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British and German Manufacturing Productivity Compared: A New Benchmark for 1935/36 Based on Double Deflated Value Added

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  • Fremdling, Rainer
  • De Jong, Herman
  • Timmer, Marcel P.

Abstract

We present a new estimate of Anglo-German manufacturing productivity levels for 1935/36. It is based on archival data on German manufacturing and published British census data. We calculate comparative levels of value added, correcting for differences in prices for outputs and inputs. This so-called double deflation procedure provides new insights into productivity comparisons because output- and input price structures differed greatly between the two countries. Although the new calculations confirm existing results at an aggregate level, they reveal important differences at the industry level and show how Germany was striving for autarky as it prepared its economy for war.

Suggested Citation

  • Fremdling, Rainer & De Jong, Herman & Timmer, Marcel P., 2007. "British and German Manufacturing Productivity Compared: A New Benchmark for 1935/36 Based on Double Deflated Value Added," The Journal of Economic History, Cambridge University Press, vol. 67(2), pages 350-378, June.
    • Handle: RePEc:cup:jechis:v:67:y:2007:i:02:p:350-378_00
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    Cited by:

    1. Giordano, Claire & Giugliano, Ferdinando, 2015. "A tale of two Fascisms: Labour productivity growth and competition policy in Italy, 1911–1951," Explorations in Economic History, Elsevier, vol. 55(C), pages 25-38.
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    3. Herman De Jong & Pieter Woltjer, 2011. "Depression dynamics: a new estimate of the Anglo‐American manufacturing productivity gap in the interwar period," Economic History Review, Economic History Society, vol. 64(2), pages 472-492, May.
    4. BROADBERRY, Stephen & FUKAO, Kyoji & SETTSU, Tokihiko, 2025. "How Did Japan Catch-up ｗith the West? Some Implications of Recent Revisions to Japan’s Historical Growth Record," Discussion Paper Series 763, Institute of Economic Research, Hitotsubashi University.
    5. Broadberry, Stephen & Fukao, Kyoji & Settsu, Tokihiko, 2025. "How did Japan catch-up with the West? Some implications of recent revisions to Japan's historical growth record," CAGE Online Working Paper Series 749, Competitive Advantage in the Global Economy (CAGE).
    6. Arunima Malik & Jun Lan, 2016. "The role of outsourcing in driving global carbon emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 168-182, June.
    7. 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.
    8. Kyoji Fukao & Harry X. Wu & Tangjun Yuan, 2008. "Comparative Output and Labour Productivity in Manufacturing for China, Japan, Korea and the United States in Circa 1935 by a Production PPP Approach," Global COE Hi-Stat Discussion Paper Series gd08-018, Institute of Economic Research, Hitotsubashi University.
    9. repec:dgr:rugggd:gd-140 is not listed on IDEAS
    10. Voskoboynikov, Ilya B., 2012. "New measures of output, labour and capital in industries of the Russian economy," GGDC Research Memorandum GD-123, Groningen Growth and Development Centre, University of Groningen.
    11. Lan, Jun & Malik, Arunima & Lenzen, Manfred & McBain, Darian & Kanemoto, Keiichiro, 2016. "A structural decomposition analysis of global energy footprints," Applied Energy, Elsevier, vol. 163(C), pages 436-451.
    12. repec:dgr:rugggd:gd-123 is not listed on IDEAS
    13. Broadberry, Stephen & Fukao, Kyoji & Zammit, Nick, 2015. "How Did Japan Catch-up On The West? A Sectoral Analysis Of Anglo-Japanese Productivity Differences, 1885-2000," CAGE Online Working Paper Series 231, Competitive Advantage in the Global Economy (CAGE).
    14. repec:dgr:rugggd:gd-141 is not listed on IDEAS
    15. Jiang, Xuemei & Guan, Dabo, 2017. "The global CO2 emissions growth after international crisis and the role of international trade," Energy Policy, Elsevier, vol. 109(C), pages 734-746.
    16. Woltjer, P. & Smits, Jan-Pieter & Frankema, Ewout, 2010. "Comparing Productivity in the Netherlands, France, UK and US, ca. 1910:A new PPP benchmark and its implications for changing economic leadership," GGDC Research Memorandum GD-113, Groningen Growth and Development Centre, University of Groningen.
    17. repec:dgr:rugggd:gd-113 is not listed on IDEAS
    18. Cecilia Lara & Svante Prado, 2023. "From boom to gloom: Brazilian labour productivity in manufacturing relative to the United States, 1912–2019," Economic History Review, Economic History Society, vol. 76(4), pages 1110-1140, November.
    19. Joost Veenstra & Herman Jong, 2016. "A Tale of Two Tails: Establishment Size and Labour Productivity in United States and German Manufacturing at the Start of the Twentieth Century," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 198-220, July.
    20. Rainer Fremdling & Reiner Staeglin, 2014. "Editor's choice Output, national income, and expenditure: an input–output table of Germany in 1936," European Review of Economic History, European Historical Economics Society, vol. 18(4), pages 371-397.
    21. Xuemei Jiang & Huijuan Wang & Yan Xia, 2020. "Economic structural change, renewable energy development, and carbon dioxide emissions in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1345-1362, October.
    22. Broadberry, Stephen & Klein, Alexander, 2011. "When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921-1991," Explorations in Economic History, Elsevier, vol. 48(1), pages 37-52, January.

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