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