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Restructuring And Productivity Growth In UK Manufacturing

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  • Disney, Richard F
  • Haskel, Jonathan
  • Heden, Ylva

Abstract

We analyse productivity growth in UK manufacturing 1980-92 using the newly available ARD panel of establishments drawn from the Census of Production. We examine the relative importance of 'internal' restructuring (such as new technology and organizational change) and 'external' restructuring (the process by which less efficient establishments exit and more efficient establishments enter and increase market share). We find that (a) 'external restructuring' accounts for 50% of labour productivity growth and 90% of TFP growth over the period; (b) much of the external restructuring effect comes from multi-establishment firms closing down poorly-performing plants and opening high-performing new ones, and (c) external competition is an important determinant of internal restructuring.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2463.

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Date of creation: May 2000
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Handle: RePEc:cpr:ceprdp:2463

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Related research

Keywords: Entry; Exit; Market Selection; Productivity; Restructuring; Total Factor Productivity;

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References

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  1. Helpman, E. & Rangel, A., 1998. "Adjusting to a New Technology: Experience and Training," Papers 07-98, Tel Aviv.
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  8. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
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  28. repec:fth:michin:445 is not listed on IDEAS
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. What's wrong with private universities?
    by chris dillow in Stumbling and Mumbling on 2011-06-08 11:19:21
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  3. Good & bad arguments for tuition fees
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