New Economics Papers
on Efficiency and Productivity
Issue of 2013‒07‒20
eleven papers chosen by

  1. Productivity dispersion and the roles of quality of labour input and competition: A case of Vietnamese manufacturing sector By Doan, Tinh; Nguyen, Ha
  2. Researchers’ mobility and its impact on scientific productivity" By Fernández-Zubieta, Ana; Geuna, Aldo; Lawson, Cornelia
  3. A Total Factor Productivity-Capital Accumulation Hypothesis of India’s Growth Transitions By Kevin S. Nell
  4. Real cost reduction and productivity increase in an individual industry: a price-accounting approach in theory and practice By Bisello, Martina; Opocher, Arrigo
  5. Path Dependent Patterns of Persistence in Productivity Growth. By Antonelli, Cristiano; Crespi, Francesco; Scellato, Giuseppe
  6. The Italian industrial system between globalization and crisis By Antonio Accetturo,; Antonio Bassanetti; Matteo Bugamelli; Ivan Faiella; Paolo Finaldi Russo; Daniele Franco; Silvia Giacomelli; Massimo Omiccioli
  7. Quality of Government and the Returns of Investment: Examining the Impact of Cohesion Expenditure in European Regions By Andrés Rodriguez-Pose; Enrique Garcilazo
  8. La performance : une dimension fondamentale pour l'évaluation des entreprises et des organisations By Melchior Salgado
  9. Analyse des fondamentaux de la performance et de sa valorisation By Melchior Salgado
  10. Temporary Mobility - A Policy for Academic Career Development By Lawson, Cornelia; Shibayama, Sotaro
  11. Economic Efficacy of Road Traffic Safety Measures By Gul, Ejaz

  1. By: Doan, Tinh; Nguyen, Ha
    Abstract: This paper examines the roles of cost of labour input and competition on productivity dispersion in the Vietnamese manufacturing sector. We look at the effect accounting for labour input quality has on explaining productivity dispersion. This paper tests the hypothesis that mismeasurement of labour input may play a role in large productivity dispersion. We use the cost of labour input of firms as a proxy measure of labour input quality to examine whether incorporating this measure accounts for a part of the productivity dispersion. The paper also examines the role of competition in the extent of productivity dispersion.
    Keywords: productivity dispersion, competition, labour input, transition economies
    JEL: J24 L1 L25 P27
    Date: 2013–07–16
  2. By: Fernández-Zubieta, Ana; Geuna, Aldo; Lawson, Cornelia (University of Turin)
    Abstract: This article analyses the impact of mobility on researchers’ productivity. We address the relationship by developing a theoretical framework based on the job-matching approach for academics and the idea that productivity is driven by capital availability and peer effects. The empirical analysis is based on the entire careers of a sample of 171 UK academic researchers, spanning from 1957 to 2005. We analyse the impact of job changes on post mobility output in 3 and 6 year periods. Contrary to common wisdom, we do not find evidence that mobility per se increases academic performance. Mobility to better departments has a positive but weakly significant impact while downward mobility results in decreasing researchers’ productivity. Once we control for mobility associated with career progress, the results indicate significant strong positive impact for mobility to higher quality department. We estimated a set of alternative specifications of mobility finding evidence of an increase of productivity for mobility from industry to academia but only after an initial negative effect. In most cases mobility is associated with short-term decrease of productivity due to hypothesised adjustment costs.
    Date: 2013–05
  3. By: Kevin S. Nell (Center for Economics and Finance, Faculty of Economics, University of Porto)
    Abstract: This paper re-examines the role of physical capital accumulation in the Indian economy over the period 1953-2010. As an alternative to the orthodox total factor productivity (TFP) view, the paper develops a combined TFP-capital accumulation hypothesis of growth transitions. The results show that the first phase of India’s faster-growing regime during 1980-2002 was mainly TFP driven. However, the large increase in uninvested profits accumulated during the first phase together with evidence of a sharp rise in the productivity of capital and an exogenous saving/investment rate implies that India had a significant amount of untapped long-run growth potential. Consistent with the prediction of the model, the growth surge experienced during 2003-2007 reflects the capital accumulation-driven part of the growth transition. Despite the turbulent years of the global financial crisis since 2008, the analysis suggests that physical capital accumulation will continue to be a driving force of India’s future growth performance.
