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International Comparison Of Purchasing Power, Real Output And Labour Productivity: A Case Study Of Brazilian, Mexican And U.S. Manufacturing, 1975

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  • Angus Maddison
  • Bart van Ark

Abstract

This study has a twofold objective: (a) a substantive analysis of purchasing power parities (PPP's), real output and labour productivity in Brazil, Mexico and the U.S.A.; and (b) a methodological survey of the analytic problems in measuring PPP's from the production side, rather than the expenditure approach used by the United Nations (ICP). Our main substantive findings were that PPP's for manufacturing did not vary greatly from the 1975 exchange rates, that labour productivity was surprisingly high in the two Latin American countries, and that there are substantial differences in the coverage of national accounts between Mexico and Brazil. We found census concepts of value added to be rather anachronistic, particularly in the U.S.A.; we developed a new short‐cut matching procedure for industries with a complex product structure; and we found the unit value approach not inferior to the specification pricing practiced by ICP.

Suggested Citation

  • Angus Maddison & Bart van Ark, 1989. "International Comparison Of Purchasing Power, Real Output And Labour Productivity: A Case Study Of Brazilian, Mexican And U.S. Manufacturing, 1975," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(1), pages 31-55, March.
    • Handle: RePEc:bla:revinw:v:35:y:1989:i:1:p:31-55
    DOI: 10.1111/j.1475-4991.1989.tb00581.x
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    Cited by:

    1. van Vuuren, D. P. & Strengers, B. J. & De Vries, H. J. M., 1999. "Long-term perspectives on world metal use--a system-dynamics model," Resources Policy, Elsevier, vol. 25(4), pages 239-255, December.
    2. Edward N. Wolff, 1999. "Specialization and Productivity Performance in Low-, Medium-, and High-Tech Manufacturing Industries," NBER Chapters, in: International and Interarea Comparisons of Income, Output, and Prices, pages 419-452, National Bureau of Economic Research, Inc.
    3. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Productivity Convergence in Mexico," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 9, pages 134-159, Palgrave Macmillan.
    4. Angus Maddison & Bart van Ark, 2002. "The International Comparison of Real Product and Productivity," Chapters, in: Angus Maddison & D. S. Prasada & William Shepherd (ed.), The Asian Economies in the Twentieth Century, chapter 2, pages 5-26, Edward Elgar Publishing.
    5. repec:dgr:rugggd:200251 is not listed on IDEAS
    6. Bart van Ark & Marcel Timmer, 2001. "The ICOP Manufacturing Database: International Comparisons of Productivity Levels," International Productivity Monitor, Centre for the Study of Living Standards, vol. 3, pages 44-51, Fall.
    7. repec:dgr:rugggd:199406 is not listed on IDEAS
    8. Ark, Bart van & Timmer, Marcel & Inklaar, Robert, 2002. "The Canada-U.S. manufacturing productivity gap revisited: new ICOP results," GGDC Research Memorandum 200251, Groningen Growth and Development Centre, University of Groningen.

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