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on Business Economics |
| By: | Macedoni, Luca; Morrow, John; Tyazhelnikov, Vladimir |
| Abstract: | Which products are potentially produced together? When demand for a product increases, which firms will supply it? Using multi-product production patterns within and across firms, we recover a continuous cost based distance between firms and unproduced products. Higher product distance implies decreasing adoption frequency. When export demand induces domestic product adoption, closer firms provide this supply. Potential costs imply measures of Revenue and Competition Potential. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 10-30%. |
| Keywords: | multi-product firms; firm capabilities; product classification; product space; growth paths |
| JEL: | F1 D2 L1 L23 L25 |
| Date: | 2024–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126833 |
| By: | Nunez Chaim, Gonzalo Ignacio; Overman, Henry George; Riom, Capucine Anne Veronique |
| Abstract: | We evaluate the impact of the UK's Growth Vouchers Programme, which offered subsidised business advice to 15, 207 randomly selected small and medium size enterprises. Using administrative and survey data, we show that the programme increased turnover by 8.2% but only in the short-term and potentially at the expense of non-supported firms. We find that subsidised advice appears to improve firms' capabilities and practices in a way that is consistent with the increase in turnover. We also demonstrate that propensity score matching introduces a sizeable upward bias to estimated effects on turnover and employment and that this bias grows over time. |
| Keywords: | firm performance; enterprise growth; entrepreneurship; industrial strategy |
| JEL: | D24 L25 M13 O12 L20 D20 |
| Date: | 2024–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126834 |
| By: | Amin, Mohammad; Khalid, Usman |
| Abstract: | Ethnic fractionalization has both positive and negative consequences. It is contended that the positive effects due to skill complementarity in the production process apply to large firms that have more complex and diversified production structures. Because small businesses rely more on public goods and have less access to institutions, the negative effects of lower quality public goods and higher transaction costs have a greater impact on them. Consistent with this viewpoint, it is found that a larger firm size significantly mitigates the negative impact of higher ethnic fractionalization on the level and growth rate of labor productivity in manufacturing firms across 84 developing countries. There is no robust and significant impact of ethnic fractionalization on large firms for the main and most of the other firm size categorizations considered. The results are confirmed by the instrumental variables estimation method, which uses the duration of early human settlement in each country to instrument ethnic fractionalization. Evidence is provided on the potential mechanisms by which ethnic fractionalization affects small versus large firms. The findings have significant policy implications, which are discussed in detail. |
| Date: | 2023–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10375 |
| By: | Di Filippo, Mario; Panizza, Ugo G. |
| Abstract: | This paper uses a unique dataset with matched information at the firm-bank level covering 13, 000 firms and 550 banks in 36 emerging and developing economies over 2012–20. The analysis tests whether government-owned banks fulfill their social mandate by targeting credit constrained firms or firms that are more likely to generate positive externalities. The findings show that credit constrained firms are more likely to borrow from government-owned banks, and that this is especially the case in countries with good institutions. However, the paper does not find any evidence that government-owned banks target innovative firms or “green” firms. The findings show that in firms that borrow from government-owned banks, employment reacts less to business cycle conditions relative to firms that borrow from private banks. The paper further shows that employment is more stable in credit constrained firms that have a relationship with a government-owned banks with respect to credit constrained firms that borrow from a private bank. |
| Date: | 2023–03–28 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10384 |
| By: | Lenihan, Helena; Perez-Alaniz, Mauricio; Rammer, Christian |
| Abstract: | Firm-level Climate Action Response Plans (CARPs) are strategic plans comprising firms' climate change mitigation and adaptation commitments. Given the importance of CARPs for meeting climate change targets, encouraging firms to develop CARPs is paramount. When designing evidence-based approaches to drive firm-level CARPs, it is essential to know the resources and capabilities that enable firms to develop CARPs. Drawing on novel and highly detailed data on firms in Ireland, and using a direct matching approach, our study examines the characteristics that distinguish firms that develop and do not develop CARPs. We find that firms developing CARPs: (1) Exhibit strong market performance, in terms of productivity and sales; (2) Engage in international markets; (3) Are highly R&D and innovation active; and (4) Already use digital technologies. Such insights suggest that CARPs require firms to have high levels of resources and skills when designing their responses to climate change. The paper proffers potential policy and managerial implications, in terms of encouraging firms to develop CARPs. |
| Keywords: | Firm-level climate action, Climate Action Response Plans, Climate Change Adaptation, Climate Change Mitigation, Firms' R&D and innovation, Greenwashing |
| JEL: | Q54 Q56 Q57 L21 M14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312182 |
| By: | Dobbelaere, Sabien; McCormack, Grace; Prinz, Daniel; Sóvágó, Sándor |
| Abstract: | Using rich administrative data from the Netherlands, this paper studies the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with an 8.5 percent drop in employment at the consolidated firm and a 2.6 percent drop in total labor income. These effects are persistent even four years later. The paper shows that the primary mechanism for this job loss is labor restructuring at consolidating firms. Workers with higher-than-expected pay relative to their human capital and workers with skills that are likely already present at acquirers are less likely to be retained. |
| Date: | 2023–06–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10477 |
| By: | Krieger, Bastian; Füner, Lena; Prüfer, Malte |
| Abstract: | We explore which start-ups win in public procurement. Most notably, our analysis presents significant differences between firms applying for tenders with and without functional criteria. First, we use representative telephone survey data to estimate public procurement applicant and winner shares for the population of German start-ups. We find in total eleven percent of start-up firms applied for public tenders since their foundation, and 65 percent of them won at least one tender. Additionally, younger and more innovative firms tend to apply for and win tenders with functional criteria, while older and less innovative firms tend to apply for and win tenders without functional criteria. Second, we employ non-linear estimation methods to identify firm and founder characteristics predicting to win public tenders within the group of applicants. Start-ups applying for functional tenders profit from smaller foundation teams, younger founders, more industry experience, and higher innovation capacities, while start-ups applying for tenders without functional criteria, profit from larger foundation teams, older founders, more industry experience, and the absence of founding experience |
| Keywords: | Public procurement, Start-up firms, Innovation |
| JEL: | H57 L26 O38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312190 |
| By: | Amann, Juergen; Grover, Arti Goswami |
| Abstract: | This paper analyzes the impact of changes in energy prices on the competitiveness of manufacturing firms in Chile. Using the Chilean Annual National Industrial Survey data, the paper illustrates that, first, increases in energy prices generally do not hurt firm competitiveness. Second, the impact of energy prices depends on the fuel type—while electricity price increases are negatively correlated with firm outcomes, fossil fuel price increases have a positive association with investment and firm productivity, a result that is consistent with the strong version of the Porter hypothesis. Third, these effects are heterogeneous and vary by firm attributes such as size, ownership and location. Fourth, investigating non-linear patterns in firm outcomes based on the level of energy prices, the findings show that the positive correlation between fossil fuel price increases and capital upgrading is particularly pronounced when energy prices are at relatively low levels. |
| Date: | 2023–05–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10436 |