Micro-heterogeneity and aggregate productivity development in the German manufacturing sector |
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| Authors: | Uwe Cantner Jens J Krüger |
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| Institution: | (1) Department of Economics, Friedrich-Schiller-University Jena, Carl-Zeiss-Strasse 3, 07743 Jena, Germany |
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| Abstract: | A decomposition of aggregate productivity growth of German manufacturing firms that pertain to 11 different industries at
a roughly two-digit level observed over the period 1981–1998 is performed. Productivity is measured by a nonparametric frontier
function approach. The decompositions of productivity allow for an explanation of the aggregate outcomes by the quantification
of the effect of structural change and the contributions of entering and exiting firms. Our results show that these forces
drive aggregate productivity to a considerable extent. Remarkably, the large productivity improvements after the German reunification
are mainly driven by structural change.
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| Keywords: | Productivity Structural change Manufacturing |
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