|
on Economics of Strategic Management |
| By: | Stiebale, Joel |
| Abstract: | This paper analyzes the effects of cross-border mergers and acquisitions (M&As) on the innovation of European firms. The results indicate a considerable increase in post-acquisition innovation in the merged entity. This is mainly driven by inventors based in the acquirer's country, while innovation in the target's country tends to decline. The asymmetry of effects between acquiring and target firms increases with pre-acquisition differences in knowledge stocks, indicating a relocation of innovative activities towards more efficient usage within multinational firms. Instrumental variable techniques as well as a propensity-score matching approach indicate that the effect of cross-border M&As on innovation is causal. |
| Keywords: | Multinational Enterprises,Mergers and Acquisitions,Innovation |
| JEL: | F23 D22 G34 O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:158&r=cse |
| By: | Egbetokun A.; Oluwatope O.; Adeyeye D.; Sanni M. (UNU-MERIT) |
| Abstract: | Using innovation survey data on a sample of UK manufacturing firms, Laursen and Salter 2006 documented a non-monotonous relationship between external search strategies and firm-level innovative performance. We find partially similar results in a combined sample of Nigerian manufacturing and service firms. A major discrepancy is that external search appears not to matter for radical innovation in our sample. Based on multiple research streams including economics of innovation and development economics, we develop and test new hypotheses on sectoral differences and the role of the economic context. We find that in a developing context, a wider range of innovation obstacles implies broader external search and more intense obstacles require deeper search. We explore the implications of these results for management research and theory. |
| Keywords: | Multiple or Simultaneous Equation Models; Multiple Variables: General; Transactional Relationships; Contracts and Reputation; Networks; Management of Technological Innovation and R&D; |
| JEL: | L14 O32 C30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014073&r=cse |
| By: | Muscio, Alessandro; Nardone, Gianluca; Stasi, Antonio |
| Abstract: | The importance of eco-innovations for industry has been rising exponentially in recent years. However, even if recent trends show that firms are increasingly committed to eco-innovations, there is little knowledge on why and how companies integrate environmental sustainability into new product development. In this paper we offer a comprehensive analysis of the drivers of eco-innovation in the Italian wine industry on the basis of a large survey on Italian wine producers. We analyse the impact of firms’ characteristics and their technological and organizational capabilities on the introduction of eco-innovations. The relevance of the drivers in influencing the probability of introducing eco-innovations is measured with a latent class econometric model. Our evidence shows that business characteristics and firms’ scientific search processes and their general innovative behaviour are key drivers of eco-innovation. Therefore, according to our results, firms’ commitment to eco-innovate does not differ substantially from other types of innovation activities. |
| Keywords: | Wine industry, eco-innovation, environmental innovation, green innovation, innovation drivers, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Industrial Organization, Institutional and Behavioral Economics, Research Methods/ Statistical Methods, L2, L6, O3, Q5, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi13:164752&r=cse |
| By: | Beatrice D'Ippolito (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Marcela Miozzo (MBS - Manchester Business School - University of Manchester); Consoli Davide (INGENIO (CSIC-UPV) - INGENIO) |
| Abstract: | The paper explores two pathways that are crucial for making knowledge economically useful - knowledge systematisation and knowledge reconfiguration - and analyses how their interplay enables the emergence of a new business function or activity. Knowledge systematisation is the abstraction and diffusion of operative principles to the effect of expanding to broader remits practices that had been initially conceived for a narrow purpose. Knowledge reconfiguration involves the conversion and formalisation of these novel practices within existing firm and industry organisation. Using the design activity as a lens, and drawing on primary and secondary interviews and archival data on the home furnishing sectors in Italy, our case study articulates the processes that facilitate the abstraction of general rules from novel practices and the changes that are necessary, both within firm and industry organisation, to foster their diffusion. |
| Keywords: | Knowledge systematisation; knowledge reconfiguration; design; firm organisation; industry organisation; routines; capabilities; home furnishing |
| Date: | 2014–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00962391&r=cse |
| By: | Ugur, Mehmet; Guidi, Francesco; Solomon, Edna; Trushin, Eshref |
