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Productivity dynamics in the Great Stagnation: evidence from British businesses

Riley, Rebecca, Rosazza Bondibene, Chiara and Young, Garry (2014) Productivity dynamics in the Great Stagnation: evidence from British businesses. CFM discussion paper series (CFM-DP2014-7). Centre For Macroeconomics, London, UK.

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We investigate labor productivity dynamics amongst British businesses in the wake of the credit crisis of 2007/8. The external restructuring of firms (i.e. changes in market share, firm entry and exit) contributed to a fall in productivity growth relative to trend amongst small businesses in bank dependent industries, consistent with the idea that an adverse credit supply shock caused inefficiencies in resource allocation across firms. But, the major part of the decline in UK productivity growth following the credit crisis was accounted for by a widespread productivity shock within firms, pointing to the importance of other factors in explaining the Great Stagnation.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2014 The Authors
Divisions: Centre for Macroeconomics
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
JEL classification: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence
Sets: Collections > Economists Online
Research centres and groups > Centre for Macroeconomics
Date Deposited: 22 Jul 2014 11:19
Last Modified: 02 Dec 2020 00:11
Funders: Economic and Social Research Council grant reference ES/K00378X/1

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