The sources of the Scotlandâ€“Rest of the UK productivity gap: implications for policy
Richard Harris () and
John Moffat ()
Regional Studies, 2017, vol. 51, issue 9, 1297-1311
The sources of the Scotlandâ€“Rest of the UK productivity gap: implications for policy. Regional Studies. This paper finds that aggregate total factor productivity (TFP) in Scotland was 16% below the â€˜rest of the UKâ€™ in 2012. This is mainly due to negative â€˜non-placeâ€™ effects in the service sector. It also finds that new plant start-ups and foreign-owned plants contributed negatively to TFP growth during 1997â€“2012. This casts doubt on whether continuing to focus on increasing the rate of new firm formation and foreign investment will result in a â€˜step changeâ€™ in productivity growth.
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