--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-36/the-composition-of-capital-and-cross-country-productivity-comparisons/" title: "The Composition of Capital and Cross-country Productivity Comparisons" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:52:47+00:00" date_modified: "2026-07-13T07:52:47+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2019" ipm_keyword: - "capital composition" - "capital services" - "cross-country" - "development accounting" - "income differences" - "Penn World Table" - "productivity" - "rental prices" - "TFP" ipm_research_theme: - "Measurement and methodology" ipm_country_focus: - "Global" - "International" - "OECD" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Composition of Capital and Cross-country Productivity Comparisons Canonical URL: https://csls.ca/ipm-archive/ipm-issue-36/the-composition-of-capital-and-cross-country-productivity-comparisons/ # The Composition of Capital and Cross-country Productivity Comparisons [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-36-3-Inklaar-Woltjer-Albarran.pdf) Cite this article × Cite this article as: Inklaar, Robert, Pieter Woltjer, and Daniel Gallardo Albarrán. 2019. “The Composition of Capital and Cross-country Productivity Comparisons.” International Productivity Monitor, No. 36 (Spring 2019): 34–52. https://www.csls.ca/ipm-archive/ipm-issue-36/the-composition-of-capital-and-cross-country-productivity-comparisons/ ## Authors: - Robert Inklaar University of Groningen; The Conference Board - Pieter Woltjer University of Groningen; Wageningen University - Daniel Gallardo Albarrán University of Groningen; Wageningen University ## IPM Issue 36 Spring 2019 pp. 34–52 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn The role of physical capital is typically found to be limited in accounting for differences in GDP per worker, but this result may be because capital is customarily assumed to be a homogenous unit. This assumption is misleading, as different types of capital assets have different marginal products and richer countries tend to invest more in high-marginal product assets. We take this perspective to a global dataset, the Penn World Table, to improve cross-country productivity comparisons. We show that, properly measured, differences in capital input can account for a greater share of income variation, but (total factor) productivity differences remain dominant. Le rôle du capital physique est généralement jugé limité pour expliquer les différences de PIB par travailleur, mais ce résultat peut s’expliquer par le fait que le capital est habituellement supposé être une unité homogène. Cette hypothèse est trompeuse, car différents types d’actifs en capital ont des produits marginaux différents et les pays plus riches tendent à investir davantage dans des actifs à produit marginal élevé. Nous appliquons cette perspective à un ensemble de données mondial, les Penn World Tables, pour améliorer les comparaisons de productivité entre pays. Nous montrons que, correctement mesuré, les différences dans les intrants en capital peuvent expliquer une plus grande part de la variation du revenu, mais que les différences de PMF restent dominantes. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-36-3-Inklaar-Woltjer-Albarran.pdf)