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Divergences in Productivity Between Europe and the United States

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Divergences in Productivity Between Europe and the United States

Measuring and Explaining Productivity Gaps Between Developed Countries

9781847206411 Edward Elgar Publishing
Edited by Gilbert Cette, Director of Macroeconomic Analysis and Forecasting, Banque de France and Professor of Economics, University of Aix-Marseille II, France, Michel Fouquin, Advisor to the CEPII, Professor, FASSE Catholic University of Paris, France and Hans-Werner Sinn, President, Ifo Institute for Economic Research, Professor of Economics and Public Finance and Director, Center for Economic Studies, University of Munich, Germany
Publication Date: 2008 ISBN: 978 1 84720 641 1 Extent: 264 pp
In the 1990s, labour productivity growth accelerated in the United States, yet slowed down in other industrialised countries, reversing a three decade long tendency of convergence. The book explores this phenomenon. It first identifies the methodological and statistical problems involved in measuring productivity and making cross-country comparisons in this area. Then the role of factor accumulation for the diverging trends across the OECD world, with a particular focus on the dispersion of information and communication technology (ICT), is reviewed. In-depth studies of single countries provide further insights regarding growth trends in the United States, Japan, Germany, and France. Finally, empirical investigations regarding the determinants of productivity growth at an international level complement the analyses. The results stress that public infrastructure and education, employment rates and working hours, and ICT spending play an important role in explaining the existing differences in levels and changes of productivity.

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In the 1990s, labour productivity growth accelerated in the United States, yet slowed down in other industrialised countries, reversing a three decade long tendency of convergence. The book explores this phenomenon. It first identifies the methodological and statistical problems involved in measuring productivity and making cross-country comparisons in this area. Then the role of factor accumulation for the diverging trends across the OECD world, with a particular focus on the dispersion of information and communication technology (ICT), is reviewed. In-depth studies of single countries provide further insights regarding growth trends in the United States, Japan, Germany, and France. Finally, empirical investigations regarding the determinants of productivity growth at an international level complement the analyses. The results stress that public infrastructure and education, employment rates and working hours, and ICT spending play an important role in explaining the existing differences in levels and changes of productivity.

This comprehensive book, on recent research regarding international gaps in productivity growth, will be of great interest to policy advisors and academics, political decision-makers and students of economics, business administration, international business and international policy.
Contributors
Contributors: N. Ahmad, N. Belorgey, G. Cette, T. Eicher, M. Fouquin, T. Fuchs, R. Inklaar, D.W. Jorgenson, Y. Kocogluc, R. Lecat, F. Lequiller, J. Mairesse, P. Marianna, T.-P. Maury, J. Melka, K. Motohashi, L. Nayman, M. Piatkowski, D. Pilat, B. Pluyaud, P. Schreyer, H.-W. Sinn, M.P. Timmer, B. van Ark, H.-G. Vieweg, A. Wölfl
Contents
Contents:

Introduction: Measuring and Explaining Productivity Gaps Between
Developed Countries
Gilbert Cette, Michel Fouquin, Hans-Werner Sinn

1. Comparing Growth in GDP and Labour Productivity:
Measurement Issues
Nadim Ahmad, François Lequiller, Pascal Marianna, Dirk Pilat,
Paul Schreyer and Anita Wölfl

2. The Breaks in Per Capita Productivity: Trends in a Number of Industrial Countries
Tristan-Pierre Maury and Bertrand Pluyaud

3. ICT Diffusion and Potential Output Growth
Gilbert Cette, Jacques Mairesse, Yusuf Kocogluc

4. Yeasty Investment and Mushroom Productivity Growth: An Industry
Perspective on European and American Performance, 1987–2003
Robert Inklaar and Marcel P. Timmer

5. Growth Patterns in the OECD Area: Evidence from the Aggregate,
Industry and Firm Level
Dirk Pilat

6. Information Technology and the G7 Economies
Dale W. Jorgenson

7. Productivity, Innovation and ICT in Old and New Europe
Bart van Ark and Marcin Piatkowski

8. Information Technology and the Japanese Economy
Dale W. Jorgenson and Kazuyuki Motohashi

9. Outsourcing and Productivity Growth: Sectoral Evidence from Germany
Theo Eicher, Thomas Fuchs and Hans-Günther Vieweg

10. Determinants of Productivity per Employee: An Empirical Estimation using Panel Data
Nicolas Belorgey, Rémy Lecat and Tristan-Pierre Maury

11. Labour Quality and Skill Biased Technological Change in France
Johanna Melka and Laurence Nayman

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