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on Efficiency and Productivity |
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Issue of 2013‒11‒29
23 papers chosen by |
| By: | Mohnen, Pierre (UNU-MERIT, and SBE, Maastricht University); Hall, Bronwyn H. (University of California at Berkeley, NBER, UNU-MERIT, and SBE, Maastricht University.) |
| Abstract: | This paper reviews the existing evidence regarding the effects of technological and non-technological innovations on the productivity of firms and the existence of possible complementarities between these different forms of innovation. |
| Keywords: | innovation, productivity |
| JEL: | O30 O31 O33 O40 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013021&r=eff |
| By: | Federico Biagi (European Commission – JRC - IPTS) |
| Abstract: | In this report we review the literature on the relationship between ICT and productivity. In Sect. 1 we discuss in broad terms the theoretical relationship between ICT and productivity, while in Sect. 2 we present the growth accounting methodology, which tries to measure the contributions to growth from difference sources (ICT and non ICT capital, human capital, total factor productivity). Within the growth-accounting methodology, in Sect. 3, we discuss the U.S. - E.U. productivity gap and the role of ICTs, and we show that the latter are responsible for the U.S. acceleration in productivity growth observed in the period 1996-2006 and for the widening of the U.S. – E.U. productivity gap in the same period. Then, in Sect. 4, we move to regression based studies, and we review the literature that uses macro, meso (sectoral) and firm/plant level data. While the overall message on the importance of ICT for growth coming from this literature is consistent with the findings of the studies based on growth accounting, the econometric approach allows researchers to investigate a wider set of questions. In particular, we focus on the role of ICT as a General Purpose Technology aspects and we review the literature studying the role of ICT and complementary assets in firms' productivity and the literature exploring the positive externalities related to ICT capital and the impact of ICT usage on the innovative capability of firms. Finally, we also review the literature on the relationship between ICT infrastructures and GDP growth. |
| Keywords: | ICT, labour productivity, total factor productivity, innovation |
| JEL: | D22 D24 E01 O30 O47 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:decwpa:2013-09&r=eff |
| By: | Raymond, Wladimir (STATEC Luxemburg); Mairesse, Jacques (CREST-INSEE, UNU-MERIT, Maastricht University, and NBER); Mohnen, Pierre (UNU-MERIT / MGSoG, SBE, Maastricht University, and CIRANO); Palm, Franz (SBE, Maastricht University and CESifo) |
| Abstract: | This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the conditional mean of labour productivity: through an observed binary indicator, an observed intensity variable or through the continuous latent variables that correspond to the observed occurrence or intensity. It estimates these models by full information maximum likelihood using two unbalanced panels of Dutch and French manufacturing firms from three waves of the Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and of stronger persistence in productivity than in innovation. |
| Keywords: | R&D, innovation, productivity, panel data, dynamics, simultaneous equations |
| JEL: | C33 C34 C35 L60 O31 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013025&r=eff |
| By: | Mundula, Luigi; Auci, Sabrina |
| Abstract: | The level of interest in smart cities is growing, and the recent literature on this topic (Holland, 2008; Caragliu et al., 2009, Nijkamp et al., 2011 and Lombardi et al., 2012) identifies a number of factors that characterise a city as smart, such as economic development, environment, human capital, culture and leisure, and e-governance. Thus, the smartness concept is strictly linked to urban efficiency in a multifaceted way. A seminal research for European policy conducted by Giffinger et al. (2007) defines a smart city on the basis of several intangible indicators, such as a smart economy, smart mobility, smart environment, smart people, smart living, and smart governance. These authors’ methodology results in a ranking of 70 European cities in terms of their smartness. Our aim is to verify the robustness of these smartness indicators in explaining the efficiency of the same sample of European cities. Using the concept of output maximising, we built a stochastic frontier function in terms of urban productivity and/or urban efficiency by assessing the economic distance that separates cities from being smart. Moreover, this approach, which distinguishes between inputs and efficiency, allows us to incorporate the smartness indicators into the systematic component within the error term. As a result, our conclusions identify a different ranking of European cities with respect to Giffinger et al. (2007)’s analysis, thereby highlighting the need for a better and more robust definition of these indicators. |
| Keywords: | smart cities, stochastic frontier, technical inefficiency |
| JEL: | D63 Q01 R11 |
| Date: | 2013–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51586&r=eff |
| By: | Cheti Nicoletti; Birgitta Rabe |
| Abstract: | Using administrative data on schools in England, we estimate an education production model of cognitive skills at the end of secondary school. We provide empirical evidence of self-productivity of skills and of complementarity between secondary school inputs and skills at the end of primary school. Our inference relies on idiosyncratic variation in school expenditure and child fixed effect estimation that controls for the endogeneity of past skills. The persistence in cognitive ability is 0.22 and the return to school expenditure is three times higher for students at the top of the past attainment distribution than for those at the bottom. |
