Productivity Growth and Value Chains in Four European Countries

Izabela Karpowicz and Nujin Suphaphiphat

No 2020/018, IMF Working Papers from International Monetary Fund

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: WP; firm; global value chain; increase productivity; firm Innovation proxy; productivity dynamics; data availability; firm level; Labor productivity; Productivity; Total factor productivity; Capital productivity; Global value chains; Global; Europe; firms; GVC (search for similar items in EconPapers)
Pages: 18
Date: 2020-01-31
New Economics Papers: this item is included in nep-eec, nep-eff, nep-fdg, nep-int and nep-tid
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Citations: View citations in EconPapers (1)

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