New Economics Papers
on Efficiency and Productivity
Issue of 2005‒04‒30
five papers chosen by

  1. Reforms and Productivity Dynamics in Chinese State-Owned Enterprises By Peter McGoldrick; Patrick Paul Walsh
  2. Labour Productivity and Foreign Direct Investment in Irish Manufacturing Industry: A Decomposition Analysis By Frances Ruane; Ali U?ur
  3. Ownership and Export Characteristics of Irish Manufacturing Performance By Frances Ruane; Julie Sutherland
  4. Does Does Individualisation Help Productivity of Transition Agriculture By Marian Rizov;
  5. Net Capital Flows and Productivity: Evidence from U.S. States By Sebnem Kalemli-Ozcan, Ariell Reshef; Bent E. Sørensen,Oved Yosha

  1. By: Peter McGoldrick; Patrick Paul Walsh
    Abstract: Institutional change has taken place incrementally since 1978 for State-Owned Enterprises (SOEs) in the Industrial Sector of China. We will provide evidence for the notion that this is largely due to increased domestic competitive pressures and the opportunities arising from the integration of international markets. In this paper we estimate the effect of deep reform (the right to hire and fire labour, buy and sell capital and operate on international markets) on the productivity dynamics of entreprises. Using a unique balanced panel of681 SOEs for the period 1980 to 1994, we find consistent production function estimatesusing an algorithm put forward in Olley and Pakes (1996), which estimates using an simultaneity bias. Futhermore, we allow selection bias by formulating an entry that exposure to deep reform hav lead to higher productivity realisations while remaining under state ownership.
    Date: 2004–05–01
  2. By: Frances Ruane; Ali U?ur
    Abstract: Overall labour productivity in the Irish manufacturing sector increased by 158 per cent between 1991 and 1999. This growth in labour productivity coincided with strong growth in employment during the same period, in stark contrast to the experience of other European countries. This paper examines the components of this labour productivity growth in the period 1991-1999, using a decomposition analysis based on plant level data. In order to account for the large presence of foreign plants we carry out our analysis separately for foreign and domestic plants, as well as for four ownership subgroups, four sectoral subgroups, and two time sub-periods. Our results show that although the main drivers of average labour productivity growth in all groups arise within plant and from plant entry, there are marked differences in the relative sizes of these effects across the ownership/sector/time-period.
    Date: 2005–01–28
  3. By: Frances Ruane; Julie Sutherland
    Abstract: Recent research has sought to explore whether exporting enterprises have superior performance characteristics relative to non-exporters, and whether such superiority is associated with performance pre- and/or post- exporting. This paper extends existing research to take account of enterprise ownership and export market destination. It explores these issues using micro data on Irish manufacturing between 1991 and 1998, a time period during which Ireland experienced rapid export-driven growth. The study provides further evidence of the superior characteristics of exporters relative to nonexporters and supports the self-selection hypothesis that superior enterprises are more likely to export. However, no evidence is found for learning-by-exporting effects in enterprises. We find export destination matters: the performance characteristics of enterprises that export globally differ from those that export locally.
    Keywords: Trade, Export Premium, Export Destination, Foreign Ownership.
    JEL: F14
    Date: 2005–02–01
  4. By: Marian Rizov;
    Abstract: There are large differences across transition countries with respect to agricultural-sector performance and corresponding scope of farm restructuring and shift to individual farming. In this paper we analyze the impact of individualization on productivity growth within an augmented neo-classical growth model framework. This approach allows us to circumvent criticisms on the grounds of lack of theoretical and objective criteria for inclusion of explanatory variables. Furthermore, in the empirical analysis using a panel data covering 15 transition countries over the period 1990-2001 and applying a GMM-IV estimator we are able to control for the impact of various factors and the potential endogeneity of variables. Our estimation results are robust and support the view that the shift to individual farming, as well as the overall economic reforms, have positively contributed to the productivity growth in agriculture during the first decade of transition. Classification-
    Keywords: agriculture, individual farming, productivity, economic transition, international integration
    Date: 2005–04–20
  5. By: Sebnem Kalemli-Ozcan, Ariell Reshef; Bent E. Sørensen,Oved Yosha
    Abstract: We study net capital flows between U.S. states. We present a simple neoclassical model in which total factor productivity (TFP) varies across states and over time and where capital freely moves across state borders. In this framework capital flows to states that experience a relative increase in TFP thus creating net cross-state capital ownership positions. Net ownership positions converge to zero over time in the absence of further TFP movements. While TFP can not be directly observed, we can identify states with high TFP growth as states with high output growth. By comparing the level of personal income to output, we construct indicators of net capital flows into a state. We then examine empirically if the level of net capital flows between states following relative movements in TFP corresponds to the predictions of the model and whether net ownership positions tend to converge to zero. Our empirical results imply large flows of capital between states; for example, we find that a state with annual per capita output growth 1 percent higher than the average state over 10 years would attract capital in the amount of $9,900 per capita over those 10 years. These magnitudes are in close agreement with the predictions of the model. We conclude that frictions associated with borders are likely to be the main explanation for “low” international capital flows.
    Keywords: regional net capital flows, ownership, dividend income, historical income,
    Date: 2005–04–20

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