The Global Productivity Slowdown: Diagnosis, Causes and Remedies

This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before then is possible via SpringerLink.This paper addresses the long-term slowdown in labour productivity for a panel of 25 countries.

First, the authors look at productivity shifts and trends based on structural break tests and modern filtering techniques. The productivity slowdown is evident in almost all countries we investigate.

Second, the authors deepen the analysis by decomposing labour productivity growth. Third, the authors use dynamic models to test for Granger causality in the trends and find that there is strong evidence that a slow GDP growth trend causes the subsequent productivity trend.

The authors conclude that the productivity slowdown is a global phenomenon and should therefore be tackled at the international level.

Intereconomics: Archive http://archive.intereconomics.eu/years/

SpringerLink: Intereconomics http://link.springer.com/journal/10272

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