Measuring sectoral productivity across time and across countries

Abstract This paper examines the problem of measuring the evolution of productivity changes over time and across the 14 countries included in the OECD's International Sectoral Data Base of two sectors considered essential to the economic growth of any nation, namely manufacturing and services. The basic units of analysis are generalized Malmquist productivity indices. These in turn can be decomposed into several components, associated to the various sources of productivity change. Included here are productivity fluctuations due to economies of scale, being constant or variable, to technical change and technical efficiency change. The computational procedure is based upon the concept of distance function, computed through the use of variations of data envelopment analysis.

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