IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

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. Stephen Broadberry & Nicholas Crafts, 2000. "Competition and innovation in 1950’s Britain," Economic History Working Papers 22381, London School of Economics and Political Science, Department of Economic History.
  2. 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.
  3. 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.
  4. Broadberry,Stephen & O'Rourke,Kevin H., 2010. "The Cambridge Economic History of Modern Europe," Cambridge Books, Cambridge University Press, number 9780521882026.
  5. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2010. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9780521198875.
  6. David Scharfstein, 1988. "Product-Market Competition and Managerial Slack," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 147-155, Spring.
  7. 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.
  8. Nickell, S.J., 1993. "Competition and Crporate Performance," Economics Series Working Papers 99155, University of Oxford, Department of Economics.
  9. Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2007. "Information technology, organisational change and productivity growth: evidence from UK firms," LSE Research Online Documents on Economics 19748, London School of Economics and Political Science, LSE Library.
  10. 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.
  11. Nickell, Stephen & Nicolitsas, Daphne & Dryden, Neil, 1997. "What makes firms perform well?," European Economic Review, Elsevier, vol. 41(3-5), pages 783-796, April.
  12. Kitson,Michael & Solomou,Solomos, 2008. "Protectionism and Economic Revival," Cambridge Books, Cambridge University Press, number 9780521071789.
  13. 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.
  14. Aghion, Ph. & Dewatripont, M. & Rey, P., 1997. "Corporate governance, competition policy and industrial policy," European Economic Review, Elsevier, vol. 41(3-5), pages 797-805, April.
  15. repec:dgr:rugggd:gd-108 is not listed on IDEAS
  16. Nicholas Crafts & Tim Leunig & Abay Mulatu, 2007. "Were British railway companies well-managed in the early twentieth century?," Economic History Working Papers 22549, London School of Economics and Political Science, Department of Economic History.
  17. Nick Bloom & John Van Reenen, 2006. "Measuring and explaining management practices across firms and countries," LSE Research Online Documents on Economics 733, London School of Economics and Political Science, LSE Library.
  18. Blanchflower, David G & Oswald, Andrew J & Sanfey, Peter, 1996. "Wages, Profits, and Rent-Sharing," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 227-51, February.
  19. Bourles, Renaud & Cette, Gilbert, 2007. "Trends in "structural" productivity levels in the major industrialized countries," Economics Letters, Elsevier, vol. 95(1), pages 151-156, April.
  20. repec:sae:niesru:v:97:y:1981:i:1:p:83-83 is not listed on IDEAS
  21. 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.
  22. Aghion, Ph. & Askenazy, Ph. & Bourlès, R. & Cette, G. & Dromel, N., 2009. "Education, Market Rigidities and Growth," Working papers 229, Banque de France.
  23. 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.
  24. Broadberry,Steve N., 2005. "The Productivity Race," Cambridge Books, Cambridge University Press, number 9780521023580.
  25. 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.
  26. DONALD N. McCLOSKEY, 1970. "Did Victorian Britain Fail?," Economic History Review, Economic History Society, vol. 23(3), pages 446-459, December.
  27. David S. Jacks & Christopher M. Meissner & Dennis Novy, 2009. "Trade Booms, Trade Busts, and Trade Costs," NBER Working Papers 15267, National Bureau of Economic Research, Inc.
  28. Paolo Buccirossi & Lorenzo Ciari & Tomaso Duso & Giancarlo Spagnolo & Cristiana Vitale, 2009. "Competition policy and productivity growth: An empirical assessment," CIG Working Papers SP II 2009-12, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  29. Brown, W., 2006. "The Influence of Product Markets on Industrial Relations," Cambridge Working Papers in Economics 0652, Faculty of Economics, University of Cambridge.
  30. 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.
  31. Alan Booth, 1987. "Britain in the 1930s: a managed economy?," Economic History Review, Economic History Society, vol. 40(4), pages 499-522, November.
  32. Lehmann, Sibylle H. & O'Rourke, Kevin Hjortshøj, 2008. "The Structure of Protection and Growth in the Late 19th Century," CEPR Discussion Papers 7053, C.E.P.R. Discussion Papers.
  33. 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.
  34. 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.
  35. Stephen Broadberry & Nicholas Crafts, 1996. "British economic policy and industrial performance in the early post-war period," Economic History Working Papers 20669, London School of Economics and Political Science, Department of Economic History.
  36. 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.
  37. Aghion, Philippe & Blundell, Richard William & Griffith, Rachel & Howitt, Peter & Prantl, Susanne, 2005. "The Effects of Entry on Incumbent Innovation and Productivity," CEPR Discussion Papers 5323, C.E.P.R. Discussion Papers.
  38. 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.
  39. Michele Cincera & Olivia Galgau, 2005. "Impact of market entry and exit on EU productivity and growth performance," European Economy - Economic Papers 222, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  40. Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, Productivity and Growth: OECD Evidence," OECD Economics Department Working Papers 347, OECD Publishing.
  41. Rachel Griffith & Rupert Harrison & Helen Simpson, 2006. "The link between product market reform, innovation and EU macroeconomic performance," European Economy - Economic Papers 243, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  42. Koke, Jens & Renneboog, Luc, 2005. "Do Corporate Control and Product Market Competition Lead to Stronger Productivity Growth? Evidence from Market-Oriented and Blockholder-Based Governance Regimes," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 475-516, October.
  43. Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
  44. 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.
  45. Richard Harris & Donald S. Siegel & Mike Wright, 2003. "Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom," Rensselaer Working Papers in Economics 0304, Rensselaer Polytechnic Institute, Department of Economics.
  46. 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.
  47. 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.
  48. 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.
  49. Tim Leunig, 2000. "New answers to old questions: explaining the slow adoption of ring spinning in Lancashire, 1880-1913," Economic History Working Papers 22378, London School of Economics and Political Science, Department of Economic History.
  50. William N. Goetzmann & Andrey D. Ukhov, 2006. "British Investment Overseas 1870-1913: A Modern Portfolio Theory Approach," Review of Finance, European Finance Association, vol. 10(2), pages 261-300.
  51. 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.
  52. George Symeonidis, 2007. "The Effect of Competition on Wages and Productivity: Evidence from the UK," Economics Discussion Papers 626, University of Essex, Department of Economics.
  53. 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.
  54. Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 529-54, July.
  55. 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.
  56. 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.
  57. 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.
  58. 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.
  59. 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.
  60. 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.
  61. Martin Stephen, 1993. "Endogenous Firm Efficiency in a Cournot Principal-Agent Model," Journal of Economic Theory, Elsevier, vol. 59(2), pages 445-450, April.
  62. 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.
  63. 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.
  64. 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.
  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. 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.
  67. 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.
  68. 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.
  69. 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.
  70. 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.
  71. 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.
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: ()

The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address

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.