An Analysis of Differences in Labour Productivity in Manufacturing. Displaying the Need for a Resurgence of Industrial Policy: Spain vs Germany, 1993-2007

Carolina Hintzmann ()
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Carolina Hintzmann: Universitat Oberta de Catalunya

Hacienda Pública Española / Review of Public Economics, 2015, vol. 212, issue 1, 97-126

Abstract: The objective of this paper is to identify the determinants that hinder the continued growth of productivity in Spanish industry, when compared to Germany between 1993-2007. To this end, different methodologies based on the decomposition of gross value added have been applied. Results indicate that differences in industry structure do not totally justify the gap in productivity between both industries. It is more a problem of convergence speed of both production structures, rather than one of absence of changes. This study shows the need to implement strategic measures for boosting industrial sectors, particularly now when there is a resurgence of industrial policy.

Keywords: Labour Productivity; Manufacturing Industry; Industrial Composition; Industrial Policy. (search for similar items in EconPapers)
JEL-codes: D24 E23 L50 L60 O47 O57 (search for similar items in EconPapers)
Date: 2015
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