New Economics Papers
on Efficiency and Productivity
Issue of 2011‒11‒21
eleven papers chosen by

  1. Post-crisis cost efficiency of Jamaican banks By Daley, Jenifer; Matthews, Kent; Zhang, Tiantian
  2. Determinants of Total Factor Productivity in Former Soviet Union Economies: A Stochastic Frontier Approach By Annageldy Arazmuradov; Gianmaria Martini; Davide Scotti
  3. Sources of Heterogeneity in the Efficiency of Indian Pharmaceutical Firms By Mainak Mazumdar; Meenakshi Rajeev; Subhash Ray
  5. Firmfs reduction of greenhouse gas emissions and economic performance: analyzing effects through demand and productivity By Kimitaka Nishitani; Shinji Kaneko; Satoru Komatsu; Hidemichi Fujii
  6. Innovation, productivité et exportation : Y-a-t-il un effet d'auto-sélection consciente? Une étude empirique sur les PMI de basse-Normandie. By Mohammad Movahedi, University of Caen Basse-Normandie - CREM-CNRS, France; Olivier Gaussens, University of Caen Basse-Normandie - CREM-CNRS, France
  7. ICT in Latin America: A Microdata Analysis By Vergara, Sebastián; Rovira, Sebastián; Balboni, Mariana
  8. The role of technology and institutions for growth: Danish creameries in the late nineteenth century By Ingrid Henriksen; Markus Lampe; Paul Sharp
  9. Does School Autonomy Make Sense Everywhere? Panel Estimates from PISA By Eric A. Hanushek; Susanne Link; Ludger Woessmann
  10. Disentangling spillover effects of antibiotic consumption: a spatial panel approach By Laura Guadalupe González Ortiz; Giuliano Masiero
  11. Cooperative performance measurement proposal (a test with the cooperfic© tool for wine cooperatives in Languedoc-Roussillon) By Saïsset, L.A.; Couderc, J.P.; Bou Saba, M.

  1. By: Daley, Jenifer; Matthews, Kent (Cardiff Business School); Zhang, Tiantian (Cardiff Business School)
    Abstract: Deregulation, re-regulation and continuing globalisation embody an imperative that banks increase efficiency in order to survive. We employ the Simar-Wilson (2007) two-step double bootstrap Data Envelopment Analysis method to measure whether cost efficiency among Jamaican banks has improved between 1999 and 2009 following a number of post-crisis responses aimed at strengthening and improving the sector. Efficiency is extracted from a meta-frontier construction for the full sample period. In addition we conduct tests for unconditional beta- and sigma-convergence and overall, the results suggest that there has been a tendency towards improvement in bank efficiency levels for the industry as a whole but there is also evidence that foreign banks show a higher trend improvement in efficiency.
    Keywords: Bank efficiency; DEA; bootstrap; convergence; Jamaica
    JEL: G21 G28
    Date: 2011–11
  2. By: Annageldy Arazmuradov; Gianmaria Martini; Davide Scotti
    Abstract: This paper investigates the process of GDP generation in Former Soviet Union (FSU) economies to provide understanding of the impact of technology channels on countries’ efficiency. We apply a stochastic frontier approach to 15 FSU economies over the period 1995–2008, and we find that machinery imports and human capital improve a country’s efficiency. Furthermore, we show that trade in capital goods and human capital also have a positive effect on total factor productivity (TFP), which, in turn, improves real GDP growth. Hence, our results suggest that FSU countries should improve public policies that provide incentives to invest in cross-country technology transfer and in domestic education in order to improve their economic growth. Additionally, our empirical evidence argues against the resource-curse hypothesis. We also show, by computing the efficiency change and technological change indices at the country level, that FSU economies are benefiting more from catching up to the best practice frontier than from exploiting technological progress.
