OECD Science, Technology and Industry Working Papers

ISSN :
1815-1965 (online)
DOI :
10.1787/18151965
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The OECD Directorate for Science, Technology and Industry (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.
 

Productivity Growth in Service Industries

An Assessment of Recent Patterns and the Role of Measurement You or your institution have access to this content

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Author(s):
Anita Wölfl1
Author Affiliations
  • 1: OECD, France

Publication Date
25 June 2003
Bibliographic information
No:
2003/07
Pages
67
DOI
10.1787/086461104618

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This paper examines recent patterns in productivity growth of service industries and analyses the role of problems in measuring service productivity growth on industry and aggregate productivity growth. At the aggregate level, unbalanced growth can be observed between a dynamic manufacturing sector on one hand and a rather stagnant service sector on the other. The service sector itself is, however, composed of a set of heterogenous industries with productivity growth rates ranging from low or negative rates to growth rates exceeding those of high-growth manufacturing industries. The empirical evidence suggests that low or negative productivity growth rates in several services are linked to measurement problems. Computing constant price service output is particularly important. Potential under-estimation of service productivity growth leads eventually to an under-estimation of aggregate productivity growth, via aggregation effects and the flows of intermediate inputs. There ...