| Keywords: | Education production function, test scores, school quality, complementarity |
| JEL: | I22 I24 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:13/30&r=eff |
| By: | Leeuwen, George van (Centraal Bureau voor Statistiek); Mohnen, Pierre (UNU-MERIT/MGSoG) |
| Abstract: | Almost all empirical research that has attempted to assess the validity of the Porter hypothesis has started from reduced-form models, e.g. by using single-equation models for estimating the contribution of environmental regulation (ER) to productivity. This paper addresses the Porter Hypothesis within a structural approach that allows us to test what is known in the literature as the "weak" and the "strong" version of the Porter hypothesis. Our "Green Innovation" model includes three types of eco investments and non-eco R&D to explain differences in the incidence of innovation. Besides product and process innovations we recognize eco-innovation as a separate type of innovation output. We explicitly model the potential synergies of introducing the three types of innovations simultaneously and their synergy in affecting total factor productivity (TFP) performance. Using a comprehensive panel of firm-level data built from four surveys we aim to estimate the relative importance of energy price incentives as a market based type of ER and the direct effect of environmental regulation on eco investment and firms' decisions regarding the introduction of several types of innovations. The results of our analysis show a strong corroboration of the weak version of the Porter hypothesis but not of the strong version of the PH, in this case on TFP performance. |
| Keywords: | Porter Hypothesis, green innovation, environmental regulation, innovation complementarities, productivity |
| JEL: | H23 L5 O32 O38 Q55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013002&r=eff |
| By: | Cristian Barra (Università di Salerno); Sergio Destefanis (Università di Salerno, CELPE and CSEF); Giuseppe Lubrano Lavadera (IRAT, CNR, Naples) |
| Abstract: | In this paper we test the nexus between financial development and economic growth upon territorially highly disaggregated data from Italy, paying particular attention to the role of market power of local banks and cooperative banks. Profit efficiency, computed using the so-called “true fixed-effects” model proposed by Greene (J PROD ANAL 2005), is used as qualitative measure of financial development, while its quantitative measure is credit volume divided by gross domestic product. A growth model, similar to Hasan et al. (J BANK FINANC 2009), is specified and tested on panel data over the 2001-2010 period. Our estimates suggest that both indicators of financial development have a positive significant impact on GDP per worker, especially when considering cooperative banks and duopolistic markets. None of the above quoted results seems to be much affected by occurrence of the ongoing recession. |
| Keywords: | Financial development, Economic growth, Profit efficiency, Frontier analysis, Banking efficiency |
| JEL: | D24 G21 L89 |
| Date: | 2013–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:346&r=eff |
| By: | Trax, Michaela; Brunow, Stephan; Suedekum, Jens |
| Abstract: | Using comprehensive data for German establishments, we estimate plant-evel production functions to analyze if cultural diversity affects total factor productivity. We distinguish diversity in the establishment's workforce and in the aggregate labor force of the region where the plant is located. We find that a larger share of foreign workers . either in the establishment or in the region . does not affect productivity. However, there are spillovers associated with the degree of fractionalization of the group of foreigners into different nationalities. The aggregate level is, quantitatively, at least as important for productivity as the workforce composition inside the establishment. -- |
| Keywords: | cultural diversity,plant-level productivity,knowledge spillovers |
| JEL: | R23 J21 J31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:119&r=eff |
| By: | Verónica Fernández Gual (CREIP, XREAP, Industry and Territory Research Group, Reus, Spain); Agustí Segarra Blasco (CREIP, XREAP, Industry and Territory Research Group, Reus, Spain) |
| Abstract: | This paper investigates relationships between cooperation, R&D, innovation and productivity in Spanish firms. It uses a large sample of firm-level micro-data and applies an extended structural model that aims to explain the effects of cooperation on R&D investment, of R&D investment on output innovation, and of innovation on firms’ productivity levels. It also analyses the determinants of R&D cooperation. Firms’ technology level is taken into account in order to analyse the differences between high-tech and low-tech firms, both in the industrial and service sectors. The database used was the Technological Innovation Panel (PITEC) for the period 2004-2010. Empirical results show that firms which cooperate in innovative activities are more likely to invest in R&D in subsequent years. As expected, R&D investment has a positive impact on the probability of generating an innovation, in terms of both product and process, for manufacturing firms. Finally, innovation output has a positive impact on firms’ productivity, being greater in process innovations. |
| Keywords: | innovation sources; productivity; R&D Cooperation |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2013-08&r=eff |
| By: | Blanco, Mariana (University of Rosario); Dalton, Patricio S. (Tilburg University); Vargas, Juan F. (University of Rosario) |
