German Productivity - A Reassessment via the New Ifo Productivity Database

Andreas Kuhlmann

No Ifo Working Papers No. 35, Ifo Working Paper Series from Ifo Institute for Economic Research at the University of Munich

Abstract: A detailed analysis of the German productivity development is indispensable for understanding, why Europe is lagging behind the US growth since the mid 1990s. In this paper a new and unique database is used to analyze the sources of German productivity growth since 1970. It is shown that investment in information and communication technology (ICT) played a minor role in the German productivity development. The results include detailed descriptive statistics and projections for output and labor productivity growth for the coming decade. The base-case projection puts overall trend output growth at 1.53 percent per year over the next decade. Average labor productivity will grow at an annual rate of 1.59 percent.

Keywords: Growth accounting; productivity analysis; TFP (search for similar items in EconPapers)
JEL-codes: F43 O47 R11 (search for similar items in EconPapers)
Date: Written

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