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What fosters firm-level labour productivity in Eastern European and Central Asian countries?

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  • Aleksandra Kordalska

    (Gdańsk University of Technology, Faculty of Management and Economics)

  • Magdalena Olczyk

    (Gdańsk University of Technology, Faculty of Management and Economics)

Abstract

This study examines labour productivity performance and its determinants in Eastern European and Central Asian (EECA) firms using micro-level data. We find significant differences in labour productivity among members of the European Union in Eastern Europe and other Eastern European and Central Asian countries. We also confirm the important impact of foreign ownership, exporter status, and highly skilled workers on productivity levels. However, we reveal a non-linear relationship between firm age and labour productivity. Additionally, significant differences in labour productivity determinants between services and manufacturing are found. The productivity of service firms, unlike manufacturing firms, is much more sensitive to changes in productivity factors.

Suggested Citation

  • Aleksandra Kordalska & Magdalena Olczyk, 2020. "What fosters firm-level labour productivity in Eastern European and Central Asian countries?," Bank i Kredyt, Narodowy Bank Polski, vol. 51(1), pages 91-120.
  • Handle: RePEc:nbp:nbpbik:v:51:y:2020:i:1:p:91-120
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    More about this item

    Keywords

    Eastern Europe and Central Asia; firm-level analysis; labour productivity;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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