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Productivity Dynamics in French Woodworking Industries

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  • Enrico De Monte
  • Anne-Laure Levet

Abstract

This paper investigates productivity dynamics of firms active in French woodworking 4- digit industries. For this purpose we analyze firm-level data from the two fiscal data bases FICUS (1994 - 2008) and FARE (2008 - 2016). Based on firm-level productivity measures, recovered from the estimation of a value-added Cobb-Douglas production function, we mainly study the industries’ aggregate productivity growth related to entry and exit. Also, by constructing a transition matrix we investigate firms’ probability to survive, enter or exit given a specific ranking of their productivity. We find that all industries increased considerably their aggregate productivity between 1994 and 2016, where the by far largest part of this positive development is contributed by survivors productivity improvement. Entrants contribute negatively to aggregate productivity growths while the contribution of exitors varies in sign for different industries. Also, we find that firms reveal high persistence in their productivity ranking over time and that entry and exit is more probable for low productive and small firms.

Suggested Citation

  • Enrico De Monte & Anne-Laure Levet, 2019. "Productivity Dynamics in French Woodworking Industries," Working Papers of BETA 2019-45, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2019-45
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    More about this item

    Keywords

    production function estimation; aggregate productivity; productivity decomposition; technological change; firm entry and exit.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D30 - Microeconomics - - Distribution - - - 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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