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on Efficiency and Productivity |
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Issue of 2011‒09‒16
twenty papers chosen by |
| By: | François Rycx; Stephan K. S. Kampelmann |
| Abstract: | Labour economists typically assume that pay differences between occupations can be explained with variations in productivity. The empirical evidence on the validity of this assumption is surprisingly thin and subject to various potential biases. The authors use matched employer-employee panel data from Belgium for the years 1999-2006 to examine occupational productivity-wage gaps. They find that occupations play distinct roles for remuneration and productivity: while the estimations indicate a significant upward-sloping occupational wage-profile, the hypothesis of a flat productivity-profile cannot be rejected. The corresponding pattern of over- and underpayment stands up to a series of robustness tests. |
| Keywords: | Labour productivity; wages; occupations; production function; matched employer-employee data |
| JEL: | J24 J31 J44 |
| Date: | 2011–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:2013/96684&r=eff |
| By: | Zuniga Gonzalez, Carlos Alberto |
| Abstract: | This paper don´t was submitted on the conference, however the author participated on the event. He member of the European Association of Agricultual Ecnomist (EAAE) |
| Keywords: | Total Factor Productivity Growth, Malmquist Index, Data Envelopment Analysis, Productivity Analysis, D: 24, O: 13, O: 47, P: 51, Q: 10, |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nauncp:114036&r=eff |
| By: | Petra Zloczysti |
| Abstract: | Using data for 14 OECD countries and 13 sectors for the period 1985-2004, this paper analyzes the significance of the linkage between channels of international knowledge spillovers and total factor productivity. We distinguish between domestic and international intra- and inter-sectoral spillover sources. Patent applications are exploited to estimate the contribution of technology transfer to industrial productivity. To account for technological distance, we weight foreign knowledge by bilateral technological proximity. By adopting estimation methods reflecting recent developments in the treatment of non-stationary panel data econometrics, we find that industry-specific knowledge both nationally and internationally mainly drives productivity in the respective sector. |
| Keywords: | Knowledge Spillover, Total Factor Productivity, Manufacturing, Panel Cointegration |
| JEL: | C23 L60 O30 O40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1150&r=eff |
| By: | Liu, Jing; Cao, Shutao |
| Abstract: | This paper studies the industry productivity dynamics in China’s manufacturing sector from 1998 to 2007, and in particular, explores to what extent the privatization of state-owned enterprises (SOEs) contributes to the aggregate productivity growth. Our results show that, though non-SOEs on average are more productive than SOEs, the average productivity growth among SOEs is greater than the privately-owned firms. Industry concentration, taxation, and credit market all account for this difference in growth between SOEs and non-SOEs. In addition, industry productivity growth is mainly attributed to the growth of non-SOEs, entry of non-SOE firms, and the exit of SOEs. However, non-SOE firms that are transformed directly from SOEs make a small but negative contribution to industry productivity growth. |
| Keywords: | Productivity Growth, Industry Dynamics, Ownership Change, Reallocation |
| JEL: | E6 D24 O4 |
| Date: | 2011–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33275&r=eff |
| By: | Patrick Plane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Marie-Ange Veganzones (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Tidiane Kinda (FMI - FMI - FMI) |
| Abstract: | Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context. |
| Keywords: | Manufacturing firms;productivity;investment climate;developing countries;Middle East and North Africa (MENA) |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00617575&r=eff |
| By: | Patrick Plane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Marie-Ange Veganzones (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Tidiane Kinda (FMI - FMI) |
| Abstract: | Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context. |
| Keywords: | Manufacturing firms;productivity;investment climate;developing countries;Middle East and North Africa (MENA) |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00617574&r=eff |
| By: | Waidlein, Nicole |
| Abstract: | Since the Second World War the West German states show persistent differences in their standard of living. The explanation of the incomplete catching-up process within West Germany is of crucial interest. After identifying productivity as the major growth driving force, this paper investigates the main causes of productivity growth on the state level between 1950 and 1990. With the help of growth theories different determinants of productivity growth are identified. These are innovations, secondary and tertiary human capital, structural change, openness and institutions. Finally, the empirical analysis reveals that three of those determinants are able to explain the persistent differences in the regional productivity levels: innovations, tertiary human capital and structural change. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:292011&r=eff |
