(Percent)_______________________________________________________________
Output Per Capital-Labor multifactor Country Hour Substitution Productivity
United States: 1956-90 3.0 1.0 2.1 1956-93 3.1 1.0 2.1 1956-73 3.8 0.8 2.9
1973-90 2.3 1.1 1.2 1973-79 .8 1.1 -.2 1979-90 3.1 1.1 2.0 1990-93 4.0 1.1 2.8
Germany: 1956-90 4.7 2.0 2.6 1956-93 4.4 2.0 2.3 1956-73 6.5 3.1 3.4 1973-90 2.9
1.1 1.8 1973-79 4.3 1.7 2.6 1979-90 2.1 .8 1.3 1990-93 1.2 1.7 -.4 [source:
Lysko, 1995]
_______________________________________________________________ Table 3
Contribution of Labor, Capital and MFP to Manufacturing Output Growth, United
States Versus Germany, 1956-93 (Percent Annual Change)
_______________________________________________________________ Manufacturing
Labor/Capital MFP Growth Period Output Growth Input Growth __________ 1956-1990:
Germany 3.6 1.0 2.6 United States 3.3 1.2 2.1 Difference .3 - .2 .5 1956-1993:
Germany 3.1 .8 2.3 United States 3.2 1.1 2.1 Difference - .1 - .3 .2 1973-1990:
Germany 1.4 - .4 1.8 United States 2.0 .8 1.2 Difference - .6 - 1.1 .5
1990-1993: Germany - 2.2 - 1.8 - .4 United States 2.6 - .2 _ 2.8 Difference -
4.8 - 1.6 - 3.2 [source: Lysko, 1995]
_______________________________________________________________ The competitive
position of the Germany automobile manufacturing industry has suffered in the
decade of the 1990s, as German unemployment has increased by German standards
(Feast, 1996). High labor rates in the German automobile industry also have hurt
the industry, as German manufactured automobiles increasingly are unable to
compete within the context of price (Short-Term Prospects for the German Motor
Industry and Market, 1996). The pricing problem has hurt the industry in the
domestic German market, the wider European market, and the global automobile
market. Automobile Industry-Specific Tariffs and Trade Restrictions No tariffs
or trade restrictions apply to automobiles manufactured within the European
Union, regardless of the country in which the manufacturing plant is located and
regardless of where the headquarters of the plant owner is located. Thus,
General Motors and Ford based in the United States have subsidiaries in Europe,
including those located in Germany, which compete on equal terms with
European-based automobile manufacturers. One Japanese automobile manufacturer
has a plant located in Spain. The output of this plant competes on an equal
footing with European-based automobile manufacturers. Automobiles manufactured
in Japan, as well as those manufactured in the United States, and then shipped
to the European Union members, however, are subject to both tariffs and trade
restrictions in the form of import quotas.
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