Competition and Productivity: Evidence from the Post WWII U.S. Cement Industry

Timothy Dunne, Shawn Klimek () and James Schmitz, Jr.

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: In the mid 1980s, the U.S. cement industry faced a large increase in foreign competition. Foreign cement producers began offering cement at very large discounts on U.S. prices. We show that productivity (measured by TFP) in the industry was falling during the 1960s and 1970s, but that following the increase in competition, productivity has reversed course and is growing strongly. When foreign competition was weak, productivity fell. When it was strong, productivity grew robustly. We explore the reasons for the large productivity increase. We argue that a large share of the productivity gains resulted from significant changes in management practices at plants.

Pages: 46 pages
Date: 2010-09
New Economics Papers: this item is included in nep-com, nep-eff, nep-his and nep-ind
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Citations: View citations in EconPapers (16)

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https://www2.census.gov/ces/wp/2010/CES-WP-10-29.pdf First version, 2010 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:10-29

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