| By: | Allan Collard-Wexler |
| Abstract: | This paper presents a quantitative model of productivity dispersion to explain why inefficient producers are slowly selected out of the ready-mix concrete industry. Measured productivity dispersion between the 10th and 90th percentile falls from a 4 to 1 difference using OLS, to a 2 to 1 difference using a control function. Due to volatile productivity and high sunk entry costs, a dynamic oligopoly model shows that to rationalize small gaps in exit rates between high and low productivity plants, a plant in the top quintile must produce 1.5 times more than a plant in the bottom quintile. |
| JEL: | L13 L6 D24 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-25&r=eff |
| By: | Czarnitzki, Dirk; Lopes Bento, Cindy |
| Abstract: | Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding. -- |
| Keywords: | Subsidies,Innovation,Policy Evaluation,Treatment Effects,Nonparametric matching estimation |
| JEL: | C14 H50 O38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11053&r=eff |
| By: | Maureen L. Cropper; Alexander Limonov; Kabir Malik; Anoop Singh |
| Abstract: | This paper examines the impact of unbundling of generation from transmission and distribution on the operating efficiency of state-owned thermal power plantsin India. Using information collected by India’s Central Electricity Authority we construct a panel dataset for thermal power plants for the years 1994-2008. We take advantage of variation across states in the timing of reforms to examine the impact of restructuring on plant performance and thermal efficiency. We estimate difference-in-differences models that control for state-level time trends, and plant and year fixed effects. The models suggest that unbundling significantly improved average annual plant availability by about 4.6 percentage points and reduced forced outages by about 2.9 percentage points in states that unbundled before 2003. Restructuring has not, however, improved thermal efficiency. This may reflect the fact that unbundling has not yet attracted independent power producers into the market to the same extent as has occurred in the US. |
| JEL: | L43 L94 O13 O25 Q4 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17383&r=eff |
| By: | Alexander Murray; Andrew Sharpe |
| Abstract: | This report provides an assessment of human capital development in British Columbia. The province's performance is above average according to the majority of the indicators we analyze, relative to both the rest of Canada and other OECD countries. However, this does not mean that there is no room for improvement. We identify four areas in which improvements would be likely to contribute to productivity growth in British Columbia: the underutilization of the skills of recent immigrants; the poor educational outcomes of Aboriginal people; the below-average production of advanced human capital through graduate training; and the problem of high school non-completion. We provide policy recommendations pertaining to each of these four challenges. |
| Keywords: | productivity, human capital, immigration, education, aboriginal education gap |
| JEL: | D24 J24 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:1110&r=eff |
| By: | Ruth Delzeit; Ulla Kellner |
| Abstract: | The production of bioenergy is considered to be a promising energy source for a sustainable energy mix and it is politically promoted in many countries. With the exception of Brazilian ethanol, bioenergy not competitive to fossil energy sources, and therefore needs to be subsidised. Several types of bioenergy are based on bulky raw biomass with high per unit transport costs, importantly impacting on the plant’s production costs and profitability. In addition, considerable quantities of digestates are released, causing disposal costs. Various studies in the past aimed primarily at analysing transport costs of inputs. In this paper we focus on disposal costs of fermentation digestates from biogas production in Germany and analyse different processing techniques and their impact on profitability for three plant size in three case study areas. Our results show that especially in regions with only a small amount of agricultural land and a large heterogeneity in its agricultural area, processing of digestates increases the profitability of biogas production. The same accounts for regions with high livestock density, where the area needed for disposal is comparatively large. The cost efficiency is enforced by a high share of animal excrements on input and the biogas plant size |
| Keywords: | transport costs, biogas profitability, digestates processing, choice of location |
| JEL: | C69 Q16 Q55 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1730&r=eff |
| By: | Victor Lavy |
