Firm dynamics and productivity growth
(2018) NEKP01 20181Department of Economics
- Abstract (Swedish)
- The process of firms entering and exiting the market has since Schumpeter’s introduction of the concept of creative destruction been a subject of interest for economists aiming to determine what drives economic growth. However, limited availability of data has long been a hindrance to such ambitions and it is not until recent decades that empirical studies on the role of firm dynamics for economic development have become possible. This paper examines the relationship between firm dynamics and productivity growth in Sweden. The analysis is performed using panel data on individual Swedish firms across eight different regions for the period 2008-2017 by fitting a production function where firm value added is assumed to be dependent on,... (More)
- The process of firms entering and exiting the market has since Schumpeter’s introduction of the concept of creative destruction been a subject of interest for economists aiming to determine what drives economic growth. However, limited availability of data has long been a hindrance to such ambitions and it is not until recent decades that empirical studies on the role of firm dynamics for economic development have become possible. This paper examines the relationship between firm dynamics and productivity growth in Sweden. The analysis is performed using panel data on individual Swedish firms across eight different regions for the period 2008-2017 by fitting a production function where firm value added is assumed to be dependent on, amongst other factors, one of three separate measures of firm dynamics. The findings of the study are at odds with those from most previous research. Rather than predicting that firm dynamics has a short-term negative impact on productivity growth followed by a long-term positive one the empirical results indicate that the opposite is true for the period in question. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8958641
- author
- Dunér, Fredrik LU
- supervisor
-
- Olof Ejermo LU
- organization
- course
- NEKP01 20181
- year
- 2018
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Firm dynamics, productivity growth, panel data
- language
- English
- id
- 8958641
- date added to LUP
- 2018-09-26 09:13:28
- date last changed
- 2019-09-04 14:54:59
@misc{8958641, abstract = {{The process of firms entering and exiting the market has since Schumpeter’s introduction of the concept of creative destruction been a subject of interest for economists aiming to determine what drives economic growth. However, limited availability of data has long been a hindrance to such ambitions and it is not until recent decades that empirical studies on the role of firm dynamics for economic development have become possible. This paper examines the relationship between firm dynamics and productivity growth in Sweden. The analysis is performed using panel data on individual Swedish firms across eight different regions for the period 2008-2017 by fitting a production function where firm value added is assumed to be dependent on, amongst other factors, one of three separate measures of firm dynamics. The findings of the study are at odds with those from most previous research. Rather than predicting that firm dynamics has a short-term negative impact on productivity growth followed by a long-term positive one the empirical results indicate that the opposite is true for the period in question.}}, author = {{Dunér, Fredrik}}, language = {{eng}}, note = {{Student Paper}}, title = {{Firm dynamics and productivity growth}}, year = {{2018}}, }