| Author: | Greasley, D. Oxley, L. |
| Title: | Discontinuities in competitiveness: the impact of the First World War on British industry |
| Journal: | Economic History Review
1996 : FEB, VOL. 49:1, p. 82-100 |
| Index terms: | ECONOMIC HISTORY UNITED KINGDOM COMPETITIVENESS |
| Language: | eng |
| Abstract: | Using modern time series methods this article argues that Britain's long-term industrial growth was segmented by the macroeconomic shock of the First World War. The statistical results identify a sustained gap between actual and potential output arising from the onset and the aftermath of the war. The explanation centers on the collapse of aggregate competitiveness associated with a 30 percent real exchange rate appreciation for industry. The results play down the detrimental effects of the return to gold and the US crash, and by implication cast doubt on structural interpretations of interwar industrial performance. |
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