IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

British Relative Economic Decline Revisited

  • Crafts, Nicholas

This paper examines the role of competition in productivity perfromance in Britain over the period from the late-nineteenth to the early twenty-first century. A detailed review of the evidence suggests that the weakness of competition from the 1930s to the 1970s undermined productivity growth but since the 1970s stronger competition has been a key ingredient in ending relative economic decline. The productivity implications of the retreat from competition resulted in large part from interactions with idiosyncratic British institutional structures in terms of corporate governance and industrial relations. This account extends familiar insights from cliometrics both analytically and chronologically.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=8384
Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8384.

as
in new window

Length:
Date of creation: May 2011
Date of revision:
Handle: RePEc:cpr:ceprdp:8384
Contact details of provider: Postal:
Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.

Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820

Order Information: Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
  2. A. Daly & D.T. Jones & K. Wagner, 1981. "Productivity and Industrial Structure," National Institute Economic Review, National Institute of Economic and Social Research, vol. 97(1), pages 83-83, August.
  3. Chabot, Benjamin & Kurz, Christopher J., 2009. "That's Where the Money Was: Foreign Bias and English Investment Abroad, 1866-1907," Working Papers 64, Yale University, Department of Economics.
  4. Kitson,Michael & Solomou,Solomos, 1990. "Protectionism and Economic Revival," Cambridge Books, Cambridge University Press, number 9780521382670, Junio.
  5. repec:esx:essedp:626 is not listed on IDEAS
  6. Jacks, David S; Meissner, Christopher; Novy, Dennis, 2010. "Trade Booms, Trade Busts and Trade Costs," CAGE Online Working Paper Series 33, Competitive Advantage in the Global Economy (CAGE).
  7. Broadberry,Stephen & O'Rourke,Kevin H., 2010. "The Cambridge Economic History of Modern Europe," Cambridge Books, Cambridge University Press, number 9780521882026, Junio.
  8. Rachel Griffith & Rupert Harrison & Helen Simpson, 2006. "The link between product market reform, innovation and EU macroeconomic performance," European Economy - Economic Papers 2008 - 2015 243, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  9. Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
  10. Nicholas Crafts & Tim Leunig & Abay Mulatu, 2010. "Were British railway companies well-managed in the early twentieth century?," Economic History Working Papers 27889, London School of Economics and Political Science, Department of Economic History.
  11. Temin, Peter, 2002. "The Golden Age of European growth reconsidered," European Review of Economic History, Cambridge University Press, vol. 6(01), pages 3-22, April.
  12. Mathias Dewatripont & Philippe Aghion & Patrick Rey, 1997. "Corporate governance, competition policy and industrial policy," ULB Institutional Repository 2013/9613, ULB -- Universite Libre de Bruxelles.
  13. Leunig, Timothy, 2001. "NEW ANSWERS TO OLD QUESTIONS: EXPLAINING THE SLOW ADOPTION OF RING SPINNING IN LANCASHIRE, 1880 l913," The Journal of Economic History, Cambridge University Press, vol. 61(02), pages 439-466, June.
  14. Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank.
  15. Nicholas Crafts & Timothy Leunig & Abay Mulatu, 2008. "Were British railway companies well managed in the early twentieth century? -super-1," Economic History Review, Economic History Society, vol. 61(4), pages 842-866, November.
  16. McCloskey, Donald N. & Sandberg, Lars G., 1971. "From damnation to redemption: Judgments on the late victorian entrepreneur," Explorations in Economic History, Elsevier, vol. 9(1), pages 89-108.
  17. Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006. "Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms," Working Papers 558, Queen Mary University of London, School of Economics and Finance.
  18. A.D. Morgan & D. Martin, 1975. "Tariff Reductions and UK Imports of Manufactures: 1955-1971," National Institute Economic Review, National Institute of Economic and Social Research, vol. 72(1), pages 38-54, May.
  19. S Broadberry & Nicholas Crafts, 1996. "British Economic Policy and Industrial Performance in the Early Post-War Period," CEP Discussion Papers dp0292, Centre for Economic Performance, LSE.
  20. Gregg, Paul & Machin, Stephen & Metcalf, David, 1993. "Signals and Cycles? Productivity Growth and Changes in Union Status in British Companies, 1984-9," Economic Journal, Royal Economic Society, vol. 103(419), pages 894-907, July.
  21. Aghion, Philippe & Askenazy, Philippe & Bourlès, Renaud & Cette, Gilbert & Dromel, Nicolas, 2009. "Education, market rigidities and growth," Economics Letters, Elsevier, vol. 102(1), pages 62-65, January.
