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An Analysis of Differences in Labour Productivity in Manufacturing. Displaying the Need for a Resurgence of Industrial Policy: Spain vs Germany, 1993-2007

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  • Carolina Hintzmann

    (Universitat Oberta de Catalunya)

Abstract

The objective of this paper is to identify the determinants that hinder the continued growth of productivity in Spanish industry, when compared to Germany between 1993-2007. To this end, different methodologies based on the decomposition of gross value added have been applied. Results indicate that differences in industry structure do not totally justify the gap in productivity between both industries. It is more a problem of convergence speed of both production structures, rather than one of absence of changes. This study shows the need to implement strategic measures for boosting industrial sectors, particularly now when there is a resurgence of industrial policy.

Suggested Citation

  • Carolina Hintzmann, 2015. "An Analysis of Differences in Labour Productivity in Manufacturing. Displaying the Need for a Resurgence of Industrial Policy: Spain vs Germany, 1993-2007," Hacienda Pública Española / Review of Public Economics, IEF, vol. 212(1), pages 97-126, March.
    • Handle: RePEc:hpe:journl:y:2015:v:212:i:1:p:97-126
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    References listed on IDEAS

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    3. Justin Yifu Lin, 2012. "New Structural Economics : A Framework for Rethinking Development and Policy," World Bank Publications - Books, The World Bank Group, number 2232, December.
    4. Matilde Mas & Robert Stehrer (ed.), 2012. "Industrial Productivity in Europe," Books, Edward Elgar Publishing, number 14369.
    5. Antonio Andreoni & Roberto Scazzieri, 2014. "Triggers of change: structural trajectories and production dynamics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(6), pages 1391-1408.
    6. Álvarez López , M.ª Elisa & Myro Sánchez, Rafael & Vega Crespo, Josefa, 2012. "Delocation in the manufacturing sectors in the EU. A regional overview," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 22, pages 5-34.
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    More about this item

    Keywords

    Labour Productivity; Manufacturing Industry; Industrial Composition; Industrial Policy.;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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