N°71 Factor Allocation and Firm-Level Productivity - Dynamics in Luxembourg’s Manufacturing Sector

This paper analyzes productivity dynamics in Luxembourg’s manufacturing sector using firm-level data for the period from 1996 to 2009. The aim is to understand the driving forces of productivity growth and derive policy suggestions to cope with the slowdown in the aggregate productivity in the aftermath of the 2007-2008 global financial crisis. The findings show that the efficiency in the allocation of production factors has an important role in shaping the time path of aggregate productivity.