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Comparative productivity performance in manufacturing in South and East Asia, 1960-93

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  • Marcel Timmer
  • Adam Szirmai

Abstract

This paper focuses on comparative productivity performance in manufacturing in five major Asian economies: China, India, Indonesia, Korea and Taiwan. Using conversion factors derived according to an industry of origin approach, comparisons of real labour productivity are made, with the world productivity leader, the USA, as reference country in a star comparison. Benchmark level comparisons are extrapolated with time series. A distinction is made between Korea and Taiwan, which have experienced rapid productivity catch-up, and China, India and Indonesia, where relative productivity showed little change throughout the 1980s. Besides aggregate comparisons, the paper provides sectoral breakdown for 13 branches of manufacturing. The analysis at branch level reveals similar patterns and trends to those at the aggregate level. Catch-up accounting shows that changes in the structure of employment within manufacturing contributed little to aggregate catch-up. Labour productivity catch-up in Korea and Taiwan is primarily due to catch-up in capital intensity, but this process is still far from complete.

Suggested Citation

  • Marcel Timmer & Adam Szirmai, 1999. "Comparative productivity performance in manufacturing in South and East Asia, 1960-93," Oxford Development Studies, Taylor & Francis Journals, vol. 27(1), pages 57-79.
    • Handle: RePEc:taf:oxdevs:v:27:y:1999:i:1:p:57-79
    DOI: 10.1080/13600819908424166
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    References listed on IDEAS

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    1. Timmer, P.M., 1998. "Catch Up Patterns in Newly Industrializing Economies. An International Comparison of Manufacturing Productivity in Taiwan, 1961- 1993," Papers 40, Groningen State, Institute of Economic Research-.
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    5. Pilat, D., 1991. "Productivity Growth in South Korean Manuafacturing ; A Comparative Perspective, 1953-1988," Papers 435, Groningen State, Institute of Economic Research-.
    6. van Ark, Bart & Maddison, Angus, 1988. "Comparisons of real output in manufacturing," Policy Research Working Paper Series 5, The World Bank.
    7. Szirmai, Adam & Ruoen, Ren, 1995. "China's Manufacturing Performance in Comparative Perspective, 1980-1992," GGDC Research Memorandum 199520, Groningen Growth and Development Centre, University of Groningen.
    8. Timmer, Marcel P., 1998. "Catch up patterns in newly industrializing countries : an international comparison of manufacturing productivity in Taiwan, 1961-1993," GGDC Research Memorandum 199840, Groningen Growth and Development Centre, University of Groningen.
    9. Timmer, M.P. & Szirmai, A., 1997. "Growth and Divergence in Manufacturing Performance in South and East Asia," Papers 37, Groningen State, Institute of Economic Research-.
    10. 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.
    11. Dirk Pilat, 1994. "The Economics Of Rapid Growth," Books, Edward Elgar Publishing, number 360, March.
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    Citations

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    Cited by:

    1. Szirmai, Adam & Yamfwa, Francis & Lwamba, Chibwe, 2002. "Zambian manufacturing performance in comparative perspective," GGDC Research Memorandum 200253, Groningen Growth and Development Centre, University of Groningen.
    2. repec:dgr:rugggd:200796 is not listed on IDEAS
    3. Daniel Lind, 2008. "ICT Production and Productivity in Sweden and Finland, 1975-2004," International Productivity Monitor, Centre for the Study of Living Standards, vol. 17, pages 40-51, Fall.
    4. repec:dgr:rugggd:200259 is not listed on IDEAS
    5. Samuel Wangwe & Donald Mmari & Jehovanes Aikaeli & Neema Rutatina & Thadeus Mboghoina & Abel Kinyondo, 2014. "The Performance of the Manufacturing Sector in Tanzania: Challenges and the Way Forward," WIDER Working Paper Series wp-2014-085, World Institute for Development Economic Research (UNU-WIDER).
    6. Prins, M. & Schulte, W., 2002. "Tanzanian manufacturing performance in comparative perspective," GGDC Research Memorandum 200259, Groningen Growth and Development Centre, University of Groningen.
    7. Wangwe, Samuel & Mmari, Donald & Aikaeli, Jehovanes & Rutatina, Neema & Mboghoina, Thadeus, 2014. "The performance of the manufacturing sector in Tanzania: Challenges and the way forward," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    8. repec:dgr:rugggd:200253 is not listed on IDEAS
    9. Erumban, Abdul A., 2007. "Productivity and Unit Labor Cost in Indian Manufacturing: A Comparative Perspective," GGDC Research Memorandum 200796, Groningen Growth and Development Centre, University of Groningen.

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