Recent research in the area of productivity has moved on from macro, and sectoral, analysis to firm level analysis and has sought to explore the dynamics that drive the main channels for aggregate productivity growth. These are, namely productivity growth at the productivity frontier, diffusion of technology from the frontier to lagging firms, and a reallocation of resources from the least productive to the most productive firms through competition. This paper looks at the first and last of these, and also looks at the extent of catch-up and convergence between frontier and laggard firms. The full paper can be found here.
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