Corporate restructuring and labor productivity growth
AbstractThis article analyzes corporate restructuring and its role in generating labor productivity growth in a sample of large Swedish manufacturing corporations. It is found that external restructuring, including ownership changes, start-ups, and closures of plants, accounted for up to 47% of the productivity growth of the sample of corporations during the 1986--1996 period. The results indicate that the productivity of large multi-plant corporations potentially grew at least twice as fast as that of single-plant firms with the same internal productivity growth, thanks to their organizational flexibility. Divestitures of low productive plants were found to play a particularly important role in the replacement process generating productivity growth. The effect of external restructuring on productivity is to some extent explained by a shift toward a more skill-intensive production. Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 15 (2006)
Issue (Month): 4 (August)
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Other versions of this item:
- Hakkala, Katariina, 2004. "Corporate Restructuring and Labor Productivity Growth," Working Paper Series 619, Research Institute of Industrial Economics.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
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