Economics
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INVITED EDITOR
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Nova Economics Club
Nova Economics Club is the Economics club at Nova School of Business and Economics. Since 2012, its focus is to create a bridge between the theory learnt in classes with the work performed by economists on a daily basis.
July 16, 2024
8. Decent work and economic growth

8. Decent work and economic growth

Promote inclusive and sustainable economic growth, full and productive employment and decent work for all
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Productivity of Portuguese firms: are exporter firms more productive?

Nova SBE Economics Student Club analyse labour productivity and its determinants at the firm level.

The slowdown in aggregate productivity growth among developed economies is a known fact largely studied at the macroeconomic level. However, increasing scientific attention has been given to the underlying dynamics at the micro scale, and specifically at the firm-level. In the case of Portugal, the productivity slowdown is even more worrying, with the country experiencing a stagnation in labour productivity levels, diverging from most countries of the Eurozone and other member-states of the European Union, which show slower yet positive growth rates.

In this report, we analyse labour productivity and its determinants at the firmlevel. We use a dataset composed by virtually all Portuguese firms for the period 2010- 2018. By utilizing a vast array of productivity determinants as well as a comprehensive dataset, we try to reach a better assessment of the relative contribution of each factor towards a firm’s labour productivity. We found that exporter status has significant and positive contribute for labour productivity, in agreement with previous literature. Furthermore, we also found a negative association between big firms and labour productivity. As for R&D, we found a positive yet inconclusive contribute for labour productivity, given it was not statistically significant. These two findings contradict previous literature, a reason for which we think they should be given a closer look in future research.

Students' authors: Carolina Nunes, João Cordeiro, João Martins

Partners: Planning, Strategy, Evaluation and International Relation of Finance Ministry // GPEARI – Gabinete de Planeamento, Estratégia, Avaliação e Relações Internacionais do Ministério das Finanças

This content was originally published in NovaEconomicsClub's website.

Nova Economics Club
Nova Economics Club is the Economics club at Nova School of Business and Economics. Since 2012, its focus is to create a bridge between the theory learnt in classes with the work performed by economists on a daily basis.
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