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Productivity in Estonian enterprises: the role of innovation and competition

  • Priit Vahter


This paper provides some stylised facts about differences in labour productivity and total factor productivity (TFP) in Estonian firms and about the role of selected determinants of productivity differences. Enterprise level panel data of the whole population of Estonian firms from years 1995-2002 is used. It appears that the variation of productivity indicators in Estonia is much greater than in Western Europe. Although there is a lot of entry and exit of firms, there is not much movement within the productivity distribution of surviving .rms. It is found that both innovation and less concentrated market structure seem to be positively related to higher productivity of firms

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Paper provided by Bank of Estonia in its series Bank of Estonia Working Papers with number 2006-07.

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Length: 42 pages
Date of creation: 11 Dec 2006
Date of revision: 11 Dec 2006
Handle: RePEc:eea:boewps:wp2006-07
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