By Nanno Mulder
This learn compares the commercial performances of Brazil, Mexico and the united states because 1950. As with such a lot different excessive and middle-income international locations, their economies are service-sector oriented and feature been for numerous a long time. This booklet encompasses all sectors of the economic climate yet focuses totally on companies, analysing either the most traits within the quite a few provider industries in Brazil and Mexico and the underlying forces shaping their large enlargement. the expansion of prone obscures huge ameliorations among the 2 Latin nations and the united states when it comes to the categories of providers that won significance and the using development forces. the writer presents a entire assessment of the long term improvement of the complete carrier region within the nations mentioned.
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Additional resources for Economic Performance in the Americas: The Role of the Service Sector in Brazil, Mexico and the USA
The difference, 23 points, may be attributed to lagging productivity growth. As such, sluggish productivity growth ‘explains’ about three-quarters of the increase of the service employment share during the 1950-96 period in Brazil, 60 per cent in Mexico and only 11 per cent in the USA. 5 -0. 3 Sources: Appendices A, B and C. Several reasons may explain the sluggish productivity growth in services. Baumol (1967) refers to the limited options for technological innovations in services, as they are labour intensive, require little capital and cannot be produced on a large scale.
The former refers to purchases of service inputs fkom outside firms, which were previously produced internally. In recent decades rapid improvements in information and communication technologies have made outsourcing much more feasible, as these permit the rapid exchange of information between the contractor and the service producer. As such, f m s tend to focus on their core business and contract other f m s for catering, cleaning, financial services, marketing and other services. Innovation relates to the increased complexity of production and the corresponding increased use of intermediate services.
Rents are deflated by the overall CPI, rental price indices for new and older dwellings or (quality-adjusted) measures of the housing stock (OECD, 1996). In this study only the services of owners and lenders of residential housing are included. Other real estate services were assumed to be proportional to those for dwellings. Real output is measured by the residential housing stock as published by the population censuses in Brazil, Mexico and the USA. These show the number of rooms per house and their connection to electricity, sewerage and water.