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Productivity differences between large and smaller firms in the UK

Graham Watson

11th January 2016

I'm not sure what to say about the data published by the ONS that finds productivity is higher in larger businesses. According to the ONS "Larger firms – which might have greater scope for dividing up production activities into specialised units, or which can benefit from increasing returns through centralised business functions, for example – tend to have higher productivity than smaller firms."

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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