The Europe-U.S. Retail Trade Productivity Gap in a Rear-view Mirror
Is the Europe-U.S. retail trade productivity gap a genuine phenomenon or the result of a variety of measurement issues? This research question, which raised concerns during most of the decade preceding the Great Recession, has two primary motivations. First, I hope to gain a better understanding of the Europe-U.S. market economy productivity gap, attributable almost solely to the retail trade sector. In particular, the goal is to answer the perplexing question that remains stubbornly relevant: ?Can measurement errors, including those that arise from offshoring, explain all, some, or none of the productivity gap in this sector?? Second, this paper is about more than measurement differences. It also asks how much of the measured gap is attributable to transatlantic differences in economic structures such as scale economies. With a harmonized measure of real output, the post-1995 period now reports a 0.5 percentage point productivity gap in favour of the U.S., down from the ?official? 1.2 percentage points. This new gap is further downgraded to one-third of a percentage point as a result of a counterfactual experiment that asks what would productivity performance look like had the quantitative analysis accounted for differences in economic structures between the two economies. The productivity gap in favour of the U.S. retail trade sector still holds albeit with a modest order of magnitude.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +31 50 363 7185
Fax: +31 50 363 3720
Web page: http://ggdc.eldoc.ub.rug.nl/
More information through EDIRC
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.:
- Emek Basker & Pham Hoang Van, 2005. "Putting a Smiley Face on the Dragon: Wal-Mart as Catalyst to U.S.-China Trade," Working Papers 0506, Department of Economics, University of Missouri, revised 07 Oct 2005.
- Haskel, Jonathan & Sadun, Raffaella, 2009.
"Regulation and UK Retailing Productivity: Evidence from Micro Data,"
IZA Discussion Papers
4028, Institute for the Study of Labor (IZA).
- Jonathan Haskel & Raffaella Sadun, 2012. "Regulation and UK Retailing Productivity: Evidence from Microdata," Economica, London School of Economics and Political Science, vol. 79(315), pages 425-448, 07.
- Haskel, Jonathan & Sadun, Raffaella, 2009. "Regulation and UK Retailing Productivity: Evidence from Micro Data," CEPR Discussion Papers 7140, C.E.P.R. Discussion Papers.
- Rebekka Christopoulou & Philip Vermeulen, 2012.
"Markups in the Euro area and the US over the period 1981–2004: a comparison of 50 sectors,"
Springer, vol. 42(1), pages 53-77, February.
- Christopoulou, Rebekka & Vermeulen, Philip, 2008. "Markups in the euro area and the US over the period 1981-2004: a comparison of 50 sectors," Working Paper Series 0856, European Central Bank.
- Emek Basker & Pham Hoang Van, 2010.
"Imports "Я" Us: Retail Chains as Platforms for Developing-Country Imports,"
American Economic Review,
American Economic Association, vol. 100(2), pages 414-18, May.
- Emek Basker & Pham Hoang Van, 2008. "Imports "R" Us: Retail Chains as Platforms for Developing-Country Imports," Working Papers 0804, Department of Economics, University of Missouri, revised 12 Aug 2008.
- repec:cup:cbooks:9780521453455 is not listed on IDEAS
- Martin Neil Baily & Robert M. Solow, 2001. "International Productivity Comparisons Built from the Firm Level," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 151-172, Summer.
- Raphael Auer & Kathrin Degen & Andreas M. Fischer, 2010.
"Globalization and inflation in Europe,"
Globalization and Monetary Policy Institute Working Paper
65, Federal Reserve Bank of Dallas.
- Auer, Raphael A. & Degen, Kathrin & Fischer, Andreas M., 2013. "Low-wage import competition, inflationary pressure, and industry dynamics in Europe," European Economic Review, Elsevier, vol. 59(C), pages 141-166.
- Auer, Raphael & Degen, Kathrin & Fischer, Andreas M, 2010. "Globalization and Inflation in Europe," CEPR Discussion Papers 8130, C.E.P.R. Discussion Papers.
- Raphael Auer & Kathrin Degen & Andreas M. Fischer, 2011. "Low-Wage Import Competition, Inflationary Pressure, and Industry Dynamics in Europe," Working Papers 11.02, Swiss National Bank, Study Center Gerzensee.
- Raphael Anton Auer & Kathrin Degen & Andreas M. Fischer, 2011. "Low-Wage Import Competition, Inflationary Pressure,and Industry Dynamics in Europe," Working Papers 2011-09, Swiss National Bank.
- Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
- Galina Hale & Bart Hobijn, 2011. "The U.S. content of “Made in China”," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug8.
- Susan Houseman & Christopher Kurz & Paul Lengermann & Benjamin Mandel, 2011.
"Offshoring Bias in U.S. Manufacturing,"
Journal of Economic Perspectives,
American Economic Association, vol. 25(2), pages 111-32, Spring.
- Charlotta Groth & Soledad Nuñez & Sylaja Srinivasan, 2006. "Productivity growth, adjustment costs and variable factor utilisation: the UK case," Bank of England working papers 295, Bank of England.
- Auer, Raphael & Fischer, Andreas M & Kropf, Andreas, 2011. "The arrival of cheap goods: Measuring the impact of Chinese import competition on Nordic prices," CEPR Discussion Papers 8544, C.E.P.R. Discussion Papers.
- Robert Inklaar & Marcel Timmer, 2008. "Accounting for growth in retail trade: an international productivity comparison," Journal of Productivity Analysis, Springer, vol. 29(1), pages 23-31, February.
- Robert C. Feenstra & Robert E. Lipsey & Lee G. Branstetter & C. Fritz Foley & James Harrigan & J. Bradford Jensen & Lori Kletzer & Catherine Mann & Peter K. Schott & Greg C. Wright, 2010. "Report on the State of Available Data for the Study of International Trade and Foreign Direct Investment," NBER Working Papers 16254, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:dgr:rugggd:gd-127. 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: (Joke Bulthuis)
If references are entirely missing, you can add them using this form.