The Level of Productivity in Traded and Non-Traded Sectors for a Large Panel of Countries

50 Pages Posted: 26 Mar 2015

See all articles by Rui C. Mano

Rui C. Mano

International Monetary Fund

Marola Castillo

International Monetary Fund (IMF) - Research Department

Date Written: February 2015

Abstract

This paper explains in detail the construction of series for productivity in the traded and nontraded sectors for a panel of 56 countries spanning 1989–2012. The level of productivity in each sector is defined as real value added per worker in constant 2005 Purchasing Power Parity (PPP) U.S. dollars. To construct these series, we collect industry-level data from several sources, and classify individual industries as traded/non-traded using their ratio of exports to value added. Finally, we aggregate the industry data up to a traded sector and a non-traded sector, accordingly. This new dataset has two main advantages relative to existing datasets: (i) it defines more finely the traded/non-traded sectors, by drawing on much more disaggregated industry source data; and (ii) it allows for meaningful comparisons of the level of productivity across countries/sectors because sectoral productivity is adjusted by its own price level.

Keywords: Productivity, Industrial sector, Purchasing power parity, Cross country analysis, Panel analysis, Price indexes, Sectoral Productivity, Traded and Non-Traded Sectors, industry, value added, products, goods, exchange, benchmark, exchange rates

JEL Classification: F41, F43

Suggested Citation

Mano, Rui C. and Castillo, Marola, The Level of Productivity in Traded and Non-Traded Sectors for a Large Panel of Countries (February 2015). IMF Working Paper No. 15/48, Available at SSRN: https://ssrn.com/abstract=2585434

Rui C. Mano (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

HOME PAGE: http://sites.google.com/site/ruimano/

Marola Castillo

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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