Productivity Growth and Value Chains in Four European Countries

By Izabela Karpowicz, Nujin Suphaphiphat

January 31, 2020

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Format: Chicago

Izabela Karpowicz, and Nujin Suphaphiphat. Productivity Growth and Value Chains in Four European Countries, (USA: International Monetary Fund, 2020) accessed November 12, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Advanced economies have been witnessing a pronounced slowdown of productivity growth since the global financial crisis that is accompanied in recent years by a withdrawal from trade integration processes. We study the determinants of productivity slowdown over the past two decades in four closely integrated European countries, Austria, Denmark, Germany and the Netherlands, based on firm-level data. Participation in global value chains appears to have affected productivity positively, including through its effect on TFP when facilitated by higher investment in intangible assets, a proxy for firm innovation. Other contributors to productivity growth in firms are workforce aging, access to finance, and skills mismatches.

Subject: Capital productivity, Global value chains, Globalization, Labor productivity, Production, Productivity, Total factor productivity

Keywords: Capital productivity, Data availability, Europe, Firm, Firm Innovation proxy, Firm level, Firms, Global, Global value chain, Global value chains, GVC, Increase productivity, Labor productivity, Productivity, Productivity dynamics, Total factor productivity, WP

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/018
Stock No:

WPIEA2020018
ISBN:

9781513527918
ISSN:

1018-5941

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