New Economics Papers
on Efficiency and Productivity
Issue of 2006‒07‒15
seven papers chosen by

  1. Growth Accounting and Productivity Analysis by 33 Industrial Sectors in Korea (1984-2002) By Hak K. Pyo; Geun-Hee Rhee; Bongchan Ha
  2. Reforms, Entry and Productivity: Some Evidence from the Indian Manufacturing Sector By Sumon Kumar Bhaumik; Shubhashis Gangopadhyay; Shagun Krishnan
  3. Home versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers By Priit Vahter; Jaan Masso;
  4. Chinese Manufacturing Performance from Multilateral Perspective: 1980-2004 By Ruoen Ren; Haitao Zheng
  5. Contributions of Zvi Griliches By James J. Heckman
  6. Evaluating the Causal Effect of Foreign Acquisition on Domestic Performances: The Case of Slovenian Manufacturing Firms By Sergio Salis; ;
  7. Corporate Governance, Managers’ Independence, Exporting And Performance Of Firms In Transition Economies By Igor Filatotchev; Natalia Isachenkova; Tomasz Mickiewicz

  1. By: Hak K. Pyo; Geun-Hee Rhee; Bongchan Ha
    Date: 2006–06
  2. By: Sumon Kumar Bhaumik; Shubhashis Gangopadhyay; Shagun Krishnan
    Abstract: It is now stylized that, while the impact of ownership on firm productivity is unclear, product market competition can be expected to have a positive impact on productivity, thereby making entry (or contestability of markets) desirable. Traditional research in the context of entry has explored the strategic reactions of incumbent firms when threatened by the possibility of entry. However, following De Soto (1989), there has been increasing emphasis on regulatory and institutional factors governing entry rates, especially in the context of developing countries. Using 3-digit industry level data from India, for the 1984-97 period, we examine the phenomenon of entry in the Indian context. Our empirical results suggest that during the 1980s industry level factors largely explained variations in entry rates, but that, following the economic federalism brought about by the post-1991 reforms, variations entry rates during the 1990s were explained largely by state level institutional and legacy factors. We also find evidence to suggest that, in India, entry rates were positively associated with growth in total factor productivity.
    Keywords: Entry, Productivity, Institutions, Regulations, India, Reforms
    JEL: L11 L52 L64 L67 O14 O17
    Date: 2006–03–01
  3. By: Priit Vahter; Jaan Masso;
    Abstract: This paper investigates the effects of both inward and outward foreign direct investment (FDI) on productivity in manufacturing and services sectors. The main novelty is the analysis of the spillover effects of outward FDI that may occur outside the investing firms on the rest of the home country. Our results based on panel data from Estonia do not indicate much spillover effects of outward or inward FDI that are robust to different specifications of the estimated model. There is substantial heterogeneity in the findings on spillovers across different specifications of the model or sector studied.
    Keywords: foreign direct investment, spillovers, home country effects, productivity
    JEL: F10 F21 F23
    Date: 2006–03–01
  4. By: Ruoen Ren; Haitao Zheng
    Abstract: Based on our research work of 1998, we discuss Chinese manufacturing performance from multilateral perspective in 1980-2004 through performing the comparison of labour productivity between China and its trade partners so as to better understand the problems of RMB exchange rate. We talk about Chinese manufacturing competitiveness through the multilateral comparison of PPPs, relative price levels, labor productivity and ULCs, with the PPPs being standardized according to the base year 1997. All of the results are compared with those in the year 1987. The following findings are presented: in Chinese manufacturing, the various PPPs in the base year 1997 are approximately 3.7 yuan/international $. After the middle 1980s, the relative price turns the lowest in all the five investigation countries. Furthermore, it is still trending downward. ULC is declining albeit the fluctuations. In the 1980s, there is no "catch-up" rapid growth in labor productivity. However, after 1992, it has shown a distinct "catch-up", though with the low level.
    Keywords: Multilateral comparison, Manufacturing, International competitiveness
    JEL: O47 O57 F14
    Date: 2006–06
  5. By: James J. Heckman (University of Chicago and IZA Bonn)
    Abstract: In this article, I summarize Griliches’ contributions to economics and to applied econometrics.
    Keywords: social rate of return, growth, productivity improvement
    JEL: B31 D24 O33
    Date: 2006–06
  6. By: Sergio Salis; ;
    Abstract: This paper investigates the impact of foreign acquisition in 1997 on the performances of a sample of Slovenian manufacturing firms. It uses the propensity score-matching estimation technique combined with the difference-in-differences approach to control for the potential bias arising from the non-random selection of acquired firms (endogeneity of foreign ownership). After confirming that foreign investors acquire the most productive firms in Slovenia, it shows that the productivity of such firms subsequently increases as a result of foreign takeover. This finding is consistent with the hypothesis that foreign firms transfer their technology to Slovenian affiliates.
    Keywords: Foreign acquisition, productivity, propensity score, matching estimator
    JEL: F23 D21 C14
    Date: 2006–01–01
  7. By: Igor Filatotchev; Natalia Isachenkova; Tomasz Mickiewicz
    Abstract: Using data on 157 large companies in Poland and Hungary this paper employs a Bayesian structural equation modeling to examine interrelationships between corporate governance, managers’ independence from owners in terms of strategic decision-making, exporting and performance. It is found that managers’ independence is positively associated with firms’ financial performance and exporting. In turn, the extent of managers’ independence is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm’s board. We interpret these results as an indication that (i) concentrated owners tend to constrain managerial autonomy at the cost of the firm’s internationalization and performance, (ii) board participation of foreign stakeholders, on the other hand, enhances the firm’s export orientation and performance by encouraging executives’ decision-making autonomy.
    Keywords: corporate governance, strategic independence, exporting, performance
    JEL: G32 G34 L21 L22 L25 P31
    Date: 2005–11–01

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