Why did UK manufacturing productivity growth slow down in the 1970s and speed up in the 1980s
AbstractAfter a dramatic slowdown of the 1970s, productivity growth in UK manufacturing in the 1980s returned to something like its pre-slowdown trend. This paper constructs a quarterly dynamic model of TFP growth in UK manufacturing using cointegration techniques, correcting for a variety of measurement biases. The elasticity of output with respect to R&D capital is estimated at between 0.2 and 0.3, with human capital also playing a positive and significant role. The paper also determines how much of the UK productivity slowdown in the 1970s was due to the mis-measurement of output and the business cycle and how much was due to structural changes. The answer appears to be about half and half.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 1999-W24.
Date of creation: 01 Aug 1999
Date of revision:
Innovation; Human Capital; Economic Growth; Total Factor Productivity; Unionization; Cointegration Analysis;
Other versions of this item:
- Gavin Cameron, 2003. "Why Did UK Manufacturing Productivity Growth Slow Down in the 1970s and Speed Up in the 1980s?," Economica, London School of Economics and Political Science, vol. 70(277), pages 121-141, February.
- Cameron, G., 1999. "Why did UK Manufacturing Productivity Growth Slow Down in the 1970s and Speed Up in the 1980s?," Economics Papers 9924, Economics Group, Nuffield College, University of Oxford.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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