| Abstract: | There are large differences across countries in instructional time in schooling institutions. Can these differences explain some of the differences across countries in pupils' achievements in different subjects? What is the likely impact of changes in instructional time? While research in recent years provides convincing evidence about the effect of several inputs in the education production function, there is limited evidence on the effect of classroom instructional time. Such evidence is of policy relevance in many countries, and it became very concrete recently as President Barrack Obama announced the goal of extending the school week and year as a central objective in his proposed education reform for the US. In this paper, I estimate the effects of instructional time on students' academic achievement in math, science and language. I estimate linear and non-linear instructional time effects controlling for unobserved heterogeneity of both pupils and schools. The evidence from a sample of 15 year olds from over fifty countries that participated in PISA 2006 consistently shows that instructional time has a positive and significant effect on test scores. The effect is large relative to the standard deviation of the within pupil test score distribution. The OLS results are highly biased upward but the within student estimates are very similar across groups of developed and middle-income countries. However, the estimated effect of instructional time in the sample of developing countries is much lower than the effect size in the developed countries. Several checks for threats of identification support the causal interpretation of this evidence. I obtain very similar results when I use as an alternative data from primary and middle schools in Israel and a somewhat different identification strategy. Finally, I also explore some correlations that suggest that suggest that the productivity of instructional time is higher in countries that implemented s |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:ceedps:0118&r=eff |
| By: | Daiju Narita; Ulrich J. Wagner |
| Abstract: | The production of bioenergy is considered to be a promising energy source for a sustainable energy mix and it is politically promoted in many countries. With the exception of Brazilian ethanol, bioenergy not competitive to fossil energy sources, and therefore needs to be subsidised. Several types of bioenergy are based on bulky raw biomass with high per unit transport costs, importantly impacting on the plant’s production costs and profitability. In addition, considerable quantities of digestates are released, causing disposal costs. Various studies in the past aimed primarily at analysing transport costs of inputs. In this paper we focus on disposal costs of fermentation digestates from biogas production in Germany and analyse different processing techniques and their impact on profitability for three plant size in three case study areas. Our results show that especially in regions with only a small amount of agricultural land and a large heterogeneity in its agricultural area, processing of digestates increases the profitability of biogas production. The same accounts for regions with high livestock density, where the area needed for disposal is comparatively large. The cost efficiency is enforced by a high share of animal excrements on input and the biogas plant size |
| Keywords: | International environmental agreements (IEAs), climate policy, technology choice, expectations, multiple equilibria |
| JEL: | Q54 O33 H87 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1731&r=eff |
| By: | Davide Castellani (Department of Economics, Finance and Statistics, University of Perugia and Centro Studi Luca D'Agliano, Milan); Fabio Pieri (Department of Economics, Finance and Statistics, University of Perugia) |
| Abstract: | The recent increase in R&D oshoring have raised fears that knowledge and competitive- ness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D oshoring is associated with productivity dynamics of European (NUTS2) regions. In particular, we explore whether R&D investments abroad have a dierent impact from those in manufacturing and other business activities. We nd that oshoring regions have higher productivity growth, but this positive eect fades down with the number of investment projects carried out abroad. However, a large and positive correlation emerge between the extent of R&D oshoring and the home region produc- tivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness. |
| Keywords: | Regional Productivity, Foreign Investments, Europe, R&D Offshoring |
| JEL: | C23 F23 O47 O52 R11 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1120&r=eff |
| By: | Diewert, Erwin; Fixler, Dennis; Zieschang, Kimberly |
| Abstract: | The paper considers some of the problems associated with the indirectly measured components of financial service outputs in the System of National Accounts (SNA), termed FISIM (Financial Intermediation Services Indirectly Measured). The paper characterizes FISIM by a user cost and supplier benefit approach determining the price and quantity of various financial services in the banking sector. We examine the need for FISIM in the context of plausible alternative accounting schemes that could be used to account for financial services. The alternative accounting frameworks have implications for the labour and multifactor productivity of both the financial and nonfinancial sectors. |
| Keywords: | User costs, banking services, deposit services, loan services, Total Factor Productivity growth, production accounts, System of National Accounts, FIS |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:erwin_diewert-2011-23&r=eff |
| By: | Maria Cipollina (University of Molise); Giorgia Giovannetti (University of Florence and European University Institute); Filomena Pietrovito (University of Molise); Alberto Franco Pozzolo (University of Molise, Centro Studi Luca d’Agliano and MoFiR) |
