Lower Productivity in Scotland, 1997-2012: Implications Post-2016

Harris, R.; Moffat, J.

Abstract

This paper finds that total factor productivity in Scotland was 11% below the ‘rest of the UK’ in 2012. This is found to be mainly due to negative plant ‘composition’ effects in those (service) sectors where the productivity gap is largest. It is also found that new plant start-ups and foreign-owned plants both contributed negatively to TFP growth during 1997-2012. This casts doubt on whether relying on greater tax incentives post- 2016 to increase the rate of new firm formation and encourage foreign investment will result in a ‘step-change’ in productivity growth.

Citation

Harris, R., & Moffat, J. (2014). Lower Productivity in Scotland, 1997-2012: Implications Post-2016

• Working Paper Type: Working Paper
• Publication Date: 2014
• Deposit Date: Jul 2, 2014
• Publicly Available Date: Jul 18, 2014
• Series Title: Durham University Business School Economics Finance Accounting Working Papers
• Keywords: Micro-based TFP, Productivity gap, Scotland.
• Public URL: https://durham-repository.worktribe.com/output/1168354
• Publisher URL: https://www.dur.ac.uk/business/faculty/working-papers/