What happens after an investment spike - investment events and firm performance

• Autorzy: Michał Gradzewicz
• Języki publikacji: EN

Abstrakty

EN

Our study aims at investigating the relationship between investment spikes and subsequent productivity development at the firm level. We propose a novel identification scheme for the effects of an investment spike, using matching techniques and adequate econometric modelling. It allows us to find efficiency differentials against matched firms. We showed that TFP falls after an investment spike and slowly recovers thereafter, which is consistent with learning-by-doing effects. For smaller firms the fall is more pronounced and the subsequent recovery is longer. On the contrary, labor productivity rises after an investment spike, driven mainly by capital deepening. The increase of sales after a spike suggests that expansion is the main purpose of an investment spike and rising employment confirms that this type of investment is complementary to labor. As firms with spikes are on average more efficient and investment spikes attract resources and production factors, it suggests that improved allocative efficiency is an important factor driving positive macroeconomic correlation between investment and TFP. (original abstract)

Słowa kluczowe

EN

Enterprises investments; Productivity; Total Factor Productivity (TFP)

PL

Inwestycje przedsiębiorstw; Produktywność; Produktywność czynników wytwórczych

• Czasopismo: Collegium of Economic Analysis SGH - Working Papers
• Rocznik: 2018
• Numer: nr 40
• Strony: 33

Twórcy

autor

Michał Gradzewicz

• Warsaw School of Economics, Poland; National Bank of Poland

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