| Abstract: | The volume of work on productivity effects of research and development (R&D) investment has expanded significantly following the contributions of Zvi Griliches and others to microeconometric work in late 1970s and early 1980s. This study aims to meta-analyse the research findings based on OECD firm and industry data, with a view to establish where the balance of the evidence lies and what factors may explain the variation in reported evidence. Drawing on 1,262 estimates from 64 primary studies, we report that the average effect of R&D capital on productivity and the average rate of return on R&D investment are both positive, but smaller than the summary measures reported in previous narrative reviews and meta-analysis studies. We also report that a range of moderating factors have significant effects on the variation among productivity and rates-of-return estimates reported in primary studies. Moderating factors with significant effects include: (i) measurement of inputs and output; (ii) model specifications; (iii) estimation methods; (iv) levels of analysis; (v) countries covered; and (vi) publication type among others. |
| Keywords: | Research and Development (R&D), Innovation, Productivity, Firm, Industry, OECD, Meta-Analysis |
| JEL: | C49 C80 D24 O30 O32 O33 |
| Date: | 2014–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59686&r=cse |
| By: | van Gorp, Annemijn; de Vries, Erik |
| Keywords: | Public events,crisis management,event safety & security,technological innovation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse14:101391&r=cse |
| By: | Nilsson, Magnus; Sia-Ljungström, Clarissa |
| Abstract: | The paper investigates the role of innovation intermediaries in sector-specific regional innovation systems. Innovation is viewed as a non-linear, iterative process and open process involving multiple actors from different parts of the innovation system. The paper studies in particular innovation intermediaries that provide support to firms in the regional innovation system through the fulfillment of key innovation system functions. The implication of the fulfillment of innovation system functions by innovation intermediaries in the Scandinavian food sector context is examined through in-depth interviews and analysis of secondary documents. It concludes with a discussion on the potential of enabling innovation intermediaries to play a more strategic role in regional innovation system. |
| Keywords: | Innovation intermediaries, innovation systems, innovation system functions, Agribusiness, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi13:164741&r=cse |
| By: | Chong, Hooi Ying; Chan, Tze-Haw |
| Abstract: | This study assesses the market structure and competitiveness of Malaysian pharmaceutical industry. A panel analysis of 41 pharmaceutical manufacturing firms over 2004-2012 is conducted founded on the modified Structure-Conduct-Performance (SCP) framework. Our study reveals that the Malaysian pharmaceutical industry is highly concentrated (oligopoly) and the major findings are threefold. First, anti-competitive practices subsist among the pharmaceutical firms. Major players may have greater control over the markets and potentially colluded to gain better profits. Second, selling intensity is evident to raise the firms’ business performance, suggesting that advertisement, marketing campaigns, product differentiations and distribution efforts could be effective in building competencies over the rivals. Third, the study has tackled the endogeneity problem of traditional SCP with dual causal effects found between business conduct and business performance. Firms and authorities should consider the interactive mutual influences of structure-conduct-performance when formulating their respective management decisions and regulatory rules. |
| Keywords: | Modified Structure-Conduct-Performance, Pharmaceutical Industry, Competition, Panel Regression, Panel Causality |
| JEL: | D2 I15 L1 |
| Date: | 2014–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59537&r=cse |
| By: | Dostie, Benoit (HEC Montreal) |
| Abstract: | The firm's stock of human capital is an important determinant of its ability to innovate. As such, any increase in this stock through firm-sponsored training might lead to more innovation. We test this hypothesis using detailed data on firms' human capital investments and innovation performance, the Canadian longitudinal linked employer-employee data from 1999-2006. Our results, with workplace fixed-effects and allowing for time-varying productivity shocks, demonstrate that more training leads to more product and process innovation, with on-the-job training playing a role that is as important as classroom training. We then demonstrate that on-the-job training has a positive impact on firm-level productivity through improved process innovation. |
| Keywords: | innovation, firm-sponsored training, productivity, linked employer-employee data |
| JEL: | J24 L22 M53 O32 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8506&r=cse |
| By: | Lorenz Kueng; Mu-Jeung Yang; Bryan Hong |
