Restructuring And Productivity Growth In UK Manufacturing

Jonathan Haskel (), Richard F Disney and Ylva Heden

No 2463, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We analyse productivity growth in UK manufacturing 1980-92 using the newly available ARD panel of establishments drawn from the Census of Production. We examine the relative importance of 'internal' restructuring (such as new technology and organizational change) and 'external' restructuring (the process by which less efficient establishments exit and more efficient establishments enter and increase market share). We find that (a) 'external restructuring' accounts for 50% of labour productivity growth and 90% of TFP growth over the period; (b) much of the external restructuring effect comes from multi-establishment firms closing down poorly-performing plants and opening high-performing new ones, and (c) external competition is an important determinant of internal restructuring.

Keywords: Entry; Exit; Market selection; Productivity; Restructuring; Total factor productivity (search for similar items in EconPapers)
JEL-codes: L11 L6 O47 (search for similar items in EconPapers)
Date: 2000-05
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Citations: View citations in EconPapers (53)

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Journal Article: Restructuring and productivity growth in uk manufacturing (2003)
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