Arbeitspapier

Understanding the contributions of reallocation to productivity growth: lessons from a comparative firm-level analysis

We analyze comprehensive manufacturing firm data to measure the contribution of inter-firm employment reallocation to aggregate productivity growth during the socialist and reform periods in six transition economies. Modifying a standard decomposition technique to better reflect the role of firm entry, we find that reallocation rates and productivity contributions are very low under socialism. After reforms, they rise dramatically, and productivity contributions greatly exceed those observed in market economies. Early in transition, faster reform is associated with larger contributions from reallocation, but later, and on average over the whole transition, this relationship is reversed. Though reallocation rates are larger in faster reforming economies, higher productivity dispersion in slower reformers creates much higher productivity gains for a given volume of reallocation. The results imply that reallocation should be viewed as necessary regular maintenance for a well-functioning economy, and particularly large productivity contributions tend to reflect previous neglect more than current virtue.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3683

Klassifikation
Wirtschaft
Business Fluctuations; Cycles
Thema
Productivity
reallocation
industry dynamics
creative destruction
reform
transition
Georgia
Hungary
Lithuania
Romania
Russia
Ukraine
Industrieller Strukturwandel
Arbeitsmobilität
Produktivität
Übergangswirtschaft
Innovationswettbewerb
Georgien
Ungarn
Litauen
Rumänien
Russland
Ukraine

Ereignis
Geistige Schöpfung
(wer)
Brown, J. David
Earle, John S.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
URN
urn:nbn:de:101:1-2008092978
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Brown, J. David
  • Earle, John S.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

Ähnliche Objekte (12)