How Much Does Turnover Matter? Evidence from Indonesian Manufacturing Total Factor Productivity Growth, 1975-95
AbstractIndonesian manufacturing exhibits a dual structure, with a sector composed of a few dominant large and long-lived companies, along with a sector composed of numerous small and medium enterprises and displaying dynamic turnover. Using manufacturing plant-level panel data (1975-95), we decompose total factor productivity (TFP) growth into intra-plant TFP growth, market share reallocation among incumbents and plant turnover effect. Both market share reallocation from low to high productivity growth plants, and the process of turnover among small- and medium-scale plants offer a high and positive contribution to aggregate TFP growth. This is, however, cancelled out both by the reallocation of market shares from high to low productivity level plants, and incumbents' intra-plant productivity losses. This suggests that the turnover process in the small- and medium-scale sector is essential to aggregate TFP growth, but that the process of catching up within manufacturing is not yet advanced enough to provide the full benefits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Oxford Development Studies.
Volume (Year): 36 (2008)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.informaworld.com/smpp/title~content=t713439972~db=all
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ergun Dogan & Koi Nyen Wong, 2010. "Plant Size, Turnover and Productivity in Malaysian Manufacturing," Monash Economics Working Papers 11-10, Monash University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.