Template-type: ReDIF-Article 1.0
Author-Name: Andrew Sharpe
Author-Email: andrew.sharpe@csls.ca
Title: Editor’s Overview
Abstract:  This 14th issue of the International Productivity Monitor published by the Centre for the Study of
Living Standards contains five articles. Topics covered are recent productivity developments in the
United States; lessons for Canada from international productivity experience; India’s productivity
performance; measurement error and productivity growth in the Canadian construction industry;
and the recently released EU KLEMS productivity and growth accounts.
Classification-JEL: C40, E01, F40, F41, O11
Keywords: Productivity in the United States, International experience, India's productivity, Measurement Error, Construction, EU KLEMS, Growth accounts.
Journal: International Productivity Monitor
Pages: 1-2
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-editoroverview-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-editoroverview-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:14:y:2007:0

Template-type: ReDIF-Article 1.0
Author-Name: Barry P. Bosworth
Author-Name: Jack E. Triplett 
Title: The Early 21st Century U.S. Productivity Expansion is Still in Services
Abstract: Labour productivity in the U.S. non-farm business sector grew two and a half per cent per
year during the 1995-2005 period, nearly double its growth rate over the previous two
decades. Services sector labour productivity (LP) and multifactor productivity (MFP) grew
more rapidly and substantially exceeded productivity accelerations in the goods sector. We
show that the services sector accounted for three-quarters of U.S. MFP growth after 1995,
and within services the contribution of MFP to LP growth exceeded the vaunted contribution
of IT investment. We also find that the services sector has become even more important as
the primary source of sustained productivity growth after 2000.
In this study, we compute LP, MFP and contributions to growth accounts for 57 industries
within the goods and services sectors, using the new NAICS-based data set. We also show
that resource reallocations, which are a newly important factor in productivity analysis, have
changed the relation between increases in industry productivity growth rates and aggregate
and sector growth rates in surprising ways.
Classification-JEL: E01, F00, O11, O25, O31, O40, O47, O51
Keywords: Labour productivity, Multifactor productivity, Service sector, Resource reallocations.
Journal: International Productivity Monitor
Pages: 3-19
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-bosworth-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-bosworth-f.pdf
File-Function:  version en français
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Handle: RePEc:sls:ipmsls:v:14:y:2007:1

Template-type: ReDIF-Article 1.0
Author-Name: Andrew Sharpe
Author-Email: andrew.sharpe@csls.ca
Title: Lessons for Canada from International Productivity Experience
Abstract: The objective of this paper is to develop a more comprehensive understanding, from a policy
perspective, of key drivers of labour productivity in selected OECD countries and their impact
on enhanced productivity performance. The paper first presents some general lessons from the
productivity performance of OECD countries and international evidence of productivity drivers
based on the OECD growth project and productivity studies by the McKinsey Global Institute. It
then briefly discusses the productivity experience of six OECD countries considered of particular
interest to Canada — the United States, Australia, Ireland, the United Kingdom, Finland, and
Sweden — and comments on possible lessons for Canada from these experiences.
Classification-JEL: F00, F14, O20, O21, O40, O43, O51, O52, O57
Keywords: Labour Productivity, Productivity drivers, International experience.
Journal: International Productivity Monitor
Pages: 20-37
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-sharpe-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-sharpe-f.pdf
File-Function: version en français
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Handle: RePEc:sls:ipmsls:v:14:y:2007:2

Template-type: ReDIF-Article 1.0
Author-Name:  Joydeep Mukherji 
Title: India: Asia’s Next Productivity Success Story
Abstract: India has created the basic rules of modern economic and political life. While the country’s
institutional framework needs strengthening, it will allow India to prosper without drastic
changes. Gradual economic reform has transformed India, putting it on a much faster growth
path. Economic growth in the next ten years may not equal China’s current double-digit
growth rate, but India is nevertheless very likely to become one of the fastest growing
economies in the world, growing at a pace similar to that of Malaysia, Thailand, Taiwan and
Korea during their period of sustained rapid economic growth. The recent acceleration in real
GDP growth reflects both faster input growth as well as rising total factor productivity.
However, India has weaker social pillars to support economic growth than other East Asian
countries had at the time of their miracle growth years, mainly due to its poor education
system. Failure to address shortcomings in education, along with inadequate physical
infrastructure, and large fiscal deficits, would constrain India from reaching even faster
growth.
Classification-JEL: F00, F01, O21, O21, O23, O40, O53, O57
Keywords:  Economic growth, Institutional framework, Input growth, Total factor productivity, Education system, Physical infrastructure, Fiscal deficits.
Journal: International Productivity Monitor
Pages: 38-52
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-mukherji-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-mukherji-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:14:y:2007:3

Template-type: ReDIF-Article 1.0
Author-Name: Peter Harrison
Title: Can Measurement Error Explain the Weakness of Productivity Growth in the Canadian Construction Industry?
Abstract: According to Statistics Canada productivity estimates, the rate of growth of real output per
hour in the construction industry in Canada over the 1981-2006 period was 0.53 per cent per
year, one-third of the business sector average. This article examines evidence for and against
the hypothesis that measurement error explains this below average productivity
performance. The article finds that the use of input cost indexes to adjust nominal output to
obtain real output, instead of the more appropriate use of output price indexes, for certain
sub-industries of the construction sector represents the most likely source of measurement
error. This procedure may result in a downward bias to labour productivity growth in the
construction sector of up to 0.44 percentage points per year. It is thus likely that
measurement error explains some, but not all, of the gap in labour productivity growth
between the construction industry and the business sector.
Classification-JEL: C40, C80, C82, L74, O40, O51 
Keywords: Real labour productivity, Construction industry, Business sector, Input cost indexes, Measurement error, Productivity gap.
Pages: 53-70
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-harrison-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-harrison-f.pdf
File-Function: version en français
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Handle: RePEc:sls:ipmsls:v:14:y:2007:4

Template-type: ReDIF-Article 1.0
Author-Name: Marcel P. Timmer
Author-Name: Mary O’Mahony
Author-Name: Bart van Ark
Title: EU KLEMS Growth and Productivity Accounts: An Overview
Abstract: In March 2007, the EU KLEMS Growth and Productivity Accounts were publicly released.
These accounts include measures of output growth, employment and skill creation, capital
formation and multifactor productivity (MFP) at the industry level for European Union
member states from 1970 onwards. This overview paper first discusses the key characteristics
of the database and the variables, country and industry coverage, then reviews the growth
accounting methodology, including the measurement of labour and capital services, and
finally provides a brief analysis of major trends. The first release of the EU KLEMS database
confirms the view that European countries showed a significant slowdown in productivity
growth since 1995, which is shown to be widespread across countries and industries, but
with notable differences.
Classification-JEL: C80, O00, O40, O47, O52.
Keywords:  EU KLEMS, Growth accounts, Industry level, Growth accounting methodology.
Journal: International Productivity Monitor
Pages: 71-85
Volume: 14
Year: 2007
Month: Spring
File-URL:  http://www.csls.ca/ipm/14/IPM-14-timmer-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/14/IPM-14-timmer-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:14:y:2007:5