PPPs for Industry Output: A New Dataset for International Comparisons

International comparisons of output, prices and productivity have been hampered by the unavailability of comprehensive sets of PPPs at the industry level. Existing expenditure PPPs and production PPPs both have their limitations. This paper proposes to use a mix of both for industry level comparisons. On the basis of a supply-use framework, the paper identifies how expenditure prices and output prices are conceptually related. It developscriteria on the basis of which an optimal mix of expenditure PPPs and production PPPs can be chosen. The paper then shows a PPP dataset for gross output for 45 industries (capturing the total economy) and 25 advanced countries. This dataset is the first comprehensive dataset of PPPs covering this large number of industries and countries. We illustrate its potential for research purposes by analysing patterns of relative prices in manufacturing and services.

Productivity Levels in Distributive Trades:A New ICOP Dataset for OECD Countries

This study provides a new dataset for international comparisons of labour productivity levels in distributive trade (retail and wholesale trade) between OECD countries. The productivity level comparisons are based on a harmonised set of Purchasing Power Parities (PPPs) for 1997 using the industry-of-origin approach as developed in the International Comparisons of Output and Productivity (ICOP) project. The methodology mimics current national accounts practice in measuring real output over time. The comparative estimates are extrapolated from the benchmark year using those national accounts series. The main finding of this study is that there is still a wide variety in labour productivity levels in the distribution sector across the OECD area. In 2002, the Germany, the Benelux and Scandinavian countries (except Sweden) were leading in terms of PPP-converted value added per hour worked with higher levels than in the U.S.. In Asia, the comparative labour productivity level is on average 39% of the U.S. level, whereas it is 48% on average in Eastern Europe. Within the “old” EU-15, countries like Italy, Portugal, Spain and the U.K. had relative levels less than 70% of the U.S.. There is no clear sign of convergence in productivity levels among OECD countries during the past two decades

IT in the European Union:driving productivity divergence?

This paper analyses the contributions of IT-capital deepening and total factor productivity growth (TFP) in IT-production on aggregate labour productivity growth patterns within the European Union in comparison with the US. We find that differences in the direct effects of IT almost fully explain the US lead in labour productivity growth over the EU aggregate over the period 1995-2001. However differences in the direct effects of IT are by no means the sole determinants of the widening of the "Atlantic Divide", neither the main cause of divergent labour productivity growth patterns within Europe. Non-IT capital deepening and non-IT TFP growth were major contributors to continued or even accelerating growth in small economies such as Austria, Finland, Greece, Ireland, Portugal and Sweden. In Finland, Sweden and especially Ireland this was augmented by high contributions from IT, which were even higher than in the US. At the same time, decelerating labour productivity growth in major European countries such as France, Germany, Italy and the UK was mainly due to declining contributions of non-IT capital deepening and non-IT TFP growth compared to the period 1980-1995

Productivity Levels in Transport, Storage and Communication: A New ICOP 1997 Data Set

This working paper provides industry-specific purchasing power parities for gross output in the transportation and communication sector. The calculation of these output PPPs builds on earlier work by the International Comparisons of Output and Productivity (ICOP) project in this field. The paper reviews the existing methods and develops a new system which takes full advantage of the improved data situation. The study captures the transportation and communication sectors of 32 countries (EU-25, Australia, Canada, Japan, Korea, New Zealand, Taiwan and United States). The second part of the paper applies the PPPs to productivity measures obtained from the EU KLEMS database and the 60-industry Database of the Groningen Growth and development Centre. This results in a consistent and comparable set of productivity levels at detailed industry level. We find that differences in productivity between the United States and other industrialized countries are only partly due to differences in industry structure. The United States especially outperform the EU-15 and Asia on productivity levels in land transport. Eastern European countries are still showing much lower productivity levels, except for land transport where they can become a though competitor for the former EU-15.

Productivity Levels in Transport, Storage and Communication: A New ICOP 1997 Data Set

This working paper provides industry-specific purchasing power parities for gross output in the transportation and communication sector. The calculation of these output PPPs builds on earlier work by the International Comparisons of Output and Productivity (ICOP) project in this field. The paper reviews the existing methods and develops a new system which takes full advantage of the improved data situation. The study captures the transportation and communication sectors of 32 countries (EU-25, Australia, Canada, Japan, Korea, New Zealand, Taiwan and United States). The second part of the paper applies the PPPs to productivity measures obtained from the EU KLEMS database and the 60-industry Database of the Groningen Growth and development Centre. This results in a consistent and comparable set of productivity levels at detailed industry level. We find that differences in productivity between the United States and other industrialized countries are only partly due to differences in industry structure. The United States especially outperform the EU-15 and Asia on productivity levels in land transport. Eastern European countries are still showing much lower productivity levels, except for land transport where they can become a though competitor for the former EU-15.