Distant But Close in Sight. Firm-Level Evidence on French-German Productivity Gaps in Manufacturing

46 Pages Posted: 28 Jan 2021

See all articles by Thomas Grebel

Thomas Grebel

University of Jena

Mauro Napoletano

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG); Observatoire Français des Conjonctures Economiques (OFCE); SKEMA Business School; Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Lionel Nesta

GREDEG

Date Written: September 13, 2020

Abstract

We study the productivity level distributions of manufacturing firms in France and Germany, and how these distributions evolved across the Great Recession. We show the presence of a systematic productivity advantage of German firms over French ones in the decade 2003-2013, but the gap has narrowed down after the Great Recession. Convergence is explained by the better growth performance of French firms in the post-recession period, especially of those located in the top percentiles of the productivity distribution. We also highlight the role of sectoral growth, firm size and export intensity in explaining the above convergence. In contrast, the contribution of allocative efficiency was small.

Keywords: International productivity gaps, productivity distributions, firm level compar- isons.

JEL Classification: L10, N10, D24

Suggested Citation

Grebel, Thomas and Napoletano, Mauro and Nesta, Lionel, Distant But Close in Sight. Firm-Level Evidence on French-German Productivity Gaps in Manufacturing (September 13, 2020). Available at SSRN: https://ssrn.com/abstract=3738074 or http://dx.doi.org/10.2139/ssrn.3738074

Thomas Grebel

University of Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

Mauro Napoletano (Contact Author)

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG) ( email )

250, rue Albert Einstein
Valbonne, 06560
France

Observatoire Français des Conjonctures Economiques (OFCE) ( email )

60, rue Dostoïevski
Sophia-Antipolis Cedex, 06902
France

HOME PAGE: http://www.ofce.sciences-po.fr

SKEMA Business School ( email )

60 rue Dostoïevski
Sophia Antipolis, 06902
France

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy

Lionel Nesta

GREDEG ( email )

France

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