By Alan Griffiths, Stuart Wall
"Applied Economics" is perfect for undergraduates learning economics, company reviews, administration and the social sciences. it's also compatible for these learning expert classes, HND and 'A' point courses."Applied Economics" communicates the power and relevance of the topic to scholars, bringing economics to lifestyles. Containing updated info on monetary concerns and occasions, the e-book is helping scholars follow financial rules to the 'real global' and offers them an perception into the problems of formulating and enforcing fiscal coverage.
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Extra info for Applied Economics, 10th Edition
10 where UK labour productivity growth rates in this sector are compared to those for three of its main rivals. Here we see that the UK’s growth rate for labour productivity in manufacturing was below those of its three rivals over the decade 1989–99. Despite a relatively improved performance in the early 1990s, there was a significant reversal of growth in the years leading to the new millennium. Although much discussion of the UK’s performance in terms of productivity has centred on the manufacturing sector, it should be noted that this sector is not a cohesive entity; rather it is made up of many subsectors with divergent records over time.
Deindustrialization may put not only these backward-linkages at risk but also a variety of forwardlinkages. The suggestion here is that innovations, whether measured by patents or survey records, are heavily concentrated in the manufacturing sector. Again Greenhalgh (1994) found that 87% of innovations were developed in the manufacturing (and primary) sector, and 80% of all first commercial adoptions of innovations took place in this sector. Deindustrialization clearly puts at risk the ‘seed-corn’ of domestic technology, which in turn has balance of payments implications (see below) as UK trade becomes progressively geared to high-technology products.
CONSEQUENCES OF STRUCTURAL CHANGE Balance of payments An alternative definition of deindustrialization is offered by Singh, based on the traditional role of manufacturing in UK trade flows. Historically the UK was a net exporter of manufactures, so that surplus foreign exchange was earned which enabled the country to run a deficit on its trade in food and raw materials. Singh (1977) defines an ‘efficient’ manufacturing sector as one which ‘not only satisfies the demands of consumers at home but is also able to sell enough of its products abroad to pay for the nation’s import requirements’.