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on Business Economics |
| By: | Subash SASIDHARAN (Indian Institute of Technology Madras, Chennai, India); Shandre THANGAVELU (Sunway University, The University of Adelaide); Ketan REDDY (Indian Institute of Management Raipur, India) |
| Abstract: | In this study, we explore the impact of urban amenities and the global value chain (GVC) participation of Indian firms on their firm performance using firm-level data. The study uses micro-level data matching firms to urban amenities at the district level based on their district location. Using a panel data framework, we observe a positive relationship between urban amenities and the GVC participation of firms on their productivity performance. We also observe a positive impact of GVC participation on the productivity of firms, especially on their total factor productivity. In terms of channels, we observe the GVC impact through educational amenities on the productivity of the firms. This suggests education amenities increase the productive performance of GVC firms. We also observe that financial amenities tend to increase the productive performance of GVC firms. The results of the paper highlight the importance of urban amenities in affecting the productive performance of Indian firms in GVC activities. |
| Keywords: | Amenities Index; Global Value Chains: Manufacturing; TFP |
| JEL: | F14 F15 L6 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-13 |
| By: | Pedro Bento; Lin Shao; Faisal Sohail |
| Abstract: | The prevalence of entrepreneurs, particularly low-productivity non-employers, declines as economies develop. This decline is more pronounced for women. Relative to men, women are more likely to be entrepreneurs in poor economies but less likely in rich economies. We investigate whether gender gaps in time dedicated to non-market activities, which narrow with development, can account for this pattern. We develop a quantitative framework in which selection into occupations depends on one’s ability and time and features gender-specific distortions and social norms around market work. When we calibrate the model to match cross-country data, we find that differences in social norms are almost entirely responsible for the patterns of gender gaps in both time use and entrepreneurship. Through affecting time use and entrepreneurship, social norms account for a substantial part of cross-country differences in output per worker and firm size and have significant welfare implications for women. |
| Keywords: | Firm Dynamics; Productivity |
| JEL: | J2 L2 O1 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-43 |
| By: | Massimiliano Marcellino; Andrea Renzetti; Tommaso Tornese |
| Abstract: | We develop a Functional Augmented Vector Autoregression (FunVAR) model to explicitly incorporate firm-level heterogeneity observed in more than one dimension and study its interaction with aggregate macroeconomic fluctuations. Our methodology employs dimensionality reduction techniques for tensor data objects to approximate the joint distribution of firm-level characteristics. More broadly, our framework can be used for assessing predictions from structural models that account for micro-level heterogeneity observed on multiple dimensions. Leveraging firm-level data from the Compustat database, we use the FunVAR model to analyze the propagation of total factor productivity (TFP) shocks, examining their impact on both macroeconomic aggregates and the cross-sectional distribution of capital and labor across firms. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.05695 |
| By: | Phouphet KYOPHILAVONG (National University of Laos); Shandre Mugan THANGAVELU (Sunway University, University of Adelaide); Inpaeng SAYVAYA (Champasack University) |
| Abstract: | This paper examines the effects of urban amenities on the probability of firms exporting and firm productive performance in the Lao People’s Democratic Republic (Lao PDR). A logit model was used, finding that urban amenities have a positive and statistically significant effect on firm productivity. However, the results do not indicate any impact on the probability of firms exporting. Based on these results, both the government and private sector should invest more in improving urban amenities to facilitate efficient business operations and to enhance firm competition in global markets. In addition, the government should invest more in human capital and production facilities, especially in information and communications technology, to increase firm performance as well as the probability that they will export. |
| Keywords: | productivity, urban amenities, exporting |
| JEL: | O12 L21 L11 D24 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-11 |
| By: | Foreman-Peck, James; Hannah, Leslie |
| Abstract: | We explore which business forms were predominant in the later Victorian economy and why some forms were more effective among large British manufacturing firms during this period. With a dataset of 483 manufacturing firms in 1881 that either employed at least 1000 or had done so a decade earlier, we find that the great majority were partnerships. Public corporations attained higher capital–labour ratios and stronger employment growth than other business forms. The separation of ownership from control was most effective where it was most thoroughly practised, as by public, in contrast to private, corporations. Engineers were frequently encountered in all business forms and associated with expanding employment. But the large public manufacturing corporations employed almost twice the proportion of engineers and professionals in top management as other enterprises. Family firms, proxied by heirs, were present in management of three-quarters of partnerships but in only one-third of public corporations. Heirs reduced the employment growth of the firm, whereas engineers boosted it. Lords, mayors, and landed wealth in management were also associated with faster employment growth of enterprises. |
| Keywords: | business performance; corporations; engineers; manufacturing; partnerships; Victorian economy |
| JEL: | J1 |
| Date: | 2024–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126037 |
| By: | Hugo Sant'Anna |
| Abstract: | In this paper, I introduce a novel decomposition method based on Gaussian mixtures and k-Means clustering, applied to a large Brazilian administrative dataset, to analyze the gender wage gap through the lens of worker-firm interactions shaped by comparative advantage. These interactions generate wage levels in logs that exceed the simple sum of worker and firm components, making them challenging for traditional linear models to capture effectively. I find that these ``complementarity effects'' account for approximately 17% of the gender wage gap. Larger firms, high human capital, STEM degrees, and managerial roles are closely related to it. For instance, among managerial occupations, the match effect goes as high as one-third of the total gap. I also find women are less likely to be employed by firms offering higher returns to both human capital and firm-specific premiums, resulting in a significantly larger firm contribution to the gender wage gap than previously estimated. Combined, these factors explain nearly half of the overall gender wage gap, suggesting the importance of understanding firm-worker matches in addressing gender-based pay disparities. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.03209 |