| Abstract: | What determines firm growth over the life-cycle? Exploiting unique firm panel data on internal organization, balance sheets and innovation, representative of the entire Canadian economy, we study recent theories that examine life-cycle patterns for firm growth. These theories include organizational capital accumulation and management practices, financial frictions, learning about demand, and recent endogenous growth models with incumbent innovation. We emphasize the importance of differentiating between pure age effects of these theories and effects on size conditional on age. Our stylized facts highlight both empirical successes and shortcomings of current theory. First, models of organizational capital and innovation are broadly consistent with firm size correlations conditional on age but have difficulties matching the life-cycle dynamics of firm organization and innovation. Second, among theories we analyze, organizational capital and management practices are the most important determinants to explain intensive margin firm growth over the life-cycle. Third, although less important to explain intensive margin firm growth, financial frictions are an important determinant of firm exit, conditional on firm age. |
| JEL: | D2 D22 D23 D24 D9 D92 E20 E24 E32 F23 G3 G32 M1 M5 O3 O4 O47 O51 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20621&r=cse |
| By: | Ibáñez Zarate, Guiomar |
| Abstract: | This paper analyzes the effects of horizontal mergers on innovation and consumer welfare in a vertically related industry context, in which downstream firms compete for customers with a differentiated final good and can undertake R&D activities to reduce their unit costs. Upstream and downstream horizontal mergers can take place. The results suggest that competition authorities aiming to promote innovation and consumer welfare should treat upstream and downstream mergers differently, since horizontal mergers between upstream firms are detrimental to innovation and consumer welfare. By contrast, policy makers should evaluate the market characteristics under downstream integration. We show that downstream horizontal mergers can be both innovation and consumer welfare enhancing in the short run, when the markets are sufficiently small. Keywords: Horizontal Mergers. Innovation. Vertical Relations. JEL Classification Numbers: L22, L41, O32 |
| Keywords: | Empreses, Direcció general d', Monopolis, Innovacions tecnològiques -- Direcció i administració, 33 - Economia, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/242274&r=cse |
| By: | Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPREMAP - Centre pour la recherche économique et ses applications - Centre pour la recherche économique et ses applications, IUF - Institut Universitaire de France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique); Ivan Ledezma (LEDa - Université Paris-Dauphine, IRD - DIAL - UMR 225); Stéphane Robin (PRISM - Pôle de recherche interdisciplinaire en sciences du management - Université Paris I - Panthéon-Sorbonne : EA4101) |
| Abstract: | Several recent policy and academic contributions consider that liberalising product markets would foster innovation and growth. This paper analyses the innovation-productivity relationship at the industry-level for a sample of OECD manufacturing industries. We pay particular attention to the vertically-induced influence of product market regulation (PMR) of key input sectors of the economy on the innovative process of manufacturing and its consequences on productivity. We test for a differentiated effect of this type of PMR depending on whether countries are technological leaders or laggards in a given industry and for a given time period. Contrary to the most widespread policy claims, the innovation-boosting effects of liberalisation policies at the leading edge are systematically not supported by the data. These findings question the relevance of a research and innovation policy based on liberalisation. |
| Keywords: | Product market regulation; innovation; productivity; growth |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00973947&r=cse |
| By: | Paul O'Sullivan (Economics, National University of Ireland, Maynooth); |
| Abstract: | This paper examines the effect of R&D leadership on Research Joint Venture formation. If firms compete in R&D, there is a first (second)-mover advantage, when spillovers are relatively low (high). RJV profits exceed those of R&D leadership, except for a very narrow range of low unit R&D costs and spillovers. For a leader, preventing follower activity is only profitable if unit R&D costs and spillovers are relatively low. If unit R&D costs are sufficiently low, preventing the follower from becoming active may be welfare dominant but not profit maximizing, possibly justifying a role for government policy to subsidise R&D investment |
| JEL: | D21 L13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:may:mayecw:n251-14.pdf&r=cse |
| By: | Trinh, Long; Sonobe, Tetsushi |
| Abstract: | There has been an increasing interest among economists in the impact of management practices on firm’s productivity. This paper explores how business practices affect firm productivity by using Vietnam’s bi-annual surveys of small firms conducted from 2006 to 2011. We constructed a simple weighted business practice index from 8 indicators. This index is simple but rather suitable for small and medium firms in developing countries. To examine the role of business practices in determining firm performance, production function and determinants of business practice adoption are estimated using the GMM-system method, which allows us to control for the endogeneity of production input, business practices index, and other factors. The results indicate that business practice index has a positive and statistically significant impact on firm productivity, employment and sales growth. As business practice index increases by 1 standard deviation (e.g. by 0.194 points over 1 and 0.173 points), the firm's