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The productivity gap among European countries

Author

Listed:
  • Giorgio Calcagnini

    () (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

  • Germana Giombini

    () (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo)

  • Giuseppe Travaglini

    () (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo)

Abstract

This paper aims at analyzing Total Factor Productivity (TFP) in four European countries (France, Germany, Italy and the Netherlands) between 1950 and 2011. It uses the common trend - common cycle approach to decompose series in trends and cycles. We find that the four economies share three common trends and a common cycle. Further, we show that in the case of Italy and the Netherlands trend and cycle innovations have a negative relationship that supports the ‘opportunity cost’ approach to productivity growth, and that trend innovations are generally larger than cycle innovations. Finally, while we do not explore what drives the three common trends, we show that countries’ differences in TFP performance in recent years may be due to the so-called “deep”determinants in growth literature such as the presence of efficient mechanisms of creation and transmission of knowledge, international integration, and efficient markets and institutions. Length: 25 pages

Suggested Citation

  • Giorgio Calcagnini & Germana Giombini & Giuseppe Travaglini, 2015. "The productivity gap among European countries," Working Papers 1510, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
  • Handle: RePEc:urb:wpaper:15_10
    as

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    File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_15_10.pdf
    File Function: First version, 2015
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    References listed on IDEAS

    as
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    Cited by:

    1. Germana Giombini & Francesco Perugini & Giuseppe Travaglini, 2017. "The productivity slowdown puzzle of European countries: a focus on Italy," Argomenti, University of Urbino Carlo Bo, Department of Economics, Society & Politics, vol. 6(6), pages 1-20, January-A.

    More about this item

    Keywords

    Total factor productivity; Cointegration analysis; Market imperfections;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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