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Productivity Comparison in Manufacturing Industries
Multilateral Comparison of Total Factor Productivity (TFP) in Manufacturing Industries of OECD Countries
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The differences in relative industry productivity §across countries are of interest and importance for §several reasons. The difference in total factor §productivity (TFP) explains comparative advantage, §international differences in price structure, and §gaps in income and growth across countries. §Productivity comparison by industry is attracting §interest because the overall TFP comparison to the §economy has strong assumptions such as the same §production function and identical factor prices over §all industries. Irrespective of the sizes of §manufacturing industries in the economy, the §industries are important contributors to economic §growth. The reason is that manufacturing generates §much new technology and has big spillover effects on §other sectors of the economy. Productivity §comparisons across countries require a multilateral §productivity index based on the Malmquist index. §This book explores multilateral TFP comparison of §manufacturing industries in 12 OECD counties since §1980 and identifies changes in TFPs over time and §across countries.
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