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Patterns of Firm-Level Productivity in Ireland

Javier Papa (), Luke Rehill and Brendan O'Connor
Additional contact information
Luke Rehill: Department of Finance, Ireland
Brendan O'Connor: Department of Finance, Ireland

The Economic and Social Review, 2021, vol. 52, issue 3, 241-268

Abstract: Although Ireland is a high productivity country, it has not been immune from the global productivity slowdown, with the pace of growth on a downward trend throughout the 2000s. To identify the determinants behind the aggregate productivity growth in Ireland we use a firm-level panel dataset from the CSO to study productivity patterns and trends distributed by percentile, sector, ownership, as well the efficiency of resource allocation. Our results show a widening of the productivity gap between the most and least productive firms, consistent with cross-country results from the OECD. Results also confirm that aggregate productivity statistics are heavily dominated by a small number of foreign owned firms, leaving Ireland’s productivity prone to firm-specific shocks, while also disguising the performance of domestic sectors and firms. Lastly, allocative efficiency, a key driver of productivity, does not appear particularly strong amongst domestic sectors of the economy.

Keywords: firm-level productivity; Ireland (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Patterns of Firm-Level Productivity in Ireland (2021) Downloads
Working Paper: Patterns of firm level productivity in Ireland (2018) Downloads
Working Paper: PATTERNS OF FIRM LEVEL PRODUCTIVITY IN IRELAND (2018) Downloads
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