Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Firm dynamics and productivity growth

Dunér, Fredrik LU (2018) NEKP01 20181
Department 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:
author
Dunér, Fredrik LU
supervisor
organization
course
NEKP01 20181
year
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}},
}