International Productivity Comparisons Built from the Firm Level

Abstract

International productivity comparisons can be built up with micro and macro data. Studies of firms or groups of firms producing similar outputs reveal the deeper causes of differences in productivity across countries. The studies find that such differences often depend on patterns of organization within firms, the motivations of managers and the like. The intensity of domestic and international competition can have a large impact on productivity. The case of retailing illustrates the importance of industry evolution. High productivity retailing formats drive out traditional retailers, unless restrained by land-use restrictions or regulations.