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Openness and Total Factor Productivity in Swedish Manufacturing Industry 1980-95

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  • Andersson, Linda

    ()
    (Department of Economics, Umeå University)

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    Abstract

    This paper studies the effect of openness on total factor productivity growth. Using industry level data for Swedish manufacturing during the period 1980-95, the paper shows that economically integrated industries tend to be more engaged in R&D and have more entry and exit activity than other industries. The results show that domestic R&D intensity does not contribute to the growth rate of total factor productivity. Instead, openness to international markets, which helps facilitate technology spillovers, contributes to the growth of total factor productivity. There is also some evidence that producers exiting the market are less productive, implying that such exits will increase the average productivity of the industry.

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    Bibliographic Info

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 548.

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    Length: 26 pages
    Date of creation: 11 Dec 2000
    Date of revision:
    Publication status: Published in Weltwirtschaftliches Archiv, 2001, pages 690-713.
    Handle: RePEc:hhs:umnees:0548

    Contact details of provider:
    Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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    Web page: http://www.econ.umu.se/
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    Related research

    Keywords: entry; exit; openness; R&D; spillover; total factor productivity (TFP) growth;

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