Explaining Productivity Differences

This book, in contrast with previous research and popular discussions that focus on the productivity of workers, identifies the critical influence of supervisors and engineers as key drivers of productivity differentials. To do so, it analyzes productivity at a Japanese car component plant and its three offshoot plants located in the United States, Thailand, and China and how productivity evolved at these plants from the mid-1990s to the early 2010s. The author’s participatory observation approach reveals that productivity and work practices converged to a limited degree over the years at all four plants. Particularly influential are the persistent differences at these plants in the extent to which workers learn how to combine and integrate their production skills with troubleshooting skills. Supervisors play a key role in developing this integration in Japan, while worker skills remain separated in the other countries. Integrated skill development is promoted in Japan through the trusting relationships that first-line supervisors enjoy with their workforce. In the plants abroad, in contrast, the persistence of workers’ control over their individual skill development and careers impedes the development of integrated skills. Manufacturing engineers at the Japanese mother plant also play key linking roles, thereby enhancing communications and problem-solving on the shop floor, whereas manufacturing engineers at the US, Thai, and Chinese plants play more limited and compartmentalized roles. As a result, productivity remains high in Japan and lags in the other plants. Surprisingly, Japanese managers remain reluctant to introduce these more productive work practices in the offshoot plants.

Monograph on the definition and measurement of productivity, with particular reference to the economy of the USA - directed to non- specialists, discusses trends by sector (incl. Developed country comparison), causal factors behind productivity advance, relations to production costs and prices, etc., And considers productivity policies to further advancement. Bibliography pp. 136 to 138.

The COVID-19 pandemic struck the global economy after a decade that featured a broad-based slowdown in productivity growth. Global Productivity: Trends, Drivers, and Policies presents the first comprehensive analysis of the evolution and drivers of productivity growth, examines the effects of COVID-19 on productivity, and discusses a wide range of policies needed to rekindle productivity growth. The book also provides a far-reaching data set of multiple measures of productivity for up to 164 advanced economies and emerging market and developing economies, and it introduces a new sectoral database of productivity. The World Bank has created an extraordinary book on productivity, covering a large group of countries and using a wide variety of data sources. There is an emphasis on emerging and developing economies, whereas the prior literature has concentrated on developed economies. The book seeks to understand growth patterns and quantify the role of (among other things) the reallocation of factors, technological change, and the impact of natural disasters, including the COVID-19 pandemic. This book is must-reading for specialists in emerging economies but also provides deep insights for anyone interested in economic growth and productivity. Martin Neil Baily Senior Fellow, The Brookings Institution Former Chair, U.S. President’s Council of Economic Advisers This is an important book at a critical time. As the book notes, global productivity growth had already been slowing prior to the COVID-19 pandemic and collapses with the pandemic. If we want an effective recovery, we have to understand what was driving these long-run trends. The book presents a novel global approach to examining the levels, growth rates, and drivers of productivity growth. For anyone wanting to understand or influence productivity growth, this is an essential read. Nicholas Bloom William D. Eberle Professor of Economics, Stanford University The COVID-19 pandemic hit a global economy that was already struggling with an adverse pre-existing condition—slow productivity growth. This extraordinarily valuable and timely book brings considerable new evidence that shows the broad-based, long-standing nature of the slowdown. It is comprehensive, with an exceptional focus on emerging market and developing economies. Importantly, it shows how severe disasters (of which COVID-19 is just the latest) typically harm productivity. There are no silver bullets, but the book suggests sensible strategies to improve growth prospects. John Fernald Schroders Chaired Professor of European Competitiveness and Reform and Professor of Economics, INSEAD

As the accelerated technological advances of the past two decades continue to reshape the United States' economy, intangible assets and high-technology investments are taking larger roles. These developments have raised a number of concerns, such as: how do we measure intangible assets? Are we accurately appraising newer, high-technology capital? The answers to these questions have broad implications for the assessment of the economy's growth over the long term, for the pace of technological advancement in the economy, and for estimates of the nation's wealth. In Measuring Capital in the New Economy, Carol Corrado, John Haltiwanger, Daniel Sichel, and a host of distinguished collaborators offer new approaches for measuring capital in an economy that is increasingly dominated by high-technology capital and intangible assets. As the contributors show, high-tech capital and intangible assets affect the economy in ways that are notoriously difficult to appraise. In this detailed and thorough analysis of the problem and its solutions, the contributors study the nature of these relationships and provide guidance as to what factors should be included in calculations of different types of capital for economists, policymakers, and the financial and accounting communities alike.

The collection of papers in this book gives a comprehensive overview of the state of the art in the measurement and explanation of productivity differences. The contributions compare productivity developments in an international perspective not only between advanced countries in the OECD area but also with (former) planned economies in eastern Europe. The book includes comparisons among industrial, service and other sectors of the economy. Three different approaches to productivity measurement have been adopted: statistical comparisons of growth rates, statistical comparisons of relative levels and productivity case studies. Within each of these a wide variety of quantitative and qualitative factors is examined to explain differences at the macro, meso and micro level. These include physical capital intensity and growth, human capital (training, education, management, work organisation), R&D, product quality, globalisation and competition. Legal and social factors are taken into account as well as the problem of transfer pricing. Finally, the papers in this volume provide important information about the explanatory factors behind the catch-up and convergence process and about the underlying production processes and types of products in measuring the impact of technology diffusion.

John Dunning’s general theory of international production, first propounded in the late 1970’s, has generated considerable debate. This work thoughtfully reassesses the paradigm, and extends the analysis to embrace issues of theoretical and empirical importance. In a collection of essays, the changing characteristics of international production are examined, and an interdisciplinary approach suggested for understanding the multinational enterprise in the world economy. This book, first published in 1988, will be of value not only to economists and international business analysts, but to scholars in other fields, notably organizational, marketing and management specialists.

Papers from a seminar held at the Royaumont Abbey on 22 and 23 March 2004, and organized by the Banque de France, CEPII, and the Ifo Institute for Economic Research at the University of Munich.