Convergence of Firm-Level Productivity, Globalisation, Information Technology, and Competition: Evidence from France

45 Pages Posted: 16 Sep 2010

See all articles by Paul-Antoine Chevalier

Paul-Antoine Chevalier

affiliation not provided to SSRN

Remy Lecat

Banque de France

Nicholas Oulton

London School of Economics - Centre for Macroeconomics(CFM)

Date Written: June 2009

Abstract

Studies of firm-level data have shown that there is a huge dispersion of productivity across firms even when industries are narrowly defined. So there is a significant opportunity for the least productive firms to catch up to the most productive. The formers’ convergence could therefore constitute an important part of productivity growth at the macroeconomic level. This article sheds light on this convergence process in the 1990s and the 2000s in France and on some of the factors which can explain it. Productivity convergence was stronger for labour productivity than for total factor productivity. But most importantly the speed of convergence has slowed during the course of the 1990s, a fact which is explained principally by the acceleration of the productivity of firms on the technological frontier. Three possible explanations of these stylised facts are considered: globalisation, information technology, and competition. Globalisation and information technology may have benefited the most productive firms more and the growth of competition may at the same time have stimulated the productivity of firms at the frontier while discouraging the convergence of the least productive firms.

Keywords: Convergence, productivity, TFP, globalisation, ICT, competition

JEL Classification: D24, D40, F10, J24, L11, O33

Suggested Citation

Chevalier, Paul-Antoine and Lecat, Remy and Oulton, Nicholas, Convergence of Firm-Level Productivity, Globalisation, Information Technology, and Competition: Evidence from France (June 2009). Banque de France Working Paper No. 237, Available at SSRN: https://ssrn.com/abstract=1676715 or http://dx.doi.org/10.2139/ssrn.1676715

Paul-Antoine Chevalier (Contact Author)

affiliation not provided to SSRN ( email )

Remy Lecat

Banque de France ( email )

Paris
France

Nicholas Oulton

London School of Economics - Centre for Macroeconomics(CFM) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

HOME PAGE: http://https://ideas.repec.org/e/pou3.html

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