How will the effects of Covid-19 on macroeconomic demand and supply affect firm-level productivity?
Understanding the impact of Covid-19 on UK productivity requires consideration of both the demand and supply forces in the macroeconomy. We use the 2D model of productivity to show that declining productivity growth can be traced to both demand and supply constraints, which are distributed unevenly across the regional surface of the national economy.
Firms’ productivity levels during and after the Covid-19 pandemic will reflect discontinuities in demand and supply from local to international scales. The economic response to these discontinuities will depend on the severity of rifts in global supply chains, on shifting consumer behavior, and on government decisions about support for the economy. These factors are heterogeneous across firms and space. With investment and planning, the recovery period can move the UK economy toward a more sustainable, localized path.
What to expect
Grab a drink and a sandwich and join our one-hour webinar on 23rd July 2020 at 12:00-13:00 to hear expert insights and stimulating discussion about How will the effects of Covid-19 on macroeconomic demand and supply affect firm-level productivity? The webinar will include an online discussion from our speakers before an interactive Q&A session.
Prof Gary Dymski, University of Leeds
Prof Don Webber, University of Sheffield
Prof Andrew Henley, Cardiff University