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Productivity Convergence at the Firm Level: New Evidence from the Americas

  • Uses firm-level data from the manufacturing sector in Colombia, Mexico, and the United States, in the past decade, to investigate the extent to which aggregate productivity growth in the manufacturing sector is driven by growth in productivity at the firm level or by reallocation of employment shares across firms. The evaluation produced results that stress a focus on firm-level productivity growth, as this has contributed the most to overall productivity growth. Reallocation between firms, within sectors, results in a weak force of productivity growth, and reallocation between sectors an even weaker source of growth. Although firms converge toward the domestic frontier with spillovers arising from the growth of the domestic frontier, no convergence occurs with respect to the global frontier. For all countries analyzed, the most important determinant of productivity convergence at the firm level remains innovation effort, measured as the firm-level expenditure shares in innovation and investment in capital equipment.

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Metadaten
Document Type:Part of a Book
Language:English
Author(s):Leonardo Iacovone, J David Brown, Gustavo A Crespi, Luca Marcolin
Parent Title (English):Understanding the Income and Efficiency Gap in Latin America and the Caribbean
Publication year:2016
Publishing Institution:Hertie School
First Page:117
Last Page:186
DOI:https://doi.org/10.1596/978-1-4648-0450-2_ch5
ISBN:978-1-4648-0450-2
ISBN:978-1-4648-0451-9
Release Date:2019/05/16
Licence of document (German):Metadaten / metadata
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