Table of Contents

Industrial Productivity in Europe

Industrial Productivity in Europe

Growth and Crisis

Edited by Matilde Mas and Robert Stehrer

This book analyzes growth at the total economy and industry level from an international perspective, providing unique cross-country comparisons. The authors focus on the EU-25 countries but also include the US, Japan and Korea. The chapters explore growth patterns from a long-run perspective, although greater attention is paid to the period of expansion from 1995–2007 and the post 2008 period of crisis. Each contribution builds on a common methodology based on a detailed database providing a high degree of disaggregation with respect to the industries and factors accounting for growth. The role played by ICT is expertly emphasized, in particular the different paths followed in the US and the EU.

Introduction

Matilde Mas, Robert Stehrer and Mary O'Mahony

Subjects: economics and finance, industrial economics

Extract

Matilde Mas and Robert Stehrer The recent economic crisis that started in 2008 hit most countries to a varying extent. The crisis was particularly severe in some advanced economies but also in less advanced ones in the Western Hemisphere. Though the crisis was triggered in the financial sector with the burst of the housing bubble in the US it spread quickly to other countries in most parts of the world and negatively affected growth differentially across sectors of the economies. In particular, industries like construction and the automobile industry have been severely affected. This was accompanied by an unprecedented collapse of world trade and negative impacts on employment, which manifested in rising unemployment rates especially for low-qualified people. Most of the countries are now recovering from this severe slump, though this is happening at different speeds and patterns of recovery are mostly affected by macroeconomic imbalances like public and private deficits, monetary policy issues and international imbalances like external debts. Thus, though there are signs of recovery, the world economy and particular countries are still in a shaky state. There is now a vast amount of literature focusing on the explanation and impacts of the economic crisis at the macroeconomic level, with little emphasis on sectoral developments, which is mostly dealt with, however, in the literature on the trade collapse. Also with respect to the recovery, the sectoral patterns in relation to output and productivity growth and thus also employment growth are less debated. The chapters in this book address...