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Survival of the fittest or does size matter: What are the main drivers of Productivity in Brazil?

Ivette Luna, Celio Hiratuka and Elias Youssef Haddad Netto

MPRA Paper from University Library of Munich, Germany

Abstract: This article aims to explore learning and selection effects of productivity change for three classes of firm’s sizes in Brazilian manufacturing and service sectors from 1996 to 2011. The methodology is based on the Price Equation. Our results support the international evidence about the weak intensity of the selection effect to explain aggregate productivity change for medium and large size firms. Small firms, however, are much more affected. Besides, size, measured by number of employees, appears to be a good proxy for capital intensity. There are as well signs that the learning effect is highly correlated with the economic cycle.

Keywords: Productivity; innovation; evolutionary theory; productive structure (search for similar items in EconPapers)
JEL-codes: D22 L11 L60 L80 (search for similar items in EconPapers)
Date: 2016, Revised 2016
New Economics Papers: this item is included in nep-eff and nep-ent
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