The UK Productivity Puzzle: A Survey of the Literature and Expert Views

Abstract

Since 2008, the UK’s productivity has stagnated, leading to the widely debated “productivity puzzle”. Understanding this phenomenon and its drivers is crucial for managers and policymakers. This article summarises theoretical and empirical literature on the determinants of productivity in general terms, as well as their relevance to the UK’s productivity performance. It also discusses to what extent the findings from a survey of leading UK academic experts on productivity provide support for the existing theoretical and empirical evidence on this topic, and help identify and validate the most important factors explaining the UK’s productivity slowdown since 2008. The combination of our literature review and survey findings suggests that key determinants of the UK’s productivity slowdown include: insufficient investment; insufficient quality of infrastructure; limitations in human capital stock; and management quality issues.