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Analyzing Productivity Growth Using ARD Data: Insights into Entry, Exit, Foreign Firms, Skills, and Innovation in the UK

Explore the contribution of entry, exit, foreign firms, skills, and innovation to productivity growth in the UK using the Annual Respondents Database (ARD). The ARD integrates data from various surveys, covering large and small businesses, since 1994, offering insights into key variables such as employment, turnover, capital expenditure, and more. Understand the evolution of variables over time and the challenges in maintaining data consistency and accuracy in productivity analysis.

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Analyzing Productivity Growth Using ARD Data: Insights into Entry, Exit, Foreign Firms, Skills, and Innovation in the UK

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  1. The ARD

  2. Work analysing productivity using ARD 1. Contribution of entry and exit to productivity growth: Disney, Haskel and Heden (2003); Barnes and Haskel (2000); Griffith and Simpson (2001). 2. Productivity of foreign firms: Oulton (2000); Harris (2002); Harris et al. (2003) 3. Productivity and skills (NES and ESS): Barnes and Haskel(2000), Haskel and Pereira (2002) 4. Productivity and innovation (matched to the CIS) Criscuolo and Haskel (2002)

  3. ARD • The ARD is formed from the Annual Business Inquiry (ABI) from 1998 onwards and previous surveys before that (e.g. Annual Census of Production (ACOP)). • Data prior 1998: Data on production and construction activities • Data post 1998: Production, construction, distribution and services • It is a census of large businesses (>250 employees), and a sample of smaller ones. • The businesses selected for the surveys are drawn since 1994 from the ONS Inter-departmental Business Register (IDBR).

  4. Variables: • The central variables collected are employment, turnover/output, capital expenditure, wage cost, and intermediate consumption. • Postcodes, industrial classification (SIC codes), ownership • Problems: • The range of variables has varied over the years and the same variable names can sometimes hide changing definitions. • No information on prices or capital stock

  5. Other issues: • Level of aggregation: • From 1994 onwards the reporting levels are “Enterprise group”, “enterprise” and “local unit” • Reporting Units (plant or group of plants) are the fundamental unit on the ARD • There are also changes in the terminology. • Sampling frame: • The selected sample of small firms rotates to prevent the excessive sampling of SMEs. The sample frame has varied from year to year.

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