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The Impact of Labor Reallocation and Competitive Pressure on TFP Growth: Firm-level Evidence from Crisis and Transition Ridden Bulgaria

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  • Ralitza Dimova

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Abstract

This paper uses the natural experiment of a macro-financial crisis and radical liberalization in Bulgaria to explore the impact of labor reallocation and competitive pressure on Total Factor Productivity (TFP) growth in the manufacturing sector. Our results indicate that labor reallocated from less efficient to more efficient firms in virtually all industries but the influence of other within industry characteristics on TFP growth was significantly higher. Furthermore, while increased competitive pressure had a positive impact on TFP growth among relative laggards in the respective industries, this impact was more than overwhelmed by the inability of industrial leaders to leapfrog their competitors.

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Bibliographic Info

Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 06-04.

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Length: 39 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:edb:cedidp:06-04

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Cited by:
  1. Daniela, Maggioni, 2011. "Productivity dispersion and its determinants: the role of import penetration," MPRA Paper 37154, University Library of Munich, Germany.

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