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Productivity and Economic Growth in Europe: A Comparative Industry Perspective

Author

Listed:
  • Marcel P. Timmer
  • Robert Inklaar
  • Mary O'Mahony
  • Bart van Ark

Abstract

Why did European productivity growth slow down while American growth accelerated since the 1990s? In this article we provide a detailed analysis of the sources of growth from a comparative industry perspective, based on our recent book Economic Growth in Europe. We argue that Europe’s falling behind is the combined result of a severe productivity slowdown in traditional manufacturing and other goods production, and a concomitant failure to invest in and reap the benefits from Information and Communications Technology (ICT), in particular in market services. The analysis is based on an update of the EU KLEMS growth accounting database and introduces a new measure for patterns of growth.

Suggested Citation

  • Marcel P. Timmer & Robert Inklaar & Mary O'Mahony & Bart van Ark, 2011. "Productivity and Economic Growth in Europe: A Comparative Industry Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 3-23, Spring.
    • Handle: RePEc:sls:ipmsls:v:21:y:2011:1
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    References listed on IDEAS

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    More about this item

    Keywords

    productivity; manufacturing; information and communications technology; market services; growth accounting; Europe;
    All these keywords.

    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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