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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 underdevelopment 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," European Review of Economic History, Cambridge University Press, vol. 8(3), pages 229-262, December.
    • Handle: RePEc:cup:ereveh:v:8:y:2004:i:03:p:229-262_00
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    1. Inequality & the First Globalisation
      by pseudoerasmus in Pseudoerasmus on 2016-05-23 05:01:55

    More about this item

    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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