Why Europe lags behind America in Productivity?

January 20, 2011 Presented by Aditya Kumar Dixit

Contents

Introduction GDP Per capita comparisonProductivityGap in ProductivityReasons for gap in productivityPossible Measures to reduce the gapReferences

Introduction

Gross Domestic Product represents the total current market value of all goods and services produced within a country over the course of some time period.

Productivity is measured as GDP per hour working.

GDP per capita Comparison

$46442 US $33052 US

Productivity

Gap in Productivity

$11250 US in GDP per capita terms

$6.4 US per hour ( Data 2007 OECD)

7

Reasons for gap

Underperformance of service sector

Inability to build upon ICT

Market regulation

Reasons for gap

Measures to reduce the gap

04/12/2023 10

Injecting competition

Deregulation

Reaping benefits of ICT

Measures

References

Mckinsey Quarterly report October 2010

Europe’s productivity challenge :- The Economist

Regulation, Allocative ,Efficiency and Productivity in OECD Countries :- by Jens Arnold, Giuseppe Nicoletti,

Stefano Scarpetta

04/12/2023 11

References

An article written by Ashley Seager in ‘The Guardian’

www.europa.eu

04/12/2023 12

THANKS

HAVE A GOOD DAY 04/12/2023 13