Productivity and Firm Turnover in Israeli Industry: 1979-1988
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NBER Working Paper No. 4059 (Also Reprint No. r1964)
Issued in April 1995
NBER Program(s): PR
An analysis of a large panel data set on Israeli industrial firms finds that most of the growth in aggregate productivity comes from productivity changes within firms rather than from entry, exit, or differential growth; that firms which will exit in the future have lower productivity performance several years earlier (the "shadow of death" effect); and that, overall, there was little total factor productivity growth in Israeli industry during 1979-1988 (another "lost decade").
Published: Journal of Econometrics, vol 65, no. 1, pp.175-203, 1995
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