nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2011‒03‒26
thirteen papers chosen by
Angelo Zago
University of Verona

  1. Productivity Growth in Food Crop Production in Imo State, Nigeria By Onyenweaku, C.E; Nwachukwu, Ifeanyi N.; Opara, T.C.
  2. Plant-level Determinants of Total Factor Productivity in Great Britain, 1997-2006 By Richard Harris; John Moffat
  3. Analyzing the link between real exchange rate and productivity By Diallo, Ibrahima Amadou
  4. Bank efficiency in transition economies: recent evidence from South-Eastern Europe By Fang, Yiwei; Hasan, Iftekhar; Marton, Katherin
  5. Firm Dynamics and Productivity Growth in Indian Manufacturing: Evidence from Plant Level Panel Dataset By Aradhna Aggarwal; Takahiro Sato
  6. Temporary job protection and productivity growth in EU economies By Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea
  7. Productivity distribution, firm heterogeneity, and agglomeration: Evidence from firm-level data By Toshihiro Okubo; Eiichi Tomiura
  8. The impacts of health care reforms on the efficiency of the Turkish public hospitals: Provincial markets By Sulku, Seher Nur
  9. Explaining African Growth Performance: A Production-Frontier Approach By Romain Houssa; Oleg Badunenko; Daniel J. Henderson
  10. Evaluating the Effects of Planning Policies on the Retail Sector: Or do Town Centre First Policies Deliver the Goods? By Paul Cheshire; Christian A. L. Hilber; Ioannis Kaplanis
  11. Regional Patterns of Intangible Capital, Agglomeration Effects and Localised Spillovers in Germany By Kurt Geppert; Anne Neumann
  12. Localized knowledge spillovers and patent citations: A distance-based approach By Yasusada Murata; Ryo Nakajima; Ryosuke Okamoto; Ryuichi Tamura
  13. Roles of Outside Directors in Cooperative Financial Institutions By Yamori, Nobuyoshi; Harimaya, Kozo; Tomimura, Kei

  1. By: Onyenweaku, C.E; Nwachukwu, Ifeanyi N.; Opara, T.C.
    Abstract: The study examined the productivity growth in food crop production in Imo State with emphasis on the decomposition of total factor productivity into technical progress, changes in technical and allocative efficiency and scale effects. A panel data set comprising 210 observations drawn over 2001 – 2007 periods was used in the study. Using the translog stochastic frontier production function, the decomposition components were computed applying the appropriate formulae. The results showed that total factor productivity decreased through time while technical change was negative, implying downward shift of the production frontier. As a major component, technical change was the main constraint to the achievement of high levels of TFP during the study period. The scale effect, which is generally bigger than technical change component shows that the sampled farms on the average have not taken advantage of scale economies. The result further revealed that the allocative efficiency had an average magnitude closer to the scale effect and points towards decreases in the efficiency with which production factors are allocated. This is an indication of a decline in technical efficiency. On the basis of the results, the study suggested reforms of the ADPs with a bid to enhancing their capacity in extending novel technologies and innovations to farmers.
    Keywords: Productivity decomposition; scale effect; allocative; efficiency
    JEL: C13 C42 D01 B41
    Date: 2010–09–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29538&r=eff
  2. By: Richard Harris; John Moffat
    Abstract: This paper examines the determinants of total factor productivity (TFP) using a GB plant-level dataset. Using a systems-GMM approach, it considers the role of the following four plant characteristics: internal and external knowledge; foreign ownership, multi-plant economies of scale and competition; and spatial spillovers and 'place' effects. The sample is disaggregated into manufacturing and services and by technology to show any differences across sectors.
    Keywords: productivity, plant level TFP, spatial ‘place’ effects, foreign-owned plants
    JEL: C23 D24 R12
    Date: 2011–01
    URL: http://d.repec.org/n?u=RePEc:cep:sercdp:0064&r=eff
  3. By: Diallo, Ibrahima Amadou
    Abstract: This paper study, in panel data, the relationship between real exchange rate and total factor productivity on a sample of 68 developed and developing countries for the period 1960-1999. The theoretical part presents the arguments advanced to explain the effects of real exchange rate on productivity, technical efficiency and technological progress. The productivity is obtained as a Solow residual of an estimation of a Cobb-Douglas stochastic production function frontier. The results show that an exchange rate appreciation causes an increase of total factor productivity. The results also illustrates that this effect of real exchange rate on productivity is non linear: threshold effect. Below the threshold exchange rate reacts negatively on productivity while above the threshold it acts positively. Robustness analysis demonstrates that these results hold both in subsamples of developed and developing countries.
