What Drives Firm Productivity Growth?
This paper presents new evidence on the causal links between changes in the business environment and firm productivity growth. It contributes to the literature in three important aspects. First, it constructs a unique database merging information f...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090223101112 http://hdl.handle.net/10986/4037 |
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okr-10986-4037 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AGGREGATE INDICATORS ALLOCATIVE EFFICIENCY ASSETS ATTRITION AVERAGE PRODUCTIVITY BALANCE SHEET BANDWIDTH BANDWIDTHS BANKRUPTCY BARRIERS TO ENTRY BENCHMARK BORROWING BUREAUCRATIC EFFICIENCY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS INDICATOR BUSINESS OPERATIONS COMMERCIAL BANKS CORRUPT OFFICIALS CORRUPTION COUNTRY AVERAGES COUNTRY COMPARISONS DATA ANALYSIS DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC THEORY EDUCATIONAL ATTAINMENT ELECTRICITY EMPLOYMENT ENTERPRISE SURVEYS EQUIPMENT EXCHANGE RATES EXISTING WORKFORCE EXTERNAL MARKET FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL RATIOS FOREIGN BANKS GDP GLOBAL ECONOMY GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS INCOME INCOME DISTRIBUTION INNOVATION INPUT FACTOR INSPECTION INSTITUTION INTERNATIONAL LEVEL INTERNATIONAL STANDARD INVESTMENT CLIMATE LABOR MANAGEMENT LABOR MARKET LABOR MARKET FLEXIBILITY LABOR REGULATIONS LARGE CITIES LAWS LEGAL SYSTEM LEGISLATION LIQUIDATION LOCAL GOVERNMENTS MACROECONOMICS MANAGERIAL SKILLS MANPOWER MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARGINAL PRODUCT MARKET COMPETITION MARKET SHARE MATERIAL MEASUREMENT ERROR MEASUREMENT PROBLEMS MISSING VALUES MONOPOLISTIC COMPETITION MONOPOLY OLIGOPOLY OPERATING REVENUE ORGANIZATIONAL STRUCTURE OUTPUTS OVEREMPLOYMENT PERFECT COMPETITION POLITICAL INSTABILITY PRIVATE COMMERCIAL BANKS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC OFFICIALS RADIO REGRESSION ANALYSIS RENT SEEKING RESULT RESULTS RETENTION REVERSE CAUSALITY REVERSE CAUSATION SEARCH SENSITIVITY ANALYSIS STATISTICAL ANALYSIS STATISTICAL METHODS SUBSIDIARIES TAX COMPLIANCE TELECOMMUNICATIONS TELEPHONE TELEPHONE SERVICE TELEVISION TOTAL FACTOR PRODUCTIVITY TRADE POLICY TRANSITION ECONOMIES TRANSPORT USES VARIABLE INPUTS WATER SUPPLY WEB |
| spellingShingle |
ACCOUNTING AGGREGATE INDICATORS ALLOCATIVE EFFICIENCY ASSETS ATTRITION AVERAGE PRODUCTIVITY BALANCE SHEET BANDWIDTH BANDWIDTHS BANKRUPTCY BARRIERS TO ENTRY BENCHMARK BORROWING BUREAUCRATIC EFFICIENCY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS INDICATOR BUSINESS OPERATIONS COMMERCIAL BANKS CORRUPT OFFICIALS CORRUPTION COUNTRY AVERAGES COUNTRY COMPARISONS DATA ANALYSIS DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC THEORY EDUCATIONAL ATTAINMENT ELECTRICITY EMPLOYMENT ENTERPRISE SURVEYS EQUIPMENT EXCHANGE RATES EXISTING WORKFORCE EXTERNAL MARKET FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL RATIOS FOREIGN BANKS GDP GLOBAL ECONOMY GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS INCOME INCOME DISTRIBUTION INNOVATION INPUT FACTOR INSPECTION INSTITUTION INTERNATIONAL LEVEL INTERNATIONAL STANDARD INVESTMENT CLIMATE LABOR MANAGEMENT LABOR MARKET LABOR MARKET FLEXIBILITY LABOR REGULATIONS LARGE CITIES LAWS LEGAL SYSTEM LEGISLATION LIQUIDATION LOCAL GOVERNMENTS MACROECONOMICS MANAGERIAL SKILLS MANPOWER MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARGINAL PRODUCT MARKET COMPETITION MARKET SHARE MATERIAL MEASUREMENT ERROR MEASUREMENT PROBLEMS MISSING VALUES MONOPOLISTIC COMPETITION MONOPOLY OLIGOPOLY OPERATING REVENUE