nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2011‒07‒21
nine papers chosen by
Angelo Zago
University of Verona

  1. FOREIGN OWNERSHIP AND OPENNESS IN THE MALAYSIAN FOOD PROCESSING INDUSTRY: IMPACT ON PRODUCTIVITY GROWTH By Yodfiatfinda; Mad Nasir Shamsudin; Zainalabidin Mohamed; Zulkornain Yusop; Alias Radam
  2. The Robustness of the Hyperbolic Efficiency Estimator By Christopher Bruffaerts; Bram De Rock; Catherine Dehon
  3. Agricultural productivity in the United States: catching-up and the business cycle By V. Eldon Ball; Carlos San Juan Mesonada; Camilo A. Ulloa
  4. Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms By Sebastian Nielen; Alexander Schiersch
  5. Spatial effects and convergence theory in the Portuguese situation By Martinho, Vítor João Pereira Domingues
  6. Spatial autocorrelation and Verdoorn law in the Portuguese nuts III By Martinho, Vítor João Pereira Domingues
  7. Entrepreneurship and Economic Growth: An Investigation into the Relationship between Entrepreneurship and Total Factor Productivity Growth in the EU By Andrzej P. Dabkowski
  8. A New Index of Environmental Quality By Elettra Agliardi; Mehmet Pinar; Thanasis Stengos
  9. Convergence régionale et fonds structurels européens By CVEČIĆ, Igor; HOST, Alen; KANDŽIJA, Vinko

