Executive Summary Study „What drives total factor productivity and its growth in post-communist countries? The case of the Czech Food Industry“
The study aimed to empirically assess firm-level drivers of total factor productivity (TFP) of the Czech firms operating int the Czech food industry. The authors explored the relationship between firm total factor productivity and its growth and firm characteristics such as size, age, industry affiliation, location and financial characteristics. The determinants of total factor productivity were tested econometrically through multivariate regression models.
The authors mainly found a reversed U-shaped relationship between the firm age and the TFP level (with a turning point in the age of 12.5 years). However, the dynamic models investigating the TFP growth have found that younger firms achieve higher productivity growth in comparison with older ones. Higher market share and assets turnover were positively associated with both TFP level and its growth.
This study brings several relevant propositions for future research. First, the authors recommend future researchers to study not only differences in the levels of productivity but also determinants of its growth. Second, the authors believe that adding a non-linear component to age as a factor explaining changes in the levels of productivity might be a very relevant contribution to the literature.
Target Audience/Stakeholders: Corporate finance and business economics researchers
Citation: Blažková, I., Dvouletý, O., & Machek, O. (2020). What drives total factor productivity and its growth in post-communist countries? The case of the Czech Food Industry. Journal of Agribusiness in Developing and Emerging Economies. DOI: https://doi.org/10.1108/JADEE-04-2019-0050