  22. R.A. Batchelor & R.L. Major & A.D. Morgan, 1980. "Industrialisation and the Basis for Trade," National Institute Economic Review, National Institute of Economic and Social Research, vol. 93(1), pages 55-58, August.
  23. Van Reenen, John, 1994. "The Creation and Capture of Rents: Wages and Innovation in a Panel of UK Companies," CEPR Discussion Papers 1071, C.E.P.R. Discussion Papers.
  24. Broadberry, S. N., 1997. "Anglo-German productivity differences 1870 1990: A sectoral analysis," European Review of Economic History, Cambridge University Press, vol. 1(02), pages 247-267, August.
  25. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
  26. Richard, Blundell & Rachel, Griffith & Peter, Howitt & Susanne, Prantl & Aghion, Philippe, 2009. "The Effects of Entry on Incumbent Innovation and Productivity," Scholarly Articles 4554222, Harvard University Department of Economics.
  27. Tim Leunig, 2003. "A British industrial success: productivity in the Lancashire and New England cotton spinning industries a century ago," LSE Research Online Documents on Economics 494, London School of Economics and Political Science, LSE Library.
  28. S. Broadberry & N. Crafts, 2001. "Competition and Innovation in 1950s Britain," Business History, Taylor & Francis Journals, vol. 43(1), pages 97-118.
  29. Martin Stephen, 1993. "Endogenous Firm Efficiency in a Cournot Principal-Agent Model," Journal of Economic Theory, Elsevier, vol. 59(2), pages 445-450, April.
  30. Sibylle H. Lehmann and Kevin H. O'Rourke, 2008. "The structure of protection and growth in the late 19th century," The Institute for International Integration Studies Discussion Paper Series iiisdp269, IIIS.
  31. Nicholas Crafts, 1998. "Forging Ahead and Falling Behind: The Rise and Relative Decline of the First Industrial Nation," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 193-210, Spring.
  32. Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
  33. David Greenaway & Chris Milner, 1994. "Determinants Of The Inter‐Industry Structure Of Protection In The Uk," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 399-419, November.
  34. Broadberry, S.N. & Crafts, N.R.F., 1990. "Britain'S Productivity Gap In The 1930s : Some Neglected Factors," The Warwick Economics Research Paper Series (TWERPS) 364, University of Warwick, Department of Economics.
  35. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-37, December.
  36. Buccirossi, Paolo & Ciari, Lorenzo & Duso, Tomaso & Spagnolo, Giancarlo & Vitale, Cristiana, 2009. "Competition Policy and Productivity Growth: An Empirical Assessment," CEPR Discussion Papers 7470, C.E.P.R. Discussion Papers.
  37. Jim Tomlinson, 1996. "Inventing‘decline’: the falling behind of the British economy in the postwar years," Economic History Review, Economic History Society, vol. 49(4), pages 731-757, November.
  38. Nick Bloom & John Van Reenen, 2006. "Measuring and Explaining Management Practices Across Firms and Countries," CEP Discussion Papers dp0716, Centre for Economic Performance, LSE.
  39. Haskel, Jonathan, 1991. "Imperfect Competition, Work Practices and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 265-79, August.
  40. Henley, Andrew, 1988. "Price Formation and Market Structure: The Case of the Inter-war Coal Industry," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(3), pages 263-78, August.
  41. Geroski, Paul A & Jacquemin, Alexis, 1988. "The Persistence of Profits: A European Comparison," Economic Journal, Royal Economic Society, vol. 98(391), pages 375-89, June.
  42. Andy Cosh & Paul Guest & Alan Hughes, 2007. "UK Corporate Governance and Takeover Performance," ESRC Centre for Business Research - Working Papers wp357, ESRC Centre for Business Research.
  43. Jonathan Haskel & Raffaella Sadun, 2012. "Regulation and UK Retailing Productivity: Evidence from Microdata," Economica, London School of Economics and Political Science, vol. 79(315), pages 425-448, 07.
  44. Bourlès, R. & Cette, G., 2006. "Trends in "structural" productivity levels in the major industrialized countries," Working papers 156, Banque de France.
  45. David Scharfstein, 1988. "Product-Market Competition and Managerial Slack," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 147-155, Spring.
  46. Michele Cincera, 2004. "Impact of market entry and exit on EU productivity and growth performance," ULB Institutional Repository 2013/921, ULB -- Universite Libre de Bruxelles.
  47. D.E.H. Edgerton & S.M. Horrocks, 1994. "British industrial research and development before 1945," Economic History Review, Economic History Society, vol. 47(2), pages 213-238, 05.
  48. N Dryden & Stephen Nickell & D Nicolitsas, 1996. "What Makes Firms Perform Well?," CEP Discussion Papers dp0308, Centre for Economic Performance, LSE.
