The Role of the Service Sector in Brazil, Mexico and the USA
Chapter 9: Commodity-producing Sectors
9. Commodity-producing Sectors AGRICULTURE Since the start of the ICOP programme in 1983 agriculture was the first sector for which international comparisons were carried out. This was because of the similarity of products, and the availability of standardised information on output, inputs, farm prices and farm accounts fiom the Food and Agriculture Organisation (FAO). Moreover, problems of quality, product differentiation, coverage and the application of double deflation are smaller for agriculture than for other sectors. Froduction statistics on agriculture distinguish only about 200 products compared to more than 15,000 for manufacturing. Brazil, Mexico and the USA were included in a 14-country comparison for 1975 by Maddison and van Ooststroom (1984, revised in 1993). The main results are summarised i Table 9.1. On the basis of the FAO data n 76products were matched in Brazil/USA comparison, and 83 in the Mexico/USA comparison. The produced quantities of each country were valued at US producer prices, as price information of other countries was much weaker. In Maddison and Rao (1996) the analysis was extended by calculating Paasche, Laspeyres and Geary-Khamis measures of agricultural output net of feed and seed. In order to fill the gaps in the data they used the CPD (country product dummy) method which is also adopted by the International Comparisons Programme (ICP), instead of shadow prices. In combination with employment statistics labour productivity of Brazil was estimated at 10 per cent of the US level and that of Mexico at 7 per cent. Maddison and van Ooststroom (1993)...
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