Productivity, market selection and corporate growth: comparative evidence across US and Europe
AbstractThis paper presents a broad set of empirical regularities about selection and market shares reallocation in manufacturing industries of France, Germany, UK and USA. We first disentangle the contribution to industry-level productivity growth of within-firm productivity changes and between-firms reallocation of shares. The evidence corroborates that within-firm learning prevails over competitive selection. Second, we address the strength of reallocation by exploring if and to what extent firm growth rates are shaped by relative productivity levels in deviation from industry average and by the over time variation of productivities themselves. The econometric analysis accounts for both the dynamic dimension of the selection process and idiosyncratic firm-specific factors. We find that changes, rather than relative levels, are the dominant productivity-related determinant of relative growth rates.
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Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2013/15.
Date of creation: 08 Jul 2013
Date of revision:
firms heterogeneity; sectoral productivity decomposition; corporate growth; productivity; market selection; firm-industry dynamics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-BEC-2013-07-15 (Business Economics)
- NEP-EFF-2013-07-15 (Efficiency & Productivity)
- NEP-EUR-2013-07-15 (Microeconomic European Issues)
- NEP-URE-2013-07-15 (Urban & Real Estate Economics)
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