Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Firm Size Distribution and Productivity Growth

Contents:

Author Info

  • Yaz Terajima

    ()
    (Monetary and Financial Analysis Bank of Canada)

  • Danny Leung

    (Monetary and Financial Analysis Bank of Canada)

  • Cesaire Meh

    (Monetary and Financial Analysis Bank of Canada)

Abstract

Over the last 20 years, the annual average U.S. and Canadian productivity growth rates have been 2.3% and 1.3%, respectively. The objective of this paper is twofold. First, we empirically document the firm size distribution and the productivity for the two countries. Second, we quantitatively assesses how much different determinants of the firm size distribution contribute to this observed productivity difference between the two countries. For the empirical part, we show that U.S. firms are on average larger than their Canadian counterparts. This observation is particularly so in the manufacturing industry. Moreover, we show that small firms in the United States have growth rates that are higher than small firms in Canada, but larger firms in the two countries have similar growth rates. These observations suggest that small firms in the two countries may be the key source of the observed productivity growth gap. Given these observations, we build a model of firm size dynamics, which incorporates several determinants of the firm size distribution such as the tax structures and the financial market imperfections. We then calibrate the model for each country focusing on these determinants. The calibrated model is used to determine whether and how much the differences in these determinants can account for the differences in the firm size distributions and the productivity growth gap

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2006 with number 167.

as in new window
Length:
Date of creation: 04 Jul 2006
Date of revision:
Handle: RePEc:sce:scecfa:167

Contact details of provider:
Email:
Web page: http://comp-econ.org/
More information through EDIRC

Related research

Keywords: firm size distribution; productivity;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sce:scecfa:167. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.