    Keywords: Eurasia, Former Soviet Union (FSU), Technology Channels, Total Factor Productivity (TFP), Stochastic Frontier Analysis
    JEL: O33 O47 O57
    Date: 2011
  3. By: Mainak Mazumdar (Centre De Science Humaines); Meenakshi Rajeev (Institute for Social and Economic Change); Subhash Ray (University of Connecticut)
    Abstract: Using the non parametric approach of Data Envelopment Analysis (DEA) this paper examines firm’s heterogeneity in the Indian pharmaceutical industry by measuring their input and output efficiencies for the period 1991 to 2005. The analysis establishes that even though firms have been able to make efficient use of inputs like labor and raw material the output efficiency of the firms reveals a declining trend. The phenomenon can be attributed to the differences in the size of firms and the presence of economies of scale in production. Further analysis reveals the importance of firm specific factors like its strategies and structure for variation in output efficiency. We find firms that are vertically integrated with down-stream raw-material industry are more efficient. We also find that R&D is a possible strategic option for firms to gain higher efficiency but only for the large sized firms.
    Keywords: Patents, Pareto-Koopmans Efficiency, Data Envelopment Analysis (DEA)
    JEL: L65 C61
    Date: 2011–11
  4. By: Dennis, Kinambuga
    Abstract: The Kenya dairy sub-sector has been undergoing developments since the 1980s, these has been in the areas of adoption of intensive dairy farming especially zero grazing. There have been concerted efforts to commercialize the sub-sector so as to make it more profitable to farmers, especially smallholder farmers. Despite the development, the profitability in the sector has not been consistent among the smallholder farmers; some farmers realize very dismal profits and even losses. The causes of the varying profits have not been empirically established with the influence of institutional arrangements and financial factors contributing to this inconsistency not fully established. The main objective of this study was to establish the critical institutional arrangements and financial factors that constrain the profitability of small-holder dairy farmers in Nakuru County. A sample of 129 smallholder dairy farmers was selected from Rongai, Baruti, Ngata and Mbogoini divisions of the County. Multi-stage sampling procedure was used to select respondents and the data was collected by the use of structured interview schedules administered by enumerators. The work employed the Data Envelopment Analysis to come up with profit efficiency rankings among the farmers, and the Frontier Model was used to establish the factors that constrain profit efficiency. The data was processed using STATA and DEA frontier packages. The mean efficiency according to the results was 86%. The factors that were significant in explaining profitability efficiency according to the frontier results were: feeding systems (-0.38), breed type (-0.11), gender (0.37), debt amount (-0.0002) and debt asset ratio (21.43). Issues of trust were also found to have effect on profitability, and they included trust on local buyer price (0.52), trust on institutional buyer unit of measure (-0.1.77), and trust on middlemen unit of measurement (-0.05). The positive sign signifies that the factor increases profit inefficiency while the negative sign indicates that the factor reduces profit inefficiency. These findings will be useful to the stakeholders of the dairy industry sub sector to formulate policy pertaining to dairy enterprise inputs, marketing issues and financial products and also provide smallholder dairy farmers with a package of critical factors to enhance and stabilize their profitability
    Keywords: Farm Management, Livestock Production/Industries, Productivity Analysis,
    Date: 2010–11
  5. By: Kimitaka Nishitani (Graduate School for International Development and Cooperation, Hiroshima University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University); Satoru Komatsu (Graduate School for International Development and Cooperation, Hiroshima University); Hidemichi Fujii (Graduate School of Environmental Studies, Tohoku University)
    Abstract: This paper analyzes how a firmfs reduction of its greenhouse gas (GHG) emissions affects its economic performance. The theoretical model used is derived from the Cobb-Douglas production function and the inverse demand function, and predicts that in reducing its GHG emissions, a firm will increase its value added because it promotes an increase in demand for its output and improves its productivity. The estimation results, using data on Japanese manufacturing firms, suggest that the reduction of GHG emissions increases a firmfs economic performance only through an increase in demand. Thus, firms can improve their overall economic performance because increased demand accompanies their reduction of GHG emissions, even if they cannot achieve this through an improvement in productivity, as estimates here support the traditional view that reducing GHG emissions imposes additional costs on firms.