value added increases by 19.1% to 24.0%. There is no evidence that the education level of the business owners/managers, percentage of employees with college degree on firm productivity. The results suggest that education may have indirect effects on productivity through business practice index. The effect of business practice on firm performance is found to vary across different sub-samples.. Both direct and indirect effects of competition lose their significance when we separately estimate production functions for each group of firms. We also find that for whole sample and for sole proprietorship businesses, the adoption of business practice in last period have a positive and statistically significant effects on the adoption of business practice in this period. However, total factor productivity (estimated from production function without business practice index) in the previous period does not have a strong impact on a firm’s adoption of business practice in this period while previous revenue and value added have a statistically significant impact. |
| Keywords: | business practice, dynamic panel data, productivity growth, small medium enterprises, microenterprise, Vietnam, Industrial Organization, Production Economics, Productivity Analysis, |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea14:169792&r=cse |
| By: | Greek National Council for Research & Technology (2010-2013) |
| Abstract: | SAFE Professor Michalis Haliassos was a member of the National Council for Research and Technology (ESET) established by the Government of Greece for the period 2010-2013. The council, consisting of eleven scientists from a range of disciplines, has now published their communiqué "National Strategic Framework for Research and Innovation 2014-2020". To promote the advancement of research, technology and innovation in Greece, the strategic plan proposed by the authors seeks to identify areas of existing research strength and excellence that can be further advanced to become engines for progress and growth in Greece, as well as flaws inherent to the present system. The authors stress the need to address current constraints to growth, which include the declining education system; the confusion and weaknesses of R&D governance and management; the discontinuities and inefficiencies of resource allocation and investment; the lack of adaptation to clearly-defined national priorities; and the inadequate opportunities and funding for high-quality research and development to flourish. They stress the need for prioritisation and efficient allocation; stability of the policy frame; predictability of planning; provision of opportunity; recognition of excellence; and responsiveness to current and future needs. |
| Keywords: | Greece,growth,innovation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewh:21&r=cse |
| By: | Tobias Hahn (Kedge Business School - Kedge Business School, France); Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | We analyze the suitability of cross-sector partnerships as an effective mechanism for private environmental governance. By focusing on the interaction between firms within cross-sector partnerships, we analyze how competition between firms affects partnership effectiveness. Marrying insights from the private governance literature with institutional theory and the resource-based view, we identify under which conditions firm-level competition for legitimacy and capabilities, respectively, undermines or enhances effectiveness of cross-sector partnerships to address environmental issues. In doing so, our argument develops the various factors that moderate the relationship between competition and effectiveness for different types of partnerships. We contend that the effectiveness of cross-sector partnerships for governing global environmental issues depends considerably on whether competitive forces at the firm level are aligned with the collective benefits of partnerships. We discuss the consequences for designing effective cross-sector partnerships as well as the implications of a firm perspective on private governance. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00961234&r=cse |
| By: | Athanasopoulos, Thanos (Department of Economics, University of Warwick) |
| Abstract: | This paper investigates the relation between firms’R&D incentives and their compatibility decisions regarding durable, imperfectly substitutable network goods in the presence of forward looking consumers. Non drastic product innovation is sequential and both an initially dominant firm and a smaller rival are potential inventors. For sufficiently innovative future products, our first key result is that the dominant firm invests more when there is compatibility and voluntarily decides to supply interoperability information. This happens as the probability that he is the only inventor increases, allowing him to enjoy a higher expected future profit that outweighs the current lost revenue. For economies whose initial market size is considerably large, the rival also demands compatibility but this is no longer true in industries with a relatively smaller number of existing consumers. For less innovative new versions, the dominant firm rejects compatibility and there is a cutoff in network externalities below which he invests more when there is incompatibility. Regarding welfare, we find that a laissez faire Competition Law with respect to the IPR holders is socially preferable. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1054&r=cse |