ORGANIZATIONAL STRUCTURE OUTPUTS OVEREMPLOYMENT PERFECT COMPETITION POLITICAL INSTABILITY PRIVATE COMMERCIAL BANKS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC OFFICIALS RADIO REGRESSION ANALYSIS RENT SEEKING RESULT RESULTS RETENTION REVERSE CAUSALITY REVERSE CAUSATION SEARCH SENSITIVITY ANALYSIS STATISTICAL ANALYSIS STATISTICAL METHODS SUBSIDIARIES TAX COMPLIANCE TELECOMMUNICATIONS TELEPHONE TELEPHONE SERVICE TELEVISION TOTAL FACTOR PRODUCTIVITY TRADE POLICY TRANSITION ECONOMIES TRANSPORT USES VARIABLE INPUTS WATER SUPPLY WEB Anos-Casero, Paloma Udomsaph, Charles What Drives Firm Productivity Growth? |
| geographic_facet |
Europe and Central Asia Europe and Central Asia Commonwealth of Independent States Europe Eastern Europe Bulgaria Romania Czech Republic Serbia Croatia Estonia Poland Ukraine |
| relation |
Policy Research working paper ; no. WPS 4841 |
| description |
This paper presents new evidence on the
causal links between changes in the business environment and
firm productivity growth. It contributes to the literature
in three important aspects. First, it constructs a unique
database merging information from two large firm-level
databases. The samples of both databases are merged on four
criteria-country, sub-national location, firm size, and
year-producing a panel of 22,004 firms in eight economies of
Eastern Europe and the former Soviet Union: Bulgaria,
Croatia, Czech Republic, Estonia,, Poland, Romania, Serbia,
and Ukraine. Second, the paper addresses shortcomings of
earlier studies, namely reverse causation,
multicollinearity, and unreliable productivity estimates.
Firm productivity growth is estimated drawing on corporate
financial data from manufacturing firms included in the
AMADEUS database. Changes in the business environment are
estimated from the World Bank Enterprise Surveys conducted
in 2002 and 2005. Multicollinearity problems in the full
model regression are mitigated by constructing a set of six
aggregate indicators of the business environment (using
principal component analysis). The paper finds that, over
the period 2001 to 2004, an increase of one standard
deviation in infrastructure quality, financial development,
governance, labor market flexibility, labor quality, and
market competition raises the total factor productivity of
the average firm by 9.8, 7.8, 3.2, 3.4, 5.8, and 3 percent,
respectively. Lastly, the paper decomposes firm productivity
growth and ranks the relative impact of changes in these six
aspects of the business environment by country, by firm
size, and by industry. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Anos-Casero, Paloma Udomsaph, Charles |
| author_facet |
Anos-Casero, Paloma Udomsaph, Charles |
| author_sort |
Anos-Casero, Paloma |
| title |
What Drives Firm Productivity Growth? |
| title_short |
What Drives Firm Productivity Growth? |
| title_full |
What Drives Firm Productivity Growth? |
| title_fullStr |
What Drives Firm Productivity Growth? |
| title_full_unstemmed |
What Drives Firm Productivity Growth? |
| title_sort |
what drives firm productivity growth? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090223101112 http://hdl.handle.net/10986/4037 |
| _version_ |
1764389619489570816 |
| spelling |