    Keywords: physical capital accumulation, total factor productivity, Solow model, learning by doing model, growth, India, technical progress function
    JEL: C22 O4 O5 O41 O53
    Date: 2013–07
  4. By: Bisello, Martina; Opocher, Arrigo
    Abstract: The inter-industry diversity in productivity increase stimulated many studies on the industrial sources of economic growth. Much less efforts have been devoted to the study of the industrial sources of real income increase. Albeit from the standpoint of the economic system these aspects are two sides of the same coin, one can consistently trace back an observable change in real wages (in terms of a certain output) and in capital compensation to its industrial sources only by using data on prices, wages etc. and by fitting them into a consistent ‘price-accounting’ scheme of the industry. The conceptual framework presented in this paper is centered around the notion of ‘Real Cost Reduction’, its breakdown into components, and its outcome in terms of increasing labour and capital compensations. We also provide an illustration of the data sets required, of the qualitative results that can be obtained, and of some practical problems that need to be solved in order to extend the analysis and to compare its quantitative results with those of conventional industrial TFP analysis.
    Keywords: Productivity increase, real cost reduction, industry, Total Factor Productivity, real wages
    JEL: D2 D24 D33
    Date: 2013–07–16
  5. By: Antonelli, Cristiano; Crespi, Francesco; Scellato, Giuseppe (University of Turin)
    Abstract: This paper contributes to the analysis of the persistence of firm productivity, here measured by the total factor productivity (TFP), and highlights its path dependent characteristics. The study contributes to the literature on persistence in productivity along four main lines. First, it develops a conceptual framework that links the persistence in productivity performance to persistence at the firm level in innovative activities, which include the adoption and imitation of innovations introduced by third parties. Second, it shows how the internal characteristics of companies, including the propensity of managers to leverage dynamic capabilities, can shape the dynamics of the process. Third, it confirms that external factors, such as the access to local pools of knowledge and the dynamics of economic activity, have relevant effects on persistence and shape its evolution along its path. Fourth, the use of Multiple Transition Probability Matrices (MTPMs) and the subsequent econometric analysis provides substantial evidence on the relevance of the crucial distinction, within non-ergodic dynamics, between past dependent processes, characterized by full hysteretic irrever sibility, and path dependent processes in which events that take place along the process may affect its direction and pace.
    Date: 2013–05
  6. By: Antonio Accetturo, (Banca d'Italia); Antonio Bassanetti (Banca d'Italia); Matteo Bugamelli (Banca d'Italia); Ivan Faiella (Banca d'Italia); Paolo Finaldi Russo (Banca d'Italia); Daniele Franco (Banca d'Italia); Silvia Giacomelli (Banca d'Italia); Massimo Omiccioli (Banca d'Italia)
    Abstract: This paper describes recent developments in the Italian industrial system and investigates the main factors affecting its competitiveness. Our analysis provides a picture of widespread weaknesses. Production levels in all industries are lower than those before the crisis; with the exception of the pharmaceutical and the food industries, the magnitude of production losses is alarming. These trends are indicative of a long-term decline that is shaping both the “traditional” industries (textile, clothing and leather products) as well as those that take advantage of complex technologies and achieve significant economies of scale (electronic products and motor vehicles). Our study links unsatisfactory productivity gains and the loss of international competitiveness to the difficulties of our industries to adapt to changes in the international economy during the last two decades; This has been due to factors that are both internal and external to firms’ activities and which are affecting the technological and organizational progress of the whole economic system.
    Keywords: Italian Industrial System, Great Recession, Globalization, Productivity.
    JEL: L11 L25 O4 O30
    Date: 2013–07
  7. By: Andrés Rodriguez-Pose; Enrique Garcilazo
    Abstract: This paper sets out to examine the impact of the quality of local and regional governments on the returns of investment, focusing on the returns of EU structural and cohesion funds. Despite the widespread belief that the quality of government affects the returns of public investments, whether this is effectively the case has seldom been proved. Using primary data on quality of government collected by the Quality of Government Institute, combined with World Bank Global Governance Indicators data, we conduct a two-way fixed effect panel regression model for a total of 169 in European regions during the period 1996 to 2007. The results of the analysis underline the importance of the quality of government both as a direct determinant of economic growth, as well as a moderator of the efficiency of structural and cohesion funds expenditure. Our analysis finds that both EU investments targeting regions and quality of government make a difference for regional economic growth, but that above a significant threshold level of expenditure, the quality of government is the key factor determining the returns of public investment. In many of the regions receiving the bulk of structural funds, greater levels of cohesion expenditure would, in the best case scenario, only lead to a marginal improvement in economic growth, unless the quality of government is significantly enhanced.
