Productivity Dynamics in the Great Stagnation: Evidence from British businesses

Rebecca Riley, Chiara Rosazza Bondibene and Garry Young

No 1407, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: 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.

Keywords: productivity Growth; Reallocation; Great Recession and Stagnation; credit shock (search for similar items in EconPapers)
JEL-codes: E32 L11 O47 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2013-08, Revised 2014-04
New Economics Papers: this item is included in nep-bec, nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2014-07-Paper.pdf Revised version, 2014 (application/pdf)

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Working Paper: Productivity dynamics in the Great Stagnation: evidence from British businesses (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cfm:wpaper:1407

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