The relationship between labor productivity and number of operating firms

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dc.authoridOZTURKLER, HARUN/0000-0002-3114-2760
dc.contributor.authorGoksel, Turkmen
dc.contributor.authorOzturkler, Harun
dc.date.accessioned2025-01-21T16:55:13Z
dc.date.available2025-01-21T16:55:13Z
dc.date.issued2021
dc.departmentKırıkkale Üniversitesi
dc.description.abstractThis paper constructs a theoretical model matching empirically observed relationships between average labor productivity and the number of operating firms. The models in the related literature which utilize CES utility function find no relationship between average labor productivity and the number of operating firms in the economy (Melitz, Marc J. [2003. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica 71 (6): 1695-1725] and many versions of this model). Moreover, the models which utilize non-homothetic preferences with a numeraire good find a positive relationship between average labor productivity and the number of operating firms (Melitz, Marc, and Gianmarco I. P. Ottaviano [2008. Market Size, Trade, and Productivity. Review of Economic Studies 75: 295-316] and many versions of this model). However, the model developed in this paper provides a single theoretical framework that depending on the source, a rise in the average labor productivity may lead to an increase or a decrease in the number of operating firms. In line with our results, we provide empirical evidence from ten European countries for the 2008-2016 period, which shows that the correlation between these two variables is positive for some of the countries, while negative for the others.
dc.identifier.doi10.1080/09638199.2021.1884739
dc.identifier.endpage828
dc.identifier.issn0963-8199
dc.identifier.issn1469-9559
dc.identifier.issue6
dc.identifier.scopus2-s2.0-85100967263
dc.identifier.scopusqualityQ1
dc.identifier.startpage818
dc.identifier.urihttps://doi.org/10.1080/09638199.2021.1884739
dc.identifier.urihttps://hdl.handle.net/20.500.12587/25731
dc.identifier.volume30
dc.identifier.wosWOS:000617193700001
dc.identifier.wosqualityQ2
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherRoutledge Journals, Taylor & Francis Ltd
dc.relation.ispartofJournal of International Trade & Economic Development
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_20241229
dc.subjectLabor productivity; number of operating firms; sources of productivity; non-homothetic preferences; general equilibrium model
dc.titleThe relationship between labor productivity and number of operating firms
dc.typeArticle

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