A research study note from Patrick Artus of Natixis Research is out on Monday, highlighting how the absence of efficiency gains for the Eurozone might be an outcome of structural weak point, instead of the oft-touted cyclical elements.
Eurozone performance has a hard time: absence of significant innovation financial investment to blame, not working with patterns
There are 2 opposing analyses of the absence of efficiency gains in the euro zone considering that late 2017:
- A cyclical analysis (the fall in the inexperienced joblessness rate);
- A structural analysis (the low level of financial investment in brand-new innovations … and an aging labour force).
By comparing OECD nations, we examine the contribution of structural issues to the downturn in efficiency gains in the euro zone.
When we imitate the efficiency space in between the United States and the euro zone with current information on financial investment in brand-new innovations, R&D costs and the age structure of the working-age population, we discover an efficiency gains space in favour of the United States of 2.5 portion points annually. This reveals that structural descriptions can completely describe the stagnancy of performance because late 2017 in the euro zone.
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