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OXFORD REVIEW OF ECONOMIC POLICY, VOL. 20, NO. 3, PP. 393-408
Oxford Review of Economic Policy vol. 20 no. 3 2004 © Oxford University Press and the Oxford Review of Economic Policy Limited 2004; all rights reserved.

Import Competition, Productivity, and Restructuring in UK Manufacturing

Chiara Criscuolo
University College London and CeRiBA

Jonathan Haskel
Queen Mary, University of London, Advanced Institute of Management Research, CeRiBA, CEPR, and IZA

Ralf Martin
London School of Economics and CeRiBA1

Abstract

We discuss the literature on the importance of entry and exit for raising productivity growth. Using micro data for the UK for a period from 1980 to 2000, we find that the share of productivity growth accounted for by entry and exit has increased considerably: from around 25 per cent in the 1980s to around 50 per cent in the 1990s. We then ask to what extent increased globalization—measured as sectoral import penetration—might have explained this and find effects from both globalization and information and communication technology.


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