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The impact of product subsidies on plant-level total factor productivity in Britain, 1997-2014.

Harris, R. and Moffat, J. D. (2020) 'The impact of product subsidies on plant-level total factor productivity in Britain, 1997-2014.', Scottish journal of political economy., 67 (4). pp. 387-403.


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.

Item Type:Article
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Publisher 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 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for self-archiving.
Date accepted:03 December 2019
Date deposited:04 December 2019
Date of first online publication:14 January 2020
Date first made open access:14 January 2022

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