The great British jobs and productivity mystery

João Paulo Pessoa, John Van Reenen 28 June 2014

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With some economic recovery having finally got underway, the UK is still feeling the repercussions of the so-called ‘Great Recession’. National output, as measured by GDP, fell by over 7% from its peak in January 2008 – the biggest fall since the inter-war years – and only returned to its pre-crisis level in April 2014 (NIESR 2014). This has been the slowest recovery in this century (see Figure 1).

Figure 1. The profile of recession and recovery

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Topics:  Europe's nations and regions

Tags:  unemployment, productivity growth, UK, Great Recession

Internationalisation and innovation of firms: Give them one roof

Carlo Altomonte, Tommaso Aquilante, Gábor Békés, Gianmarco I.P. Ottaviano 21 March 2014

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Policymakers traditionally have attempted to encourage internationalisation based on the implicit rationale that the latter is associated with productivity and/or employment growth. At the same time, since innovation is the key driver of productivity growth, much attention has been devoted to the specific channels through which trade and innovation are linked (see Aiginger 2011). However, in most European countries, as well as at the EU level, these policies are carried out through various, often unrelated agencies – as found by EIM (2010), a European report reviewing some 130 programmes.

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Topics:  Productivity and Innovation

Tags:  internationalisation, innovation, productivity growth

Financial globalisation and productivity growth

M Ayhan Kose, Eswar Prasad, Marco E Terrones 05 January 2009

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Theoretical models posit a number of channels through which openness to international financial flows ought to increase economic growth. However, there is little robust empirical evidence of a causal link between these two variables (see Obstfeld, 2008). If the growth benefits of financial openness are so elusive in the data, is it worthwhile for developing and emerging market economies to expose themselves to the risks associated with financial globalisation?

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Topics:  International finance

Tags:  total factor productivity, productivity growth, financial globalisation

Manufacturing restructuring and the role of real exchange rate shocks

Karolina Ekholm, Andreas Moxnes, Karen-Helene Ulltveit-Moe 30 August 2008

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A weak dollar and a record low US interest rate are regarded as good news by US exporters but worry European manufacturers. Export industry representatives and governments fear real appreciations for their potential negative influence on profitability and employment.

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Topics:  Global economy

Tags:  exchange rates, productivity growth, Norway, heterogeneous firms

Europe’s employment growth revived after 1995 while productivity growth slowed: Is it a coincidence?

Ian Dew-Becker, Robert J. Gordon 15 April 2008

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As of 1995, Europe (the EU-15) had almost caught up to the PPP-adjusted level of US labour productivity, while its per-capita income ratio to the US stagnated at only 70 percent. This discrepancy is explained by a decline over 1960-1995 in hours worked per capita in Europe compared to the US.

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Topics:  Labour markets Productivity and Innovation

Tags:  productivity growth, labour productivity, employment growth

Offshoring, not enough to beat Italy's productivity slowdown

Francesco Daveri , Cecilia Jona-Lasinio 29 November 2007

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The offshoring of activities of manufacturing firms and industries often features at the centre-stage of the political arena for its allegedly negative effects on domestic employment. During the 2004 US presidential campaign, the concern that outsourcing had gone too far creating more hardships than necessary for American unskilled workers was one of the hot political issues. Not by chance academic research on this topic (Feenstra and Hanson, 1996 and 1999, being perhaps the most celebrated contributions in this area)1 has mostly focused on such effects.

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Topics:  Labour markets

Tags:  Italy, manufacturing, offshoring, productivity growth