New Economics Papers
on Efficiency and Productivity
Issue of 2006‒02‒12
five papers chosen by

  1. Efficiency and Productivity Changes of the Italian Agrifood Cooperatives: a Malmquist Index Analysis By Andrea BONFIGLIO
  2. Performance on Exports: Continuous Productivity Improvements or Capacity Utilization By Joze P. Damijan; Crt Kostevc
  3. Performance related pay and labor productivity By Gielen,Anne C.; Kerkhofs,Marcel J.M.; Ours,Jan C. van
  4. Public sector efficiency: evidence for new EU member states and emerging markets By António Afonso; Ludger Schuknecht; Vito Tanzi
  5. Profitability of foreign and domestic banks in Central and Eastern Europe: does the mode of entry matter? By Olena Havrylchyk; Emilia Jurzyk

  1. By: Andrea BONFIGLIO
    Abstract: The objective of this paper is to analyse efficiency and productivity changes of a sample of Italian agrifood cooperatives in the period 2000-2002. Towards this aim, a three-stage analysis is carried out. Firstly, a Data Envelopment Analysis approach is used to estimate technical and pure efficiency scores. Secondly, DEA-based Malmquist indices are calculated to analyse inter-temporal productivity changes. Thirdly, a Tobit regression analysis is carried out to identify the reasons for the differences existing among the cooperatives in terms of technical efficiency. The main results are as follows. The overall efficiency of the agrifood cooperatives is not particularly high: the technical efficiency and the managerial efficiency are, on average, 35% and 63% of the "relative" optimal ones, respectively. In the period analysed, productivity improves by about 2% due to a positive technological change. The technical efficiency worsens because of deterioration of scale efficiency attenuated by an increase in managerial efficiency. Milk and zootechnic cooperatives show the highest average levels of technical and pure efficiency. Their productivity increased in the period considered, owing to improvements in both managerial and scale efficiency. Wine cooperatives present the lowest average levels of technical and pure efficiency. Moreover, their productivity decreased due to a worsening of managerial capabilities. Fruit and vegetables and oil cooperatives represent middle situations. Finally, technical efficiency seems to be affected positively by the scale, technology, structural elasticity and middle-long term balance whilst is negatively affected by financial exposure.
    Keywords: Malmquist index, Tobit regression analysis, agrifood cooperatives, data envelopment analysis, efficiency
    JEL: C14 C24 O40 Q13
    Date: 2006–02
  2. By: Joze P. Damijan; Crt Kostevc
    Abstract: Following along the lines of a growing literature on the causal link between export- ing and productivity this paper analyzes the existence of flearning-by-exporting using frm-level data. The paper asks whether, in addition to better performing firms self-selecting into exports and multinational production, exporting (multina- tional production) further improves their performance compared with non-exporters. We develop and test a simple model of trade and international production with het- erogeneous frms that generates learning effects through competition in the export markets. The estimations performed on the sample of Slovenian manufacturing enter- prises between 1994 and 2002 indicate that more productive firms tend to self-select into more competitive markets, while there is no conclusive evidence of learning-by- exporting. Although new exporters experienced a surge in productivity in the initial year of exports the effect dissipates as soon as the following year. Confronting the data on factor accumulation with TFP measures indicates that the perceived learning effects may in fact only be a consequence of increased capacity utilization brought forth by the opening of an additional market.
    Keywords: Firm heterogeneity, exports, learning-by-exporting, difference-in-differences
    JEL: D24 F12 F14
    Date: 2005
  3. By: Gielen,Anne C.; Kerkhofs,Marcel J.M.; Ours,Jan C. van (Tilburg University, Center for Economic Research)
    Abstract: This paper uses information from a panel of Dutch firms to investigate the labor productivity effects of performance related pay (PRP). We find that PRP increases labor productivity at the firm level with about 9%.
    Keywords: performance related pay; labour productivity
    JEL: C41 H55 J64 J65
    Date: 2006
  4. By: António Afonso (European Central Bank, Kaiserstrasse 29, Postfach 16 03 19, 60066 Frankfurt am Main, Germany.); Ludger Schuknecht (European Central Bank, Kaiserstrasse 29, Postfach 16 03 19, 60066 Frankfurt am Main, Germany.); Vito Tanzi (Inter-American Development Bank, 1300 New York Avenue, NW Washington, DC 20577, USA.)
    Abstract: In this paper we analyse public sector efficiency in the new member states of the European Union compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement issues, we compute efficiency scores and rankings by applying a range of measurement techniques. The study finds that expenditure efficiency across new EU member states is rather diverse especially as compared to the group of top performing emerging markets in Asia. Econometric analysis shows that higher income, civil service competence and education levels as well as the security of property rights seem to facilitate the prevention of inefficiencies in the public sector.
    Keywords: Interest rate pass-through; euro area countries; panel cointegration
    JEL: E43 G21
    Date: 2006–01
  5. By: Olena Havrylchyk; Emilia Jurzyk
    Abstract: Using data for 265 banks in the Central and Eastern European Countries for the period of 1995-2003, this paper analyses the differences in profitability between domestic and foreign banks. We show that foreign banks, especially greenfield institutions, earn higher profits than domestic banks. However, this effect is acquired, rather than inherited, since there is evidence that foreign banks tend to take over less profitable institutions. Profits of foreign banks in the CEEC also exceed profits of their parent banks, explaining the reasons for their entry. Further, we study benefits and costs of foreign ownership by analyzing determinants of profitability for domestic, takeover, and greenfield banks. Profits of foreign banks are less affected by macroeconomic conditions in their host countries. However, greenfield banks are sensitive to the situation of their parent banks. Only domestic banks enjoy higher profits in more concentrated banking markets, whereas takeover banks suffer from diseconomies of scale due to the fact that they acquired large institutions.
    Keywords: Foreign banks, Bank profits, Multinational banking, Transition economies
    JEL: G15 G21 F36
    Date: 2006

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