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on Business Economics |
| By: | Juan A. Máñez Castillejo (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).); M. Consuelo Mínguez Bosque (IVIE, Carrer de la Guàrdia Civil 22, 46020 València (Spain).); María E. Rochina-Barrachina (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).); Juan A. Sanchis Llopis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).) |
| Abstract: | This work analyses the firms’ internationalization strategies of importing intermediates and exporting output, and the potential rewards of these activities in terms of total factor productivity (TFP), as a proxy for marginal costs, and markups. It further deepens into the study of the relationship between internationalization strategies and markups by disentangling whether it operates through affecting firms’ marginal costs and/or firms’ prices. The panel database employed in this paper is the Spanish Survey on Business Strategies (ESEE) for the period 2006- 2014. Results in the paper distinguish between SMEs and large firms and indicate that there is high persistence in the performance of these activities and in firms’ TFP and markups. In addition, the internationalization strategies are especially relevant for SMEs, as for this group we obtain rewards of the two activities in terms of both TFP and markups. Furthermore, we also find that these strategies allow SMEs to charge higher output prices. |
| Keywords: | Exports, imports of intermediates, total factor productivity, markups, output prices, manufacturing, firm-level data |
| JEL: | D24 F14 L11 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1905&r=all |
| By: | Nordin, Martin (Department of Economics, Lund University); Grenestam , Erik (Department of Economics, Lund University); Gullstrand , Joakim (Department of Economics, Lund University) |
| Abstract: | This study investigates the relationship between super-fast broadband and firms’ sales and employment level in Sweden. It is important to learn more about this recent technological change and few studies has explored the impact of super-fast broadband on firm outcomes. We use the previous roll-out of second-generation internet access to identify the effect of third-generation internet access. The early investments in optic fiber where largely core broadband network investments paving the way for later investments in third-generation broadband technology. Municipalities choosing providers who prioritized cheap technology (broadband over telephone lines, DSL) targeting the many, thus fell behind municipalities choosing providers investing in optic fiber. We find heterogeneity in the broadband effect, but the overall effect is negative. This effect may be associated with the roll-out of 4G mobile broadband in 2011; mobile broadband services are a byproduct of optic fiber because mobile broadband is transmitted from the same high capacity fiber-optic base stations. We suggest that the negative effect found is related to internet use at work and the mixing of private and work related internet use. |
| Keywords: | broadband; optic fiber; firm output; employment; regional analysis |
| JEL: | D22 J23 O30 R50 |
| Date: | 2019–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2019_008&r=all |
| By: | Blanco-Arroyo, Omar; Ruiz-Buforn, Alba; Vidal-Tomás, David; Alfarano, Simone |
| Abstract: | Following the approach proposed by Gabaix (2011), this paper aims to assess the existence of granularity in the business cycle fluctuations of the following Spanish regions: the Community of Madrid, Catalonia, the Basque Country and the Valencian Community. Granular firms are those that represent a marginal proportion of the total number of firms in an economy, but nevertheless have a significant impact on fluctuations in the GDP growth rate. We find that the Basque Country and the Valencian Community are granular economies. The Community of Madrid and Catalonia, however, do not show granular behaviour. Therefore, our work provides evidence of granular behaviour at the regional level. |
| Keywords: | granularity; granular firms; idiosyncratic shocks; aggregate fluctuations; regions |
| JEL: | C20 E32 |
| Date: | 2019–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93913&r=all |
| By: | Giovanni Dosi; Marco Grazzi; Daniele Moschella; Gary Pisano; Federico Tamagni |
| Abstract: | Firm growth is an essential feature of market economies, shaping together macroeconomic performance and the evolution of industry structures. As a potential indicator of organizational 'fitness' within a competitive environment, firm growth is also a central concern to both the practice and theory of business strategy. Despite both its theoretical and practical importance, though, growth remains a poorly understood property of firms. While previous studies have documented the highly skewed nature of firm growth rates, we know far less about the persistence of growth rates over long-periods of time. For instance, do 'fast growers' tend to maintain their relative growth rates advantages over long-periods or is superior growth a transitory phenomenon? Is, as predicted by evolutionary and capability based theories of the firm, the process of firm growth path-dependent or is it more akin to a random walk? The answers to these questions are central to building a robust theory of firm growth. This paper attempts to address this gap in our empirical knowledge of firm growth using a dataset that spans 50 years, which allows the abandonment of the assumption, common to all incumbent studies, that the stochastic paths of all firms stem from the same generating process. These exploratory results indicate that growth rate persistence is there and my be even substantial for some firms, but it is rare. We also study the links between the micro- properties of firm growth within sectors and the patterns of aggregate growth of these same sectors. Indeed, we find circumstantial but widespread evidence that heterogeneity across firms correlates with industry dynamism. |
| Keywords: | Firm growth; Persistence; Industrial Dynamics; Firm heterogeneity |
| Date: | 2019–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/13&r=all |
| By: | Christian Saborowski; Florian Misch |
