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Regional differences in productivity growth in The Netherlands: an industry-level growth accounting

  • Broersma, Lourens
  • Dijk, Jouke van

    (Groningen University)

It is well known that the productivity growth in Europe is slowing down, against an increasing growth rate in the US. The Netherlands is one of countries in Europe with the lowest growth rates of productivity. This paper presents the results of a growth accounting exercise applied to regional industry data of The Netherlands between 1995-2002. We find that low productivity growth in The Netherlands is particularly situated in the economic core regions of the west and south and is caused by slow growth of MFP. Compared to the more peripheral regions, MFP-growth is lower in all industries, except social and non-market services. The high level of traffic congestion and relatively low labour effort in the core regions can explain part of this slow MFP-growth.

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File URL: http://irs.ub.rug.nl/ppn/277351073
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Paper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200504.

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Date of creation: 2005
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Handle: RePEc:dgr:rugccs:200504
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  1. Francis Green, 1999. "It's been a hard day's night: The concentration and intensification of work in late 20th century Britain," Studies in Economics 9913, School of Economics, University of Kent.
  2. Lourens Broersma & Jan Oosterhaven, 2005. "Regional Labour Productivity in The Netherlands - Diversification and Agglomeration Economies," ERSA conference papers ersa05p31, European Regional Science Association.
  3. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen.
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