Template-type: ReDIF-Paper 1.0
Author-Name: Vertesy, Daniel
Author-Email: vertesy@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Szirmai, Adam
Author-Email: szirmai@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Brazilian aerospace manufacturing in comparative perspective: A Brazil/USA 
	 comparison of output and productivity
Abstract: A comparison of the performance of the Brazilian aerospace industry with 
	 that of the world leader in aerospace production, the USA, requires 
	 appropriate conversion rates. Following the methodology of the 
	 International Comparisons of Output and Productivity project (ICOP), we 
	 calculate unit value ratios for the aerospace industry based on 
	 ex-factory prices. So far no comparisons have been made for this sector, 
	 due to problems of disclosure in national statistics. In this paper, we 
	 have made adjustments to official data from industrial surveys using 
	 supplementary data on quantities and prices from a variety of other 
	 sources. Our 2005 unit value ratios for the aerospace industry are 
	 somewhat lower than updated UVRs from a previous ICOP study by Mulder et 
	 al (2002) for the whole transport equipment branch, but the two 
	 estimates are in the same range. Our results on comparative labour 
	 productivity in aerospace point to more rapid catch up than in the 
	 transport sector as a whole. There was a period between 1999 and 2003, 
	 when the Brazilian aerospace industry clearly outperformed the United 
	 States. However, Brazil was unable to sustain this dramatic sectoral 
	 catch up. After 2003, firms disregarded the clear signals of shrinking 
	 value added and continued to increase the number of employees. As a 
	 result Brazil once again fell behind.
Classification-JEL: L62, O14, O15, O47
Keywords: aerospace manufacturing, labour productivity growth, international comparison, 
	 Brazil, United States 
Series: UNU-MERIT Working Papers
Creation-Date: 2010
Number: 2010-032
File-URL: https://unu-merit.nl/publications/wppdf/2010/wp2010-032.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2010032