Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector - Results from a Decomposition Exercise

Uwe Cantner () and Jens Krüger ()

No 02/2006, Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) from Friedrich Schiller University of Jena, School of of Economics and Business Administration

Abstract: In this paper different formulae for the decomposition of aggregate productivity levels and changes are applied to a sample of German manufacturing firms that pertain to 11 different industries at a roughly two-digit level observed over the period 1981-1998. Productivity is measured by a nonparametric frontier function approach. The decompositions of productivity allow for an explanation of the aggregate outcomes by the quantification of the effect of structural change as well as the contributions from entering and exiting firms. Our results show that these forces drive aggregate productivity dynamics to a considerable extent. Especially the period after the German reunification is characterized by large productivity improvements, mostly driven by structural change.

Keywords: productivity; structural change; manufacturin (search for similar items in EconPapers)
JEL-codes: D24 L60 O12 (search for similar items in EconPapers)
Date: 2006-01-06
New Economics Papers: this item is included in nep-eff and nep-tid
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Working Paper: Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector: Results from a Decomposition Exercise (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:jen:jenasw:2006-02

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