What Drives Firm Productivity Growth

摘要: This paper presents new evidence on the causal links between changes in business environment and firm productivity growth. It contributes to literature three important aspects. First, it constructs a unique database merging information from two large firm-level databases. The samples of both databases are merged four criteria-country, sub-national location, size, year-producing panel 22,004 firms eight economies Eastern Europe former Soviet Union: Bulgaria, Croatia, Czech Republic, Estonia,, Poland, Romania, Serbia, Ukraine. Second, addresses shortcomings earlier studies, namely reverse causation, multicollinearity, unreliable estimates. Firm growth is estimated drawing corporate financial data manufacturing included AMADEUS database. Changes World Bank Enterprise Surveys conducted 2002 2005. Multicollinearity problems full model regression mitigated by constructing set six aggregate indicators (using principal component analysis). finds that, over period 2001 2004, an increase one standard deviation infrastructure quality, development, governance, labor market flexibility, competition raises total factor average 9.8, 7.8, 3.2, 3.4, 5.8, 3 percent, respectively. Lastly, decomposes ranks relative impact these aspects country, industry.