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Title:The micro-level dynamics of regional productivity growth: The source of divergence in Finland revised PDF Logo
Authors:Böckerman, Petri
Maliranta, Mika
Issue Date:2006
Series/Report no.:ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1038
Abstract:Despite a rapidly expanding theoretical and empirical literature emphasising the role of incessant intra-industry restructuring in productivity growth, few studies have gone beyond the framework of the representative firm in examining convergence or divergence in regional productivity. We use unique longitudinal plant-level data over a long period of time and apply a useful variant of productivity decomposition methods to study differences in productivity-enhancing restructuring within manufacturing industries among Finnish regions. Long-lasting differences in industry productivity growth between Southern and Eastern Finland can be attributed to the “creative destruction” components of productivity growth, mainly to the between and entry components.
Subjects:Productivity
Efficiency
Micro-level restructuring
Convergence
Divergence
JEL:O12
R23
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

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