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Do productivity and ownership really matter for growth? Firm-level evidence

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  • Ghosh, Saibal

Abstract

Using data on Indian state-owned enterprises for 1987-2006, the paper examines the association between productivity, ownership and employment growth. After accounting for various firm level controls, the evidence indicates that firm growth improves primarily through passive learning, whereas higher levels of active learning appear to slow down firm growth, although the magnitude of these effects is economically small. Besides, the analysis suggests that ownership is significantly and non-linearly related to firm growth.

Suggested Citation

  • Ghosh, Saibal, 2009. "Do productivity and ownership really matter for growth? Firm-level evidence," Economic Modelling, Elsevier, vol. 26(6), pages 1403-1413, November.
    • Handle: RePEc:eee:ecmode:v:26:y:2009:i:6:p:1403-1413
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    Cited by:

    1. Marie-Ange VEGANZONES-VAROUDAKIS & Arup MITRA & Chandan SHARMA, 2011. "Total Factor Productivity and Technical Efficiency of Indian Manufacturing: The Role of Infrastructure and Information & Communication Technology," Working Papers 201115, CERDI.
    2. Chandan Sharma & Ritesh Kumar Mishra, 2011. "Does export and productivity growth linkage exist? Evidence from the Indian manufacturing industry," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(6), pages 633-652, November.
    3. Marko Ogorevc & Miroslav VerbiÄ, 2013. "Ownership and wages: spatial econometric approach," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 5(2), pages 207-224.
    4. Lopamudra D. Satpathy & Bani Chatterjee & Jitendra Mahakud, 2017. "Firm Characteristics and Total Factor Productivity: Evidence from Indian Manufacturing Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(1), pages 77-98, February.
    5. Sahoo, Pradipta Kumar & Rath, Badri Narayan & Le, Viet, 2022. "Nexus between export, productivity, and competitiveness in the Indian manufacturing sector," Journal of Asian Economics, Elsevier, vol. 79(C).
    6. Ke Li & Jie Zhang & Yihua Yu & Zhibiao Liu, 2010. "Does Market‐Oriented Economic Transition Enhance Enterprise Productivity? Evidence From China'S Enterprises," Pacific Economic Review, Wiley Blackwell, vol. 15(5), pages 719-742, December.
    7. Marie-Ange Véganzonès-Varoudakis & Arup Mitra & Chandan Sharma, 2012. "Are Reforms Productive? Explaining Productivity and Efficiency in the Indian Manufacturing," Post-Print hal-03058727, HAL.
    8. Chih-Hai Yang & Meng-Wen Tsou, 2020. "Globalization and firm growth: does ownership matter?," Small Business Economics, Springer, vol. 55(4), pages 1019-1037, December.
    9. Bhanumurthy, N.R. & Sharma, Chandan, 2013. "Does Weak Rupee Matter for India's Manufacturing Exports?," Working Papers 13/115, National Institute of Public Finance and Policy.
    10. Jain, Ritika, 2017. "Public sector enterprise disinvestment in India: Efficiency gains in a political context," Journal of Asian Economics, Elsevier, vol. 53(C), pages 18-36.
    11. Jiang, Zheng & Shi, Huimin, 2016. "The selection of firms based on productivity: different roles of entry and overhead cost," Economic Modelling, Elsevier, vol. 54(C), pages 537-544.
    12. Vinish Kathuria & Rajesh Raj S.N. & Kunal Sen, 2013. "Institution of State–Business Relation and Its Impact on Manufacturing Productivity Growth in India: A Post-reform Analysis," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 83-108, March.
    13. Mohammad Amin, 2023. "Does competition from informal firms hurt job creation by formal manufacturing SMEs in developing and emerging countries? Evidence using firm-level survey data," Small Business Economics, Springer, vol. 60(4), pages 1659-1681, April.
    14. Aysa Ipek Erdogan, 2023. "Drivers of SME Growth: Quantile Regression Evidence From Developing Countries," SAGE Open, , vol. 13(1), pages 21582440231, March.
    15. Sharma, Chandan & Mishra, Ritesh Kumar, 2015. "International trade and performance of firms: Unraveling export, import and productivity puzzle," The Quarterly Review of Economics and Finance, Elsevier, vol. 57(C), pages 61-74.
    16. Miroslav Verbič & Marko Ogorevc, 2016. "Ownership and corporate wage policy: the signal and its strength," Applied Economics, Taylor & Francis Journals, vol. 48(17), pages 1583-1590, April.
    17. Saini, Seema & Ahmad, Wasim & Uddin, Gazi Salah, 2024. "Do recessions induce Schumpeterian creative destruction? Micro Evidence from India," Emerging Markets Review, Elsevier, vol. 59(C).

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