Working Paper: CEPR ID: DP6863
Authors: Nicholas Crafts; Gianni Toniolo
Abstract: This paper surveys the extensive literature on European economic growth since 1950. It presents an overview of comparative growth performance together with benchmarked growth accounting estimates. The growth experience is considered in terms of three periods, the Golden Age of 1950-73, the Growth Slowdown of 1973-1995, and the New Economy period since the mid-1990s, both across countries and across regions. The key conclusion is that study of the historical record underlines the importance of incentive structures for growth outcomes while sustaining growth performance over the long run requires the (often difficult) adaptation of institutions and policies as catch up becomes more complete and new technological epochs arrive.
Keywords: catch-up; growth; golden age; ICT; slowdown; total factor productivity
JEL Codes: N14; O47; O52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increased investment (E22) | productivity growth (O49) |
| technology transfer (O33) | TFP growth (O49) |
| reconstruction opportunities (N60) | growth rates (O40) |
| diminishing returns to investment (E22) | growth deceleration (O41) |
| reduction in scope for catch-up (C24) | growth deceleration (O41) |
| institutional quality (L15) | economic outcomes (F61) |
| failure to establish effective institutions (O17) | poorer growth outcomes (O15) |