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Plant closure in Britain since the Great Recession

Richard Harris () and John Moffat ()

Economics Letters, 2016, vol. 140, issue C, 27-30

Abstract: One of the suggested explanations for the UK productivity puzzle is that, since the onset of the Great Recession, low productivity plants that would normally have closed have continued operating. This paper therefore investigates whether there has been a change in the relationship between productivity and closure since the recession. We find that, for a number of sectors, the negative association between TFP and closure that existed prior to the recession has been offset, or even reversed, since the recession.

Keywords: Plant closure; Great Recession; Productivity (search for similar items in EconPapers)
JEL-codes: D22 D24 L2 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1016/j.econlet.2016.01.004

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