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The Dynamics of Productivity Change: A Review of the Bottom-Up Approach

In: Productivity and Efficiency Analysis

Author

Listed:
  • Bert M. Balk

    (Erasmus University)

Abstract

This paper considers the relation between (total factor) productivity measures for lower level production units and aggregates thereof such as industries, sectors, or entire economies. In particular, this paper contains a review of the so-called bottom-up approach, which takes an ensemble of individual production units, be it industries or enterprises, as the fundamental frame of reference. At the level of industries the various forms of shift-share analysis are reviewed. At the level of enterprises the additional features that must be taken into account are entry (birth) and exit (death) of production units.

Suggested Citation

  • Bert M. Balk, 2016. "The Dynamics of Productivity Change: A Review of the Bottom-Up Approach," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Robin Sickles & Michael Veall & Marcel-Cristian Voia (ed.), Productivity and Efficiency Analysis, edition 1, chapter 0, pages 15-49, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-23228-7_2
    DOI: 10.1007/978-3-319-23228-7_2
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    Citations

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    Cited by:

    1. Catherine Fuss & Angelos Theodorakopoulos, 2018. "Compositional Changes in Aggregate Productivity in an Era of Globalisation and Financial Crisis," Working Papers of VIVES - Research Centre for Regional Economics 627696, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.
    2. Pekka Ilmakunnas & Mika Maliranta, 2016. "How does the age structure of worker flows affect firm performance?," Journal of Productivity Analysis, Springer, vol. 46(1), pages 43-62, August.
    3. Schneider, Patrick, 2018. "Decomposing differences in productivity distributions," Bank of England working papers 740, Bank of England.
    4. Mika Maliranta & Satu Nurmi, 2019. "Business owners, employees, and firm performance," Small Business Economics, Springer, vol. 52(1), pages 111-129, January.
    5. Álvarez, Inmaculada C. & Orea, Luis & Perez-Mendez, Jose A., 2019. "Rural and agricultural development by land consolidation: a spatial production analysis of Asturias´ parishes," Efficiency Series Papers 2019/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    6. Huang, Minjie & Zhao, Shunan & Kumbhakar, Subal C., 2022. "Decomposition of Output, Productivity and Market Structure Changes," European Journal of Operational Research, Elsevier, vol. 303(1), pages 422-437.
    7. Michel Dumont & Glenn Rayp & Marijn Verschelde & Bruno Merlevede, 2016. "The contribution of start-ups and young firms to industry-level efficiency growth," Applied Economics, Taylor & Francis Journals, vol. 48(59), pages 5786-5801, December.
    8. Bert M. Balk, 2020. "A novel decomposition of aggregate total factor productivity change," Journal of Productivity Analysis, Springer, vol. 53(1), pages 95-105, February.

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