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Brazilian aerospace manufacturing in comparative perspective: A Brazil/USA comparison of output and productivity

Author

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  • Vertesy, Daniel

    (UNU-MERIT)

  • Szirmai, Adam

    (UNU-MERIT)

Abstract

A comparison of the performance of the Brazilian aerospace industry with that of the world leader in aerospace production, the USA, requires appropriate conversion rates. Following the methodology of the International Comparisons of Output and Productivity project (ICOP), we calculate unit value ratios for the aerospace industry based on ex-factory prices. So far no comparisons have been made for this sector, due to problems of disclosure in national statistics. In this paper, we have made adjustments to official data from industrial surveys using supplementary data on quantities and prices from a variety of other sources. Our 2005 unit value ratios for the aerospace industry are somewhat lower than updated UVRs from a previous ICOP study by Mulder et al (2002) for the whole transport equipment branch, but the two estimates are in the same range. Our results on comparative labour productivity in aerospace point to more rapid catch up than in the transport sector as a whole. There was a period between 1999 and 2003, when the Brazilian aerospace industry clearly outperformed the United States. However, Brazil was unable to sustain this dramatic sectoral catch up. After 2003, firms disregarded the clear signals of shrinking value added and continued to increase the number of employees. As a result Brazil once again fell behind.

Suggested Citation

  • Vertesy, Daniel & Szirmai, Adam, 2010. "Brazilian aerospace manufacturing in comparative perspective: A Brazil/USA comparison of output and productivity," MERIT Working Papers 2010-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2010032
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    File URL: https://www.merit.unu.edu/publications/wppdf/2010/wp2010-032.pdf
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    References listed on IDEAS

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    3. Van Ark, B. & Gersbach, H., 1994. "Micro Foundations for International Productivity Comparisons," Papers 572, Groningen State, Institute of Economic Research-.
    4. Michiel VAN Dijk, 2003. "South African Manufacturing Performance In International Perspective 1970–1999," South African Journal of Economics, Economic Society of South Africa, vol. 71(1), pages 119-142, March.
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    Cited by:

    1. Daaniel Vertesy & Adam Szirmai, 2010. "Interrupted Innovation: Innovation System Dynamics in Latecomer Aerospace Industries," Globelics Working Paper Series 2010-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.

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    More about this item

    Keywords

    aerospace manufacturing; labour productivity growth; international comparison; Brazil; United States;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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