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Does the European Union need to revive productivity growth

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  • Ark, Bart van

    (Groningen University)

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.

Suggested Citation

  • Ark, Bart van, 2005. "Does the European Union need to revive productivity growth," GGDC Research Memorandum 200575, Groningen Growth and Development Centre, University of Groningen.
    • Handle: RePEc:gro:rugggd:200575
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    File URL: http://irs.ub.rug.nl/ppn/275090787
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    References listed on IDEAS

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    6. Ark, Bart van, 2002. "ICT investments and growth accounts for the European Union," GGDC Research Memorandum 200256, Groningen Growth and Development Centre, University of Groningen.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Annette Bongardt* & Francisco Torres**, 2007. "Institutions, Governance and Economic Growth in the EU: Is There a Role for the Lisbon Strategy?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 42(1), pages 32-42, January.
    2. Catherine Mann, 2011. "Information Technology, Globalization, and Growth: Role for Scale Economies, Terms of Trade, and Variety," Working Papers 27, Brandeis University, Department of Economics and International Business School.
    3. Jacob F. Kirkegaard, 2008. "Offshoring, Outsourcing And Production Relocations — Labor Market Effects In The Oecd And Developing Asia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 371-418.
    4. Mojmír Hájek, 2006. "Zdroje růstu, souhrnná produktivita faktorů a struktura v České republice [Sources of economic growth, total factor productivity and structure in the Czech republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(2), pages 170-189.
    5. Jacob Funk Kirkegaard, 2007. "Offshoring, Outsourcing, and Production Relocation—Labor-Market Effects in the OECD Countries and Developing Asia," Working Paper Series WP07-2, Peterson Institute for International Economics.
    6. Brainerd, Elizabeth & Menon, Nidhiya, 2014. "Seasonal effects of water quality: The hidden costs of the Green Revolution to infant and child health in India," Journal of Development Economics, Elsevier, vol. 107(C), pages 49-64.
    7. H.-J. Engelbrecht & V. Xayavong, 2007. "The Elusive Contribution Of Ict To Productivity Growth In New Zealand: Evidence From An Extended Industry-Level Growth Accounting Model," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(4), pages 255-275.
    8. Catherine L. Mann, 2012. "Information Technology Intensity, Diffusion, and Job Creation," Working Papers 46, Brandeis University, Department of Economics and International Business School.
    9. Diego Martínez, y José L. Torres & Jesús Rodríguez-López & José L. Torres, 2008. "Productivity growth and technological change in Europe and us," Economic Working Papers at Centro de Estudios Andaluces E2008/12, Centro de Estudios Andaluces.

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