  49. William Goetzmann & Andrey Ukhov, 2005. "British Investment Overseas 1870-1913: A Modern Portfolio Theory Approach," Yale School of Management Working Papers ysm445, Yale School of Management.
  50. Brown , W. & Bryson , A. & Forth , J., 2008. "Competition and the Retreat from Collective Bargaining," Cambridge Working Papers in Economics 0831, Faculty of Economics, University of Cambridge.
  51. David G. Blanchflower & Andrew J. Oswald & Peter Sanfey, 1992. "Wages, Profits and Rent-Sharing," NBER Working Papers 4222, National Bureau of Economic Research, Inc.
  52. Jacks, David S., 2006. "New results on the tariff growth paradox," European Review of Economic History, Cambridge University Press, vol. 10(02), pages 205-230, August.
  53. Koke, J. & Renneboog, L.D.R., 2003. "Do Corporate Control and Product Market Competition Lead to Stronger Productivity Growth? Evidence from Market-Oriented and Blockholder-Based Governance Regimes," Discussion Paper 2003-78, Tilburg University, Center for Economic Research.
  54. Nickell, S.J., 1993. "Competition and Crporate Performance," Economics Series Working Papers 99155, University of Oxford, Department of Economics.
  55. Jong, H. de & Woltjer, P., 2009. "A Comparison of Real Output and Productivity for British and American Manufacturing in 1935," GGDC Research Memorandum GD-108, Groningen Growth and Development Centre, University of Groningen.
  56. By DAVID GREASLEY & LES OXLEY, 1996. "Discontinuities in competitiveness: the impact of the First World War on British industry," Economic History Review, Economic History Society, vol. 49(1), pages 82-100, 02.
  57. Cain, Louis P. & Paterson, Donald G., 1986. "Biased Technical Change, Scale, and Factor Substitution in American Industry, 1850–1919," The Journal of Economic History, Cambridge University Press, vol. 46(01), pages 153-164, March.
  58. Chiara Criscuolo, 2004. "Import Competition, Productivity, and Restructuring in UK Manufacturing," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 393-408, Autumn.
  59. Anita Wölfl & Isabelle Wanner & Tomasz Koźluk & Giuseppe Nicoletti, 2009. "Ten Years of Product Market Reform in OECD Countries: Insights from a Revised PMR Indicator," OECD Economics Department Working Papers 695, OECD Publishing.
  60. Richard Harris & Donald S. Siegel & Mike Wright, 2005. "Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 148-153, February.
  61. Broadberry,Steve N., 1997. "The Productivity Race," Cambridge Books, Cambridge University Press, number 9780521584401, Junio.
  62. Alan Booth, 1987. "Britain in the 1930s: a managed economy?," Economic History Review, Economic History Society, vol. 40(4), pages 499-522, November.
  63. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2010. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9780521198875, Junio.
  64. Michael Kitson & Solomos Solomou & Martin Weale, 1991. "Effective protection and economic recovery in the United Kingdom during the 1930s," Economic History Review, Economic History Society, vol. 44(2), pages 328-338, 05.
  65. Nicholas Crafts & Terence C. Mills, 2005. "TFP Growth in British and German Manufacturing, 1950-1996," Economic Journal, Royal Economic Society, vol. 115(505), pages 649-670, 07.
  66. Ennew, Christine & Greenaway, David & Reed, Geoffrey, 1990. "Further Evidence on Effective Tariffs and Effective Protection in the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(1), pages 69-78, February.
  67. Brown, W., 2006. "The Influence of Product Markets on Industrial Relations," Cambridge Working Papers in Economics 0652, Faculty of Economics, University of Cambridge.
  68. Hitiris, Theodore, 1978. "Effective Protection and Economic Performance in UK Manufacturing Industry, 1963 and 1968," Economic Journal, Royal Economic Society, vol. 88(349), pages 107-20, March.
  69. DONALD N. McCLOSKEY, 1970. "Did Victorian Britain Fail?," Economic History Review, Economic History Society, vol. 23(3), pages 446-459, December.
  70. Bean, Charles R & Crafts, Nicholas, 1995. "British Economic Growth Since 1945: Relative Economic Decline .... and Renaissance?," CEPR Discussion Papers 1092, C.E.P.R. Discussion Papers.
  71. H. W. Richardson, 1965. "Over-Commitment In Britain Before 1930," Oxford Economic Papers, Oxford University Press, vol. 17(2), pages 237-262.
  72. BenjaminR. Chabot & ChristopherJ. Kurz, 2010. "That's Where The Money Was: Foreign Bias and English Investment Abroad, 1866-1907," Economic Journal, Royal Economic Society, vol. 120(547), pages 1056-1079, 09.
  73. Macallan, Clare & Millard, Stephen & Parker, Miles, 2008. "The cyclicality of mark-ups and profit margins for the United Kingdom: some new evidence," Bank of England working papers 351, Bank of England.
  74. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 529-554.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:8384. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.