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Comparing sectoral productivity across countries

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  • Andrew Glyn

Abstract

Renewed interest in economic growth has encouraged studies of how different sectors have contributed to convergence trends. Comparing productivity levels across countries is notoriously tricky, but one attractive approach has been to deflate sector value added by the PPP exchange rate for GDP. There is a quite fundamental problem with this approach which, by measuring the purchasing power of sectoral incomes over GDP, biases the result towards reflecting the difference in GDP per head. In less extreme form the same problem applies to the use of a PPP for gross output of that sector.

Suggested Citation

  • Andrew Glyn, 2004. "Comparing sectoral productivity across countries," Economics Series Working Papers 195, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:195
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    Keywords

    Productivity; International Comparisons;

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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