IMAPCT OF INVESTMENT ON INFRASTRUCTURE, TECHNOLOGY AND SKILLS DEVELOPMENT ON PRODUCTIVITY GROWTH IN UK
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Universiti Malaysia Sarawak (UNIMAS)
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This research investigates the enduring problem of productivity stagnation in the UK, examining its socio-economic effects and deriving insights from data that covers the period from 1960 to 2020. In spite of numerous policy measures designed to improve productivity, including entry into the European Economic Community and later reforms, the UK has persistently fallen behind its global peers. The analysis tackles the issue of declining productivity growth, chronic lack of investment in infrastructure, technology, and skills deveolopment, as well as notable regional inequalities. Over the decades, structural barriers within the UK economy have obstructed innovation and the adoption of new technologies, resulting in a low-wage, low-skill job market. This research examines long-run and short-run relationships between productivity growth and its key determinants in the UK economy. Using empirical data, the study establishes a positive link between enhanced productivity and total factor productivity, human capital index, research and development investment emphasizing the necessity for strategic measures following Brexit to promote economic resilience. The research ultimately states that tackling the productivity crisis necessitates a comprehensive strategy, which includes greater investment in vital sectors, encouragement of innovation, and efficient skill development programs. By underscoring the significance of these elements, the study seeks to guide policymakers on possible avenues to enhance productivity, thus improving economic growth and living standards in an increasingly competitive global landscape.