    Keywords: Reduction of greenhouse gas emissions, Economic performance, Increase in demand, Improvement in productivity, Instrumental variables model
    JEL: C21 M20 Q56
    Date: 2011–08
  6. By: Mohammad Movahedi, University of Caen Basse-Normandie - CREM-CNRS, France; Olivier Gaussens, University of Caen Basse-Normandie - CREM-CNRS, France
    Abstract: This paper presents an analysis of the relationship between innovation, productivity and exports regarding the SMEs. The main research aim of this study consists in analyzing the hypothesis of firms’ conscious self-selection in the export markets. To measure innovation, we consider the dimensions of technological as well as non technological innovation, as defined by the Oslo Manual (2005). To achieve this, we use the database of SMEs obtained from the survey conducted in the project IDEIS. First, we highlight the existence of export as well as innovation apparent premium, i.e. the advantage of exporting (innovative) firms versus non-exporting (not innovative) ones in terms of productivity. In addition, we demonstrate the effectiveness of the export premium for firms carried out process and organization innovations with the enough exportation. Finally we show the firms’ conscious self-selection in export markets in endogenizing productivity through innovation.
    Keywords: Innovation, Productivity, Exportation, Conscious self-selection
    JEL: F1 O3 D2 L25 C14 C3
    Date: 2011–09
  7. By: Vergara, Sebastián; Rovira, Sebastián; Balboni, Mariana
    Abstract: This book is the final report of the ECLAC-IDRC project Observatory for the Information Society in Latin American and the Caribbean (OSILAC), Third Phase”. OSILAC III is a cooperating project between the International Development Research Centre (IDRC) and the Division of Production, Productivity and Management, ECLAC-UN, which aims at understanding the dynamics of the ICT evolution and revolution and producing evidence on its potential to support socio-economic development, particularly in developing countries. As such, microdata analysis drawn from National Household Surveys and National Innovation Surveys in Latin America were used in the framework of the project in the attempt to reach those objectives Both statistical information sources provide attractive potentialities in order to investigate not only determinants of innovation activities and technology diffusion, but also its economic impacts.
    Keywords: ICT; Innovation; Productivity
    JEL: L86
    Date: 2011–05–01
  8. By: Ingrid Henriksen (Department of Economics, University of Copenhagen); Markus Lampe (Department of Economic History and Institutions, Universidad Carlos III Madrid); Paul Sharp (Department of Economics, University of Copenhagen)
    Abstract: We consider the relative contributions of changing technology and institutions for economic growth through the investigation of a natural experiment in history: the almost simultaneous introduction of the automatic cream separator and the cooperative ownership form in the Danish dairy industry from around 1880. Using a new database of statistics from creameries and the tool of stochastic frontier analysis, we find that both institutions and technology were important for the success of the Danish dairy industry and, by implication, the growth and early development of the Danish economy.
    Keywords: Creameries, dairies, Denmark, development, economic growth, institutions, technology, stochastic frontier analysis
    JEL: L2 N5 O3 Q1
    Date: 2011–01
  9. By: Eric A. Hanushek; Susanne Link; Ludger Woessmann
    Abstract: Decentralization of decision-making is among the most intriguing recent school reforms, in part because countries went in opposite directions over the past decade and because prior evidence is inconclusive. We suggest that autonomy may be conducive to student achievement in well-developed systems but detrimental in low-performing systems. We construct a panel dataset from the four waves of international PISA tests spanning 2000-2009, comprising over one million students in 42 countries. Relying on panel estimation with country fixed effects, we identify the effect of school autonomy from within-country changes in the average share of schools with autonomy over key elements of school operations. Our results show that autonomy affects student achievement negatively in developing and low-performing countries, but positively in developed and high-performing countries. These results are unaffected by a wide variety of robustness and specification tests, providing confidence in the need for nuanced application of reform ideas.
    JEL: H4 I20 J24 O15
    Date: 2011–11
  10. By: Laura Guadalupe González Ortiz; Giuliano Masiero
    Abstract: Literature on socioeconomic determinants of antibiotic consumption in the community is limited to few countries using cross-sectional data. This paper analyses regional variations in outpatient antibiotics in Italy using a balanced panel dataset covering the period 2000-2008. We specify an econometric model where antibiotic consumption depends upon demographic and socioeconomic characteristics of the population, the supply of health care services in the community, and antibiotic copayments. The model is estimated by means of Ordinary least squares techniques with fixed effects (FE). The implications of consumption externalities across geographical areas are investigated by means of spatial-lag and spatial-error models (SLFE and SEFE). We find significant and positive income elasticity and negative effects of copayments. Antibiotic use is also affected by the age structure of the population and the supply of community health care. Finally, we find evidence of spatial dependency in the use of antibiotics across regions. This suggests that regional policies (e.g. public campaigns) aimed at increasing efficiency in antibiotic consumption and controlling bacterial resistance may be influenced by policy makers in neighbouring regions. There will be scope for a strategic and coordinated view of regional policies towards the use of antibiotics.
