Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms
AbstractWe investigate the relationship between productivity, size and age of large Australian firms employing more than 100 employees or holding assets in excess of $100 million. In addition, we also investigate the extent of productivity persistence among these firms by looking at transition matrices of productivity distribution and productivity-rank mobility. The empirical study is based on the IBISWorld database used to estimate translog cost function to measure (a residual based) productivity. We find evidence, though somewhat weak, that larger and older firms are on average less productive. Furthermore, we find stronger evidence for a high degree of inertia in terms of productivity ranking within an industry.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Industry, Competition and Trade.
Volume (Year): 9 (2009)
Issue (Month): 2 (June)
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Web page: http://springerlink.metapress.com/link.asp?id=105724
productivity; large firms in Australia; translog cost function; transition matrix; L25;
Other versions of this item:
- Alfons Palangkaraya & Jongsay Yong & Andreas Stierwald, 2006. "Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms," Melbourne Institute Working Paper Series wp2006n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
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