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British and German Manufacturing Productivity Compared: A New Benchmark for 1935/36 Based on Double Deflated Value Added

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  • Fremdling, Rainer
  • De Jong, Herman
  • Timmer, Marcel P.

Abstract

We present a new estimate of Anglo-German manufacturing productivity levels for 1935/36. It is based on archival data on German manufacturing and published British census data. We calculate comparative levels of value added, correcting for differences in prices for outputs and inputs. This so-called double deflation procedure provides new insights into productivity comparisons because output- and input price structures differed greatly between the two countries. Although the new calculations confirm existing results at an aggregate level, they reveal important differences at the industry level and show how Germany was striving for autarky as it prepared its economy for war.

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  • 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(2), pages 350-378, June.
    • Handle: RePEc:cup:jechis:v:67:y:2007:i:02:p:350-378_00
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    References listed on IDEAS

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    1. Kravis, Irving B, 1976. "A Survey of International Comparisons of Productivity," Economic Journal, Royal Economic Society, vol. 86(341), pages 1-44, March.
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    3. Voskoboynikov, Ilya B., 2012. "New measures of output, labour and capital in industries of the Russian economy," GGDC Research Memorandum GD-123, Groningen Growth and Development Centre, University of Groningen.
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    8. Joost Veenstra & Herman Jong, 2016. "A Tale of Two Tails: Establishment Size and Labour Productivity in United States and German Manufacturing at the Start of the Twentieth Century," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 198-220, July.
    9. Rainer Fremdling & Reiner Staeglin, 2014. "Editor's choice Output, national income, and expenditure: an input–output table of Germany in 1936," European Review of Economic History, European Historical Economics Society, vol. 18(4), pages 371-397.
    10. Broadberry, Stephen & Klein, Alexander, 2011. "When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921-1991," Explorations in Economic History, Elsevier, vol. 48(1), pages 37-52, January.
    11. Giordano, Claire & Giugliano, Ferdinando, 2015. "A tale of two Fascisms: Labour productivity growth and competition policy in Italy, 1911–1951," Explorations in Economic History, Elsevier, vol. 55(C), pages 25-38.
    12. Ritschl, Albrecht, 2008. "The Anglo-German productivity puzzle, 1895-1935: a restatement and a possible resolution," Economic History Working Papers 22309, London School of Economics and Political Science, Department of Economic History.
    13. Herman De Jong & Pieter Woltjer, 2011. "Depression dynamics: a new estimate of the Anglo‐American manufacturing productivity gap in the interwar period," Economic History Review, Economic History Society, vol. 64(2), pages 472-492, May.
    14. Yuan, Tangjun & Fukao, Kyoji & Wu, Harry X., 2010. "Comparative output and labor productivity in manufacturing between China, Japan, Korea and the United States for ca. 1935 - A production-side PPP approach," Explorations in Economic History, Elsevier, vol. 47(3), pages 325-346, July.
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    16. Broadberry, Stephen & Fukao, Kyoji & Zammit, Nick, 2015. "How Did Japan Catch-up On The West? A Sectoral Analysis Of Anglo-Japanese Productivity Differences, 1885-2000," CAGE Online Working Paper Series 231, Competitive Advantage in the Global Economy (CAGE).
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    18. Woltjer, P. & Smits, Jan-Pieter & Frankema, Ewout, 2010. "Comparing Productivity in the Netherlands, France, UK and US, ca. 1910:A new PPP benchmark and its implications for changing economic leadership," GGDC Research Memorandum GD-113, Groningen Growth and Development Centre, University of Groningen.
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    20. Xuemei Jiang & Huijuan Wang & Yan Xia, 2020. "Economic structural change, renewable energy development, and carbon dioxide emissions in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1345-1362, October.

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