    Keywords: Antibiotic consumption. Socioeconomic inequalities. Spatial dependency. Regional policies.
    JEL: C21 C23 I11 I18 R00
    Date: 2011
  11. By: Saïsset, L.A.; Couderc, J.P.; Bou Saba, M.
    Abstract: Purpose: French wine cooperatives show differences of corporate objectives, but also common ones with private wine merchants, as they face a common economic environment. The traditional controlling and financial models do not seem adequate to measure ‘sustainable social economy’ performances advocated by the cooperatives’ philosophy. The main difficulty is that their specific corporate governance introduces competition between short term maximum payments to their grape suppliers-patrons and long term investment potentials. How, therefore, facing this “cooperative dilemma”, should they balance these conflicting objectives, and which performance measurement specificities should wine cooperatives adopt? Design/methodology: In order to try and answer this question, the design of an adapted data base appears to be necessary. It should take into account the apparent antinomy of the cooperatives’ short term and long term objectives, in the context of an economically sustainable development. An original economic and financial measurement model is proposed, and we test it with COOPERFIC?, a decision-aid tool for wine cooperatives, based upon a specially constructed data base in Languedoc-Roussillon. Findings: The exploratory results obtained from the test of an original performance measurement model on an ad hoc sample of wine cooperatives lead to new insights into cooperative performance and to some useful guidelines in terms of cooperative governance. Results show how the conflict between their short term and long term performances could be balanced, in order for this specific type of firm to reach its economic and social objectives Practical implications: A conjoint short and long term economic indicators approach illustrates the necessary balance in the cooperative governance, and constitutes a performance measurement model answering some of these wine cooperatives’ Board and management questions ...French Abstract : Propos: Les caves coopératives françaises font apparaître des points de divergence, mais aussi de convergence avec les négociants en vin, en matière d’objectifs d’entreprise, dans la mesure où elles font face au même environnement économique. Toutefois, les modèles traditionnels financiers et de contrôle de gestion ne semblent pas adaptés à la mesure des performances d’une économie sociale durable, dont les valeurs sont portées par la philosophie coopérative. La principale difficulté réside dans le fait que leur mode de gouvernance spécifique entraîne un conflit permanent entre la rémunération maximale à court terme des vignerons coopérateurs et les capacités d’investissement à long terme. Aussi, face à ce « dilemme coopératif », comment les entreprises coopératives viticoles doivent-elles concilier ces objectifs conflictuels et quels types de mesures de performance spécifiques devraient-elles adopter ? Design/méthodologie: Afin d’arriver à répondre à cette double question, la conception d’une base de données spécifique apparaît nécessaire. Elle se doit de prendre en compte l’apparente antinomie des objectifs à court terme et à long terme des coopératives, dans le cadre d’un développement économique durable. Un modèle de mesure de performance économique et financière est ici proposé et testé à l’aide de l’outil d’aide à la décision COOPERFIC?, spécifique aux caves coopératives du Languedoc-Roussillon. Résultats: Les résultats exploratoires provenant du test d’un modèle original de mesure de la performance sur un échantillon ad hoc de caves coopératives conduit à de nouvelles perspectives en matière de performance coopérative, ainsi qu’à des conseils utiles ayant trait à la gouvernance. Ces résultats montrent la façon dont le conflit entre performances à court terme et à long terme pourrait être maîtrisé en vue d’atteindre les objectifs économiques et sociaux de ce type particulier d’entreprise. Implications managériales: Une approche conjointe des indicateurs économiques à court et long terme illustre le nécessaire équilibre à trouver en matière de gouvernance coopérative et constitue un modèle de mesure de la performance répondant à un certain nombre de questions relatives au conseil d’administration et au management général des coopératives.
    JEL: G34 L25 Q13
    Date: 2011

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