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Recent European Economic Growth: Why Can't it be Like the Golden Age?

Published online by Cambridge University Press:  26 March 2020

Nicholas Crafts
Nicholas Crafts*
Affiliation:
Warwick University
*
e-mail: N.Crafts@warwick.ac.uk
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Abstract

This paper evaluates claims that European productivity growth has been undermined by weak competition and excessive regulation and taxation. The argument has some validity in the context of the information and communications technology (ICT) revolution which has placed a greater premium on flexibility. The UK has been well-placed to benefit from ICT but experiences a productivity gap reflecting historically-low investment combined with high employment of low-productivity workers. Rapid Irish growth has benefited greatly from low corporate taxation but the massive contribution of ICT production to productivity growth suggests it is a special case not a role model.

Keywords

Economic growthICTProduct market regulationTFP growthN14O47
Type
Articles
Information
National Institute Economic Review , Volume 199 , 01 January 2007 , pp. 69 - 81
Copyright
Copyright © 2007 National Institute of Economic and Social Research

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Footnotes

I have benefited from helpful discussions with Steve Broadberry and am grateful to Steve Nickell for providing me with unpublished data. The usual disclaimer applies.

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