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Labour Productivity and Foreign Direct Investment in Irish Manufacturing Industry - A Decomposition Analysis

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Author Info
Frances Ruane (Institute for International Integration Studies at Trinity College Dublin)
Ali Ugur (Institute for International Integration Studies at Trinity College Dublin)

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Abstract

Overall labour productivity in the Irish manufacturing sector increased by 158 per cent between 1991 and 1999. This paper examines the components of this labour productivity growth in the period 1991-1999, using a decomposition analysis based on plant level data. In order to account for the large presence of foreign plants we carry out our analysis separately for foreign and domestic plants, as well as for four ownership subgroups, four sectoral subgroups, and two time sub-periods. Our results show that although the main drivers of average labour productivity growth in all groups arise within plant and from plant entry, there are marked differences in the relative sizes of these effects across ownership/sector/time-period.

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File URL: http://www.esr.ie/Vol36_1/Vol36_1RuaneUgur.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 36 (2005)
Issue (Month): 1 ()
Pages: 19–43
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Handle: RePEc:eso:journl:v:36:y:2005:i:1:p:19-43

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chin-Hee Hahn, 2000. "Entry, Exit, and Aggregate Productivity Growth: Micro Evidence on Korean Manufacturing," OECD Economics Department Working Papers 272, OECD, Economics Department. [Downloadable!]
  2. John C. Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78. [Downloadable!]
  3. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD, Economics Department. [Downloadable!]
  4. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  5. Frances Ruane, 2003. "Foreign direct investment in Ireland," Working Papers 000056, Lancaster University Management School, Economics Department. [Downloadable!]
  6. Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, vol. 113(489), pages 666-694, 07. [Downloadable!] (restricted)
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  7. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May. [Downloadable!] (restricted)
  8. John R. Baldwin & Wulong Gu, 2002. "Plant Turnover and Productivity Growth in Canadian Manufacturing," OECD Science, Technology and Industry Working Papers 2002/2, OECD, Directorate for Science, Technology and Industry. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carol Newman, 2006. "The impact of globalisation and trade on the productivity performance of the Irish food manufacturing sector," The Institute for International Integration Studies Discussion Paper Series iiisdp180, IIIS. [Downloadable!]
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This page was last updated on 2009-12-18.

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