PATTERNS OF FIRM LEVEL PRODUCTIVITY IN IRELAND

Javier Papa (), Luke Rehill and Brendan OConnor

MPRA Paper from University Library of Munich, Germany

Abstract: Productivity is the ultimate driver of sustainable increases in living standards. While 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. Little research has been carried out as to the determinants behind the productivity slowdown in Ireland, and even less so with microdata. To fill the gap, we use a firm-level panel dataset based on production surveys from Ireland’s national statistics office, together with the OECD MultiProd model, in order to identify productivity patterns and trends distributed by percentile, sector, ownership, as well as measures of the efficiency of resource allocation. Our results show a widening of the productivity gap between the most and least productive firms, with the majority of firms experiencing a decline in productivity since the mid-2000s, and also confirm that aggregate results are driven by the impact of foreign dominated sectors, with foreign firms typically larger and more productive. These results are significant in terms of enterprise policy and featured prominently in the OECD’s 2018 Economic Survey of Ireland.

Keywords: Firm level productivity; labour productivity; multifactor productivity; productivity distribution; productivity dispersion; MultiProd; productivity frontier; resource allocation (search for similar items in EconPapers)
JEL-codes: F23 M13 O3 O4 O43 O57 (search for similar items in EconPapers)
Date: 2018-09, Revised 2018-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Patterns of Firm-Level Productivity in Ireland (2021)
Working Paper: Patterns of Firm-Level Productivity in Ireland (2021)
Working Paper: Patterns of firm level productivity in Ireland (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116703

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