Arbeitspapier

Productivity growth and micro-level restructuring: Finnish experiences during the turbulent decades

The appearance of productivity-enhancing restructuring at the plant level (the socalled between and net entry effects) has contributed substantially to the acceleration of labour and total factor productivity growth in Finnish manufacturing in the period from the latter part of the 1980s up to the mid-1990s. The recent years have witnessed chilling in these components of aggregate productivity growth. We find evidence that increased export-orientation towards the Western markets and increased R&D intensity have generated the productivity-enhancing restructuring. More specifically, R&D seems to have contributed to aggregate total factor productivity through plant level restructuring with a lag of some 3 to 5 years. The chilling in the between-plant component in recent years can be explained by the fact that while the gap to the international technology frontier is narrowing there are less and less needs and opportunities for productivity improvement through micro-structural adjustment. We have found that microstructural factors of aggregate productivity growth have an important role to play in diminishing productivity and wage dispersion between plants. In the recession years external adjustment through entry and exit and, to a lesser extent, through restructuring among incumbents has improved aggregate productivity performance in some service industries as well. But the recovery period has entailed chill also in many non-manufacturing industries. – productivity ; total factor productivity ; restructuring ; R&D ; competition ; catching up

Sprache
Englisch

Erschienen in
Series: ETLA Discussion Papers ; No. 757

Klassifikation
Wirtschaft
Industry Studies: Manufacturing: General
Industry Studies: Services: General
Microeconomic Analyses of Economic Development
Management of Technological Innovation and R&D
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Thema
Produktivität
Wirtschaftliche Anpassung
Industrielle Forschung
Verarbeitendes Gewerbe
Finnland

Ereignis
Geistige Schöpfung
(wer)
Maliranta, Mika
Ereignis
Veröffentlichung
(wer)
The Research Institute of the Finnish Economy (ETLA)
(wo)
Helsinki
(wann)
2001

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Maliranta, Mika
  • The Research Institute of the Finnish Economy (ETLA)

Entstanden

  • 2001

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