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Productivity Convergence at the Firm Level

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Author Info

  • Kiyohiko G. Nishimura

    (Policy Board, Bank of Japan)

  • Takanobu Nakajima

    (Faculty of Business and Commerce, Keio University)

  • Kozo Kiyota

    (Faculty of Business Administration, Yokohama National University)

Abstract

Productivity convergence among countries has been investigated extensively with mixed results. This paper extends the analysis to the firm level to shed light on the debate of convergence or non-convergence. We find productivity convergence among firms widely in Japan, in both manufacturing industries and non-manufacturing ones. We obtain these results taking explicit account of exiting firms as a source of selection biases. The convergence rate is much faster among firms than countries. We also find that there are substantial differences among industries in the convergence speed. IT industries that heavily rely on technological progress show faster rates of convergence.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2005/2005cf341.pdf
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Bibliographic Info

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-341.

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Length: 23 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:tky:fseres:2005cf341

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  1. Kyoji Fukao & Hyeog Ug Kwon, 2004. "Why Did Japan's TFP Growth Slow Down in the Lost Decade?: An Empirical Analysis Based on Firm-Level Data of Manufacturing Firms," Hi-Stat Discussion Paper Series d04-50, Institute of Economic Research, Hitotsubashi University.
  2. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, September.
  3. Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "The Growth And Failure Of U.S. Manufacturing Plants," Papers 1-87-5, Pennsylvania State - Department of Economics.
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Cited by:
  1. Paul-Antoine Chevalier & Rémy Lecat & Nicholas Oulton, 2009. "Convergence of Firm-Level Productivity, Globalisation, Information Technology and Competition: Evidence from France," CEP Discussion Papers dp0916, Centre for Economic Performance, LSE.
  2. Paul-Antoine Chevalier & Rémy Lecat & Nicholas Oulton, 2009. "Convergence of Corporate Productivity, Globalization, Information Technologies, and Competition," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 419, pages 101-124, August.
  3. Kiyohiko G. Nishimura & Takanobu Nakajima & Kozo Kiyota, 2005. "Innovation Versus Diffusion: Determinants of Productivity Growth Among Japanese Firms," CIRJE F-Series CIRJE-F-350, CIRJE, Faculty of Economics, University of Tokyo.

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