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Firm turnover, restructuring and labour productivity in transition: the case of Poland

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This article explores the impact of turnover and restructuring on labour productivity in the Polish economy over the period 1988 to 1993. Changes in aggregate productivity are decomposed into elements corresponding to productivity growth among survivors, market share growth by survivors and the contributions of entering and exiting firms. The traditional entry and exit effects begin to work as transition to a market economy progresses. However, initial productivity improvements are due to changes in market shares of the existing firms following the break-up of large enterprises. Regression analysis shows that changes in the firm-level productivity are affected by restructuring and a more competitive economic environment.

Document Type: Research Article


Affiliations: 1: Department of Economics, University of Leicester, Leicester, LE1 7RH, UK 2: The Business School, University of Nottingham, Nottingham, NG8 1BB, UK

Publication date: April 1, 2009

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