Economics Department Working Paper Series
Working Paper Number
2022-02
Publication Date
2022
Abstract
In this paper we present estimates of the world profit rate using country-level data from the Extended Penn World Table 7.0 and industry-level data from the World Input Output Database. The country-aggregated world profit rate series spans the period from 1960 to 2019, and the industry-aggregated world profit rate series runs from 2000 to 2014. The country-aggregated world profit rate series displays a strong negative linear trend for the period 1960-1980 and a weaker negative linear trend from 1980 to 2019. A medium run decomposition analysis reveals that the decline in the world profit rate is driven by a decline in the output-capital ratio. The industry-aggregated world profit rate shows a negative linear trend for the period 2000-2014, which, once again, is driven by a fall in the output-capital ratio. We have created a World Profitability Dashboard to allow researchers to freely access profit rate series and the underlying data at country, industry, country-group and world levels of aggregation.
DOI
https://doi.org/10.7275/43yv-c721
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
License
UMass Amherst Open Access Policy
Recommended Citation
Basu, Deepankar; Huato, Julio; Jauregui, Jesus Lara; and Wasner, Evan, "World Profit Rates, 1960-2019" (2022). Economics Department Working Paper Series. 318.
https://doi.org/10.7275/43yv-c721
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