Productivity in Estonian enterprises: the role of innovation and competition

Priit Vahter ()

No 2006-07, Bank of Estonia Working Papers from Bank of Estonia

Abstract: This paper provides some stylised facts about differences in labour productivity and total factor productivity (TFP) in Estonian firms and about the role of selected determinants of productivity differences. Enterprise level panel data of the whole population of Estonian firms from years 1995-2002 is used. It appears that the variation of productivity indicators in Estonia is much greater than in Western Europe. Although there is a lot of entry and exit of firms, there is not much movement within the productivity distribution of surviving .rms. It is found that both innovation and less concentrated market structure seem to be positively related to higher productivity of firms

Keywords: productivity; competition; innovation; market structure (search for similar items in EconPapers)
JEL-codes: G3 L2 O31 O4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ent, nep-ino, nep-mic and nep-tra
Date: 2006-12-11, Revised 2006-12-11
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