Declining productivity growth is the primary reason for economic slowdown in Western nations
Is it true that declining productivity growth is the primary reason for economic slowdown in Western nations?
Yes. Retrieved economic literature consistently links the broader economic slowdowns and secular stagnation in advanced Western nations and Japan to declining total factor productivity growth.
Verdict: SUPPORTED · 4 sources for, 0 against · Last checked
The retrieved papers examine economic stagnation and slowdowns in advanced economies (such as the US, European nations, and Japan) and consistently identify declining total factor productivity (TFP) growth as the primary proximate or structural cause. Papers 0, 4, 8, and 11 all point directly to TFP slowdowns as driving forces behind economic stagnation. There are no retrieved papers refuting this relationship.
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Fernald, J. G., Inklaar, R., & Ruzic, D. (2023). The Productivity Slowdown in Advanced Economies: Common Shocks or Common Trends?. doi.org. https://doi.org/10.24148/wp2023-07
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Wroński, M. (2019). The productivity growth slowdown in advanced economies: causes and policy recommendations. doi.org. https://doi.org/10.2478/ijme-2019-0020
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Bergeaud, A., Cette, G., & Lecat, R. (2019). Long-term growth and productivity trends: Secular stagnation or temporary slowdown?. doi.org. https://doi.org/10.3917/REOF.157.0037
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Paprzycki, R. & Fukao, K. (2006). Overcoming Economic Stagnation in Japan: The Importance of Total Factor Productivity and the Potential Contribution of Foreign Direct Investment. doi.org. https://doi.org/10.2139/ssrn.886003
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