Convergence of Corporate Productivity, Globalization, Information Technologies, and Competition
AbstractStudies on business data has revealed wide differences in productivity between firms, sometimes even within narrowly defined activity sectors. The least productive firms therefore have ample margin for catching up. Their convergence towards the level of the most productive firms can be an important factor in productivity dynamics at macroeconomic level. Our article sheds light on this convergence in France in the 1990s and 2000s. Convergence was greater for labour productivity than for total factor productivity. But the speed of convergence slowed in the 1990s, mainly because of an acceleration in the productivity of firms on the technological frontier, i.e., the firms that were already the most productive. We suggest three explanations for these stylized facts: globalization ; information technologies, which seemingly benefited the most productive firms ; increased competition, which stimulated the productivity of firms on the technological frontier while inhibiting convergence for the least productive firms.
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Bibliographic InfoArticle provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.
Volume (Year): 419-420 (2009)
Issue (Month): (August)
Convergence ; Productivity ; TFP ; Globalisation ; ICT ; Competition;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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