6533b83afe1ef96bd12a7aa4
RESEARCH PRODUCT
Firms’ distance to the European productivity frontier
Dolores Añon HigonMaria Engracia Rochina BarrachinaJuan A. Sanchis-llopisAmparo Sanchis LlopisJuan A. Mañezsubject
total factor productivityeuropean union countriesEconomics Econometrics and Finance (miscellaneous)institutional factorsfrontier frmsUNESCO::CIENCIAS ECONÓMICASlaggard frmsGeneral Business Management and Accountinggreat recessiondescription
AbstractIn this article we explore the factors contributing to reduce the distance of laggard firms to the European frontier, focusing on institutional factors. To characterize Total Factor Productivity frontier firms within industries for the European Union we use firm level data from AMADEUS for the period 2003–2014. Our findings provide evidence on the importance of governance quality and easiness in getting credit in explaining the distance of laggard firms to the European productivity frontier. We also find that other factors at the country level -tertiary education, R&D stock, and trade openness- and at the firm level -size, age, and capital-intensity- influence the distance of laggards to the frontier. In addition, we examine the role of the Great Recession in moderating the contribution of all these factors to reduce firms’ distance to the European productivity frontier.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2022-02-18 | Eurasian Business Review |