About the GGDC

The Growth and Development Centre (GGDC) was An important aim of the GGDC is to carry out and encourage founded within the Economics Department of the University new empirical research, that is innovative and policy relevant of Groningen in 1992. It was originally set up by a group of at the same time. This is done through the GGDC’s own Groningen Growth and researchers working on comparative analysis of economic research, by compiling comprehensive databases for public performance over time and across countries in the tradition use and submitting (joint) proposals to finance collaborative of Angus Maddison. More recently, it has grown into a research in this field. International cooperation is key given research centre that studies the interactions of globalisation, the comparative nature of the research. The centre also Development Centre technology and institutional change, and its impact on long- organises seminars, summer schools and conferences, such Faculty of Economics run economic growth, structural change, productivity and as the annual Maddison lecture series. inequality. and Business The GGDC consists of a dedicated group of senior and junior The GGDC provides unique information on comparative staff members, PhD students and support staff, with a large The Faculty of Economics and Business (FEB) offers a wide range of Bachelor’s, Master’s and trends in the world economy in the form of easily accessible collaborating network of local, national and international driven datasets, along with comprehensive documentation. These affiliates. Its current director is Marcel Timmer. PhD degree programmes. Our staff and students work closely together on innovative research data data are made publicly available, which enables researchers projects, often at an international level. Students acquire the knowledge they need to excel in and policy makers from all over the world to analyse their field, and skills that will prove crucial in the internationally oriented organisations of the productivity, structural change and economic growth in www.rug.nl/ggdc detail. This includes the Penn World Table, the World Input- future. Our faculty is part of the , a dynamic academic environment Output Database (WIOD) and the Maddison Historical founded in 1614, famous for its rich tradition of research. Statistics.

Our centres of expertise These are our centres of expertise: Developing and applying knowledge is something you do as a • CIBIF: Centre for International Banking, team, which is why FEB is keen to work with companies, local Insurance and Finance government and other organisations. Collaboration means • CEER: Centre for Energy Economics Research that our partners benefit from our academic knowledge and • CIC: Customer Insights Centre we benefit from their practical expertise. For an overview of • COELO: Centre for Research on Local collaboration opportunities with FEB, please refer to Government Economics www.rug.nl/febforbusiness. • COPE: Centre for Operational Excellence • GGDC: Groningen Growth and Development Centre FEB has eleven centres of expertise, in which clusters of • Healthwise Angus Maddison (1926-2010), GGDC co-founder researchers focus on a specific topic. You can ask the relevant • HRM&OB: Centre for Human Resource Management expertise centre to carry out research into an issue specific to and Organisational Behaviour your organisation or you can participate in one of our ongoing • iGOR: Institute for Governance and research projects. Working with one or more of our centres of Organisational Responsibility partners expertise also gives you access to recent research, courses and • In the LEAD conferences. • VinCI: Value in Collaborative Innovation

Besides research for academic purposes, the GGDC also carries out research for corporate partners. Examples include: www.rug.nl/ggdc •  commission services • UK Overseas Development Institute • World Bank • Sweden Tillvaxtanalys Making research data • Asian Development Bank • ING Bank Our FEB alumni and researchers widely available • OECD • McKinsey Dr. Wim Duisenberg † First President of the European Annemiek Fentener van Vlissingen MSc. President-Commissioner • Dutch Ministry of Economic Affairs of SHV Holdings Prof. Klaas Knot President of Prof. Peter Leeflang Frank M. Bass Professor in Marketing Marcel Timmer - Professor of Economic Growth and Development Prof. Angus Maddison † Emeritus Professor in Economic Sociology Paul Polman MSc. CEO of Unilever Jeroen Smit MSc. Journalist and Reitze Gouma - Database Manager GGDC author Ernest Yonli PhD Ambassador to the US, former Prime Minister of Burkina Faso Jutta Bolt - Associate Professor of Economics events Productivity and Welfare Global Value Chains Historical Developments Penn World Table World Input-Output Database The Maddison Project Database

