Productivity Levels and Dynamics: UK Service Sector Firms 1988-1998

Kneller, Richard; Girma, Sourafel

doi:10.2139/ssrn.411940

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Productivity Levels and Dynamics: UK Service Sector Firms 1988-1998

GEP Research Paper No. 02/25

30 Pages Posted: 24 Jun 2003

See all articles by Richard Kneller

Sourafel Girma

Nottingham University Business School

Date Written: October 2002

Abstract

This paper attempts to explain the level and dynamics of firm level productivity through a model of convergence, for UK service sector firms over the period 1988 to 1998. Firms of different characteristics have different productivity levels and rates of catch-up. We find strong evidence to relate differences in the rate of convergence to the ownership status of the firm and weak evidence that it is related to firm age. Given the high initial productivity of foreign owned firms we suggest that these firms have high absorptive capacity.

Keywords: convergence, productivity, service sector

JEL Classification: 03, L8, D24

Suggested Citation: Suggested Citation

Kneller, Richard and Girma, Sourafel, Productivity Levels and Dynamics: UK Service Sector Firms 1988-1998 (October 2002). GEP Research Paper No. 02/25, Available at SSRN: https://ssrn.com/abstract=411940 or http://dx.doi.org/10.2139/ssrn.411940