Chadha, J.S. and Samiri, Issam (2025) Understanding UK productivity using a macroeconomic lens. Journal of Economic Surveys , ISSN 1467-6419. (In Press)
![[img]](https://eprints.bbk.ac.uk/style/images/fileicons/text.png) |
Text
55944.pdf - Author's Accepted Manuscript Restricted to Repository staff only Download (958kB) |
|
Text
55944a.pdf - Published Version of Record Available under License Creative Commons Attribution. Download (2MB) |
Abstract
We survey UK labour productivity over the long run, comparing it with other advanced economies, and focus on the sharp slowdown since the global financial crisis. Using a growth accounting framework, we highlight the primary role of total factor productivity (TFP), while noting that the contribution of capital shallowing is influenced by methodological choices. We assess the UK’s productivity performance through standard neoclassical models and revisit the secular stagnation debate. Long-term trends, including a 30-year decline in real interest rates and increased labour supply since 2008 ought to have spurred investment, and yet private and public investment as a share of GDP has declined. The economic literature points to poor TFP growth, government decisions on public investment, flexible labour supply, heightened uncertainty and the distortion of investment decisions in an era of ultra-low interest rates as probable culprits behind the disappointing investment trends.
Metadata
| Item Type: | Article |
|---|---|
| Keyword(s) / Subject(s): | Productivity, Macroeconomics, Real Interest Rates, Investment |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Issam Samiri |
| Date Deposited: | 30 Jul 2025 13:52 |
| Last Modified: | 03 Sep 2025 15:40 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/55944 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
