Firm-level TFP convergence: an application to the German electricity and gas industry

Claudiu Albulescu (), Serban Miclea and Eugenia Grecu

Applied Economics Letters, 2022, vol. 29, issue 9, 805-811

Abstract: This paper investigates the degree of total factor productivity (TFP) convergence for the German electricity and gas industry. We use different approaches to compute the productivity level and several classic and new second-generation panel unit root tests to check the existence of a convergence process. For robustness purposes, we compare the convergence between small- and medium-sized enterprises and large companies. Our findings show the existence of the TFP convergence process, a result confirmed by all categories of tests we use. Therefore, we show that an innovation transfer is recorded between German electricity and gas firms and it is slightly higher for small- and medium-sized enterprises.

Date: 2022
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DOI: 10.1080/13504851.2021.1887803

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