This 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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Paper 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: Handle: RePEc:hhs:iuiwop:0619
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden Phone: +46 8 665 4500 Fax: +46 8 665 4599 Email: Web page: http://www.ifn.se/ More information through EDIRC
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Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor 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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