| Abstract: | This paper examines the variation in life cycle growth across the universe of Mexican firms. We establish two stylized facts to motivate our analysis: first, we show that firm size matters for development by illustrating a close correlation with state-level per capita incomes. Second, we show that few firms grow as much as their U.S. peers while the majority stagnates at less than twice their initial size. To gain insights into the distinguishing characteristics of the two groups, we then econometrically decompose life cycle growth across firms. We find that firms that have financial access and multiple establishments and that are formal, part of diversified industries and located in population centers can grow at sizeable rates. |
| Date: | 2019–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/87&r=all |
| By: | Achyuta Adhvaryu; Anant Nyshadham; Jorge A. Tamayo |
| Abstract: | Which managerial skills, traits, and practices matter most for productivity? How does the observability of these features affect how appropriately they are priced into wages? Combining two years of daily, line-level production data from a large Indian garment firm with rich survey data on line managers, we find that several key dimensions of managerial quality, like attention, autonomy, and control, are important for learning-by-doing as well as for overall productivity, but are not commensurately rewarded in pay. Counterfactual simulations of our structural model show large gains from screening potential hires via psychometric measurement and training to improve managerial practices. |
| JEL: | D24 L2 M11 M12 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25852&r=all |
| By: | Kyvik Nordås, Hildegunn (Örebro University School of Business); Lodefalk, Magnus (Örebro University School of Business); Tang, Aili (Örebro University School of Business) |
| Abstract: | We perform a granular analysis of Swedish labor market dynamics, using matched employer employee and firm level trade data for Sweden over a 15-year period. The employment share in firms that are directly exposed to international trade has decreased, due to a shift in employment towards personal and public services. Analyzing the dynamics, we find that workers in firms that change export status are slightly less likely to obtain the same wage rise as their peers. However, workers that stay in the same job in trading firms are less affected by changes in export and offshoring volumes, with the exception of high-skilled workers in manufacturing firms who face a downward pressure on wages from services offshoring, but higher wages from services exports. Finally, we find that exports and offshoring of goods and services stimulate labor demand. While exports and offshoring of services increase relative demand for skilled workers, exports and offshoring of goods stimulate relative demand for middle and low skilled workers. |
| Keywords: | Worker flows; Job flows; Trade; Wages; Labor Demand |
| JEL: | E24 F16 J63 P23 |
| Date: | 2019–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2019_002&r=all |
| By: | Hovhannisyan, Nune; Keller, Wolfgang |
| Abstract: | Access to new foreign technology is often central to countries' development strategies. However, we know very little about the quantitative impact of technology sourcing. In this paper, we study the role of outward international business travel for technology sourcing and innovation by examining whether patenting in European regions is affected by the number of business travelers heading to the United States. Using European regional patent data for the years 1996 to 2010 from Eurostat and information on incoming business travelers from the U.S. Department of Commerce's Survey of International Air Traveler, we find that controlling for a region's R&D spending and size, innovation is increasing in the number of business travelers of the region to the United States. Technology sourcing through in-person business travel is not only statistically but economically significant accounting, for example, it accounts for 20% of the higher patenting in Germany's Greater Stuttgart area, compared to Portugal's Algarve region. |
| Keywords: | European Regions; Innovation; patenting; R&D |
| JEL: | F2 O22 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13739&r=all |
| By: | Iwasaki, Ichiro; Ma, Xinxin; Mizobata, Satoshi |
| Abstract: | In this paper, we perform a meta-analysis of 736 estimates extracted from 31 previous studies to compare China and Eastern Europe from the viewpoint of the relationship between corporate ownership and managerial turnover. Our results strongly suggest the presence of asymmetric circumstances between the two: Namely, in Eastern Europe, private outside investors and large shareholders exert a positive influence on managerial discipline of the companies they invest in, and the government is also actively involved in the corporate governance of state-owned enterprises. In contrast, the Chinese government and the Communist Party of China have such significant control over companies as corporate owners that private shareholders only have limited influence over top management. In this sense, Chinese firms are more likely than their East European counterparts to face a greater problem in corporate governance. |
| Keywords: | corporate ownership, managerial turnover, meta-analysis, publication selection bias, China, Eastern Europe |
| JEL: | D22 G32 G34 G38 P21 P31 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2019-1&r=all |
| By: | Nune Hovhannisyan; Wolfgang Keller |
| Abstract: | Access to new foreign technology is often central to countries’ development strategies. However, we know very little about the quantitative impact of technology sourcing. In this paper, we study the role of outward international business travel for technology sourcing and innovation by examining whether patenting in European regions is affected by the number of business travelers heading to the United States. Using European regional patent data for the years 1996 to 2010 from Eurostat and information on incoming business travelers from the U.S. Department of Commerce’s Survey of International Air Travelers, we find that controlling for a region’s R&D spending and size, innovation is increasing in the number of business travelers of the region to the United States. Technology sourcing through in-person business travel is not only statistically but economically significant, accounting, for example, for 20% of the higher patenting in Germany’s Greater Stuttgart area, compared to Portugal’s Algarve region. |
| JEL: | F2 O33 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25862&r=all |