Firm-Level Productivity Dispersion and Convergence

6 Pages Posted: 27 Feb 2018

See all articles by Gilbert Cette

Gilbert Cette

Banque de France

Simon Corde

Banque de France

Remy Lecat

Banque de France

Date Written: February 2018

Abstract

The productivity slowdown has been analysed as an effect of weaker technological progress, of the digital economy or of a less efficient reallocation process. Using data on firms operating in France, we highlight that, at the technological frontier, productivity has accelerated, especially over the recent period, which contradicts the hypothesis of a decline in innovation. The most productive firms in a given year do not, however, improve their relative advantage. The convergence of firms’ productivity does not seem to have slowed down in the 2000s, which does not confirm the hypothesis of a decrease in the dissemination of innovation. On the other hand, the dispersion of productivity between firms has increased, which suggests growing difficulties in reallocating production factors, labour and capital, between firms.

Keywords: total factor productivity, dissemination of innovation

JEL Classification: E22, L11, O47

Suggested Citation

Cette, Gilbert and Corde, Simon and Lecat, Remy, Firm-Level Productivity Dispersion and Convergence (February 2018). Banque de France Working Paper No. 662, Available at SSRN: https://ssrn.com/abstract=3130605 or http://dx.doi.org/10.2139/ssrn.3130605

Gilbert Cette (Contact Author)

Banque de France ( email )

Paris
France

Simon Corde

Banque de France ( email )

Remy Lecat

Banque de France ( email )

Paris
France

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