Discussion Paper Details

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Title: Explaining Anglo-German Productivity Differences in Services Since 1870

Author(s): Stephen N Broadberry

Publication Date: September 2004

Keyword(s): Britain, Germany, productivity and services

Programme Area(s): International Macroeconomics

Abstract: Germany overtook Britain in comparative productivity levels for the whole economy primarily as a result of trends in services rather than trends in industry. Britain?s productivity lead in services before World War II reflected external economies of scale in a highly urbanised economy with an international orientation. Low productivity in Germany reflected the under-development of services in an economy that was slow to move out of agriculture. As German agricultural employment contracted sharply from the 1950s, catching-up occurred in services. This was aided by a sharp increase in human and physical capital accumulation, underpinned by the institutional framework of the postwar settlement.

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Bibliographic Reference

Broadberry, S. 2004. 'Explaining Anglo-German Productivity Differences in Services Since 1870'. London, Centre for Economic Policy Research.