    Keywords: O11; O16; O47
    JEL: O11 O47 O16
    Date: 2010–11–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29548&r=eff
  4. By: Fang, Yiwei (Lally School of Management and Technology, New York); Hasan, Iftekhar (Lally School of Management and Technology, New York, and Bank of Finland Research); Marton, Katherin (Fordham University, New York)
    Abstract: This study examines the cost and profit efficiency of banking sectors in six transition countries of South-Eastern Europe over the period 1998–2008. Using the stochastic frontier approach, our analysis reveals that the average cost efficiency of SEE banks is 68.59% and the average profit efficiency is 53.87%. The second-stage regressions on the determinants of bank efficiency further show that foreign banks are associated with higher profit efficiency but moderately lower cost efficiency. Government banks are associated with lower profit efficiency. The efficiency gap between foreign banks, domestic private banks and government banks, however, has narrowed over time. We also find that the degree of individual banks’ competitiveness has a positive association with both cost and profit efficiency. Finally, institutional development, proxied by progress in banking reforms, privatization and corporate governance restructuring, also has a positive impact on bank efficiency.
    Keywords: transition banking; bank efficiency; foreign ownership; institutional development
    JEL: G21 P30 P34 P52
    Date: 2011–03–14
    URL: http://d.repec.org/n?u=RePEc:hhs:bofrdp:2011_005&r=eff
  5. By: Aradhna Aggarwal (Research Institute for Economics and Business Administration, Kobe University and the Department of Business Economics, University of Delhi, New Delhi 110021 INDIA); Takahiro Sato (Research Institute for Economics and Business Administration, Kobe University)
    Abstract: This paper examines the effects of firms‟ dynamics on industry level productivity growth in India during the period 2000-01 to 2005-06 using plant level panel data of 22 manufacturing industries. The empirical analysis is based on decomposition techniques of aggregate productivity growth. The analysis is confined to large sector plants. Results suggest that the contribution of entry of new plants to aggregate productivity growth is positive in most industries. While newly established plants have rather small entry effect, small plants that grow and enter the large size class have substantial effects on industry level productivity growth. In low tech matured industries entry effects are supported by the productivity growth of the continuing firms. In medium tech industries entry effects are modest; productivity growth of the continuing firms is supported by reallocation effects. In high tech industries all the three effects seem to reinforce productivity growth.
    JEL: O14 O33 O53
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:kob:dpaper:dp2011-07&r=eff
  6. By: Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea
    Abstract: The present study examines cross-national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the role of employment protection of temporary contracts on TFP by estimating their effects with a “difference-in-difference” approach. Results show that deregulation of temporary contracts negatively influences the growth rates of TFP in European economies and that, within sectoral analysis, the role of this liberalization is greater in industries where firms are more used to opening short-term positions. By contrast, in our observation period, restrictions on regular jobs do not cause significant effects on TFP, whereas limited regulation of product markets and higher R&D expenses positively affect efficiency growth.
    Keywords: productivity; labor regulation
    JEL: O47 O43 J58 O40
    Date: 2011–03–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29698&r=eff
  7. By: Toshihiro Okubo (Research Institute for Economics and Business Administration, Kobe University); Eiichi Tomiura (Department of Economics, Yokohama National University)
    Abstract: This paper empirically examines how productivity distributions of firms vary across regions based on Japan's manufacturing census data. We find that firm productivity is distributed with wide dispersions, especially in core regions. Our firm-level estimates demonstrate that the productivity distribution of firms tends to be noticeably left-skewed, deviating from the normal distribution, especially in regions with weak market potential but also in agglomerated or urbanized regions. These findings suggest that agglomeration economies are likely to accommodate heterogeneous firms that co-exist in the same region.
    Keywords: agglomeration; productivity; gamma distribution; heterogeneity; firm-level data
    JEL: L11 R12
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:kob:dpaper:dp2011-06&r=eff
  8. By: Sulku, Seher Nur
    Abstract: Turkey has implemented major health care reforms to improve the efficiency of the health care system since 2003. The objective of this study is to investigate the impact of these reforms, especially the performance-based payment system (P4P), on the efficiency of public hospitals. We employ the Data Envelopment Approach and the Malmquist index to comparatively examine before and after the reform years, 2001 and 2006 respectively. Our analyses compare the performances of public hospitals served in provincial markets. Inputs of number of beds, number of primary care physician, and number of specialists, and how they are used to produce outputs of inpatient discharges, outpatient visits, surgical operations are investigated. Indeed, as the quality indicators dead rate, hospital bed occupation rate and average length of stay are considered. We found that the P4P was successful in boosting productivity due to advancements in technology and technical efficiency. It is seen that the average technical efficiency gains took place because of the significantly improved scale efficiencies, but the average pure technical efficiency did not improve. The lower pure technical efficiencies compared to scale efficiencies affirms the lack adaptation of the hospital management to the renewed system. Additionally, our analysis indicates that in the socio-economically disadvantaged provinces productivity gains have not been achieved. Lastly, it is seen that the hospital quality indicators have not improved in the short run. In the international literature, P4P has been examined extensively for the developed countries. However there are a limited number of studies on developing countries. As it has been noted in the OECD health system review of Turkey: “Turkey is closing the performance gap with other OECD countries and, on a number of measures including overall costs, performs well relative to other comparable upper middle-income countries. Indeed, there may be much that other countries can learn from the recent health reforms in Turkey, especially in the use of performance-related pay to raise staff productivity”. Thus, our study would contribute to the existing literature with a comprehensive analysis of the health system efficiency in Turkey.
