Productivity Growth and Value Chains in Four European Countries

Author/Editor:

Izabela Karpowicz ; Nujin Suphaphiphat

Publication Date:

January 31, 2020

Electronic Access:

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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.

Series:

Working Paper No. 20/18

Subject:

English

Publication Date:

January 31, 2020

ISBN/ISSN:

9781513527918/1018-5941

Stock No:

WPIEA2020018

Format:

Paper

Pages:

18

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