okr-10986-40372021-04-23T14:02:14Z What Drives Firm Productivity Growth? Anos-Casero, Paloma Udomsaph, Charles ACCOUNTING AGGREGATE INDICATORS ALLOCATIVE EFFICIENCY ASSETS ATTRITION AVERAGE PRODUCTIVITY BALANCE SHEET BANDWIDTH BANDWIDTHS BANKRUPTCY BARRIERS TO ENTRY BENCHMARK BORROWING BUREAUCRATIC EFFICIENCY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS INDICATOR BUSINESS OPERATIONS COMMERCIAL BANKS CORRUPT OFFICIALS CORRUPTION COUNTRY AVERAGES COUNTRY COMPARISONS DATA ANALYSIS DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC THEORY EDUCATIONAL ATTAINMENT ELECTRICITY EMPLOYMENT ENTERPRISE SURVEYS EQUIPMENT EXCHANGE RATES EXISTING WORKFORCE EXTERNAL MARKET FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL RATIOS FOREIGN BANKS GDP GLOBAL ECONOMY GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS INCOME INCOME DISTRIBUTION INNOVATION INPUT FACTOR INSPECTION INSTITUTION INTERNATIONAL LEVEL INTERNATIONAL STANDARD INVESTMENT CLIMATE LABOR MANAGEMENT LABOR MARKET LABOR MARKET FLEXIBILITY LABOR REGULATIONS LARGE CITIES LAWS LEGAL SYSTEM LEGISLATION LIQUIDATION LOCAL GOVERNMENTS MACROECONOMICS MANAGERIAL SKILLS MANPOWER MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARGINAL PRODUCT MARKET COMPETITION MARKET SHARE MATERIAL MEASUREMENT ERROR MEASUREMENT PROBLEMS MISSING VALUES MONOPOLISTIC COMPETITION MONOPOLY OLIGOPOLY OPERATING REVENUE ORGANIZATIONAL STRUCTURE OUTPUTS OVEREMPLOYMENT PERFECT COMPETITION POLITICAL INSTABILITY PRIVATE COMMERCIAL BANKS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC OFFICIALS RADIO REGRESSION ANALYSIS RENT SEEKING RESULT RESULTS RETENTION REVERSE CAUSALITY REVERSE CAUSATION SEARCH SENSITIVITY ANALYSIS STATISTICAL ANALYSIS STATISTICAL METHODS SUBSIDIARIES TAX COMPLIANCE TELECOMMUNICATIONS TELEPHONE TELEPHONE SERVICE TELEVISION TOTAL FACTOR PRODUCTIVITY TRADE POLICY TRANSITION ECONOMIES TRANSPORT USES VARIABLE INPUTS WATER SUPPLY WEB This paper presents new evidence on the causal links between changes in the business environment and firm productivity growth. It contributes to the literature in three important aspects. First, it constructs a unique database merging information from two large firm-level databases. The samples of both databases are merged on four criteria-country, sub-national location, firm size, and year-producing a panel of 22,004 firms in eight economies of Eastern Europe and the former Soviet Union: Bulgaria, Croatia, Czech Republic, Estonia,, Poland, Romania, Serbia, and Ukraine. Second, the paper addresses shortcomings of earlier studies, namely reverse causation, multicollinearity, and unreliable productivity estimates. Firm productivity growth is estimated drawing on corporate financial data from manufacturing firms included in the AMADEUS database. Changes in the business environment are estimated from the World Bank Enterprise Surveys conducted in 2002 and 2005. Multicollinearity problems in the full model regression are mitigated by constructing a set of six aggregate indicators of the business environment (using principal component analysis). The paper finds that, over the period 2001 to 2004, an increase of one standard deviation in infrastructure quality, financial development, governance, labor market flexibility, labor quality, and market competition raises the total factor productivity of the average firm by 9.8, 7.8, 3.2, 3.4, 5.8, and 3 percent, respectively. Lastly, the paper decomposes firm productivity growth and ranks the relative impact of changes in these six aspects of the business environment by country, by firm size, and by industry. 2012-03-19T19:08:49Z 2012-03-19T19:08:49Z 2009-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090223101112 http://hdl.handle.net/10986/4037 English Policy Research working paper ; no. WPS 4841 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia Commonwealth of Independent States Europe Eastern Europe Bulgaria Romania Czech Republic Serbia Croatia Estonia Poland Ukraine |