| By: | Attar, M. Aykut |
| Abstract: | This paper constructs a two-sector unified growth model that explains the timing and the inevitability of an industrial revolution through entrepreneurs' role for the accumulation of useful knowledge. While learning-by-doing in agriculture eventually allows the preindustrial economy to leave its Malthusian trap, an industrial revolution is delayed as entrepreneurs of the manufacturing sector do not attempt invention if not much is known about natural phenomena. On the other hand, these entrepreneurs, as managers, serendipitously identify new useful discoveries in all times, and an industrial revolution inevitably starts at some time. The industrial revolution leads the economy to modern growth, the share of the agricultural sector declines, and the demographic transition is completed with a stabilizing level of population in the very long run. Several factors affect the timing of the industrial revolution in expected directions, but some factors that affect the optimal choice of fertility have ambiguous effects. The analysis almost completely characterizes the equilibrium path from ancient times to the infinite future, and the model economy successfully captures the qualitative aspects of the unified growth experience of England. |
| Keywords: | unified growth theory,useful knowledge,industrial enlightenment,demographic transition,endogenous technological change |
| JEL: | O31 O33 O41 J13 N33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201434&r=cse |
| By: | Adel Ben Youssef (University of Nice Sophia Antipolis, France; GREDEG CNRS); Walid Hadhri (Université de Tunis); Hatem Mhenni (Ecole Supérieure de Commerce de Tunis; Université de la Manouba) |
| Abstract: | The aim of this paper is to explore the relationship between the adoption of Information Technologies (IT) and the adoption of New Organizational Practices (NOP) in the context of an emerging country (Tunisia). Based on face-to-face questionnaire, to a random sample of 175 Tunisian manufactures, and using an ordered logit model, our empirical results show a significant link between IT adoption and NOP. We show that the complementarity is strengthened when the technology evolves. Adoption and usage of latest technologies are pushed by the prior adoption of NOP. |
| Keywords: | ICT adoption, ICT usage, Ordred Logit Model, New Organizational Practices |
| JEL: | L21 O31 O33 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-31&r=cse |
| By: | Nathan, Max (London School of Economics) |
| Abstract: | A growing number of studies find linkages between workforce diversity and business performance, but key aspects of this relationship remain unclear. First, within the firm, the role of 'top team' demography on firm outcomes is surprisingly little understood. Second, urban location may amplify firm-level processes, but almost no studies test these firm-area interactions. I deploy English cross-sectional data to explore these issues, using latent class analysis to tackle firm-level heterogeneity. I find evidence of positive links in some firm classes, both linear and non-linear, and suggestive evidence that ethnic top team diversity is amplified in the London city-region. |
| Keywords: | firm-level analysis, business performance, diversity, ethnicity, gender, cities |
| JEL: | J15 L21 R23 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8462&r=cse |
| By: | Hohler, Julia; Kuhl, Rainer |
| Abstract: | The Agribusiness is in flux: a shrinking number of up- and downstream corporations questions traditional equilibrium concepts. How will the population of firms develop and which consequences will arise for competition? In 1931, Gibrat stated the firm size and a firm’s growth rate to be independent. Testing the validity of Gibrat’s law for the German Agribusiness allows drawing conclusions on future developments of concentration. By investigating 551 manufacturing downstream enterprises, we reject Gibrat’s law and find small firms to grow stronger than bigger firms in relation to their initial size. Consequently, the sector could reach a steady state in concentration. |
| Keywords: | Agribusiness, structural change, empirical growth., Agribusiness, |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi14:187593&r=cse |
| By: | Szabo, G. Gabor; Baranyai, Zsolt; Barta, Istvan |
| Keywords: | Agribusiness, |
| Date: | 2014–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa142:170295&r=cse |
| By: | Charles Baden-Fuller (Cass Business School - Cass Business School); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | The current literature on business models lies mainly in the literature on strategy and competitive advantage and focuses on their role as descriptors of actual phenomenon, often by reference to taxonomic categories. In this essay we explore how business models can be seen as a set of cognitive configurations that can be manipulable in the minds of managers (and academics). By proposing a typology of business models, that emphasises the connecting of traditional value chain descriptors with how customers are identified and satisfied, and how the firm monetizes its value, we explore how business model configurations can extend current work on cognitive categorization and open up new possibilities for organisation research. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00869707&r=cse |
