Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 619: Corporate Restructuring and Labor Productivity Growth

Katariina Hakkala ()
Additional contact information
Katariina Hakkala: The Research Institute of Industrial Economics, Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden

Abstract: This paper analyzes corporate restructuring and its role in generating labor productivity growth in a sample of large Swedish manufacturing corporations. It is found that external restructuring, including ownership changes, start-ups and closures of plants, accounted for up to 47 percent of the productivity growth of the sample of corporations during the 1986-96 period. The results indicate that the productivity of large multi-plant corporations grew almost twice as fast as that of single-plant firms with the same internal productivity growth, thanks to their organizational flexibility. Divestitures of low productive plants were found to play a particularly important role in the replacement process generating productivity growth. The effect of external restructuring on productivity is to some extent explained by a shift towards a more skill-intensive production.

Keywords: Corporate Restructuring; Labor Productivity Growth

JEL-codes: D24; F23; G34

33 pages, February 28, 2004

Full text files

WP619.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:34:29.