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Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries

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  • Sanghoon Ahn

Abstract

This paper surveys recent empirical studies exploring aggregate productivity growth based on firm dynamics, focusing on micro-data from OECD countries. Aggregate productivity growth can be analysed as a sum of two separate processes. i) Changes in productivity in individual firms at a given size (relative to market). And, ii) a reallocation process due to compositional effects arising from the expansion and contraction of existing firms as well as from entry and exit of firms (namely, firm dynamics). After reviewing theoretical explanations and empirical methods for firm dynamics and productivity growth, the paper looks into major findings from the manufacturing sector under three subsections: firm dynamics, productivity correlates, and productivity decomposition. The paper also reviews methodological issues and some findings from the emerging literature of empirical studies on the service sector ... Cette étude passe en revue les études empiriques récentes qui examinent la croissance de la productivité globale en se basant sur la dynamique de l'entreprise, et en particulier en utilisant des données individuelles de firmes de pays de l'OCDE. La croissance de la productivité globale peut être analysée comme étant le résultat de deux procédés distincts, soit i) les changements de la productivité des firmes individuelles à taille donnée (par rapport au marché); et ii) le processus de réallocation dû à l'expansion et à la contraction des firmes existantes, aussi bien qu'à des entrées et sorties des entreprises (à savoir, la dynamique de l'entreprise). Après avoir examiné les explications théoriques et les méthodes empiriques d'analyse de la dynamique de l'entreprise et de la croissance de la productivité, l'étude considère les résultats principaux du secteur manufacturier dans trois sous-sections : la dynamique de l'entreprise, les corrélats de la productivité et la décomposition ...

Suggested Citation

  • Sanghoon Ahn, 2001. "Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries," OECD Economics Department Working Papers 297, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:297-en
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    File URL: http://dx.doi.org/10.1787/054842728775
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    Keywords

    entreprise; firm; micro data; micro-données; OCDE; OECD; productivity; productivité;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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