Productivity and trade orientation in UK manufacturing

DSpace/Manakin Repository

Show simple item record

dc.contributor.author Rizov, Marian
dc.contributor.author Walsh, Patrick P.
dc.date.accessioned 2009-04-01T16:10:40Z
dc.date.available 2009-04-01T16:10:40Z
dc.date.copyright 2007 The Institute for the Study of Labor en
dc.date.issued 2007-05
dc.identifier.uri http://hdl.handle.net/10197/986
dc.description.abstract Within a structural model we explicitly allow for the trade orientation of companies to estimate productivity dynamics within 4-digit UK manufacturing industries. We use the FAME data on UK companies over the period 1994-2003. Following Ackerberg et al. (2005) we adjust the algorithm in Olley and Pakes (1996) by augmenting investment and exit decisions to allow for exogenous demand shocks by trade orientation, assuming that labour and capital are state variables, and productivity follows a first-order Markov process. We extend the framework further by allowing exporting to be an additional control variable that is driven by lagged productivity as in Melitz (2003), leading productivity to follow a second-order Markov process. We find that over the period of introduction of the Euro improvements in aggregate productivity were driven by exporters - mainly by market share reallocations away from inefficient and towards efficient export companies. Aggregate productivity also benefited from improvements in productivity of non-exporters but was driven by improvements within companies rather than by market share reallocations. In a period of sustained real exchange rate appreciation both export cleansing and competitive pressure on non-exporters seem to have contributed to improvements of productivity in the UK manufacturing. en
dc.format.extent 4304 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher Institute for the Study of Labor en
dc.relation.ispartofseries IZA Discussion Paper en
dc.relation.ispartofseries No. 2808 en
dc.subject Productivity dynamics en
dc.subject Structural model en
dc.subject Trade orientation en
dc.subject Manufacturing companies en
dc.subject.classification F14 en
dc.subject.classification D24 en
dc.subject.lcsh Industrial productivity--Great Britain en
dc.subject.lcsh Great Britain--Commerce en
dc.subject.lcsh Manufacturing industries--Great Britain en
dc.title Productivity and trade orientation in UK manufacturing en
dc.type Working Paper en
dc.internal.authorurl Patrick P. Walsh (web page) en
dc.internal.authorurl http://www.ucd.ie/research/people/politicsintrelations/professorpatrickpaulwalsh/ en
dc.internal.authorid UCD0027 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions ftp://repec.iza.org/RePEc/Discussionpaper/dp2808.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Rizov|Marian|aut|
dc.neeo.contributor Walsh|Patrick P.|aut|UCD0027


Files in this item

This item appears in the following Collection(s)

Show simple item record

This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.

If you are a publisher or author and have copyright concerns for any item, please email research.repository@ucd.ie and the item will be withdrawn immediately. The author or person responsible for depositing the article will be contacted within one business day.

Search Research Repository


Advanced Search

Browse