| Abstract: | The theoretical literature has discussed different channels through which foreign direct investments (FDI) promote host country’s economic growth, but empirical analyses have so far been inconclusive. In this paper we provide evidence that FDI have a positive and statistically significant growth effect in recipient countries, using a panel of 14 manufacturing sectors for (a sample of) developed and developing countries over the period 1992 - 2004. Moreover, we find that this effect is stronger in capital intensive and in technologically advanced sectors, highlighting the importance of sector characteristics. We find that the growth enhancing effect comes primarily from an increase in total factor productivity (TFP) and from capital accumulation. FDI not only contribute to physical capital accumulation, but also generate positive technological spillovers. Our results are robust to the inclusion of other determinants of economic growth. We also address the issue of potential endogeneity and results are confirmed. Policy implications of our findings are important, especially for developing countries, where the growth enhancing promotion of foreign investment in capital intensive and technologically advanced sectors is at the heart of the debate. |
| Keywords: | Foreign direct investment; Economic growth; Capital intensity, Technological progress; Patents; Total factor productivity |
| JEL: | F23 F36 F43 O16 |
| Date: | 2011–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:313&r=eff |
| By: | Jonathan Jones; Colin Wren |
| Abstract: | The paper examines the relative importance for industrial location of production linkages and knowledge spillovers, distinguishing between intermediate and non-intermediate goods that are backwards or forwards in nature. A novel approach is used to construct proxies for non-intermediate goods at a sub-national industry level based on an Input-Output transaction table. Taking data on location decisions by foreign-owned plants across British regions over 1985-2007, the paper finds support for the new economic geography explanation of location based on linkages over that due to spillovers. However, the importance of intermediate and non-intermediate linkages differs between manufacturing and service industries. |
| Keywords: | Industrial location, agglomeration economies, intermediate goods, FDI |
| JEL: | H3 O2 L2 R3 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0089&r=eff |
| By: | Bhajantri, Shrinivas |
| Abstract: | Potato (Solanum tuberosum L.) popularly known as âThe king of vegetablesâ, is grown in more than 100 countries in the world. Karnataka is one of the important Potato growing state in the country grown mainly in the districts of Hassan, Belgaum, Chikkaballapur and Kolar. The study was conducted to analyze Production, Processing and Marketing of Potato in Karnataka. The study reveals that Hassan district alone account for more than 41 percent potato production in the state. However production (0.40%) and productivity (9.22%) in the district during the last 5 years has shown insignificant growth rate. In Belgaum district potato production and productivity has increased with a growth rate of 5.23 and 10.26 percent which is significant. The potato processing industry is growing significantly in Belgaum and Hassan districts with a growth rate of (1.97%) and (3.82%) indicating potential opportunity for the establishment of small scale potato processing industries in these districts. Potato is mainly marketed through regulated markets by the farmers. The important regulated markets for Potato are Bangalore, Hubli, Belgaum, Hassan, Chikkaballapur and Kolar. The study reveals that vast majority of farmers (64%) are selling directly to Commission agents/Wholesalers in regulated markets. The producer who sold potato through Producer - Wholesaler - Retailer - Consumer realized the highest share (65%) in consumer rupee compared to other channels indicating the efficiency of this channel. |
| Keywords: | Potato, Production, Processing, Marketing, Economic, Analysis, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uasbam:113945&r=eff |
| By: | Barry Eichengreen; Nergiz Dincer |
| Abstract: | We assemble data on the structure of bank supervision, distinguishing supervision by the central bank from supervision by a nonbank governmental agency and independent from dependent governmental supervisors. Using observations for 140 countries from 1998 through 2010, we find that supervisory responsibility tends to be assigned to the central bank in low-income countries where that institution is one of few public-sector agencies with the requisite administrative capacity. It is more likely to be undertaken by a non-independent agency of the government in countries ranked high in terms of government efficiency and regulatory quality. We show that the choice of institutional arrangement makes a difference for outcomes. Countries with independent supervisors other than the central bank have fewer nonperforming loans as a share of GDP even after controlling for inflation, per capita income, and country and/or year fixed effects. Their banks are required to hold less capital against assets, presumably because they have less need to protect against loan losses. Savers in such countries enjoy higher deposit rates. There is some evidence, albeit more tentative, that countries with these arrangements are less prone to systemic banking crises. |
| JEL: | G0 H1 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17401&r=eff |