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on Business Economics |
| By: | Julien Albertini; Xavier Fairise; Anthony Terriau |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tep:teppwp:wp24-08 |
| By: | Pablo Ottonello; Wenting Song; Sebastian Sotelo |
| Abstract: | We study the distribution of political speech across U.S. firms. We develop a measure of political engagement based on firms’ communications (earning calls, regulatory filings, and social media) by training a large language model to identify statements that contain political opinions. Using these data, we document five facts about firms’ political engagement: (1) Political engagement is rare among firms; (2) Political engagement is concentrated among large firms; (3) Firms tend to specialize in specific topics and outlets; (4) Large firms tend to engage in a wider set of topics and outlets; (5) The 2020 surge in firms’ political engagement was associated with an increase in the engagement of medium-sized firms and a change in the mix of political topics. |
| Keywords: | Firm dynamics; Market structure and pricing; Recent economic and financial developments |
| JEL: | D22 D63 G41 L11 L20 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-37 |
| By: | Aghion, Philippe; Bergeaud, Antonin; Lequien, Matthieu; Melitz, Marc J.; Zuber, Thomas |
| Abstract: | We decompose the “China shock” into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm level, we show that the output shock is detrimental to firms’ sales, employment, and innovation. Moreover, this negative impact is concentrated in low-productivity firms. On the other hand, the impact of the input supply shock is reversed. |
| JEL: | F3 G3 J1 |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123934 |
| By: | Bao We Wal Bambe (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne); Jean-Louis Combes (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne); Kabinet Kaba (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Alexandru Minea (UCA - Université Clermont Auvergne, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne, Carleton University) |
| Abstract: | We examine the impact of inflation targeting on manufacturing firm performance in developing countries. Using a panel of 31, 027 firms in 47 countries from 2006 to 2020 and applying the entropy balancing method to mitigate selection issues, we find that inflation targeting significantly increases firm growth and productivity. The findings are economically significant and robust to various checks. Moreover, we provide evidence that our results are not biased towards unobservables nor are they confounded with the effects induced by other reforms, such as IMF programs. We further show that economic and institutional factors such as the quality of judicial processes, fiscal discipline, central bank deviations from the target, and the time length since the policy adoption also influence the link between the monetary regime and firm performance. Last, we explore the main transmission channels and identify macroeconomic stability as the key driver of the regime's effectiveness. |
| Keywords: | Inflation targeting, Manufacturing firm performance, Developing countries, Entropy balancing |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04734823 |
| By: | Gagliardi Nicola (CEBRIG and DULBEA, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles); Elena Grinza (Department of Economics, Social Studies, Applied Mathematics and Statistics, University of Turin, Torino, CEBRIG (Université Libre de Bruxelles), LABORatorio Riccardo Revelli); Rycx François (CEBRIG and DULBEA, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles) |
| Abstract: | In this paper, we investigate the impact of rising temperatures on firm productivity using longitudinal firm-level balance-sheet data from private sector firms in 14 European countries, combined with detailed weather data, including temperature. We begin by estimating firms' total factor productivity (TFP) using control-function techniques. We then apply multiple-way fixed-effects regressions to assess how higher temperature anomalies affect firm productivity - measured via TFP, labor productivity, and capital productivity. Our findings reveal that global warming significantly and negatively impacts firms' TFP, with the most adverse effects occurring at higher anomaly levels. Labor productivity declines markedly as temperatures rise, while capital productivity remains unaffected - indicating that TFP is primarily affected through the labor input channel. Our moderating analyses show that firms involved in outdoor activities, such as agriculture and construction, are more adversely impacted by increased warming. Manufacturing, capital-intensive, and blue-collar-intensive firms, compatible with assembly-line production settings, also experience significant productivity declines. Geographically, the negative impact is most pronounced in temperate and mediterranean climate areas, calling for widespread adaptation solutions to climate change across Europe. |
| Keywords: | Climate change, Global warming, Firm productivity, Total factor productivity (TFP), Semiparametric methods to estimate production functions, Longitudinal firm-level data. |
| JEL: | D24 J24 Q54 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:tur:wpapnw:094 |
| By: | Lehrer, Steven (Queen's University and NBER); Lepage, Louis-Pierre (Swedish Institute for Social Research); Sousa Pereira, Nuno (University of Porto) |
| Abstract: | We study how exposure of employers to immigrants, both at the market and at the individual firm level, mitigates immigrant-native disparities. We use administrative employee-employer matched data from Portugal, which provides a unique setting given that it experienced almost no immigration until the early 2000s followed by substantial immigration waves. Focusing on the evolution of market wages across successive immigration cohorts, we find that increased employer exposure to immigrant groups can account for up to 25% of the wage convergence between immigrants and natives over the last two decades. We also document that individual-level exposure of firms to immigrants plays an important role, influencing future hiring and remuneration of immigrants. Our results provide new insights into how barriers to hiring different worker groups shape economic inequality, with novel implications for integration policies. |
| Keywords: | immigration; immigrant-native wage gaps |
| JEL: | J15 J31 |
| Date: | 2024–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:sofile:2024_002 |
| By: | Fabrice Gilles; Yannick L'Horty; Ferhat Mihoubi |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tep:teppwp:wp24-07 |
| By: | Nwaobi, Godwin |
| Abstract: | As the most populous nation in Africa, Nigeria is uniquely positioned to reap the benefits of the emerging digital economy. And by accelerating access to digital technologies spurs innovation, efficiency and productivity which brings about choice and opportunities for greater growth and inclusion. Therefore, this research project shall provide evidence with respect to some aspects of inter-firm and intra-firm diffusion digital technologies in Nigeria. In other words, the proposed study intends to provide new empirical evidence with respect to the factors determining inter-firm and intra-firm diffusion of digital technologies by Nigeria productive enterprises. Furthermore, this research paper shall ascertain the extent to which patterns of digital adoption are different for domestic and foreign-owned firms. Econometrically, we propose to use a novel firm level (micro) panel data from the Nigerian manufacturing firms for the period between 2020 and 2025 as applicable. |
| Keywords: | Firms, diffusion, intrafirm, interfirm, Nigeria, panel data, probit model, digital technology, adoption, technology, enterprise, artificial intelligence, productivity, micro panel, innovations, digitalization |
| JEL: | C50 C55 C8 D20 D22 L0 L50 L60 L86 L96 O1 O14 O3 O31 O32 O33 O38 |
| Date: | 2024–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122392 |
| By: | Mirko Draca; Max Nathan; Viet Nguyen-Tien; Juliana Oliveira-Cunha; Anna Rosso; Anna Valero |
| Abstract: | Which types of human capital influence the adoption of advanced technologies? We study the skill biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare the 'new wave' of cloud and machine learning / AI technologies during the 2010s - pre-LLM - with the previous wave of personal computer adoption in the 1990s and early 2000s. At the area-level we see the emergence of a distinct STEM-biased adoption effect for the second wave of cloud and machine learning / AI technologies (ML/AI), alongside a general skill-biased effect. A one-standard deviation increase in the baseline share of STEM workers in areas is associated with around 0.3 of a standard deviation higher adoption of cloud and ML/AI. We find similar effects at the firm level where we are able to test for the influence of a wide range of skills. In turn, this STEM-biased adoption pattern has encouraged the concentration of these technologies, leading to more acute differences between high-tech and low-tech areas and firms. In contrast with classical technology diffusion, recent cloud and ML/AI adoption in the UK seems more likely to widen inequalities than reduce them. |
| Keywords: | Technology Diffusion, ICT, Human Capital, STEM, Technological change, AI |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2040 |