Productivity Growth and Value Chains in Four European Countries

19 Pages Posted: 28 Feb 2020

See all articles by Izabela Karpowicz

Izabela Karpowicz

International Monetary Fund (IMF)

Nujin Suphaphiphat

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich

Date Written: January 2020

Abstract

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.

Keywords: Total factor productivity, Real sector, Gross domestic product, Labor productivity, Financial crises, Productivity, firms, GVC, WP, TFP, productivity growth, selected country, advanced economy, intermediate input

JEL Classification: F13, O19, O47, O52, E01, E2, O4, F15, J

Suggested Citation

Karpowicz, Izabela and Suphaphiphat, Nujin, Productivity Growth and Value Chains in Four European Countries (January 2020). IMF Working Paper No. 20/18, Available at SSRN: https://ssrn.com/abstract=3545283

Izabela Karpowicz (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Nujin Suphaphiphat

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland

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