Papa, Javier and Rehill, Luke and OConnor, Brendan (2018): PATTERNS OF FIRM LEVEL PRODUCTIVITY IN IRELAND. Published in: OECD PRODUCTIVITY WORKING PAPERS No. 15 (September 2018)
PDF
1a04730d-en.pdf_expires=1678984732&id=id&accname=guest&checksum=EC9CDFC9420470EC55C797422855E63F Download (1MB) |
Abstract
Productivity is the ultimate driver of sustainable increases in living standards. While Ireland is a high productivity country, it has not been immune from the global productivity slowdown, with the pace of growth on a downward trend throughout the 2000s. Little research has been carried out as to the determinants behind the productivity slowdown in Ireland, and even less so with microdata. To fill the gap, we use a firm-level panel dataset based on production surveys from Ireland’s national statistics office, together with the OECD MultiProd model, in order to identify productivity patterns and trends distributed by percentile, sector, ownership, as well as measures of the efficiency of resource allocation. Our results show a widening of the productivity gap between the most and least productive firms, with the majority of firms experiencing a decline in productivity since the mid-2000s, and also confirm that aggregate results are driven by the impact of foreign dominated sectors, with foreign firms typically larger and more productive. These results are significant in terms of enterprise policy and featured prominently in the OECD’s 2018 Economic Survey of Ireland.
Item Type: | MPRA Paper |
---|---|
Original Title: | PATTERNS OF FIRM LEVEL PRODUCTIVITY IN IRELAND |
English Title: | PATTERNS OF FIRM LEVEL PRODUCTIVITY IN IRELAND |
Language: | English |
Keywords: | Firm level productivity, labour productivity, multifactor productivity, productivity distribution, productivity dispersion, MultiProd, productivity frontier, resource allocation |
Subjects: | F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M13 - New Firms ; Startups O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries |
Item ID: | 116703 |
Depositing User: | Dr Javier Papa |
Date Deposited: | 17 Mar 2023 09:19 |
Last Modified: | 10 Oct 2024 20:10 |
References: | Allas, T. (2016), “UK productivity: challenging every business to improve”, OECD Global Forum on Productivity London Workshop, October 2016. Andrews, D., C. Criscuolo and P. N. Gal, (2015), “Frontier Firms, Technology Diffusion and Public Policy: Micro Evidence from OECD Countries”, OECD Productivity Working Papers, 2015-02, OECD Publishing, Paris. Arnold, J., S. Scarpetta, and G. Nicoletti (2011), “Regulation, Resource Allocation and Productivity Growth”, EIB Paper 4/2011, European Investment Bank, Economics Department. Bartelsman, E., J. Haltiwanger and S. Scarpetta (2009), “Measuring and Analyzing Cross-Country Differences in Firm Dynamics,” In Producer Dynamics: New Evidence from Micro Data, 15-76. University of Chicago Press. Bartelsman, E., J. Haltiwanger and S. Scarpetta (2004), “Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries”, Tinbergen Institute Discussion Paper 04-114/3. Tinbergen Institute. Bartelsman, E., J. Haltiwanger and S. Scarpetta (2005), “Comparative Analysis of Firm Demographics and Survival: Evidence from Micro-Level Sources in OECD Countries”, Industrial and Corporate Change 14 (3): 365-391. Baumol, W.J., (1986), “Productivity growth, convergence, and welfare: what the long-run data show”, The American Economic Review, pp.1072-1085. Berlingieri, G., Blanchenay, P., Calligaris, S., and Criscuolo, C. (2017), “The Multiprod project: A comprehensive overview”, OECD Science, Technology and Industry Working Papers, 2017/04, OECD Publishing, Paris. Berlingieri, G., Calligaris, S. and Criscuolo, C. (2018), “The Productivity-Wage Premium: Does size still matter in a service economy?”, American Economic Association Paper and Proceedings, forthcoming. Caselli, F. (1999), “Technological Revolutions,” American Economic Review 89(1): 78-102. Central Statistics Office (2016a), “National Income and Expenditure Results”, CSO statistical release, June. Central Statistics Office (2016b), “Annual Services Inquiry”, CSO statistical release. November. Central Statistics Office (2016c), “Census of Industrial Production”, CSO statistical release, October. Central Statistics Office (2016d), “Business Demography”, CSO statistical release, July. Central Statistics Office (2016e), “Revised Structural Business Statistics series”, CSO information note, October. Central Statistics Office (2017a), Economic Statistics Review Group Press Briefing, February. Central Statistics Office (2017b), “Gross Value Added for Foreign-owned Multinational Enterprises and Other Sectors Annual Results”, CSO statistical release, August. Central Statistics Office (2017c), “National Income and Expenditure Annual Results”, CSO Statistical release, July DeLong, J. B. (1988). Productivity Growth, “Convergence and Welfare: Comment”, The American Economic Review, 78 (5), 1138-1154. Dosi, G., Lechevalier, S. and Secchi, A. (2010), Interfirm heterogeneity: nature, sources and consequences for industrial dynamics. An introduction. Industrial and Corporate Change, Oxford University Press (OUP), (2010) 19, pp.1867. Enright, S. and Dalton, M., (2014), “The Impact of the Patent Cliff on Pharma-Chem Output in Ireland”, Journal of the Statistical and Social Inquiry Society of Ireland, Vol. XLIII. Foster, L., L. Haltiwanger, and C. J. Krizen (2002), “The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade”, National Bureau of Economic Research. Working Paper No. 9120. Gal, P. N. (2013), “Measuring Total Factor Productivity at the Firm Level using OECD-ORBIS”, OECD Economics Department Working Papers, No. 1049, OECD Publishing. Hall, R. E., and C. I. Jones (1999), “Why Do Some Countries Produce So Much More Output per Worker than Others?”, The Quarterly Journal of Economics 114 (1): 83-116 Hulten, C.R., (2001), “Total factor productivity: a short biography”, New Developments in Productivity Analysis (pp. 1-54), University of Chicago Press. Levinsohn, J., Petrin, A., (2003), “Estimating production functions using inputs to control for unobservables”, Review of Economic Studies 70, 317–341. Metliz, M. J., and S. Polanec (2015), “Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit,” RAND Journal of Economics 46 (2): 362-375. OECD (2015), “The future of productivity”, OECD Publishing, Paris. OECD (2014), “Gross Domestic Product (GDP): GDP, Volume – Annual Growth Rates in Percentage,” http://stats.oecd.org OECD (2014), “Growth in GDP per Capita, Productivity and ULC”, http://stats.oecd.org. OECD (2016), OECD Compendium of Productivity Indicators 2016, OECD Publishing, Paris. http://dx.doi.org/10.1787/pdtvy-2016-en OECD (2017), Country note for Italy, Results for the MultiProd project, OECD Publishing, Paris. Olley, S., Pakes, A., (1996), “The dynamics of productivity in the telecommunications equipment industry”, Econometrica 64, 1263–1298. Revenue Commissioners (2017), An Analysis of 2015 Corporation Tax Returns and 2016 Payments, April. Office for National Statistics (2017), “Labour Productivity: April to June 2017”, ONS statistical bulletin, October. Solow, R. M. (1957), “Technical Change and the Aggregate Production Function”, Review of Economics and Statistics, Vol. 39(3), pp. 312-20. Swan, T. W. (1956), Economic Growth and Capital Accumulation, Economic Record 32: 334–361 Wooldridge, J.M. (2009), “On Estimating Firm-Level Production Functions Using Proxy Variables to Control for Unobservables,” Economic Letters 104 (3): 112-114. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/116703 |