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UNIDO Productivity Databases

UNIDO Productivity Databases. Amadou BOLY, UNIDO First Al-Khawarezmi conference Doha, Qatar 6-8 December 2010. UNIDO Industrial Statistics Database. UNIDO collects, maintains and disseminates international industrial statistics (manufacturing)

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UNIDO Productivity Databases

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  1. UNIDO Productivity Databases Amadou BOLY, UNIDO First Al-Khawarezmi conference Doha, Qatar 6-8 December 2010

  2. UNIDO Industrial Statistics Database • UNIDO collects, maintains and disseminates international industrial statistics (manufacturing) • Data for 181 countries and territories from 1963 ... but with gaps • Data on major industrial statistics, by ISIC rev 3 and rev 2: Number of units, employment, wages and salaries, output, value added, capital formation and production indices • Dissemination media: International Yearbook of Industrial Statistics CD products (INDSTAT 2 and INDSTAT 4) Online access to country briefs

  3. Productivity Projects • World Productivity Database (WPD) https://www.unido.org/data1/wpd/Index.cfm • World Manufacturing Productivity Database (in progress) • Productivity and Structural Change

  4. Why productivity? • Why are some countries richer than others? • Why are some firms more competitive than others? • Why do you earn more than …? • Productivity  welfare, prosperity • A few graphs to illustrate

  5. TFP and Poverty gap (1$) Source: World Productivity Database and World Development Indicators 2006.

  6. TFP and Poverty headcount Source: World Productivity Database and World Development Indicators 2006.

  7. TFP and Life expectancy Source: World Productivity Database and World Development Indicators 2006.

  8. TFP and Mortality rate under 5 Source: World Productivity Database and World Development Indicators 2006.

  9. 1 Luxembourg 181.05 11 Puerto Rico 87.48 171 Togo 2.51 2 Qatar 108.49 30 Trinidad &Tobago 70.31 172 Malawi 2.45 3 Macao 107.13 42 Bahamas 50.97 173 Madagascar 2.22 4 UAE 101.21 46 Antigua 44.61 174 Somalia 2.15 5 United States 100.00 51 Netherlands Antilles 41.59 175 Afghanistan 2.15 6 Norway 94.07 53 Barbados 40.48 176 Cambodia 2.03 7 Ireland 93.41 60 Dominica 33.55 177 Burundi 1.90 8 Belgium 93.28 77 St.Vincent & Gren. 25.73 178 Guinea-Bissau 1.82 9 Austria 89.06 79 Dominican Rep. 24.53 179 Congo, Dem. Rep. 1.53 10 Singapore 88.22 83 St. Lucia 22.60 180 Eritrea 1.52 91 Grenada 19.66 181 Liberia 1.35 92 Cuba 19.40 Jamaica 13.17 114 143 Haiti 5.62 Output per worker Source: Isaksson, 2010.

  10. Theory and Concepts #1 • Solow’s model • Y=A f(K,L)  Hicks-neutral • A = TFP = technology … at least in theory • TFP growth = technical progress (theory) • A = Y / KαLβ , often α+β=1

  11. Theory and Concepts #2 • Objective is to increase output/worker • Factor accumulation vs Technical progress • Factor accumulation comes to a halt • Technical progress the only source of growth

  12. Capital accumulation vs. Technical progress

  13. Productivity analysis • Define policy areas • Factor accumulation versus technical change • Which sectors contribute? • Which sectors are a drag? • Resources are scarce, trade offs

  14. Determinants: TFP Level • TFPt = F(past) • Acemoglu, Rodrik on Institutions • International integration • Glaeser et al on Human capital • Health • Culture and social institutions?

  15. Determinants: TFP growth • R&D and the like • Schooling and Health • Infrastructure • … • And much more  growth econometrics

  16. Measurement issues • Measurement of Y, K, L (and other inputs) • Functional form and specification • Measurement of α and β, returns to scale? • Quality of inputs and utilization rates • Disembodied/embodied technical change

  17. Conclusions • Productivity is key to our welfare • Important to gauge productivity… but difficult • Missing and shaky data • Are we sure about the determinants? • How can poor countries catch up? • UN, NSO and academe need to cooperate

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