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Distant but Close in Sight: Firm‐level Evidence on French–German Productivity Gaps in Manufacturing

Author

Listed:
  • Thomas Grebel
  • Mauro Napoletano

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Lionel Nesta

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

We study 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.

Suggested Citation

  • Thomas Grebel & Mauro Napoletano & Lionel Nesta, 2022. "Distant but Close in Sight: Firm‐level Evidence on French–German Productivity Gaps in Manufacturing," Post-Print hal-04531123, HAL.
    • Handle: RePEc:hal:journl:hal-04531123
    DOI: 10.1111/roiw.12595
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-04531123
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