france, germany and the uk similarities, differences and prospects this research is funded by the...
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France, Germany and the UK
Similarities, differences and prospects
This research is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".
France, Germany and the UK Large share of EU value added
France
Germany
UK
EU-15
EU-10
Developments in these countries important in understanding EU productivity
France, Germany and the UKSimilarities: deceleration or no change in
labour productivity growth....in contrast to acceleration in US
Growth in value added per hour worked % per annum, 1970-95 versus 1995-04
0
0.5
1
1.5
2
2.5
3
3.5
France Germany UK US
France
Germany
UK
US
Similarities: Acceleration in labour productivity in electrical machinery, post
and communications
Growth in value added per hour worked % per annum, 1970-95 versus 1995-04
France
Germany
UK
US
0
2
4
6
8
10
12
France Germany UK US
Similarities: acceleration in percentage points contribution of ICT capital to output
growth
ICT capital contributionpp per annum, 1970-95 versus 1995-04
France
Germany
UK
US
0
0.2
0.4
0.6
0.8
1
1.2
France Germany UK US
Similarities: poor performance in MFP growth relative to US
Growth in Multifactor productivity Market Economy % per annum
France
Germany
UK
US
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
France Germany UK US
Differences: France and UK show increase in person engaged, 1995-04, but
not Germany Growth in persons engaged % per annum
France
Germany
UK
US
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
France Germany UK US
Differences: Industry location of productivity gains
France MFP growth success in traditional
manufacturing, big decline in UK
Growth in multi-factor productivity, % per annum
France
Germany
UK
US
0
0.5
1
1.5
2
2.5
3
3.5
France Germany UK US
Differences: Industry location of productivity gains
MFP growth success in UK in Financial and
Business services, big decline in Germany
Growth in multi-factor productivity, % per annum
France
Germany
UK
US
-4
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
France Germany UK US
UK very large contribution to EU ICT capital growth
Contributions to ICT capital growth,1995-04
Value added shares
UK
UK
France – relatively successful in traditional manufacturing and in
raising the employment rate overall
But employment growth in market services associated with static MFP growth
90
95
100
105
110
115
120
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
GermanyDownturn in labour productivity growth not compensated by increase in employment
But concerns over labour force skills - share high skilled workers sluggish compared to other countries
0
5
10
15
20
25
30
35
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Germany has maintained growth in value added in manufacturing
US
UK
France
Germany
France, Germany and the UK Prospects
UK: Shows some signs of following US lead in reaping benefits from ICT
France: No immediate signs of a US style productivity growth acceleration
Germany: Prospects of US style growth spurt are dim
Better prospects for an acceleration in other EU countries such as the Netherlands, Ireland and Finland – but small share of EU value added
European productivity revival may be held back by some larger economies, including Spain and Italy