The Anglo-German productivity puzzle, 1895-1935: a restatement and a possible resolution

Abstract

Recent research on international productivity comparisons has focused on the discrepancies between benchmark comparisons and time series extrapolations from other benchmarks. For a 1907 benchmark, Stephen Broadberry and Carsten Burhop (2007) find German manufacturing to be only slightly ahead of Britain. Their backward extrapolation from a broader 1935 benchmark is consistent with their 1907 benchmark, provided that a traditional but disputed industrial production series of Walther Hoffmann (1965) is used. If they instead employ a revised series by Ritschl (2004), they obtain an implausibly high productivity lead of 50 percent, evidence that they therefore discard. The present paper revisits this Anglo-German productivity puzzle and suggests a resolution. Drawing on Rainer Fremdling and Reiner Staeglin (2003), I present further revisions to Germany’s industrial production series. I also calculate a revised 1907 productivity benchmark. Both the revised extrapolation and the revised benchmark indicate that on the eve of World War I, German manufacturing productivity was clearly ahead of Britain

Similar works

This paper was published in LSE Research Online.

Having an issue?

Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.