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The decline of British manufacturing, 1973 - 2012 : the role of total factor productivity.

Harris, R and Moffat, J. (2019) 'The decline of British manufacturing, 1973 - 2012 : the role of total factor productivity.', National Institute economic review., 247 (1). R19-R31.


This paper uses plant-level estimates of total factor productivity covering 40 years to examine what role, if any, productivity has played in the decline of output share and employment in British manufacturing. The results show that TFP growth in British manufacturing was negative between 1973 and 1982, marginally positive between 1982 and 1994 and strongly positive between 1994 and 2012. Poor TFP performance therefore does not appear to be the main cause of the decline of UK manufacturing. Productivity growth decompositions show that, in the latter period, the largest contributions to TFP growth come from foreign-owned plants, industries that are heavily involved in trade, and industries with high levels of intangible assets.

Item Type:Article
Additional Information:Published in Association with National Institute of Economic and Social Research.
Full text:(AM) Accepted Manuscript
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Publisher statement:Harris, R & Moffat, J. (2019). The Decline of British Manufacturing, 1973 - 2012: The role of total factor productivity. National Institute Economic Review 247(1): R19-R31. Copyright © 2019 The Author(s). Reprinted by permission of SAGE Publications.
Date accepted:20 August 2018
Date deposited:22 August 2018
Date of first online publication:February 2019
Date first made open access:22 August 2018

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