“…The empirical methodology quantifies the productivity effects of raising the capital intensity in each sector-region, focusing on viable firms falling behind the national productivity frontier in all but the finance and insurance sectors over 1995-2014. …”

“…Greater substitution of labour for capital and weak corporate restructuring have both held back productivity improvements in the manufacturing sector. …”

“…Labour productivity could be boosted via rendering the tax system more growth friendly, reducing product market regulation (including heavy government involvement in the economy, high administrative costs of running and starting businesses and increasing competition in uncompetitive segments of the economy). Investing in human capital and encouraging innovation are also essential for long-term productivity growth."…”

“…In the longer term, structural impacts would take hold through the channels of capital, immigration and lower technical progress. …”