IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2021-273.html
   My bibliography  Save this paper

Tracing Productivity Growth Channels in the UK

Author

Listed:
  • Mr. Daniel Garcia-Macia
  • Julia Korosteleva

Abstract

What drove the UK productivity slowdown post-GFC, and how is the post-Covid recovery expected to differ? This paper traces the sources of TFP growth in the UK over the last two decades through the lens of a structural model of innovation, using registry data on the universe of firms. The dominant innovation source in the pre-GFC decade were improvements by incumbent firms on their own products, whereas creation of new varieties by entrants took a leading role post-GFC. In the Covid recovery, survey data suggests that creative destruction (i.e., innovation replacing other firms’ products) is expected to gain importance. This emphasizes the need for growth policies that facilitate labor and capital reallocation across firms, in addition to R&D support.

Suggested Citation

  • Mr. Daniel Garcia-Macia & Julia Korosteleva, 2021. "Tracing Productivity Growth Channels in the UK," IMF Working Papers 2021/273, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/273
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=506828
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    economic growth; innovation; creative destruction; UK productivity slowdown post-GFC; UK market economy; GFC decade; innovation source; leading role; sources of TFP growth; exit rate; Employment; Total factor productivity; Job creation; Productivity; Job destruction; Global;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2021/273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.