New Economics Papers
on Efficiency and Productivity
Issue of 2009‒08‒30
six papers chosen by

  1. Economic reform and Productivity Growth in Indian Paper and Paper Products Industry: A Nonparametric Analysis By Chirayil, Anish
  2. Do Foreign Mergers & Acquisitions Boost Firm Productivity? By Schiffbauer, Marc; Siedschlag, Iulia; Ruane, Frances
  3. Performance and Congestion Analysis of the Portuguese Hospital Services By Simões, Pedro; Cunha Marques, Rui
  4. Trade-revealed TFP By Finicelli, Andrea; Pagano, Patrizio; Sbracia, Massimo
  5. Spatial competition for passengers and its influence on efficiency of European airports By Pavlyuk, Dmitry
  6. A spatial multilevel analysis of Italian SMEs Productivity By Giorgio Fazio; Davide Piacentino

  1. By: Chirayil, Anish
    Abstract: This paper applied the Malmquist Productivity Index in order to estimate total factor productivity growth and its components (efficiency change and technological progress) in Indian paper and paper products industry during pre and post-reform period. The obtained estimates of TFP change at the aggregate and sectoral level, indicates that the net impact of economic reforms on the productivity growth of paper and paper products industry was negative. It was evident in the study that the negative TFP change was decreased (from -8.6% to -5.2%) in the post-reform period in paper and paper products industry at the aggregate level. It was found in this study that the technical efficiency change and the technical change was the deteriorating factor for productivity change in Indian paper and paper products industry. Among similar trends were observed at the sub-sectoral level also. Further, the results of this study suggest that specific policies should be implemented in order to improve efficiency as well as technical progress, thus ultimately facilitating long-run productivity growth.
    Keywords: Indian Paper Industry; Economic Reforms; Productivity; Malmquist Index
    JEL: O25 D24 L60
    Date: 2008–12
  2. By: Schiffbauer, Marc (ESRI); Siedschlag, Iulia (ESRI); Ruane, Frances (ESRI)
    Abstract: This paper examines the causal relationship between foreign mergers and acquisitions and firm productivity in the UK over the period 1999-2007. Our results raise questions about the existence of aggregate effects of foreign ownership on TFP in the longer-run. However, we find significant heterogeneity in the TFP effects of foreign M&A at the industry level. Overall, we uncover a systematic pattern of post-acquisition TFP effects that is consistent with the most recent theoretical models of firm heterogeneity and cross-border mergers and acquisitions as mode of foreign entry. Furthermore, we find positive aggregate effects on labor productivity due to capital deepening but not due to changes in TFP.
    Keywords: Cross-border mergers and acquisitions; Productivity; Firm heterogeneity
    Date: 2009
  3. By: Simões, Pedro; Cunha Marques, Rui
    Abstract: The health care services have been characterised by a growing demand by the citizens leading to the need of more and more resources. Population aging, new pathologies and drugs as well as new treatments are some of the major factors for this. However, in hospitals, for example, consumption of a large number of inputs frequently has not corresponded to the production of the same or more proportion of outputs. Sometimes, the outputs even decline with the increase of inputs due to the influence of the congestion effect on efficiency. The heavy burden of the health sector on the state budget brings about the interest of research over its efficiency. This paper aims to assess the performance of the Portuguese hospitals and particularly the contribution of the congestion effect. We use the non-parametric technique of data envelopment analysis (DEA) for this purpose and a double-bootstrap procedure to take into account the influence of operational environment on efficiency. Afterwards, by comparing three different approaches we determine the importance of congestion in efficiency measurement and discuss its computation methodologically. The results suggest significant levels of inefficiency in 68 major Portuguese hospitals for the year 2005 and more than half of them were found to be congested.
    Keywords: Hospitals; congestion; efficiency; DEA; Portugal
    JEL: I11 C14 I1 C1
    Date: 2009–08–24
  4. By: Finicelli, Andrea; Pagano, Patrizio; Sbracia, Massimo
    Abstract: We introduce a novel methodology to measure the relative TFP of the tradeable sector across countries, based on the relationship between trade and TFP in the model of Eaton and Kortum (2002). The logic of our approach is to measure TFP not from its "primitive" (the production function) but from its observed implications. In particular, we estimate TFPs as the productivities that best fit data on trade, production, and wages. Applying this methodology to a sample of 19 OECD countries, we estimate the TFP of each country's manufacturing sector from 1985 to 2002. Our measures are easy to compute and, with respect to the standard development-accounting approach, are no longer mere residuals. Moreover, they do not yield common "anomalies", such as the higher TFP of Italy relative to the US.
    Keywords: Multi-factor productivity; TFP measurement; Eaton-Kortum model
    JEL: F1 D24 O4
    Date: 2009–08
  5. By: Pavlyuk, Dmitry
    Abstract: This study deals with estimation of European airports' efficiency values and their interrelation with a level of competition pressure for passengers among airports. In this paper we present a new adaptive definition of airport's catchment area. Using this definition we develop an indicator of a level of competition pressure, based on overlapping of airport's potential catchment areas. We apply a stochastic frontier model to estimate efficiencies of airports. The method includes the construction of a production frontier for a sample of airports and estimation of individual airports' efficiency values as distances from this frontier. We use a classic production approach to airport activities, where an airport enterprise uses labour resources (a number of employees) and infrastructure (a number of runways, gates, check-ins and parking spaces) for transportation of passengers. Also we use a re-sampling jack-knife technique to test the reliability of airports' efficiencies estimates. We investigate a relationship between a level of competition pressure and airports' operation efficiencies in case of imperfect spatial competition for passengers.
    Keywords: stochastic frontier; efficiency; airport; spatial competition
    JEL: L93 C51
    Date: 2009–08–14
  6. By: Giorgio Fazio; Davide Piacentino
    Abstract: In this paper, we adapt multilevel analysis methods to investigate the spatial variability of SMEs productivity across the Italian territory, and account for differences in the socio-economic context. Our results suggest that to properly capture the variability of the data, it is important to allow for both spatial mean and slope effects. Social decay has the expected negative impact. However, while this effect is larger on firms with smaller capital intensity, firms with higher capital intensity seem to be less affected by geography. Greater territorial heterogeneity emerges among those firms with lower capital to labour ratios.
    Keywords: Firm heterogeneity, Spatial variability, Socio-economic Context, Multilevel Analysis
    JEL: C31 R11 R12 R30
    Date: 2009–06

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