Productivity in Europe during the Great Recession: Any evidence for creative destruction?
This article analyses the effects of the financial crisis and the Great Recession on productivity in Europe by studying the process of labour force reallocation between companies. Using micro-data on company balance sheets, a fixed-effects panel estimation of the predictors of the post-crisis evolut...
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| Format: | Article |
| Language: | English |
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University of A Coruna
2017-01-01
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| Series: | European Journal of Government and Economics |
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| Online Access: | http://revistas.udc.es/index.php/ejge/article/view/4318 |
| _version_ | 1818194983942881280 |
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| author | Gonzalo Paz Pardo |
| author_facet | Gonzalo Paz Pardo |
| author_sort | Gonzalo Paz Pardo |
| collection | DOAJ |
| description | This article analyses the effects of the financial crisis and the Great Recession on productivity in Europe by studying the process of labour force reallocation between companies. Using micro-data on company balance sheets, a fixed-effects panel estimation of the predictors of the post-crisis evolution of the number of employees for a given company is used. Identification is achieved through the use of pre-crisis values of covariates. The results are in line with the theoretical predictions derived from Schumpeterian (“creative destruction”) endogenous growth models. Pre-crisis productivity is a predictor of a higher number of employees, which means creative destruction is taking place to some extent. Companies in financially dependent sectors perform worse in the context of the financial crisis. Indebtedness has an uneven effect: positive for large companies and negative for smaller ones. |
| first_indexed | 2024-12-12T01:10:58Z |
| format | Article |
| id | doaj.art-1e25d1ba0493491d9cf84b8d564b12c4 |
| institution | Directory Open Access Journal |
| issn | 2254-7088 |
| language | English |
| last_indexed | 2024-12-12T01:10:58Z |
| publishDate | 2017-01-01 |
| publisher | University of A Coruna |
| record_format | Article |
| series | European Journal of Government and Economics |
| spelling | doaj.art-1e25d1ba0493491d9cf84b8d564b12c42022-12-22T00:43:27ZengUniversity of A CorunaEuropean Journal of Government and Economics2254-70882017-01-015210.17979/ejge.2016.5.2.4318Productivity in Europe during the Great Recession: Any evidence for creative destruction?Gonzalo Paz Pardo0University College LondonThis article analyses the effects of the financial crisis and the Great Recession on productivity in Europe by studying the process of labour force reallocation between companies. Using micro-data on company balance sheets, a fixed-effects panel estimation of the predictors of the post-crisis evolution of the number of employees for a given company is used. Identification is achieved through the use of pre-crisis values of covariates. The results are in line with the theoretical predictions derived from Schumpeterian (“creative destruction”) endogenous growth models. Pre-crisis productivity is a predictor of a higher number of employees, which means creative destruction is taking place to some extent. Companies in financially dependent sectors perform worse in the context of the financial crisis. Indebtedness has an uneven effect: positive for large companies and negative for smaller ones.http://revistas.udc.es/index.php/ejge/article/view/4318ProductivityBusiness CyclesFinancial ConstraintsIndebtednessCompany Performance |
| spellingShingle | Gonzalo Paz Pardo Productivity in Europe during the Great Recession: Any evidence for creative destruction? European Journal of Government and Economics Productivity Business Cycles Financial Constraints Indebtedness Company Performance |
| title | Productivity in Europe during the Great Recession: Any evidence for creative destruction? |
| title_full | Productivity in Europe during the Great Recession: Any evidence for creative destruction? |
| title_fullStr | Productivity in Europe during the Great Recession: Any evidence for creative destruction? |
| title_full_unstemmed | Productivity in Europe during the Great Recession: Any evidence for creative destruction? |
| title_short | Productivity in Europe during the Great Recession: Any evidence for creative destruction? |
| title_sort | productivity in europe during the great recession any evidence for creative destruction |
| topic | Productivity Business Cycles Financial Constraints Indebtedness Company Performance |
| url | http://revistas.udc.es/index.php/ejge/article/view/4318 |
| work_keys_str_mv | AT gonzalopazpardo productivityineuropeduringthegreatrecessionanyevidenceforcreativedestruction |