Economic Performance in the Americas

Economic Performance in the Americas

The Role of the Service Sector in Brazil, Mexico and the USA

Nanno Mulder

Economic Performance in the Americas compares the economic performances of Brazil, Mexico and the USA over the past half century. As with most other high and middle-income countries their economies are service-sector orientated and have been for several decades. This book encompasses all sectors of the economy but focuses primarily on services, analysing both the main trends in the various service industries in Brazil and Mexico and the underlying forces shaping their huge expansion.

Appendix E: Reconciling Census and National Accounts Data

Nanno Mulder

Subjects: economics and finance, industrial economics


Production censuses were the main sources for our output and productivity comparisons, except for finance and real estate, education, health care and government. Censuses cover most establishments included in business registers. However, part of the production in each sector takes place in outlets excluded from these registers, such as unregistered outlets, streets and markets. Street vendors are particularly important in Brazil and Mexico. The national accounts use household surveys, international trade statistics, population censuses and tax records to impute the value added in unregistered activity. The production censuses and national accounts of Brazil, Mexico and the USA provide sufficient detail for a sectoral reconciliation of value added and employment data. For 1975 the Mexican national accounts make much bigger adjustments for value added of unregistered units than the Brazilian accounts do, in particular in financial services and real estate, restaurants and hotels, wholesale and retail trade and other services. To test the plausibility of the value added imputations of the national accounts, labour productivity of the registered sector was compared to that of the unregistered sector. Productivity in the former part of the economy should be higher than in the latter, because of the larger capital stock per worker, higher educational standards and a larger scale of production in the registered sector. This was the case for Brazil, but not for Mexico (Mulder, 1996). The value added of the national accounts was 2.5 times the value added of the census in Mexico, whereas national accounts employment was only twice the...

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