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A perspective on UK productivity performance

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  • Nicholas Crafts
  • Mary O'Mahony

Abstract

The paper reviews recent UK productivity performance using insights from new growth economics and its embodiment in growth accounting techniques. The sources of the UK labour productivity gap are found to differ across countries; broad capital per worker plays a larger part with regard to France and Germany while innovation matters more compared with the USA. The role of incentive structures is examined and the importance of competition as an antidote to agency problems in UK firms is highlighted. Current UK policy is reviewed and the need to address government as well as market failures is stressed.

Suggested Citation

  • Nicholas Crafts & Mary O'Mahony, 2001. "A perspective on UK productivity performance," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 271-306, September.
    • Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:271-306
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Divide and conquer
      by chris dillow in Stumbling and Mumbling on 2008-03-08 16:10:34

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    Cited by:

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    2. John C. V. Pezzey & Nick Hanley & Nick Hanley & Karen Turner & Dugald Tinch, 2003. "Augmented Sustainability Measures for Scotland," Economics and Environment Network Working Papers 0302, Australian National University, Economics and Environment Network.
    3. Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2004. "The Case of the Missing Productivity Growth, or Does Information Technology Explain Why Productivity Accelerated in the United States but Not in the United Kingdom?," NBER Chapters, in: NBER Macroeconomics Annual 2003, Volume 18, pages 9-82, National Bureau of Economic Research, Inc.
    4. Pezzey, John C.V. & Hanley, Nick & Turner, Karen & Tinch, Dugald, 2006. "Comparing augmented sustainability measures for Scotland: Is there a mismatch?," Ecological Economics, Elsevier, vol. 57(1), pages 60-74, April.
    5. Peter-Cookey, Mayowa Abiodun & Janyam, Kanda, 2017. "Reaping just what is sown: Low-skills and low-productivity of informal economy workers and the skill acquisition process in developing countries," International Journal of Educational Development, Elsevier, vol. 56(C), pages 11-27.
    6. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
    7. Theodore M. Mitrakos & Georgios Th Simigiannis & Panagiota G. Tzamourani, 2005. "Indebtedness of Greek households: evidence from a survey," Economic Bulletin, Bank of Greece, issue 25, pages 13-35, AUgust.
    8. John Van Reenen, 2001. "The new economy: reality and policy," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 307-336, September.
    9. Bernd Görzig & Martin Gornig & Laurence Nayman, 2012. "Productivity Transitions in Large Mature Economies: France, Germany and the UK," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 4, Edward Elgar Publishing.
    10. David Morris & Enrico Vanino & Carlo Corradini, 2020. "Effect of regional skill gaps and skill shortages on firm productivity," Environment and Planning A, , vol. 52(5), pages 933-952, August.
    11. Crafts, Nicholas & Mills, Terence, 2001. "TFP Growth in British and German Manufacturing, 1950-96," CEPR Discussion Papers 3078, C.E.P.R. Discussion Papers.
    12. David Simpson, 2013. "The Rediscovery of Classical Economics," Books, Edward Elgar Publishing, number 15080.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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