How do we measure productivity?

							How do we measure
   productivity?

 Mary Hallward-Driemeier
 Workshop of Productivity
    October 31, 2005
Data sources for non-OECD
countries
• Official -- census, industrial surveys
   – Benefits include mandatory participation, consistent
     across time, possible to study contributions of entry
     and exit.
   – However, not available for many developing countries
     and many collect limited information
• Firm surveys
   – Sampling is very important
   – Value in building panels over time
   – Consistent questionnaire and implementation
   – Possible to link broader investment climate and
     impact evaluation of policies
   – Commitment to Investment Climate Surveys; to have
     a firm equivalent of the LSMS
                Benefit of ICS
• Expand country coverage where other sources
  of firm-level data is not available
• Includes rich set of firm characteristics
• Collects objective data on investment climate
  – Important for policy purposes when differences in the
    investment climate can account for the majority of the
    gaps in productivity – across countries and within
    countries
  – To understand broader measures of productivity and
    firm performance, do not just look at the factory floor
  Investment Climate Surveys
– Sales, changes in inventories, raw materials over 3
  years
– Number of workers (managerial, skilled, unskilled, non-
  production), the gender breakdown, compensation,
  average education.
– Capital stock (book value, replacement value) and
  investments over 3 years
– And range of investment climate indicators (objective
  measures of monetary and time costs associated with
  operating a business)
– Impact analysis across different types of firms
   • size, ownership, sector, age etc.
– Common core questionnaire for comparability
– Room to assess growth impact of specific reforms
Investment Climate Surveys completed:
     75 countries and 53,000 firms

                           BEEPS III




        Moving to regional rollout model in
        partnerships with other MDBs.
        (10 Latin American, 20 African countries in 2006)