Structural change in Finnish manufacturing: The theory of the aggregation of production functions and an empirical analysis with a plant-level panel

Pekka Sauramo and Mika Maliranta

No 258, Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE

Abstract: In the paper, structural change in the Finnish manufacturing industries is studied by means of the theory of the aggregation of production functions and longitudinal plant-level data for the period from 1980 until 2005. The nature of structural change in twelve industries is characterised by examination of the invariance of the aggregate production functions over time. Aggregate production functions need not be estimated because, according to the theory of the aggregation of production functions, the invariance can be analysed by the investigation of the stability of the capacity density functions which describe the distribution of value added in the industries. Even though the shapes of aggregate production functions alter over time in most industries, there are differences in timing and in the degree of turbulence across industries. The analysis confirms the result obtained earlier that in some industries, for example in the paper industry, the late 1980s marked the beginning of a period of relatively strong structural change. The food industry and the manufacture of communications equipment are examples of industries in which the 1990s was a period of turbulence.

Keywords: technological change; structural change; aggregation theory; production function; beta regression (search for similar items in EconPapers)
JEL-codes: C43 L16 L60 O33 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2010-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://labore.fi/wp-content/uploads/2010/02/Tyopapereita-258.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Structural change in Finnish manufacturing: The theory of the aggregation of production functions and an empirical analysis with a plant-level panel (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pst:wpaper:258

Access Statistics for this paper

More papers in Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE Contact information at EDIRC.
Bibliographic data for series maintained by Jaana Toivainen ().