proposed. The empirical results show that multilateralization does not substantially affect the results and that both the Geary-Khamis and the generalized Theil-Tornqvist index give results comparable to the binary comparisons. Copyright 1996 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Pilat, Dirk & Rao, D S Prasada, 1996. "Multilateral Comparisons of Output, Productivity, and Purchasing Power Parities in Manufacturing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 113-130, June.
  • Handle: RePEc:bla:revinw:v:42:y:1996:i:2:p:113-30
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    1. repec:dgr:rugggd:gd-82 is not listed on IDEAS
    2. López-Pueyo, Carmen & Barcenilla-Visús, Sara & Sanaú, Jaime, 2008. "International R&D spillovers and manufacturing productivity: A panel data analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 152-172, June.
    3. Prasada Rao, D.S. & Timmer, Marcel, 2000. "Multilateralisation of manufacturing sector comparisons : issues, methods and empirical results," GGDC Research Memorandum 200047, Groningen Growth and Development Centre, University of Groningen.
    4. López-Pueyo, Carmen & Mancebón, María-Jesús, 2010. "Innovation, accumulation and assimilation: Three sources of productivity growth in ICT industries," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 268-285, March.
    5. Timmer, Marcel & Ypma, Gerard & van Ark, Bart van, 2007. "PPPs for Industry Output: A New Dataset for International Comparisons," GGDC Research Memorandum GD-82, Groningen Growth and Development Centre, University of Groningen.
    6. Yuan, Tangjun & Fukao, Kyoji & Wu, Harry X., 2010. "Comparative output and labor productivity in manufacturing between China, Japan, Korea and the United States for ca. 1935 - A production-side PPP approach," Explorations in Economic History, Elsevier, vol. 47(3), pages 325-346, July.
    7. Fox, Kevin J. & Grafton, R. Quentin & Kirkley, James & Squires, Dale, 2003. "Property rights in a fishery: regulatory change and firm performance," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 156-177, July.
    8. 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.
    9. C.J. O'Donnell, 2011. "The Sources of Productivity Change in the Manufacturing Sectors of the U.S. Economy," CEPA Working Papers Series WP072011, School of Economics, University of Queensland, Australia.

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