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

Harris, R.; Moffat, J.

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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 Mar 29, 2024
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

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Copyright Statement
This is the accepted version of the following article: 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 which has been published in final form at https://doi.org/10.1111/sjpe.12240. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for self-archiving.




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