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The Middle Productivity Trap: Dynamics of Productivity Dispersion

Author

Listed:
  • Dany Bahar

    (Center for International Development at Harvard University)

Abstract

Using a worldwide firm-level panel dataset I document a "U-shaped" relationship between productivity growth and baseline levels within each country and industry. That is, fast productivity growth is concentrated at both ends of the productivity distribution. This result serves as a potential explanation to two stylized facts documented in the economic literature: the rising productivity dispersion within narrowly defined sectors, and the increasing market share of few yet highly productive firms.

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Handle: RePEc:glh:wpfacu:106
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File URL: https://growthlab.cid.harvard.edu/files/growthlab/files/productivitygaps_cidrfwp87.pdf
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More about this item

Keywords

productivity; convergence; divergence; dispersion;
All these keywords.

JEL classification:

  • D2 - Microeconomics - - Production and Organizations
  • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
  • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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