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Survival of the fittest or does size matter: What are the main drivers of Productivity in Brazil?

Author

Listed:
  • Luna, Ivette
  • Hiratuka, Celio
  • Haddad Netto, Elias Youssef

Abstract

This article aims to explore learning and selection effects of productivity change for three classes of firm’s sizes in Brazilian manufacturing and service sectors from 1996 to 2011. The methodology is based on the Price Equation. Our results support the international evidence about the weak intensity of the selection effect to explain aggregate productivity change for medium and large size firms. Small firms, however, are much more affected. Besides, size, measured by number of employees, appears to be a good proxy for capital intensity. There are as well signs that the learning effect is highly correlated with the economic cycle.

Suggested Citation

  • Luna, Ivette & Hiratuka, Celio & Haddad Netto, Elias Youssef, 2016. "Survival of the fittest or does size matter: What are the main drivers of Productivity in Brazil?," MPRA Paper 78208, University Library of Munich, Germany, revised 2016.
    • Handle: RePEc:pra:mprapa:78208
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    References listed on IDEAS

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    More about this item

    Keywords

    Productivity; innovation; evolutionary theory; productive structure;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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