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on Efficiency and Productivity |
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Issue of 2006‒12‒16
seven papers chosen by |
| By: | Rachel Griffith; Elena Huergo; Jacques Mairesse; Bettina Peters |
| Abstract: | This paper compares the role innovation plays in productivity across the four European countries France, Germany, Spain and the UK using firm-level data from the internationally harmonized Community Innovation Surveys (CIS3). Despite a considerable number of national firm-level studies analysing this relationship, cross-country comparisons using micro data are still rare. We apply a structural model that describes the link between R&D expenditure, innovation output and productivity (CDM model). Our econometric results suggest that overall the systems driving innovation and productivity are remarkably similar across these four countries, although we also find interesting differences, particularly in the variation in productivity that is associated with more or less innovative activities. |
| JEL: | L1 L60 O31 O33 O47 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12722&r=eff |
| By: | Zheng, Jinghai (Department of Economics, School of Business, Economics and Law, Göteborg University); Bigsten, Arne (Department of Economics, School of Business, Economics and Law, Göteborg University); Hu, Angang (Center for China Studies, School of Public Policy and Management) |
| Abstract: | China’s unorthodox approach to economic transition has resulted in sustained high growth. However, in recent years Chinese economists have increasingly referred to the growth pattern as “extensive”, generated mainly through the expansion of inputs. Our investigation of the Chinese economy during the reform period finds that reform measures often resulted in one-time level effects on TFP. China now needs to adjust its reform program towards sustained increases in productivity. Market and ownership reforms, and open door policies have improved the situation under which Chinese firms operate, but further institutional reforms are required to consolidate China’s move to a modern market economy. <p> |
| Keywords: | Growth; Productivity; China |
| JEL: | D24 O47 O53 |
| Date: | 2006–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0236&r=eff |
| By: | Chia-Lin CHANG; Stéphane ROBIN |
| Abstract: | This paper examines the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry. Using a panel of 27,754 firms observed from 1992 to 1995, we estimate Translog production functions in twenty 2-digit industries. We implement four estimations procedures: fixed-effect regression, random-effect GLS, Hausman-Taylor estimator, and Stochastic Frontier Estimation. Our most reliable estimates, obtained with fixed effect and Hausman-Taylor models, show that knowledge inputs have a significant impact on firm sales in a small number of industries, and suggest that R&D and technology imports are more likely to be complements rather than substitutes. |
| Keywords: | Manufacturing Industries; Newly Industrialized Countries; Technology Imports. |
| JEL: | L25 L60 O33 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2006-33&r=eff |
| By: | Michel Fouquin; Laurence Nayman; Laurent Wagner |
| Abstract: | This paper investigates the determinants of intra-firm trade of multinational firms located in France, using data on French companies. Results on the vertical pattern of production networks differ according to the affiliates’ location. Lower wage and transportation costs in the developing countries increase, as expected, the vertical segmentation of production. In the developed countries, lower trade and unit wage costs, and hence, a strong and positive labour productivity matter a lot in explaining French MNCs’ preferences. Among the other variables of interest, partnership and market potential have been given special attention. The results substantiate a mix of vertical and horizontal FDI, mainly when we separate out capital intensive from labour intensive intermediate products. |
| Keywords: | Multinational firms; intra-firm trade; intermediate products; vertical production networks; horizontal FDI; globalization; segmentation; productivity; international comparison; factor costs |
| JEL: | F23 F10 L10 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2006-18&r=eff |
| By: | Kaoru Hosono; Koji Sakai; Kotaro Tsuru |
| Abstract: | We investigate the motives and consequences of the consolidation of cooperative banks (Shinkin) in Japan during the period 1984-2002. Our major findings are as follows. First, less profitable and less cost efficient banks are more likely to be an acquirer and a target, though even less profitable and less cost efficient banks are more likely to be a target rather than an acquirer. In addition, a larger bank is more likely to be an acquirer and smaller one a target. These results are consistent with the regulators' motive for stabilizing the local banking system.¡¡Second, acquiring banks improved cost efficiency after the consolidation. M&As also raised the loan interest rate and improved profitability and X-efficiency particularly since the latter half of the 1990s. Nonetheless, the improvement of ROA after the merger was not sufficient to fill in the initial gap of the capital ratio between merging banks and peers, resulting in the deterioration of the capital ratio of consolidated banks relative to peers. M&As did not contribute to sufficiently stabilize the local banking system despite the regulators' motive. Third, the consolidation tended to improve the profitability of merging banks when the difference in profitability and healthiness between acquiring banks and target banks were large, which is consistent with the relative efficiency hypothesis (e.g., Akhavein, Berger, and Humphrey, 1997).Length: 48 pages |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:06034&r=eff |
| By: | Nanak Kakwani; Hyun H. Son |
| Abstract: | This paper suggests how the targeting efficiency of government programmes may be better assessed. Using the “pro-poor policy” (PPP) index developed by the authors, the study investigates not only the pro-poorness of government programmes geared to the poorest segment of the population but also basic service delivery in education, health and infrastructure. The paper also shows that the targeting efficiency for a particular socio-economic group should be judged on the basis of a ‘total-group PPP index’, to capture the impact of operating a programme for the group. Using micro-unit data from household surveys, the paper presents a comparative analysis for Thailand, the Russian Federation, Viet Nam and 15 African countries. |
| Keywords: | Targeting, universalism, pro-poor, poverty |
| JEL: | C15 I32 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:13&r=eff |
| By: | Davide Castellani (University of Urbino,Italy.); Ilaria Mariotti (DIG-Polytechnic University of Milano, Italy.); Lucia Piscitello (DIG-Polytechnic University of Milano, Italy.) |
| Abstract: | The present paper investigates the effect of outward investments by Italian manufacturing firms on the domestic employment level and on its skill composition, as measured by the increase in the aggregate share of skilled workers (managers and clerks) in total employment. In doing so, the paper extends the existing empirical literature on the Italian case that has so far provided evidence on the changes in the employment intensity but not on the composition of the domestic employment. We carry out an analysis at the firm level based on the the behaviour of 108 Italian firms, which became multinational for the first time in 1998-2003, investing in either developed countries, CEECs or other developing economies, compared with the behaviour of a counterfactual group of firms constituted by 2,500 national firms that never invested abroad in the considered period. The econometric analysis supports that the internationalisation of activities by manufacturing firms does not reduce their domestic employment, independently of the destination of the investment, and that it may change the division of labour within the firm, thus leading to a higher share of skilled labour intensive activities, especially as a result of investments in CEECs. |
| Keywords: | Foreign direct investment, Employment, Skill-upgrading. |
| JEL: | F2 J21 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp185&r=eff |