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on Business Economics |
| By: | Pylak, Korneliusz; Mickiewicz, Tomasz; Kitsos, Tasos |
| Abstract: | Our study explores the factors influencing the creation and closure of firms in urban micro-spaces, highlighting the relationship between Knowledge-Intensive Business Services (KIBS) and non-KIBS sectors. Employing 2007-2019 firm-level data from Warsaw, the capital of Poland, we uncover overlooked micro-geographical and sectoral patterns. We reveal spatial and sectoral interdependencies, highlighting the cross-sectoral effects of density and age of incumbent firms on new firm creation and closure. Our findings highlight the potential of policies supporting KIBS to generate positive multiplier effects, cultivating entrepreneurial ecosystems while accounting for micro-geographical contexts. |
| Date: | 2024–12–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:emv45_v1 |
| By: | Njikam, Ousmanou; Elomo, Therese Zogo |
| Abstract: | We investigate whether multinational enterprises (MNEs) create high quality jobs than domestic firms in least-developed countries. We argue that the quality of jobs offered by MNEs may differ depending on their two alternative entry modes, that is, greenfields (GRFs) versus joint ventures (JVs). Using 2005-2017 firm-level Cameroonian data, we find that relative to local firms, MNEs offer more secure jobs through lower speeds and greater half-lives of employment adjustment as well as lower elasticity of employment, and they also offer high-wage jobs. GRFs and JVs also offer more secure jobs than local firms, but through different mechanisms, i.e., employment adjustment processes for the former and wage elasticity for the latter, and their generous wage policies differ across skill groups and occupations. In contrast, skill-intensive MNEs and namely GRFs employ less unskilled workers while skill-intensive JVs enhance managerial and technical occupations. We also find that capital-intensive JVs have a significantly positive impact on both non-production and production employment and generate less jobs in managerial and technical occupations. These results hold for the intensity of foreign ownership and firm exit. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:fd1d1549-cd45-4420-95de-f3de4d0570cb |
| By: | Kweka, Josaphat; Sooi, Fadhili |
| Abstract: | Using firm-level data from the recently available Tanzania Enterprise Survey (TES) 2022, this paper provides empirical analysis of drivers of firm participation in global value chains (GVCs), and implication of such participation on firm performance in Tanzania. The findings show that, firm size, awareness of external markets, investment in Research and Development (RandD), and engagement in innovation and technology upgrading are significant drivers of firm participation in GVCs for Tanzania. The paper confirms the widely acclaimed conclusions in the literature that firm participation in GVCs is positively and significantly associated with higher firm performance. However, despite the positive role of GVC, the extent of firm participation appears low for Tanzania, mainly on account of low level of capacity of often small and informal firms. The findings underscore the need to increase government's efforts to improve environment and incentive for small firms to formalize and grow. The results are also supportive of the need for policy to promote regional integration, investment in RandD, innovation, and technology upgrading. |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:014dd339-fb25-4c3f-a81b-d4c2e1f7edb2 |
| By: | Osabuohien, Evans S.; Karakara, Alhassan Abdul-Wakeel; Edafe, Oluwatosin D. |
| Abstract: | Global value chains (GVC) have become an important developmental issue. However, empirical studies on the peculiar nature of the GVC participation of firms are sparse, especially in West Africa. Thus, this study empirically examines the factors that constitute the major drivers of firm GVC participation and the institutional obstacles to firm GVC participation. The study discusses how such factors could be surmounted. We use the logit model as the empirical strategy and the World Bank's Enterprise Survey (ES) database for two biggest West African countries: Ghana and Nigeria. The findings show that firms in West Africa face constraints that militate against their participation in GVC. Also, we find crucial factors that can influence firms participation in GVC, which differ relatively between Ghana and Nigeria. In essence, medium and large-scale firms have higher likelihood to participate in GVC than small-scale firms. Similarly, the legal status of the firm helps in enhancing the firms participation in GVC, as firms that are shareholding or partnership firms are more likely to participate in GVC than sole proprietorship firms. Also, firm location serves as an advantage to the firm GVC participation, as firms in cities with a human population of over one million are more likely to be engaged in GVC. The finding of the study is relevant to industry players and firms, particularly on the mode of participation in GVC and in helping policy makers in creating a favourable policy ambience for GVC participation of firms, which could enhance corporate relations among domestic firms and international players to spur firms productivity and participation in GVC. |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:f3859c4f-97c5-4116-b6c8-12fcdac38779 |
| By: | Muffert, Johanna (FAU Erlangen Nuremberg); Winkler, Erwin (University of Erlangen-Nuremberg) |
| Abstract: | We study how the effects of exports on earnings vary across individual workers, depending on a wide range of worker, firm, and job characteristics. To this end, we combine a generalized random forest with an instrumental variable strategy. Analyzing Germany's exports to China and Eastern Europe, we document sharp disparities: workers in the bottom quartile (ranked by the size of the effect) experience little to no earnings gains due to exports, while those in the top quartile see considerable earnings increases. As expected, the workers who benefit the most on average are employed in larger firms and have higher skill levels. Importantly, however, we also find that workers with the largest earnings gains tend to be male, younger, and more specialized in their industry. These factors have received little attention in the previous literature. Finally, we provide evidence that the contribution to overall earnings inequality is smaller than expected. |
| Keywords: | machine learning, earnings, inequality, exports, skills, labor market |
| JEL: | C52 F14 J23 J24 J32 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17667 |
| By: | Campos, Francisco (World Bank); Frese, Michael (Leuphana University Lüneburg); Iacovone, Leonardo (World Bank); Johnson, Hillary C. (World Bank); McKenzie, David (World Bank); Mensmann, Mona (University of Cologne) |
| Abstract: | A randomized experiment in Togo found that personal initiative training for small businesses resulted in large and significant impacts for both men and women after two years. We revisit these entrepreneurs after seven years, and find long-lasting average impacts of personal initiative training of $91 higher profits per month, which is larger than the 2-year impacts. However, these long-term impacts are very different for men and women: the impact for men grows over time as they accumulate more capital and increase self-efficacy, whereas the impact for women is flat or declines, and capital build-up is much more limited. |
| Keywords: | microentrepreneurship, business training, personal initiative, firm growth |
| JEL: | O12 O17 L26 J24 J16 D22 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17672 |