    Keywords: investment, European Union, regions, quality of government, regional development and growth
    JEL: O43 R11
    Date: 2013–07–02
  8. By: Melchior Salgado (SAF - Laboratoire de Sciences Actuarielle et Financière - Université Claude Bernard - Lyon I : EA2429)
    Abstract: La notion de performance est au cœur de toutes les démarches d'évaluation des entreprises et des organisations. Dans la pratique on constate que la performance est un mot-valise, un concept flou et multidimensionnel qui en définitive ne prend de sens que dans le contexte dans lequel il est employé. Compte tenu de l'absence de vision partagée par les différents chercheurs sur la notion de performance ; nous proposons ici un travail de clarification à partir d'une revue de la littérature qui existe sur la performance organisationnelle en sciences de gestion.
    Keywords: Performance, évaluation, performance économique, sociale et sociétale
    Date: 2013–02–09
  9. By: Melchior Salgado (SAF - Laboratoire de Sciences Actuarielle et Financière - Université Claude Bernard - Lyon I : EA2429, Management socio-économique - Institut de Socio-économie des Entreprises et des ORganisations - Institut d'Administration des Entreprises (IAE) - Lyon - Université Jean Moulin - Lyon III)
    Abstract: La revue de la littérature montre que malgré la résistance du modèle actionnarial, la performance globale se définit par des indicateurs multi-critères et multi-acteurs et non pas par une mesure en quelque sorte unique. Quelque soit l'acception retenue, la mesure de la performance est associée aux principes fondamentaux d'efficacité, d'efficience, de cohérence et de pertinence. De plus, les travaux de recherche permettent d'identifier trois sources de performance : le positionnement stratégique de l'entreprise, ses ressources, et la capacité à mettre en œuvre les ressources.
    Keywords: Performance, valeur, stratégie, coopérations interentreprises, croissance externe, entreprises, organisations.
    Date: 2013–06–12
  10. By: Lawson, Cornelia; Shibayama, Sotaro (University of Turin)
    Abstract: Researcher mobility has received increasing support from policy makers around the world as an instrument to improve the performance of research systems by promoting the diffusion of knowledge, and facilitating knowledge and technology transfer, network creation, and productivity (OECD, 2008). International mobility grants have been a preferred means for governments across the world to facilitate the mobility of their research base (MEXT, 2009). This paper investigates the effect of temporary mobility spells abroad on a researcher’s probability for promotion. Temporary research visits may help to expand existing networks and promote knowledge transfer while at the same time ensuring career stability, identified as the main barrier to mobility in Europe and Japan (Stephan, 2012). Using a dataset of 370 bioscience professors in Japan we identified their average career path and evaluated the role of mobility in Japanese universities. We find that international research visits have a positive effect on promotion and reduce the waiting time for promotion by one year. This provides evidence that these visits also benefit a researcher’s career in the long-term. This positive research visit effect is weaker for researchers who also change jobs. Research visits may therefore present a way for immobile researchers to speed up promotion without the need for job mobility. We also find that research visits are particularly important for inbred researchers, again indicating that visits discourage late-career mobility and increase promotion speed. We further find that, while research visits of tenured staff enhance the career by providing an early chair, postdocs have no lasting effect on career progression. Instead, they may be an indicator for a researcher’s struggle to find a permanent position after the PhD
    Date: 2013–05
  11. By: Gul, Ejaz
    Abstract: The number of road traffic casualties is still very lofty and the trend shows a boost with each passing day. The road traffic accidents involve fatalities due to which economic resources are damaged and the productivity of the economy is correspondingly impaired. Costs resulting from traffic accidents represent the largest single part of the overall cost of traffic to the economy. Knowledge about the harm of these traffic accidents to the economy is essential if measures to reduce road traffic accidents are to be identified and initiated. Once an economic assessment of road safety measures has been made, work on improving safety in accordance with economic criteria can be organized as efficiently as possible. Towards this end, it is necessary to opt for measures that are likely to be successful in a given situation. Current research is regarding the evaluation of road traffic safety measures in Pakistan and its economical effects based on available data. The research reveals that road accidents have key influence on the economic statistics of the country. The study presents a valuable tool for policy formulation on the road safety regulations in the country.
    Keywords: Economic, Evaluation, Traffic, Safety, Accidents, Statistical Analysis.
    JEL: R41 R42
    Date: 2013–07–16

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