Corporate Restructuring and Labor Productivity Growth
AbstractThis paper 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 percent of the productivity growth of the sample of corporations during the 1986-96 period. The results indicate that the productivity of large multi-plant corporations grew almost 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 towards a more skill-intensive production.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 619.
Length: 33 pages
Date of creation: 28 Feb 2004
Date of revision:
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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Corporate Restructuring; Labor Productivity Growth;
Other versions of this item:
- Katariina Hakkala, 2006. "Corporate restructuring and labor productivity growth," Industrial and Corporate Change, Oxford University Press, vol. 15(4), pages 683-714, August.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-05-02 (Accounting & Auditing)
- NEP-ALL-2004-05-02 (All new papers)
- NEP-INO-2004-05-02 (Innovation)
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