Comparative Output and Labour Productivity in Manufacturing for China, Japan, Korea and the United States in Circa 1935 by a Production PPP Approach
Following the standard methodology for measuring industry-of-origin or production-side PPPs, this study compares the unit values of manufacturing products in China, Japan, Korea and the US to calculate unit value ratios (UVRs) and hence estimates PPPs for individual manufacturing industries using the US as the base country in circa 1935. Based on the products that could be matched between these countries, the estimated manufacturing production PPPs for China, Japan and Korea are only from half to two thirds of the prevailing market exchange rates, suggesting much lower cost of production in manufacturing in these countries than in the US. The estimated PPPs are used to calculate industry-level output and labour productivity in China, Japan and Korea relative to those of the US in circa 1935. The results show that the size of factory manufacturing in Japan was 12 percent of the US level whereas in China it was only one percent and even lower in Korea. In terms of comparative labour productivity, measured as PPP$ per hour worked with the US as the reference, Japanese and Korean manufacturing was 24 and 23 percent of the US level, whereas Chinese manufacturing was only 7 percent of the US level.
|Date of creation:||Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ier.hit-u.ac.jp/Email:
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.:
- Kyoji Fukao & Osamu Saito, 2006. "Japan's alternating phases of growth and outlook for the future," Hi-Stat Discussion Paper Series d06-196, Institute of Economic Research, Hitotsubashi University.
- Szirmai, Adam & Ruoen, Ren, 2000. "Comparative performance in Chinese manufacturing, 1980-1992," China Economic Review, Elsevier, vol. 11(1), pages 16-53.
- Maddison, Angus, 1983. "A Comparison of Levels of GDP Per Capita in Developed and Developing Countries, 1700–1980," The Journal of Economic History, Cambridge University Press, vol. 43(01), pages 27-41, March.
- Summers, Robert & Heston, Alan, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 327-68, May.
- 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(02), pages 350-378, June.
- Kyoji Fukao & Debin Ma & Tangjun Yuan, 2006.
"Real GDP in Pre-War East Asia: A 1934-36 Benchmark Purchasing Power Parity Comparison with the U.S,"
Hi-Stat Discussion Paper Series
d05-132, Institute of Economic Research, Hitotsubashi University.
- Kyoji Fukao & Debin Ma & Tangjun Yuan, 2007. "Real Gdp In Pre-War East Asia: A 1934-36 Benchmark Purchasing Power Parity Comparison With The U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 503-537, 09.
- Wu, Harry X., 2001. "China's comparative labour productivity performance in manufacturing, 1952-1997: Catching up or falling behind?," China Economic Review, Elsevier, vol. 12(2-3), pages 162-189.
When requesting a correction, please mention this item's handle: RePEc:hst:ghsdps:gd08-018. 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: (Tatsuji Makino)
If references are entirely missing, you can add them using this form.