Abstract
This article reviews the productivity and economic growth of Europe since 1950, identifying three periods characterized by different drivers of productivity. In the period 1950-1973, European growth was characterized by a traditional catch-up pattern based on the imitation and adaptation of foreign technology, coupled with strong investment and supporting institutions. The article also focuses on the European growth experience, especially in the period from 1995 to 2007, using a new and detailed database called the EU KLEMS Growth and Productivity Accounts. The article shows that the productivity slowdown in Europe since the mid-1990s is mainly attributable to the slower emergence of the knowledge economy compared to the US. The article considers various explanations for the slowdown which are not mutually exclusive. The final section of this article looks at some of the policy implications for Europe to strengthen its productivity growth performance.
| Original language | English |
|---|---|
| Pages (from-to) | 3-23 |
| Number of pages | 21 |
| Journal | International Productivity Monitor |
| Volume | 21 |
| Publication status | Published - 1 Jan 2011 |
