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

Arbeitspapier

We analyze comprehensive manufacturing firm data to measure the contribution of interfirm 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, but they rise dramatically after reforms, and productivity contributions greatly exceed those observed in market economies. Early in transition, more 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 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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Upjohn Institute Working Paper ; No. 08-141

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Business Fluctuations; Cycles ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
• Thema: productivity ; reallocation ; industry dynamics ; entry ; exit ; creative destruction ; reform ; transition ; Georgia ; Hungary ; Lithuania ; Romania ; Russia ; Ukraine ; Industrieller Strukturwandel ; Arbeitsmobilität ; Produktivität ; Übergangswirtschaft ; Innovationswettbewerb ; Georgien ; Ungarn ; Litauen ; Rumänien ; Russland ; Ukraine

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brown, J. David ; Earle, John S.
• Ereignis: Veröffentlichung
• (wer): W.E. Upjohn Institute for Employment Research
• (wo): Kalamazoo, MI
• (wann): 2008

Weitere Informationen

• DOI: doi:10.17848/wp08-141
• Handle: http://hdl.handle.net/10419/64362
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