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Multilateralisation of Manufacturing Sector Comparisons: Issues, Methods and Empirical Results

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  • Rao, D.S.P.
  • Timmer, M.

Abstract

This paper examines the feasibility of constructing a consistent set of multilateral comparisons of manufacturing sector output and productivity within the framework of the ICOP project. A major objective of the paper is to construct truly multilateral comparisons using the existing data base of the ICOP project. This data base consists of data constructed essentially on the basis of detailed bilateral comparisons. Multilateral unit value ratios are built up from the lowest level possible (the product level). The second objective of the paper is to examine in-depth the problem of aggregation of unit value ratios. Various aggregation methods, both well-known methods and new ones, are applied and sensitivity of the results is examined. New multilateral aggregation methods are developed which take into account differences in number of matches of the underlying binary comparisons, as well as the Laspeyres-Paasche spread which is considered to be a general indicator of reliability. Finally, the paper presents empirical results derived from the application of the above procedures to data for eight countries for the 1987 benchmark year.

Suggested Citation

  • Rao, D.S.P. & Timmer, M., 2000. "Multilateralisation of Manufacturing Sector Comparisons: Issues, Methods and Empirical Results," Papers 47, Groningen State, Institute of Economic Research-.
    • Handle: RePEc:fth:gronig:47
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    References listed on IDEAS

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    1. R. G. D. Allen, 1975. "Index Numbers in Theory and Practice," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-02312-7, March.
    2. van Ark, Bart & Maddison, Angus, 1988. "Comparisons of real output in manufacturing," Policy Research Working Paper Series 5, The World Bank.
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    5. Bart van Ark & Erik Monnikhof & Nanno Mulder, 1999. "Productivity in services: an international comparative perspective," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 471-499, April.
    6. Marcel P. Timmer, 2000. "The Dynamics of Asian Manufacturing," Books, Edward Elgar Publishing, number 1927.
    7. Dirk Pilat, 1994. "The Economics Of Rapid Growth," Books, Edward Elgar Publishing, number 360.
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    Cited by:

    1. repec:dgr:rugggd:200362 is not listed on IDEAS
    2. Castaldi, Carolina & Sapio, Sandro, 2006. "The Properties of Sectoral Growth: Evidence from Four Large European Economies," GGDC Research Memorandum GD-88, Groningen Growth and Development Centre, University of Groningen.
    3. repec:dgr:rugggd:gd-88 is not listed on IDEAS
    4. repec:dgr:rugsom:03c20 is not listed on IDEAS
    5. 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.
    6. Robert J. Hill, 2004. "Constructing Price Indexes across Space and Time: The Case of the European Union," American Economic Review, American Economic Association, vol. 94(5), pages 1379-1410, December.

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    More about this item

    Keywords

    STATISTICAL ANALYSIS ; ECONOMIC GROWTH ; MANUFACTURES;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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