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Does the European Union need to revive productivity growth

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Author Info
Ark, Bart van (Groningen University)

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Abstract

This paper studies procyclical productivity growth at the industry level in the U.S. and in three European countries (France, Germany and the Netherlands). Industry-specific demand-side instruments are used to examine the prevalence of non-constant returns to scale and unmeasured input utilization. For the aggregate U.S. economy, unmeasured input utilization seems to explain procyclical productivity. However, this correction still leaves one in three U.S. industries with procyclical productivity. This failure of the model can also be seen in Europe and is mostly concentrated in services industries.

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File URL: http://irs.ub.rug.nl/ppn/275090787
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Publisher Info
Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200575.

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Date of creation: 2005
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Handle: RePEc:dgr:rugggd:200575

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  1. Jacob Funk Kirkegaard, 2007. "Offshoring, Outsourcing, and Production Relocation—Labor-Market Effects in the OECD Countries and Developing Asia," Peterson Institute Working Paper Series WP07-02, Peterson Institute for International Economics. [Downloadable!]
  2. Francisco Torres & Annette Bongardt, 2007. "Institutions, Governance and Economic Growth in the EU: is there a role for the Lisbon Strategy," NIPE Working Papers 19/2007, NIPE - Universidade do Minho. [Downloadable!]
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  3. Diego Martínez & Jesús Rodríguez-López & José L. Torres, 2008. "Productivity growth and technological change in Europe and the U.S," Working Papers 2008-10, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center. [Downloadable!]
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