| By: | Kai Du (School of Economics, University of Adelaide) |
| Abstract: | This paper employs two stage data envelopment analysis (DEA) to investigate the efficiency effects of removing trade barriers on banking performance for a sample of Asian developing economies over the period 1997-2006. First, the DEA is employed to estimate the efficiency scores of banks. After that, the estimated DEA scores are analysed by density analysis and regressed on indices of trade barriers (Dinh 2008) that represent how restrictive the national trade policies are in the selected banking industries. The empirical evidence shows that deregulation policies that reduce restrictions on foreign banks have enhanced bank efficiency, while the deregulation of domestic banks has not resulted in significant efficiency gains. |
| Keywords: | Data envelopment analysis, financial deregulation, banking services |
| JEL: | D21 D24 G21 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:adl:wpaper:2014-04&r=cse |
| By: | Hatice Jenkins (Department of Banking and Finance, Eastern Mediterranean University, North Cyprus); Monir Hussain (Department of Banking and Finance, Eastern Mediterranean University, North Cyprus) |
| Abstract: | Providing SMEs with access to external finance has been a major concern for many governments and international organizations for three decades. In recent years the experiences of emerging market countries suggest that a paradigm shift is taking place in SME finance. Particularly in fast-growing emerging market countries, banks are increasingly targeting SMEs as a new line of banking business. This research analyzes how the macroeconomic factors have contributed to the increased commercial bank lending to SMEs in Turkey, a fast-growing emerging market country. Based on an econometric analysis it is found that a high GDP growth rate and increasing competition in the Turkish banking sector have contributed to the growing banking sector credit to SMEs. The findings also reveal that curbing the high inflation rate and reducing government domestic borrowings have significantly helped to encourage bank lending to the SME segment. This research contributes to the literature by providing empirical evidence to much-discussed theoretical arguments on the characteristics of an enabling macroeconomic environment for SME finance. |
| Keywords: | SME lending, macroeconomics, banking sector, emerging markets, access to credit |
| JEL: | G21 G28 O12 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:261&r=cse |
| By: | Cavalcanti Ferreira, Pedro (EPGE/FGV); Monge-Naranjo, Alexander (Federal Reserve Bank of St. Louis); Torres de Mello Pereira, Luciene (EPGE/FGV) |
| Abstract: | This article studies the impact of education and fertility in structural transformation and growth. In the model there are three sectors, agriculture, which uses only low-skill labor, manufacturing, that uses high-skill labor only and services, that uses both. Parents choose optimally the number of children and their skill. Educational policy has two dimensions, it may or may not allow child labor and it subsidizes education expenditures. The model is calibrated to South Korea and Brazil, and is able to reproduce some key stylized facts observed between 1960 and 2005 in these economies, such as the low (high) productivity of services in Brazil (South Korea) which is shown to be a function of human capital and very important in explaining its stagnation (growth) after 1980. We also analyze how different government policies towards education and child labor implemented in these countries affected individuals’ decisions toward education and the growth trajectory of each economy. |
| Keywords: | economic growth; structural transformation; education; fertility |
| JEL: | J13 J24 O40 O41 O47 O57 |
| Date: | 2014–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2014-039&r=cse |
| By: | Kube, Sebastian (University of Bonn); Schaube, Sebastian (University of Bonn); Schildberg-Hörisch, Hannah (University of Bonn); Khachatryan, Elina (University of Kassel) |
| Abstract: | Driven by an ever-growing number of studies that explore the effectiveness of institutional mechanisms meant to mitigate cooperation problems, recent years have seen an increasing interest in the endogenous implementation of these institutions. In this paper, we test within a unified framework how the process of institution formation is affected by three key aspects of natural environments: i) heterogeneity among players in the benefits of cooperation, ii) (a)symmetry in players' institutional obligations, and iii) potential trade-offs between efficiency and equality in payoff allocations. We observe social preferences to be limiting the scope for institution formation. Inequality-averse players frequently object to institutions that fail to address differences in players' benefits from cooperation – even if rejecting the institution causes monetary losses to all players. Relating our findings to previous studies on institution formation, we discuss potential advantages and drawbacks of stipulating unanimous support for implementing institutions that foster cooperation. |
| Keywords: | institution formation, unanimity voting, cooperation problems, heterogeneous agents, inequality aversion |
| JEL: | C90 D02 D62 D63 H41 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8533&r=cse |