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CPS1239 Valerie M.B. et al.
sectors--then twice the amount of value per worker was produced in the
services sector compared to manufacturing sector (YHH+YCH>YRM). Since
= = and = =

∆ + > ∆ ≅ (2)
∆( + ) ∆

In conclusion, the productivity of services should be reassessed. The
premature deindustrialization hypothesis assumes there is something
inherently “special” about the traditional organization of manufacturing
production, but the arguments and evidence for Asia here presented suggest
otherwise. Part of the problem is that services are being erroneously measured
and valued using the same national accounting tools we use to measure
tangible manufactured goods. With the introduction of disruptive
technologies in all spheres of life this measurement error is likely to grow.
Policymakers and statistical offices need to adopt alternative measures of
labor productivity sooner rather than later based on time use.

References
1. Andersen, B., & Corley, M. (2003). The theoretical, conceptual and
empirical impact of the service economy (Vol. UNU-WIDER Discussion
Paper No. 2003/22). Helsinki: UNU World Institute for Development
Economics Research.
2. Asian Development Bank (2018b). Key Indicators of Asia and the Pacific,
49th edition, Asian Development Bank, Manila.
3. Brynjolfsson, E., Rock, D., & Syverson, C. (2017). Artificial Intelligence and
the Modern Productivity Paradox: A Clash Of Expectations and Statistics.
National Bureau of Economic Research Working Paper 24001,
Cambridge, MA, November.
4. International Montary Fund (2018b). Measuring the Digital Economy, a
Report by the Staff of the IMF. Washington, D.C.: International Monetary
Fund, February 28.
5. Miroudot, S., & Cadestin, C. (2017). Services In Global Value Chains:
From Inputs to Value-Creating Activities (Vol. OECD Trade Policy Papers
No. 197): OECD Publishing.
6. Moulton, B. and van de ven, P., 2018, Addressing the Challenges of
Globalization in National Accounts, NBER Conference,
http://papers.nber.org/conf_papers/f100570/f100570.pdf
7. Rodrik, D. (2016). Premature deindustrialization. Journal of Economic
Growth, 21(1), 1-33. doi:10.1007/s10887-015-9122-3.

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