Why did European productivity growth slow down while American growth accelerated since the 1990s? In this article we provide a detailed analysis of the sources of growth from a comparative industry perspective, based on our recent book Economic Growth in Europe. We argue that Europe’s falling...

Misallocation of resources across firms leads to lower aggregate productivity. In this paper, we provide new estimates of manufacturing productivity differences across countries and establish by how much they would be reduced if such misallocation were eliminated. Using World Bank survey data...