Template-type: ReDIF-Article 1.0
Author-Name: Andrew Sharpe
Author-Email: andrew.sharpe@csls.ca
Title: Editor’s Overview
Abstract:  THIS FIFTEENTH ISSUE OF THE International Productivity Monitor published by the Centre for the
Study of Living Standard contains five articles. Topics covered are: product market regulation and
productivity convergence in OECD countries and implications for Canada; the impact of interprovincial
migration on productivity and output in Canada; the relationship between productivity and
sustainable consumption in OECD countries; productivity growth in Chinese industries; and the
measurement of intangible capital.
Classification-JEL: O31, O47, O49, O53, O57, E01, F43, O11, Y2
Keywords: product market regulation, OECD countries, interprovincial migration, productivity and sustainable consumption, productivity growth in China, intangible capital, national accounts, growth accounting.
Journal: International Productivity Monitor
Pages: 1-2
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-editoroverview-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-editoroverview-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:0

Template-type: ReDIF-Article 1.0
Author-Name: Paul Conway
Author-Name: Giuseppe Nicoletti 
Title: Product Market Regulation and Productivity Convergence: OECD Evidence and Implications for Canada 
Abstract: In this article we investigate the effect of product market regulation on the international
diffusion of productivity shocks. The results indicate that regulations that restrict
competition slow the process of adjustment through which best practice production
techniques diffuse across borders and new technologies are incorporated into the production
process. This effect is reflected in cross-country differences in ICT investment and speeds of
catch up of sectoral productivity, which are significantly influenced by differences in product
market regulation. Thus, persisting cross-country differences in product market regulation
can partially explain the recent observed divergence of labour productivity in OECD
countries, given the emergence of new general purpose technologies over the 1990s. In the
case of Canada, the results suggest that remaining regulatory barriers to competition in a
few key non-manufacturing sectors may have prevented the economy from benefiting to the
full extent from high productivity growth rates in the United States and other productivity
leaders.
Classification-JEL: L51, O11, O14, O20, O38, O47, O57, F43
Keywords: product market regulation, OECD countries, cross-country differences, sectoral productivity, reform.
Journal: International Productivity Monitor
Pages: 3-24
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-conway-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-conway-f.pdf
File-Function:  version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:1

Template-type: ReDIF-Article 1.0
Author-Name: Andrew Sharpe 
Author-Name: Jean-Francois Arsenault
Author-Name: Daniel Ershov 
Author-Email: andrew.sharpe@csls.ca
Title: The Impact of Interprovincial Migration on Aggregate Output and Labour Productivity in Canada, 1987-2006 
Abstract: Interprovincial migration has increased significantly in Canada since 2003. This article
develops a methodology to estimate total output gains due to interprovincial migration from
two sources: gains due to increased employment, and gains due to re-allocation of workers
between provinces with different productivity levels. It estimates that in 2006 the net
output gains arising from interprovincial migration were $883.1 million (1997 constant
prices), or 0.074 per cent of GDP. Higher employment rates in provinces experiencing a net
positive balance of interprovincial migrants were responsible for $398.0 million of the gains
and higher output per worker in these provinces was responsible for $485.0 million.
Classification-JEL: J61, E20, O20, O47, O51
Keywords: Interprovincial migration, Canada, Labour Productivity, Economic Growth.
Journal: International Productivity Monitor
Pages: 25-40
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-sharpe-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-sharpe-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:2

Template-type: ReDIF-Article 1.0
Author-Name: Dean Baker
Author-Name: David Rosnick 
Title: India: Productivity and Sustainable Consumption in OECD Countries: 1980-2005
Abstract: Productivity growth is the main long-run determinant of living standards. However, there are
some distinctions between productivity growth as conventionally measured and the
potential of the economy to raise living standards. Specifically, insofar as the share of
depreciation in output increases, the rate of productivity growth will exceed the potential
growth rate of living standards. The same will be the case if prices for investment goods
decline relative to prices for consumption goods. This article adjusts for these factors to
develop the concept of “sustainable consumption,” and compares trends in this variable
with productivity growth in OECD countries for the 1980-2005 period.
Classification-JEL: E20, O11, C80, O47, O57
Keywords:  Productivity comparison, Sustainable consumption, living standards, OECD countries.
Journal: International Productivity Monitor
Pages: 41-54
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-baker-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-baker-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:3

Template-type: ReDIF-Article 1.0
Author-Name: Harry X. Wu 
Title: Measuring Productivity Performance by Industry in China, 1980-2005
Abstract: Using the author’s recently constructed data set, this article measures the productivity
performance of China’s 19 manufacturing industries, four mining industries, plus utilities,
over the reform period 1980-2005. The approach is based on neoclassical assumptions on
institutional settings and behavior of agents. Some of these assumptions are questionable in
the case of China, but the results can be used as a starting point for further investigation.
We find that the post-reform industrial growth in China had been largely investment-driven
and inefficient until the 2000-05 period. Following China’s accession to WTO in 2001,
Chinese industry experienced the best performance in TFP, accounting for 50 per cent of the
growth of industrial value added. However, the mining sector had been most inefficient and
had not yet shown a clear sign of improvement by 2005. Traditional labour intensive
manufacturing did not appear to be efficient as suggested by the theory of comparative
advantage, but there was a sign of significant improvement in 2000-05. By contrast, the
capital and technology-intensive industries engaged in consumer goods manufacturing were
most efficient throughout the entire period, apparently due to continuous foreign direct
investment, high exposure to international competition and less state intervention.
Classification-JEL: O11, O47, O53, F43, C80
Keywords: Productivity in China, National accounts, Growth accounting, Labour productivity, Total factor productivity.
Pages: 55-74
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-wu-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-wu-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:4

Template-type: ReDIF-Article 1.0
Author-Name: Paul Schreyer
Title: Old and New Asset Boundaries: A Review Article on Measuring Capital in the New Economy 
Abstract: In modern economies, technical change is rapid and competitive edges of companies are
closely related to 'intangible' capital. While some intangibles are covered by established
capital measures in the national accounts, many are outside the measurement boundary. The
NBER volume at hand brings together the most up-to-date empricial and conceptual work
that aims at measuring intangibles comprehensively. The different articles show that there is
neither a single definition nor a single method to measure intangibles. This is not surprising
given the very nature of these assets. The many challenges for measurement also mean that
more work needs to be done before considering a broad set of intangibles assets for
recognition in the national accounts. This reduces in no way the value of current and future
research on the issue and the NBER volume constitutes an excellent reference for analysts
and national accountants.
Classification-JEL: Y3, C40, C80. C82, O47
Keywords:  Intangible capital, New economy, National accounts.
Journal: International Productivity Monitor
Pages: 75-80
Volume: 15
Year: 2007
Month: Fall
File-URL:  http://www.csls.ca/ipm/15/IPM-15-schreyer-e.pdf
File-Format: Application/pdf
File-URL:  http://www.csls.ca/ipm/15/IPM-15-schreyer-f.pdf
File-Function: version en français
File-Format: Application/pdf
Handle: RePEc:sls:ipmsls:v:15:y:2007:5