  1. By: Yodfiatfinda; Mad Nasir Shamsudin; Zainalabidin Mohamed (Department of Agribusiness, Faculty of Agriculture, Universiti Putra Malaysia); Zulkornain Yusop (Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia); Alias Radam (Department of Management and Marketing, Faculty of Economics and Management, Universiti Putra Malaysia)
    Abstract: Food processing industry plays an important role in the Malaysian economy. The industry contributes about 10% to the total manufacturing output. This study aims to investigate the impacts of foreign ownership and openness to productivity growth in the Malaysian Food Processing Industry (FPI). A non parametric approach Data Envelopment Analysis (DEA) was employed to examine the total factor productivity growth. We employ five-digit panel data for the period of 2000-2006. The data was tested for stationary using Augmented Dickey Fuller (ADF) unit root test, and Hausman specification test to obtain the more appropriate model. Fixed effect model is the best model for estimation factor affecting total factor productivity growth in the small and medium enterprises (SMEs) and the large scale enterprises (LSEs). The Malaysian FPI was experiencing with negative total factor productivity growth (-1.3%) in the SMEs and positive (7.3%) in the LSEs during 2001 to 2006. The results also suggest that foreign ownership is positively affecting total factor productivity growth both in the SMEs and the LSEs but not significant. However, openness is positively influencing the productivity growth in the SMEs and significant at five percent confidence level in the LSEs
    Keywords: Food processing industry, data envelopment analysis, foreign ownership, openness and Malaysia
    JEL: M00
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:cms:1icm11:2011-041_349&r=eff
  2. By: Christopher Bruffaerts; Bram De Rock; Catherine Dehon
    Abstract: In this paper we examine the robustness properties of a specific type of orientation in the context of efficiency measurement using partial frontiers. This so called unconditional hyperbolic -quantile estimator of efficiency has been recently studied by Wheelock and Wilson (2008) and can be seen as an extension of the input/ output methodology of partial frontiers that was introduced by Aragon, Daouia and Thomas Agnan (2005). The influence function of this fully non-parametric and unconditional estimator is here derived for a complete multivariate setup (multiple inputs and outputs). Like for the input and output quantile estimators, the hyperbolic-quantile estimator is B-robust. The asymptotic variance of this estimator is recovered from the influence function. Some examples are given to assess the relevance of this type of estimator and to show the differences with the input and output-quantile estimators of efficiency from both a robustness and a statistical efficiency point of view.
    Keywords: asymptotic variance; efficiency measurement; hyperbolic orientation; influence function; gross-error sensitivity
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:eca:wpaper:2013/91263&r=eff
  3. By: V. Eldon Ball; Carlos San Juan Mesonada; Camilo A. Ulloa
    Abstract: This paper examines the relation between the business cycle and convergence in levels of total factor productivity (TFP) across states. First, we find evidence of convergence in TFP levels across the different phases of the business cycle, but the speed of convergence was much greater during periods of contraction in economic activity than during periods of expansion. Second, we find that technology embodied in capital was an important source of productivity growth in agriculture. As with the rate of catch-up, the embodiment effect was much stronger during low economic activity phases of the business cycle.
    Keywords: Agriculture, Convergence, Total factor productivity
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:cte:werepe:we1116&r=eff
  4. By: Sebastian Nielen; Alexander Schiersch
    Abstract: This paper addresses the relationship between the utilization of temporary agency workers by firms and their competitiveness measured by unit labor costs, using a rich, newly built, data set of German manufacturing enterprises. The analysis is conducted by applying different panel data models while taking the inherent selection problem into account. Making use of dynamic panel data models allows us to control for firm specific fixed effects as well as for potential endogeneity of explanatory variables. The results indicate a U-shaped relationship between the extent that temporary agency workers are used and the competitiveness of firms.
    Keywords: temporary agency work, competitiveness, firm performance, manufacturing
    JEL: D24 L23 L60
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1135&r=eff
  5. By: Martinho, Vítor João Pereira Domingues
    Abstract: This study analyses, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence (product per worker) in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002. To analyse the data, Moran’s I statistics is considered, and it is stated that productivity is subject to positive spatial autocorrelation (productivity develops in a similar manner to productivity in neighbouring regions), above all, in agriculture and services. Industry and the total of all sectors present indications that they are subject to positive spatial autocorrelation in productivity. On the other hand, it is stated that the indications of convergence, specifically bearing in mind the concept of absolute convergence, are greater in industry. Taking into account the estimation results, it is stated once again that the indications of convergence are greater in industry, and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially redundant dependent variable) and spatial error (capturing spatial autocorrelation through a spatially redundant error term), as well as human capital, condition the convergence of productivity in the various economic sectors of Portuguese region in the period under consideration.
    Keywords: Spatial Econometric; Growth Endogenous Theory; Portuguese Regions
    JEL: R58 O47 C21
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:32185&r=eff
  6. By: Martinho, Vítor João Pereira Domingues
    Abstract: This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker), at economic sectors level of the NUTs III of mainland Portugal, from 1995 to 1999 and from 2000 to 2005 (taking in count the data availability and the Portuguese and European context), considering the Verdoorn relationship. From the analyses of the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total sectors of all regional economy present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions. The results obtained for the two periods are different, as expected, and are better in second period, because, essentially, the European and national public supports.
    Keywords: Spatial Econometrics; Economic Growth; Productivity Analysis; Regional Development.
    JEL: R58 O47 C21 O40
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:32165&r=eff
  7. By: Andrzej P. Dabkowski
    Abstract: Endogenous growth theory assigns an important role for entrepreneurship in the process of economic development. This paper sets to formally test the impact of entrepreneurship on economic growth. Entrepreneurship is represented by a number of proxy variables, whereas Total Factor Productivity is used as a measure of economic growth. Panel data of 26 European countries repeatedly sampled over a period of 11 years is used to estimate a Random Effects model. This study finds that entrepreneurship contributes to growth moderately. It is not, nonetheless, a dominant force shaping changes in TFP growth rates. Business Birth Rate, Self-employment Rate, Business Investment and Labour Productivity Growth were all found to be highly significant. The article concludes that more encompassing measure of entrepreneurship needs to be developed, one that would reflect the complexity of the notion.
    Keywords: entrepreneurship, total factor productivity, economic growth, the EU
    JEL: O11 O30 O47 O52 L26
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:sec:cnstan:0427&r=eff
  8. By: Elettra Agliardi (RCEA; University of Bologna); Mehmet Pinar (Fondazione Eni Enrico Mattei; University of Guelph); Thanasis Stengos (University of Guelph; RCEA)
    Abstract: An optimal weighting scheme is proposed to construct a new index of environmental quality for different countries using an approach that relies on consistent tests for stochastic dominance efficiency. The test statistics and the estimators are computed using mixed integer programming methods. The variables that are considered include countries’ greenhouse emissions, water pollution and forest benefits, as from the dataset of the World Bank. First, the stochastic efficient weighting for each set of variables is calculated to build three sub-indices (for greenhouse emissions, water pollution and land without forests) and then an overall risk index of environmental quality is constructed. One main result is that land without forest contributes the most (with around 70%), greenhouse emissions contribute with around 20% and water pollution contributes less (with around 10%). Finally, countries are ranked according to their index of environmental quality and their rankings are compared with those of the Kyoto Protocol.
    Keywords: Environmental Quality; Emissions; Water Pollution; Nonparametric Stochastic Dominance, Mixed Integer Programming
    JEL: C4 C5 C14 Q01 Q5 Q51
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:rim:rimwps:31_11&r=eff
  9. By: CVEČIĆ, Igor; HOST, Alen; KANDŽIJA, Vinko
    Abstract: Dans cet article nous analysons l'impact des fonds structurels sur le processus de convergence des régions européennes. Les effets de la convergence ont été observés jusqu'à présent en utilisant la méthode de l'économétrie spatiale laquelle explique l'impact des fonds structurels sur des régions ciblées ainsi que sur leurs voisins. Les résultats de la recherche indiquent l'existence d'une certaine convergence, mais la conséquence de l'impact des fonds structurels est une question qui reste ouverte. En effet, les résultats des différentes recherches sont contradictoires. Il y a de nombreuses études dans lesquelles on se questionne même sur l'effet des fonds structurels et cela est aussi une question qui reste ouverte, alors que l'attitude de la Commission est positive. L'ambivalence relative aux fonds structurels ressort de l'évaluation de ses effets à court terme, c'est- à-dire de ses effets à long terme. Un problème particulier représente l'effet de déborement géographique (spillover) parce que les entreprises incluses dans les investissements, dans les régions ciblées, ont très souvent leurs sièges dans des régions avec une puissance économique dominante, ce qui fait diminuer l'effet multiplicateur sur les régions sous-développées.
    Keywords: débordement géographique; économétrie spaciale; convergence; fonds structurels européens
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:nsu:apasro:288&r=eff

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