Business Dynamics and Productivity

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31 Mar 2017
9789264269231 (PDF) ; 9789264269972 (EPUB) ;9789264269224(print)

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This publication focuses on business dynamics across eight countries (Belgium, Brazil, Canada, Costa Rica, Japan, New Zealand, Norway, United Kingdom) and over time, building upon the evidence collected in the framework of the OECD DynEmp project for 22 countries. It provides new evidence on firms’ heterogeneous responses to shocks (notably the recent financial crisis) in order to evaluate how policies and framework conditions across different firms and countries can foster both employment and productivity growth.

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  • Preface

    A dynamic business environment plays an important role not only as a key driver of job creation but also as an engine of productivity growth. A growing body of research highlights significant differences in business dynamics across countries and over time, in particular over the different phases of the business cycle. However, our understanding of these differences remains patchy, and this makes it more difficult for policy makers to implement economically efficient policies.

  • Foreword

    This volume is part of a wider effort led by the OECD Directorate for Science, Technology and Innovation to provide new cross-country evidence on employment dynamics and productivity based on firm-level micro-data. In this context, the OECD is co-ordinating two distributed micro-data projects – DynEmp and MultiProd – that rely on micro-aggregated data from a broad cross-section of countries for comparable cross-country analyses on employment dynamics and productivity, respectively (see and The innovative methodology applied by the OECD allows for the collection and analysis of harmonised data based on confidential administrative sources or official representative surveys. Both DynEmp and MultiProd rely on the active participation of a network of national experts who have expertise in these different areas and who have access to the relevant micro-data sources in their respective countries.

  • Executive summary

    Business dynamics plays an important role not only as a driver of job creation but also as an engine of reallocation and productivity growth. This book aims at providing new evidence on business dynamics from different countries and at shedding new light on the heterogeneous responses of firms to economic shocks, with a particular focus on the impact of the last decade’s global financial crisis. All chapters in this book highlight the importance of going beyond the average firm paradigm when analysing business dynamics, accounting for different firm characteristics such as size, age, ownership and trade status.

  • List of acronyms and abbreviations
  • Assessing the links between business dynamics and policy settings

    This chapter presents an overview of the chapters included in this volume and relates them with the cross-country evidence gathered by the OECD Dynemp project, highlighting common trends and differences. Based on analyses of data from Belgium, Brazil, Canada, Costa Rica, Japan, the United Kingdom, Norway and New Zealand, the studies illustrate how firm characteristics (age, size, sector) and economic conditions (market conditions, stage in the business cycle and in economic development) affect employment growth, firm performance, resource allocation and productivity growth. The results shed new light on the important role played by the recent global financial crisis on OECD countries and emerging economies.

  • Employment growth of establishments in the Brazilian economy: Results by age and size groups

    Instituto de Pesquisa Econômica Aplicada (IPEA)

  • The role of mergers and acquisitions in employment dynamics in Belgium

    Federal Planning Bureau

  • Firm and job dynamics in the United Kingdom before, during and after the global financial crisis: Getting in under the hood

    The statistical data used in this chapter is from the Office of National Statistics (ONS) and is Crown copyright and reproduced with the permission of the controller of Her Majesty’s Stationery Office (HMSO) and the Queen’s Printer for Scotland (QPS). The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. The analysis upon which this report is based uses research datasets which may not exactly reproduce the Office of National Statistics’ aggregates.

  • Cyclical labour market adjustment in New Zealand: The response of firms to the global financial crisis and its implications for workers

    Access to the data used in this study was provided by Statistics New Zealand in accordance with security and confidentiality provisions of the Statistics Act 1975 and the Tax Administration Act 1994. The results in this chapter have been confidentialised to protect individual businesses from identification. See an earlier version of this work, Fabling and Maré (2012), for the full disclaimer.

  • Employment dynamics in Costa Rica after the global financial crisis

    The views expressed in this chapter are those of the authors and do not necessarily reflect the views of the Ministry of Foreign Trade of Costa Rica. The authors bear full responsibility for any errors or omissions.

  • The growth of Canadian firms: Evidence using different growth measures

    Economic Research and Policy Analysis, Department of Innovation, Science and Economic Development Canada

  • Employment dynamics and labour productivity growth in the Norwegian economy: Evidence from firm-level data

    Statistics Norway

  • Employment and productivity dynamics during economic crises in Japan

    Research Institute of Economy, Trade and Industry (RIETI)

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