The Penn World Table (PWT) is the most development. The maps below show how The World Input-Output Database (WIOD) contains infor­ The Maddison Project Database provides income estimates Robert Inklaar widely used database for economic research comparative income levels have changed mation on transactions between producers and consumers for a global set of countries from the Roman times until the “The Maddison Project continues the great Penn World Table in the world. It has been providing over the past quarter century, with rapid within and across countries. We used it to answer the ques- present. This database can be used to study growth dynamics work of the late Angus Maddison, who was Coordinator infor­mation on country income levels for growth (indicated by darker greens) across tion why global trade has recently slowed down. Is it due in order to see when some countries forged ahead of others; the first to quantify long run economic Associate worldwide 182 countries since 1950. In addition to Asia and in Latin America, but much more to reorganisation of global supply chains, such as reshoring in other words, when divergence or convergence between performance for all regions in the world Professor of income levels, the database covers informa- localised progress against poverty across by multinationals after a long period of international countries took place. Additionally, the database can be used in a consistent framework. We are proud Economics tion on relative prices, quantities of major Africa. fragmentation? “The WIOD is a truly unique to study what factors are driving long-term economic growth. to follow in his footsteps and carry on this expenditure categories, measures of capital Understanding the large income differences In a recent study we have presented WIOD-based evidence, database, as it gives the important work.” and labour inputs, as well as productivityGDP per betweencapita the very poorest countries and “PWT is the most widely used stating that only about 27% of the global trade slowdown researcher an in-depth view of indicators. This allows for a comprehensive high-income countries remains one of the dataset for economic research can be attributed to the slowdown in offshoring. Instead, a the global production network, assessment of cross-country growth andGDP per mostcapita important challenges in economics. for its comprehensive and major part of the explanation relates to fast growth of the linking economic activity levels 1990 2014 authoritative overview of United States, which tends to consume products that generate to trade. It does not just provide term economic performance around long less international trade than products consumed in the more a snapshot, but a ‘time-lapse’ of GDP per capita the world.” sluggishly growing European countries. The relative growth 1990 2014 globalisation during the past (30,150] (30,150] (12,30] (12,30] (8,12] (8,12] rates of the EU, Japan and the US will most likely remain two decades.” (4,8] (4,8] (2,4] (2,4] Jutta Bolt (1,2] (1,2] (.7,1] (.7,1] important determinants of global trade growth in the near The Great Divergence [0,.7] [0,.7] GDP per person, 1990 constant $ No data No data Maddison Project Coordinator 1990 2014 (30,150] (30,150] future as well. 25.000 (12,30] (12,30] (8,12] (8,12] Associate Professor of Economics (4,8] (4,8] Bart Los (2,4] (2,4] (1,2] (1,2] (.7,1] (.7,1] Britain [0,.7] [0,.7] tive Value Chain Expert No data No data rela 20.000 Japan (30,150] (30,150] Professor of the Economics of Note:(12,30] GDP per capita is in 1000s of 2011 US dollars. (12,30] Category(8,12] up to $700 corresponds to absolute poverty. (8,12] (4,8] (4,8] India (2,4] (2,4] (1,2] (1,2] ANNUAL GROWTH OF THE WORLD TRADE TO WORLD GDP RATIO Technological Progress and (.7,1] (.7,1] 15.000 [0,.7] [0,.7] China No data No data Structural Change Note: GDP per capita is in 1000s of 2011 US dollars. Category up to $700 corresponds to absolute poverty. 4% 10.000

10-Sector Database 3% Note: GDP per capita is in 1000s of 2011 US dollars. 5.000 Category up to $700 corresponds to absolute poverty. 2,3% The GGDC 10-Sector Database provides a total (formal and informal) economy. This factor that differentiates successful countries 2%

0 long-run harmonised dataset on sectoral database is widely used to study structural from unsuccessful ones. The figure illus- 1% 1300 1400 1500 1600 1700 1800 1900 2000 output, input and productivity perfor- change, the movement of workers from trates that between 1990 and 2005, workers in 1,2% 0,6% 0,3% 0% mance for about 50 countries in Europe, agriculture into modern economic Asia have been moving into more productive -0,2% How the West raced ahead of the Rest -0,8%

Africa, Asia and Latin America. Variables activities, contributing to productivity activities, contributing to economic growth. -1% covered in the dataset are annual series of increases and expanding income. In contrast, structural change has been 2000-2008 2008-2011 2011-2014

added value, output deflators and persons The speed with which this structural growth-reducing in Latin America and due to changes in GVC structures due to changes in the final demand structure employed for 10 broad sectors covering the transformation takes place is the key Sub-Saharan African countries. Explaining ‘Peak Trade’ is not a single story

PRODUCTIVITY GROWTH RATE BETWEEN 1990 AND 2005 form 5% events research memoranda trans 4% 0,6%

3% “The 10-Sector Database is the first dataset to provide Since 2011 the Groningen Growth and Development Centre (GGDC) Apart from publishing in academic journals, GGDC researchers also 2% information on output and labour input at the sector 3,3% has organised the Maddison Lectures at the University of Groningen. publish working papers in our Research Memoranda series. These 1% 2,2% 2,1% level for about 50 countries in Europe, Asia, the The aim is to bring leading scholars from around the world to working papers allow the researcher to publish specific datasets in 0% Americas and Africa. It is a unique dataset that allows -0,9% -1,3% Groningen to present on major topics of economic history, growth spreadsheet data appendices. -1% researchers to analyse African development in a and development. Past and current issues are on the agenda, always -2% comparative cross-country setting.” Latin America Sub-Saharan Africa Asia with a long-term perspective, following the footsteps of Angus Contribution from productivity improvements within sectors Contribution from structural change Gaaitzen de Vries Maddison, who laid the foundations of research in this discipline at Herman de Jong 10-Sector Database Coordinator Structural change helps growth only in Asia our university. Professor of Economic History Assistant Professor of Economics