Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms
AbstractWe investigate the relationship between productivity, size and age of large Australian firms employing more than 100 employees or holding assets in excess of $100 million. In addition, we also investigate the extent of productivity persistence among these firms by looking at transition matrices of productivity distribution and productivity-rank mobility. The empirical study is based on the IBISWorld database used to estimate translog cost function to measure (a residual based) productivity. We find evidence, though somewhat weak, that larger and older firms are on average less productive. Furthermore, we find stronger evidence for a high degree of inertia in terms of productivity ranking within an industry.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2006n07.
Length: 29 pages
Date of creation: Mar 2006
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Other versions of this item:
- Alfons Palangkaraya & Andreas Stierwald & Jongsay Yong, 2009. "Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 167-195, June.
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-08 (All new papers)
- NEP-BEC-2006-04-08 (Business Economics)
- NEP-CSE-2006-04-08 (Economics of Strategic Management)
- NEP-EFF-2006-04-08 (Efficiency & Productivity)
- NEP-TID-2006-04-08 (Technology & Industrial Dynamics)
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