Article in Journal
Deindustrialization, Structural Change and the European Productivity Dilemma
Georg Duernecker
CESifo, Munich, 2024
EconPol Forum 25 (3), 19-22
CESifo, Munich, 2024
EconPol Forum 25 (3), 19-22
- Aggregate productivity growth in the EU14 has slowed significantly in recent decades
- Structural change toward services has contributed significantly to the growth slowdown
- Future growth is projected to decline further due to the rise of sectors with stagnant productivity
- Europe is projected to fall further behind the US in terms of productivity
- R&D tax credits may not cure Europe’s productivity malaise due to negative reallocation effects