Yıl : 2020 Cilt : 7 Sayı : 1

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A Perspective on Productivity Growth and Challenges for the UK Economy

Open Access

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The UK’s low levels of output per hour of labour and their productivity relative to other advanced economies is a matter for concern. The UK’s productivity is a little over three-quarters that of Germany, the US, and France, and the about same as Italy. Furthermore, according to the OECD, it has been stagnant since 2007. Productivity is an important macroeconomic indicator as it demonstrates the output that an economy can generate using existing resources. It is generally acknowledged that technological progress, new research and technology can lead to higher investment and growth rates. Productivity refers to the quantity of goods and services that can be produced by a worker in a given period of time. For any economy, it is important to ensure rapid growth and a long-term trend of increased productivity. Indeed, this is particularly important for advanced economies where it is crucial to increase productivity in order to remain globally competitive. The study concludes that the UK’s growth in productivity has been very slow relative to other major economies, and as a result the UK, which was already behind many other G7 countries, has fallen even further behind. This study suggests that a stronger and more viable manufacturing sector would help to build structural balance in the economy and to move it away from an over-reliance on the financial sector. To achieve this would require active state polices to increase investment in R&D, innovation and skills.

Anahtar Kelimeler

Labour-productivity   growth   UK-economy   Verdoorn’s-law   public-investment  

Sorumlu Yazar

Kalim SIDDIQUI

Yazarlar

Kalim SIDDIQUI

Kaynakça

  • Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origin of power, prosperity and poverty, London: Profile Book.
  • Bacon, R., & Eltis, W. (1976). Britain’s economic problems: Too few producers, London: Macmillan.
  • Bagaria, N., Holland, D., & Van Reenen, J. (2012). Fiscal consolidation during a depression, National Institute Economic Review, 221: 38–50, July.
  • Baumol, W. J. (1986). Productivity growth, convergence and welfare: What the long run data shows, American Economic Review, 76(5), 1072–85.
  • Broadbent, B. (2013). Conditional guidance as a response to supply uncertainty. Retrieved from www.bankofengland.co.uk/publications/Documents/speeches/2013/speech678.pdf. Craft, N. (2012). British relative economic decline revisited: The role of competition, Explorations in Economic History, 49, 17–29.
  • Disney, R., Haskel, J., & Heden, Y. (2003). Restructuring and productivity growth in UK manufacturing, Economic Journal, 113, 666–694
Daha Fazla Göster

Detaylar

DOI 10.26650/JEPR650998

Submission : 18 Eyl 2019

Early Viewed : 31 Oca 2020

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