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Economy


  • 3-August-2022

    English

    United Kingdom: Accelerate structural reforms to keep recovery on track

    After a strong post-pandemic recovery, the UK economy is facing slower growth with rising inflation and labour shortages exacerbated by Russia’s war of aggression against Ukraine.

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  • 30-July-2021

    English

    Value chains in public marine data - A UK case study

    Marine data play a crucial role for many scientific disciplines, as well as for very diverse operational services such as fisheries management, environmental planning, marine conservation, weather forecasting, or port management. The information derived from marine data is also increasingly finding its way into a wide and varied range of public policy arenas and private industries. Collecting, distributing and archiving public marine data provide benefits to society at large, however as with all public investments, assessments are needed to provide evidence to decision makers. Based on an original survey of UK marine data users, this paper explores pathways through which marine data are used and transformed into actionable information, creating systematised value chains for the first time. The analysis unveils trends in current marine data uses in the UK and key benefits of data uses. The paper lays the foundations for further OECD work with the marine data community.
  • 22-July-2021

    English

    COVID-19, productivity and reallocation: Timely evidence from three OECD countries

    The longer run consequences of the pandemic will partly hinge on its impact on high productivity firms, and the ongoing process of labour reallocation from low to high productivity firms. While Schumpeter (1939) proposed that recessions can accelerate this process, the nature of the COVID-19 shock coupled with a policy response that prioritised preservation (over reallocation) raises questions about whether job reallocation remained productivity-enhancing. Using novel, near-real-time data for Australia, New Zealand and the United Kingdom, this paper shows that while labour turnover fell in response to the pandemic, job reallocation remained connected to firm productivity – that is, high productivity firms were more likely to expand and low productivity firms were more likely to contract. The pandemic coincided with a temporary strengthening of the reallocation-productivity link in Australia – but a weakening in New Zealand – which appears related to the design of job retention schemes. Finally, firms that intensively used Apps to manage their business were more resilient, even after controlling for productivity. Thus, while policy partly suppressed creative destruction, the nature of the shock – i.e. one where being online and able to operate remotely were key – favoured high productivity and tech-savvy firms, resulting in a reallocation of labour to such firms. The use of timely, novel data to investigate the allocative effects of the pandemic marks a significant advance, given that the seminal paper on productivity-enhancing reallocation during the Great Recession arrived some six years after Lehman Brothers collapsed.
  • 13-July-2021

    English

    The impact of COVID-19 on corporate fragility in the United Kingdom: Insights from a new calibrated firm-level Corporate Sector Agent-Based (CAB) Model

    Covid-19 and the associated restrictions on interaction have led to an unprecedented shock to activity and firms’ balance sheets. To assess the impact, this paper applies a new large-scale firm-level simulation model calibrated to the United Kingdom (UK). The paper specifically examines the Coronavirus Job Retention Scheme (CJRS) furlough program and a credit guarantee. The Corporate Sector Agent-Based (CAB) Model (Hillman, Barnes, Wharf and MacDonald, 2021) takes into account: heterogeneity across firms; interactions between firms across a realistic customer-supplier network; and rule-of-thumb behaviour by firms and bankruptcy constraints. The model amplifies the effect of shocks and generates substantial persistence and overshooting, as well as displaying a number of non-linearities. The CAB uses a data-rich approach based on ORBIS firm-level data and the OECD Input-Output tables. Simulations in this paper are calibrated to the observed path of UK output in 2020.
  • 18-May-2021

    English

    Policy brief on e-learning and digital business diagnostic tools for entrepreneurs

    This policy brief discusses recent international policy experiences in developing e-learning and digital business diagnostic tools for entrepreneurs. E-learning tools can develop entrepreneurial knowledge, skills and competences among users and increase their confidence and success in business creation. Business diagnostic tools offer entrepreneurs ways to assess their business management practices against peer companies or good practices, building competence and diffusing good practice. This brief sets out considerations for the successful development and implementation of these tools. It presents eight international cases of tools and discusses the public policy lessons from these international experiences.
  • 23-March-2021

    English

    OECD reports to G7 on need to strengthen economic resilience against crises

    Creating an emergency Rapid Response Forum to ensure global supplies of essential goods continue to flow during major international crises is one of a broad range of recommendations contained in a new OECD report to the G7 on building economic resilience.

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  • 2-February-2021

    English

    Local entrepreneurship ecosystems and emerging industries: Case study of Cambridgeshire and Peterborough, United Kingdom

    This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples.
  • 18-December-2020

    English

    Raising the Basic Skills of Workers in England, United Kingdom

    This report provides examples and recommendations to help overcome obstacles to engage low-skilled workers and their employers in skills development. England has implemented impressive measures aimed at helping workers and employers to upskill. Nonetheless, there remains room for improvement. More can be done to identify workers with low basic skills, raise awareness of why improving those skills is important, increase the accessibility to relevant courses, ensure these courses are flexible enough to accommodate adult learners who are already employed, and finally make the provision relevant to career aspirations. This report urges England to establish and promote a vision for raising the skills of low-skilled workers, identify their needs more systematically, and provide targeted guidance and information to them and their employers. It highlights that accessible and flexible adult learning opportunities in the workplace, home, community and by other means such as online and distance learning can better meet the varied needs of low-skilled workers. It also makes the case for the use of contextualised learning approaches, which create connections between basic skills and vocational context, and a more effective use of basic skills in workplaces to maintain, develop and realise the benefits of prior skills investments.
  • 23-November-2020

    English

    Firm investments in skills and capital in the UK services sector

    Investments in both human and physical capital are key drivers of economic growth and productivity gains. The United Kingdom has had a turbulent recent history, being strongly affected by the Global Financial Crisis of 2008 and more recently voting to leave the European Union, its largest trading partner. We use firm-level survey data for the UK services sector to show that firms were less likely to increase expenditure on worker training in the periods following each event. In the period following the EU Referendum, firms were 9% less likely to increase expenditure on worker training relative to the period before the referendum. The effects were most severe for larger firms and for those located in London and the South East. The impacts also varied across industries, with firms in real estate, professional, scientific and technical activities among those most negatively affected, while administrative activities and accommodation services were least negatively affected. We see similar changes in expenditure on all forms of physical capital available in the data: IT; vehicles, plants and machinery; and land and buildings. Following the EU Referendum, firms were also more likely to reduce training expenditure, although the magnitudes of the changes were smaller than those following the Financial Crisis of 2008.
  • 23-November-2020

    English

    What drives firm and sectoral productivity in the United Kingdom and in selected European countries?

    This paper examines the link between barriers to trade and investment and productivity performance, in the United Kingdom and selected European countries using both firm-level and sectoral data. Barriers to trade and investment appear to be a robust determinant of productivity in the long term. Control variables such as spending on R&D and human capital also play a role, though their effects depend on the way they are measured or on the sample. The results are robust across a range of productivity measures as well as to changes in the sectoral coverage and the set of controls.
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