The Impact of Product Subsidies on Plant-level Total Factor Productivity in Britain, 1997-2014

Harris, R.; Moffat, J.

Abstract

The United Kingdom’s imminent departure from the European Union provides the opportunity for a more selective industrial strategy. This paper therefore analyses the effect of product subsidies on productivity in British manufacturing plants between 1997 and 2014 in order to provide evidence on the desirability of extending their use. The results suggest that low rates of subsidization had either a positive or no effect but higher rates had a negative effect on total factor productivity in some sectors. This implies that increasing the generosity of subsidies does not offer a means of improving the UK’s productivity performance.

Citation

Harris, R., & Moffat, J. (2020). The Impact of Product Subsidies on Plant-level Total Factor Productivity in Britain, 1997-2014. Scottish Journal of Political Economy, 67(4), 387-403. https://doi.org/10.1111/sjpe.12240

• Journal Article Type: Article
• Acceptance Date: Dec 3, 2019
• Online Publication Date: Jan 14, 2020
• Publication Date: 2020-09
• Deposit Date: Dec 4, 2019
• Publicly Available Date: Jan 14, 2022
• Journal: Scottish Journal of Political Economy
• Print ISSN: 0036-9292
• Electronic ISSN: 1467-9485
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 67
• Issue: 4
• Pages: 387-403
• DOI: https://doi.org/10.1111/sjpe.12240
• Public URL: https://durham-repository.worktribe.com/output/1281913