The micro-level dynamics of regional productivity growth: The source of divergence in Finland

Petri Böckerman () and Mika Maliranta

ERSA conference papers from European Regional Science Association

Abstract: Productivity growth of the Finnish regions in 13 manufacturing industries is decomposed into micro-level sources by using plant-level data from 1975 to 1999. There are substantial regional differences in the intensity of productivity-enhancing restructuring. Dynamic competition is more intensive in Southern Finland, where the productivity level is also high. In contrast, plants located in Eastern Finland are equipped with low-productivity technologies owing to persistently sluggish micro-level dynamics. Productivity dispersion between plants within industries is greatest in Southern Finland. We argue that intensive experimentation is a more reasonable interpretation of this finding than large static X-inefficiency in this high productivity region.

Date: 2003-08
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The micro-level dynamics of regional productivity growth: The source of divergence in Finland (2007)
Working Paper: The Micro-level Dynamics of Regional Productivity Growth: The Source of Divergence in Finland (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa03p32

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