Firm turnover, restructuring and labour productivity in transition: the case of Poland

Abstract

This paper explores the impact of turnover and restructuring on labour productivity in the Polish economy over the period [1988][1989][1990][1991][1992][1993]. Changes in aggregate productivity are decomposed into elements corresponding to productivity growth among survivors, market share growth by survivors and the contributions of entering and exiting firms. The traditional entry and exit effects begin to work as transition to a market economy progresses. However, initial productivity improvements are due to changes to market shares of the existing firms following the break-up of large enterprises. Regression analysis shows that changes in the firm-level productivity are affected by restructuring and a more competitive economic environment.1

Government subsidy and aggregate productivity dynamics: Evidence from China

“…First, firmsʼ entry and exit is an important characteristic of the market economy, and several existing empirical studies have focused on the dynamic evolution of aggregate productivity from the perspective of firmsʼ entry and exit. Examples include Baily, Hulten, Campbell, Bresnahan, and Caves (1992) and Foster, Haltiwanger, and Krizan (1998) for the United States, Griliches and Regev (1995) for Israel, Hahn (2000) for Korea, Baldwin and Gu (2006) for Canada, Roberts and Thompson (2009) for Poland, Disney, Haskel, and Heden (2003) for the UK, Brandt, Van Biesebroeck, and Zhang (2012) and Du, Liu, and Zhou (2014) for China, and Melitz and Polanec (2015) for Slovenia. Our work is a useful complement to this strand of literature.…”