This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Differences In Total Factor Productivity Across Firm Size - A Distributional Analysis

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Laia Castany ()
Enrique López-Bazo ()
Rosina Moreno ()

Additional information is available for the following registered author(s):

Abstract

Productivity has been considered a key element for firms and economies to be more competitive. Several studies on productivity at a microeconomic level have found notable heterogeneity between firms. More concretely, differences in Total Factor Productivity (TFP) between large and small firms have been observed. Those differences might be caused by differences in the distribution of the factors determining the level of TFP across firms’ size, and by differences in the return to such factors. To assess to what extent the observed differences in TFP between large and small Spanish manufacturing firms are caused by the above-mentioned reasons we propose a methodology that, built on the traditional Oaxaca-Blinder decomposition, focuses the attention on the entire distribution of productivity. The TFP index used in our paper guarantees comparison of the level of productivity across firms in a given year and over time, and has been computed using the information in the Encuesta sobre Estrategias Empresariales (ESEE), a comprehensive survey of manufacturing firms in Spain from 1990 to 1999. Results confirm that the distribution of TFP in the large firms dominates that for the small firms, and how besides differences in the distribution of, for example, human capital and R&D expenditures across firms’ size, heterogeneity in returns between large and small firms play a major role in explaining differences in the distribution of TFP. Important policy issue are derived in connection with the possibility of increasing the aggregate productivity of the Spanish economy considering that the average firm size in Spain is smaller than in other European countries.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa05/papers/115.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p115.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa05p115

Contact details of provider:
Postal: Augasse 2-6, 1090 Vienna, Austria
Web page: http://www.ersa.org

For technical questions regarding this item, or to correct its listing, contact: (Gunther Maier).

Related research
Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Blackwell Publishing, vol. 17(2), pages 157-200, 04. [Downloadable!] (restricted)
  2. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January. [Downloadable!] (restricted)
    Other versions:
  3. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October. [Downloadable!] (restricted)
  4. Geroski, Paul A, 1998. "An Applied Econometrician's View of Large Company Performance," CEPR Discussion Papers 1862, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. M. Carree & A. Thurik, 1998. "Small firms and economic growth in europe," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(2), pages 137-146, June. [Downloadable!] (restricted)
  6. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May. [Downloadable!] (restricted)
  8. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June. [Downloadable!] (restricted)
  9. del Barrio-Castro, Tomas & Lopez-Bazo, Enrique & Serrano-Domingo, Guadalupe, 2002. "New evidence on international R&D spillovers, human capital and productivity in the OECD," Economics Letters, Elsevier, vol. 77(1), pages 41-45, September. [Downloadable!] (restricted)
  10. David H. Good & M. Ishaq Nadiri & Robin C. Sickles, 1996. "Index Number and Factor Demand Approaches to the Estimation of Productivity," NBER Working Papers 5790, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Daron Acemoglu & Joshua Angrist, 1999. "How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws," Working papers 99-30, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
  12. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn. [Downloadable!] (restricted)
  13. Huergo, Elena & Jaumandreu, Jordi, 2004. "Firms' age, process innovation and productivity growth," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 541-559, April. [Downloadable!] (restricted)
  14. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December. [Downloadable!] (restricted)
    Other versions:
Statistics
Access and download statistics

Did you know? You can import bibliographic info in various formats into you bibliographic tool, or just into your word processor. See under "publisher info" on each abstract page.

This page was last updated on 2009-11-13.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.