Abstract
We examine the impact of labour productivity growth of small and medium-sized enterprises (smes) on labour productivity growth of large firms in a 19-year panel of 26 european countries. We apply a dynamic panel data model that allows for macro-level interdependencies in productivity between small and large firms. Our main finding concerns a sizable positive effect of labour productivity increases of smes on the productivity of large firms. This positive effect is especially evident for medium-sized and small firms (rather than micro firms). Furthermore, the impact of sme productivity on large-firm productivity is increasing with the size of the sme sector. Our analysis indicates that scale effects play a role in the transmission of productivity effects from smes to large firms, both in terms of the size of individual smes (medium-sized and small versus micro) and in terms of the share of the sme sector in the economy.
Original language | English |
---|---|
Pages (from-to) | 332-353 |
Number of pages | 22 |
Journal | Kyklos |
Volume | 72 |
Issue number | 2 |
DOIs | |
Publication status | Published - May 2019 |
Keywords
- RESEARCH-AND-DEVELOPMENT
- FOREIGN DIRECT-INVESTMENT
- DEVELOPMENT COOPERATION
- KNOWLEDGE SPILLOVERS
- REGIONAL-DEVELOPMENT
- EMPIRICAL-EVIDENCE
- CREATES JOBS
- INNOVATION
- GROWTH
- COMPETITION