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Explaining Anglo-German Productivity Differences in Services Since 1870

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  • Broadberry, Stephen

Abstract

Germany overtook Britain in comparative productivity levels for the whole economy primarily as a result of trends in services rather than trends in industry. Britain?s productivity lead in services before World War II reflected external economies of scale in a highly urbanised economy with an international orientation. Low productivity in Germany reflected the under-development of services in an economy that was slow to move out of agriculture. As German agricultural employment contracted sharply from the 1950s, catching-up occurred in services. This was aided by a sharp increase in human and physical capital accumulation, underpinned by the institutional framework of the postwar settlement.

Suggested Citation

  • Broadberry, Stephen, 2004. "Explaining Anglo-German Productivity Differences in Services Since 1870," CEPR Discussion Papers 4597, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4597
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Inequality & the First Globalisation
      by pseudoerasmus in Pseudoerasmus on 2016-05-23 05:01:55

    More about this item

    Keywords

    Productivity; Services; Britain; Germany;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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