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European competitiveness: A semi-parametric stochastic metafrontier analysis at the firm level

Author

Listed:
  • Michel Dumont

    (Federal Planning Bureau)

  • Bruno Merlevede

    (CERISE, Ghent University
    Department of general economics, Ghent University)

  • Glenn Rayp

    (SHERPPA, Ghent University
    Department of general economics, Ghent University)

  • Marijn Verschelde

    (SHERPPA, Ghent University
    Department of general economics, Ghent University
    Faculty of Economics and Business, Katholieke Universiteit Leuven)

Abstract
In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firmlevel competitiveness in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency, noise and do not impose a functional form on the input-output relation. Using AMADEUS firm-level data covering 10 manufacturing sectors from seven EU15 countries, (i) we document substantial, persistent differences in competitiveness (with Belgium and Germany as benchmark countries and Spain lagging behind) and a wide technology gap, (ii) we confirm the absence of convergence in TFP between the seven selected countries, (iii) we confirm that the technology gap is more pronounced for smaller firms, (iv) we highlight the role of post-entry growth for competitiveness.

Suggested Citation

  • Michel Dumont & Bruno Merlevede & Glenn Rayp & Marijn Verschelde, 2014. "European competitiveness: A semi-parametric stochastic metafrontier analysis at the firm level," Working Paper Research 261, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:201407-261
    as

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    References listed on IDEAS

    as
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    6. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitabality enhancing reallocation: evidence from Colombia," Discussion Paper Series In Economics And Econometrics 0408, Economics Division, School of Social Sciences, University of Southampton.
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    8. Smeets, Valerie & Warzynski, Frederic, 2013. "Estimating productivity with multi-product firms, pricing heterogeneity and the role of international trade," Journal of International Economics, Elsevier, vol. 90(2), pages 237-244.
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    11. repec:pri:cepsud:231deloecker is not listed on IDEAS
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    Citations

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    Cited by:

    1. E. Dhyne & C. Duprez & C. Fuss, 2015. "Main CompNet research results," Economic Review, National Bank of Belgium, issue iii, pages 103-116, December.
    2. Michel Dumont & Chantal Kegels, 2016. "Working Paper 06-16 - Young Firms and Industry Dynamics in Belgium," Working Papers 1606, Federal Planning Bureau, Belgium.

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    More about this item

    Keywords

    competitiveness; cross-country analysis; firm heterogeneity; total factor productivity; post-entry growth;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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