Comparing Apples to Oranges: Productivity Convergence and Measurement Across Industries and Countries

Posted: 24 Feb 1997

See all articles by Andrew B. Bernard

Andrew B. Bernard

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Charles I. Jones

Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

Abstract

This paper examines the role of sectors in aggregate convergence for 14 OECD countries during 1970-1987. The major finding is that manufacturing shows little evidence of either labor productivity or multifactor productivity convergence, while other sectors, especially services, are driving the aggregate convergence result. To determine the robustness of the convergence results, the paper introduces a new measure of multifactor productivity which avoids many problems inherent to traditional measures of total factor productivity when comparing productivity levels. The lack of convergence in manufacturing is robust to the method of calculating multifactor productivity.

JEL Classification: O41, O47

Suggested Citation

Bernard, Andrew B. and Jones, Charles I., Comparing Apples to Oranges: Productivity Convergence and Measurement Across Industries and Countries. AMERICAN ECONOMIC REVIEW, Vol. 86, No. 5, December 1996. Available at SSRN: https://ssrn.com/abstract=3753

Andrew B. Bernard (Contact Author)

Dartmouth College - Tuck School of Business ( email )

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HOME PAGE: http://mba.tuck.dartmouth.edu/pages/faculty/Andrew.Bernard/

National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR) ( email )

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Charles I. Jones

Stanford Graduate School of Business ( email )

Stanford GSB
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United States
650-725-9265 (Phone)

HOME PAGE: http://www.stanford.edu/~chadj

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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