ICT and productivity in Europe and the United States

The surge in labour productivity growth in the United States in the late 1990s has prompted much speculation about the capacity of Information and Communication Technologies (ICT) to structurally increase growth. The simultaneous slowdown in productivity growth in the EU suggests the European countries are falling behind. In this paper we will analyse labour productivity growth in 51 industries in Europe and the United States. Using shift-share techniques we identify the industries in which the U.S. has gained a lead and the underlying reasons for this. The results show that the U.S. has grown faster than the EU because of a larger ICT producing sector and faster growth in services industries that make intensive use of ICT. Lagging growth in Europe is concentrated in wholesale and retail trade and the securities industry.

The Effects of Federalism and Privatization on Productivity in Chinese Firms

This study offers empirical evidence about how the structure of government and private ownership affects productivity in Chinese firms. It uses the microdata of China's most recent decennial industrial census, covering all of the 23,000 large and medium industrial firms operating in China during 1995. The results show that government decentralization – 'federalism' – plays an important role in improving the performance of not just collective firms, but also state-owned and mixed public/private ownership firms. This result is strongly confirmatory of much of the recent theoretical work on transition economies that posits a key role for government in the efficient operation of markets. Privatization makes a big difference in performance for firms administered at the federal level, especially state-owned enterprises. Private ownership also makes a large difference for wholly foreign-owned firms, nearly all located in special districts. In local jurisdictions, however, there is little difference in productivity across the various nonstate ownership types, supporting the argument that the regulatory environment played a critical role in successful business performance.china productivity microdata ownership decentralization

ICT and productivity in Europe and the United States

The surge in labour productivity growth in the United States in the late 1990s has prompted much speculation about the capacity of Information and Communication Technologies (ICT) to structurally increase growth. The simultaneous slowdown in productivity growth in the EU suggests the European countries are falling behind. In this paper we will analyse labour productivity growth in 51 industries in Europe and the United States. Using shift-share techniques we identify the industries in which the U.S. has gained a lead and the underlying reasons for this. The results show that the U.S. has grown faster than the EU because of a larger ICT producing sector and faster growth in services industries that make intensive use of ICT. Lagging growth in Europe is concentrated in wholesale and retail trade and the securities industry.

The Composite Index of Leading Economic Indicators: How to Make It More Timely

A major shortcoming of the U.S. leading index is that it does not use the most recent information for stock prices and yield spreads. The index methodology ignores these data in favor of a time-consistent set of components (i.e., all of the components must refer to the previous month). An alternative is to bring the series with publication lags up-to-date with forecasts and create an index with a complete set of most recent components. This study uses tests of ex-ante predictive ability of the U.S. leading index to evaluate the gains to this new 'hot box' procedure of statistical imputation. We find that, across a variety of simple forecasting models, the new approach offers substantial improvements.

International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference?

Purchasing power parities (PPPs) for R&D expenditure in 19 manufacturing industries are developed for France, Germany, Japan, the Netherlands and the United Kingdom relative to the United States for the years 1997 and 1987. These PPPs are based on R&D input prices for specific cost categories and differ substantially from current practice of comparing R&D expenditure using GDP PPPs and deflators. After taking into account differences in the relative price of R&D labor and materials, separate PPPs for other R&D cost categories are less essential, and a simpler version using GDP PPPs for these other categories should suffice. Our preferred PPPs are used to compare international R&D costs and intensity. The results suggest that the efforts devoted to R&D in each country are more similar across countries than is apparent using the nominal R&D intensities that are currently the norm.

Carbohydrate Recognition by an Architecturally Complex α-N-Acetylglucosaminidase from Clostridium perfringens

CpGH89 is a large multimodular enzyme produced by the human and animal pathogen Clostridium perfringens. The catalytic activity of this exo-α-d-N-acetylglucosaminidase is directed towards a rare carbohydrate motif, N-acetyl-β-d-glucosamine-α-1,4-d-galactose, which is displayed on the class III mucins deep within the gastric mucosa. In addition to the family 89 glycoside hydrolase catalytic module this enzyme has six modules that share sequence similarity to the family 32 carbohydrate-binding modules (CBM32s), suggesting the enzyme has considerable capacity to adhere to carbohydrates. Here we suggest that two of the modules, CBM32-1 and CBM32-6, are not functional as carbohydrate-binding modules (CBMs) and demonstrate that three of the CBMs, CBM32-3, CBM32-4, and CBM32-5, are indeed capable of binding carbohydrates. CBM32-3 and CBM32-4 have a novel binding specificity for N-acetyl-β-d-glucosamine-α-1,4-d-galactose, which thus complements the specificity of the catalytic module. The X-ray crystal structure of CBM32-4 in complex with this disaccharide reveals a mode of recognition that is based primarily on accommodation of the unique bent shape of this sugar. In contrast, as revealed by a series of X-ray crystal structures and quantitative binding studies, CBM32-5 displays the structural and functional features of galactose binding that is commonly associated with CBM family 32. The functional CBM32s that CpGH89 contains suggest the possibility for multivalent binding events and the partitioning of this enzyme to highly specific regions within the gastrointestinal tract