Productivity Convergence at the Firm Level

24 Pages Posted: 14 May 2005

See all articles by Kazuo G. Nishimura

Kazuo G. Nishimura

Kyoto University - Institute of Economic Research

Takanobu Nakajima

Keio University - Faculty of Business and Commerce

Kozo Kiyota

Keio University - Keio Economic Observatory

Date Written: March 12, 2005

Abstract

Productivity convergence among countries has been investigated extensively with mixed results. This paper extends the analysis to the firm level to shed light on the debate of convergence or non-convergence. We find productivity convergence among firms widely in Japan, in both manufacturing industries and non-manufacturing ones. We obtain these results taking explicit account of exiting firms as a source of selection biases. The convergence rate is much faster among firms than countries. We also find that there are substantial differences among industries in the convergence speed. IT industries that heavily rely on technological progress show faster rates of convergence.

Keywords: Firm-level productivity, convergence, technology diffusion, selection bias

JEL Classification: D21, D24, O47, L11

Suggested Citation

Nishimura, Kazuo G. and Nakajima, Takanobu and Kiyota, Kozo, Productivity Convergence at the Firm Level (March 12, 2005). Available at SSRN: https://ssrn.com/abstract=721423 or http://dx.doi.org/10.2139/ssrn.721423

Kazuo G. Nishimura

Kyoto University - Institute of Economic Research ( email )

Yoshida-Honmachi
Sakyo-ku
Kyoto 606-8501
Japan

Takanobu Nakajima (Contact Author)

Keio University - Faculty of Business and Commerce ( email )

2-15-45 Mita
Minato-ku
Tokyo 108-8345
Japan

Kozo Kiyota

Keio University - Keio Economic Observatory ( email )

Mita 2-15-45, Minato-ku
Tokyo, 108-8345
Japan

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