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Title:Heavyweights - the impact of large businesses on productivity growth PDF Logo
Authors:Falck, Oliver
Issue Date:2007
Series/Report no.:CESifo working paper 2135
Abstract:The idea of an industrial policy that promotes large businesses—heavyweights—as the best way to compete in a globalized world has become, again, en vogue among European politicians. The only apparent controversy about the idea revolves around whether it is better to promote national champions or, instead, European champions. Empirical evidence on the issue is rare and contradictory. A uniquely rich industry-level dataset for Germany is used in this paper to test whether large business size in an industry fosters growth in terms of total factor productivity (TFP). The results suggest that the overall effects of firm size on TFP growth are negative.
Subjects:firm size
productivity growth
total factor productivity
innovation
JEL:L11
L16
O33
O40
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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