    Keywords: Turkey; Healthcare reform; Performance based supplementary payment system; Hospital efficiency
    JEL: I11 I12 I18 C33
    Date: 2011–03–14
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29598&r=eff
  9. By: Romain Houssa; Oleg Badunenko; Daniel J. Henderson (Center for Research in the Economics of Development, University of Namur)
    Abstract: This paper employs a production frontier approach that allows distinguishing technologic progress from efficiency development. Data on 35 African countries in 1970-2007 show that efficiency losses have constrained growth in Africa while technology progress has played a marginal growth enhancing role in the region. Moreover, physical and human capital accumulation are the main factors that drive productivity growth at the country level. Examining the outcomes of successful countries suggests that good governance, institutional quality and good policies are key factors for improving economic development in Africa. These factors are even more required in Sub-Saharan Africa given the natural constraints of geography in the region.
    Date: 2010–11
    URL: http://d.repec.org/n?u=RePEc:nam:wpaper:1013&r=eff
  10. By: Paul Cheshire; Christian A. L. Hilber; Ioannis Kaplanis
    Abstract: Few studies conceive of land as a productive factor but British land use policies may lower total factor productivity (TFP) in the retailing industry by (i) restricting the total availability of land for retail, thereby increasing space costs (ii) directly limiting store size and (iii) concentrating retail development on specific central locations. We use unique store-specific data to estimate the impact of space on retail productivity and the specific effects of planning restrictiveness and micromanagement of store locations. We use the quasi natural experiment generated by the variation in planning policies between England, Wales, Scotland and Northern Ireland to isolate the impact of town centre first policies. We find that TFP rises with store size and that planning policy directly reduces productivity both by reducing store sizes and forcing retail onto less productive sites. Our results, while they strictly only apply to the supermarket group whose data we analyse, are likely to be representative of supermarkets in general and suggest that since the late 1980s planning policies have imposed a loss of TFP of some 25%.
    Keywords: Land use regulation, regulatory costs, firm productivity, retail
    JEL: D2 L51 L81 R32
    Date: 2011–01
    URL: http://d.repec.org/n?u=RePEc:cep:sercdp:0066&r=eff
  11. By: Kurt Geppert; Anne Neumann
    Abstract: We use a large micro-dataset to assess the importance of intangible capital - organisation, R&D and ICT capital - for the economic performance of establishments and regions in Germany. In 2003 self-produced intangible capital accounted for more than one fifth of the total capital stock of estab-lishments. More than half of the intangible capital is R&D capital. This high proportion is mainly due to a relatively strong and research-intensive manufacturing sector in Germany. At the regional level, we find descriptive evidence for a positive relationship between intangible capital and the economic performance of regions. This is true both for the level of economic activities and for growth. The results of cross-sectional regressions for the years from 1999 to 2003 indicate that dou-bling the intangible capital intensity of establishments increases the average wage levels by one percent. Regarding the regional economic environment of establishments, we find that the substan-tial net advantages of agglomeration have more to do with broad knowledge and diversity than with regional clustering and specialisation. Separate regressions for the wage levels of non-intangible workers show very similar results. These workers can share the rents of the activities of intangible workers. Thus, intangible capital generates positive externalities not only at the regional level, but also at the level of establishments.
    Keywords: Firm productivity, intangible capital, agglomeration, local spillovers
    JEL: J24 M40 O33 R30
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1112&r=eff
  12. By: Yasusada Murata (Advanced Research Institute for the Sciences and Humanities, Nihon University); Ryo Nakajima (Department of Economics, Yokohama National University); Ryosuke Okamoto (National Graduate Institute for Policy Studies); Ryuichi Tamura (Graduate School of Humanities and Social Sciences, University of Tsukuba)
    Abstract: We develop a new approach to localized knowledge spillovers by incorporating the concept of control patents (Jaffe, Trajtenberg and Henderson 1993) into the distancebased test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance while allowing for cross-boundary spillovers, unlike the existing literature where the extent of localized knowledge spillovers is detected at the state or metropolitan statistical area level. We revisit the recent debate by Thompson and Fox-Kean (2005) and Henderson, Jaffe and Trajtenberg (2005) on the existence of localized knowledge spillovers, and find solid evidence supporting localization, even when finer controls are used.
    Keywords: localized knowledge spillovers; distance-based tests; microgeographic data; K-density; patent citations; control patents
    JEL: O31 R12
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:kyo:wpaper:763&r=eff
  13. By: Yamori, Nobuyoshi; Harimaya, Kozo; Tomimura, Kei
    Abstract: As the governance of financial institutions is becoming an important issue, there are many papers empirically investigating the governance issues of banks, which are stock companies. However, cooperative structured financial institutions (co-ops), which have a unique governance structure different from stock companies, play a substantial role in the Japanese banking markets, and, therefore, it is worth examining whether some governance scheme developed for stock companies are effective at cooperative financial institutions. Our results showed that the presence of outside directors at co-ops (“Shinkin Banks”) contributes to an improvement in efficiency.
    Keywords: Corporate Governance; Outside Directors; Cooperative; Shinkin.
    JEL: G28 G21
    Date: 2011–03–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29706&r=eff

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