Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: Editor’s Overview Abstract: This sixteenth issue of the International Productivity Monitor published by the Centre for the Study of Living Standard contains five articles. Topics covered are: multifactor productivity growth and innovation in the Canadian business sector;an analysis of Canadian labour productivity growth since 2000; measurement of total factor productivity; service sector productivity measurement in the United States; and data quality for market services in Europe. Classification-JEL: Keywords: innovation performance, multifactor productivity growth, emplyment shifts, Canadian productivity,market services, service sector productivity, productivity measurement, national accounts, growth accounting. Journal: International Productivity Monitor Pages: 1-2 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-editoroverview-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-editoroverview-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:0 Template-type: ReDIF-Article 1.0 Author-Name: Paul Boothe Author-Name: Richard Roy Title: Business Sector Productivity in Canada: What Do We Know? Abstract: Business sector productivity growth is central to Canadians' future prosperity. This article reviews the performance of the Canadian business sector in improving labour and multifactor productivity and examines possible factors underlying recent developments. The article links weak multifactor productivity growth in the Canadian business sector to the weak innovation performance of Canadian firms. The conclusion to this article describes a research program that Industry Canada, in conjunction with others, is carrying out. The research program seeks to identify the reasons for Canada's poor innovation and productivity performance, in order to shed light on actions that can be undertaken to improve productivity growth. Classification-JEL: O12, O21, O31, O51 Keywords: multifactor productivity, labour productivity, innovation performance. Journal: International Productivity Monitor Pages: 3-13 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-boothe-roy-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-boothe-roy-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:1 Template-type: ReDIF-Article 1.0 Author-Name: Jean-Francois Arsenault Author-Email: jf.arsenault@csls.ca Author-Name:Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000 Abstract: Since 2000, business sector labour productivity growth in Canada has averaged 0.95 per cent, 0.60 percentage points below the long-term trend established over the 1973-2000 period (1.55 per cent). In the United States productivity growth has continued to be robust beyond 2000, averaging 2.60 per cent per year. This article argues that Canada’s weak productivity growth since 2000 is temporary, and mostly associated with over-hiring and the adjustment costs of moving from a labour surplus to a labour shortage economy. The concentration of weak productivity growth since 2000 in the goods sector, the sector which shouldered the brunt of the structural adjustment, gives additional credence to this explanation. Moreover, most of the increased Canada-US productivity growth gap since 2000 relates to developments south of the 49th parallel. Given that the state of the factors driving productivity growth has not deteriorated in Canada relative to the United States in recent years, it is unlikely that long-term productivity growth in Canada and the United States have decoupled. Indeed, the current widening opens more room for convergence. Future productivity growth in Canada is likely to revert to its 1973-2000 trend. Classification-JEL: J21, J24, O51, O57 Keywords: Canada, Labour Productivity, Economic Growth, Inter-industry shifts, labour demographics. Journal: International Productivity Monitor Pages: 14-39 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-arsenault-sharpe-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-arsenault-sharpe-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:2 Template-type: ReDIF-Article 1.0 Author-Name: Erwin Diewert Title: What Is To Be Done for Better productivity Measurement Abstract: The first section of the article reviews general measurement problems associated with measuring sectoral total factor productivity. Secondly, the article argues that the production accounts in the present System of National Accounts (SNA) need to be extended somewhat in order to be suitable as a data base for measuring sectoral productivity growth rates. In particular, the treatment of exports, imports and indirect taxes is not completely adequate for productivity measurement purposes in the present SNA. Finally, the article makes some specific suggestions to statistical agencies that would lead to better productivity measurement. In particular, balance sheet information needs to be improved and made available to the public. Moreover, the balance sheet information needs to be integrated with sectoral measures of capital service inputs. Classification-JEL: C82, E22, F19, J82, O47, O51 Keywords: National accounts, SNA, Sectoral productivity, Productivity growth, economic measurements, input-output tables, Growth accounting Journal: International Productivity Monitor Pages: 40-52 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-diewert-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-diewert-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:3 Template-type: ReDIF-Article 1.0 Author-Name: Jack E. Triplett Author-Name: Barry P. Bosworth Title: The State of Data for Services Productivity Measurement in the United States Abstract: In this article, we present a brief history of the development of services industry data in the United States, review the substantial progress that has been made over the past decade and a half, and present recommendations for needed additional improvements. We conclude that the state of U.S. data for services industry productivity measurement is far better than it was even around 1990. However, our list of more than 40 suggested improvements indicates that, despite the substantial progress the U.S. statistical agencies have made in a relatively brief time, much more work needs to be done. The size of the services sector in GDP and its importance as a contributor to recent productivity advance justifies a further expansion of resources to bring the measurement of services industries fully up to the standard met by the goods-producing industries. Classification-JEL: C82, E23, O47, O51 Keywords: Service sector productivity, Productivity measurement, NAICS, labour input meaqsurement, national accounting methadologies. Pages: 53-71 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-triplett-bosworth-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-triplett-bosworth-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:4 Template-type: ReDIF-Article 1.0 Author-Name: Robert Inklaar Author-Name: Marcel P. Timmer Author-Name: Bart van Ark Title: Data for Productivity Measurement in Market Services: An International Comparison Abstract: With market services accounting for an increasing share of GDP as well as for differences in productivity growth performance across countries, the need for accurate measures of services output is becoming ever more important. In this article we first provide an international comparative perspective on the current state of measurement practices in market services across Europe. Second, we discuss the concrete measurement issues and possibilities for improvement in retail trade and banking. Our comparison of European measurement practices shows that improvements are feasible in many countries and industries without the need for fundamental conceptual research: it mostly requires national statistical agencies to devote additional efforts and resources to this objective. This is exemplified in retail trade, where existing data can be used to yield conceptually superior output measures. But there are other industries for which more research is required. Recent progress on the conceptual challenges to measure bank output suggests new data collection efforts would be needed in most countries to improve measurement of output growth in that industry. Classification-JEL: C82, O47, O52 Keywords: Retail trade, Banking, Productivity in market services, Productivity measurement, Data comparability. Journal: International Productivity Monitor Pages: 72-81 Volume: 16 Year: 2008 Month: Spring File-URL: http://www.csls.ca/ipm/16/IPM-16-inklaar-timmer-vanark-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/16/IPM-16-inklaar-timmer-vanark-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:16:y:2008:5