| Abstract: | We investigate whether and how the type of unemployment benefit institution affects productivity. We designed a field experiment to compare workers' productivity under a welfare system, where the unemployed receive an unconditional monetary transfer, with their productivity under a workfare system, where the transfer is received conditional on the unemployed spending some time on ancillary activities. First, we find that having an unemployment benefit institution, regardless of whether it makes transfers conditional or unconditional, increases workers' productivity. Second, we find that productivity is higher under Welfare than under Workfare. Becoming unemployed under Welfare comes at the psychological cost of a drop in self-esteem, presumably due to the shame or stigma associated with receiving an unconditional unemployment benet. We document the empirical relevance of precisely this channel. The differences we observe in productivity suggest that this psychological cost acts as an extra non- monetary incentive for workers under Welfare to put a higher effort in their work. |
| Keywords: | Unemployment Benefits, Workfare, Productivity, Self-esteem, Shame. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:177&r=eff |
| By: | Belderbos, Rene; Ikeuchi, Kenta; Fukao, Kyoji; Kim, Young Gak; Kwon, Hyeog Ug |
| Abstract: | We examine the effects of R&D spillovers on total factor productivity in a large panel of Japanese manufacturing plants matched with R&D survey data (1987-2007). We simultaneously examine the role of public (university and research institutions) and private (firm) R&D spillovers, and examine the differential effects due to technological, geographic and relational (buyer-supplier) proximity. Estimating dynamic long difference models and allowing for gradual convergence in TFP and geographic decay in spillover effects, we find positive effects of technologically proximate private R&D stocks, which decay in distance and become negligible at around 500 kilometres. In addition to knowledge spillovers from technologically proximate R&D stocks, ‘relational’ spillovers from buyer and supplier R&D stocks exert positive effects on TFP growth that are similar in magnitude. The elasticity of TFP is highest for public R&D (corrected for industrial relevance), in particular for plants operated by R&D conducting firms. We do not find evidence of geographic decay in the impact of public and relational spillovers. Over time, declining R&D spillovers appear to be responsible for a substantial part of the decline in the rate of TFP growth. The exit of proximate plants operated by R&D intensive firms plays a notable role in this process and is an important phenomenon in major industrial agglomerations such as Tokyo, Osaka, and Kanagawa. |
| Keywords: | R&D; spillovers; plant productivity; distance; |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/425526&r=eff |
| By: | Mamatzakis, E |
| Abstract: | The impact of strong emotions or mood on decision making and risk taking is well recognized in behavioral economics and finance. Yet, and in spite of the immense interest, no study, so far, has provided any comprehensive evidence on the impact of weather conditions. This paper provides the theoretical framework to study the impact of weather through its influence on bank manager’s mood on bank inefficiency. In particular, we provide empirical evidence of the dynamic interactions between weather and bank loan inefficiency, using a panel data set that includes 69 banks operating in the US spanning the period 1994 to 2009. Bank loan inefficiency is derived using both a standard stochastic frontier production approach for bank loans and a directional distance function. Then, we employ a Panel-VAR model to derive orthogonalised impulse response functions and variance decompositions, which show responses of the main variables, weather and bank loan inefficiency, to orthogonal shocks. The results provide evidence insinuating the importance of specific weather characteristics, such as temperature and cloud cover time, in explaining the variation of gross loans. |
| Keywords: | Bank loan inefficiency, weather conditions, panel VAR, causality, US banking. |
| JEL: | D22 G21 G28 |
| Date: | 2013–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51616&r=eff |
| By: | Epstein, Gil S. (Bar-Ilan University); Menis, Joseph (Bar-Ilan University) |
| Abstract: | In this note we use unique data from Bar-Ilan University, over a period of four years (2005-2008), to estimate simultaneous equations with regard to the relationship between publications and teaching loads. The study shows that students studying for a bachelor's degree are a liability while PhD students are an asset in terms of publications. Those studying for a master's degree may be a liability or an asset depending on the department characteristics. Increasing the number of faculty members increases publications however it may not increase the publications per capita and is department specific. |
| Keywords: | productivity, publications, teaching loads, higher education |
| JEL: | D2 L11 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7751&r=eff |
| By: | Valeria Gattai |
| Abstract: | This paper surveys recent contributions about internationalization and performance of Italian enterprises. It covers both theoretical and empirical studies taking a microeconomic perspective and studying a potential link between firms’ global involvement and heterogeneity in economic, human capital & innovation and financial measures. The discussion is organized in an intuitive and non-technical way. More than 40 papers are analyzed from a multifaceted perspective, considering their research outline, internationalization measures, performance indicators, causality and results. |
| Keywords: | Internationalization, Performance, Italy, Firm-level data, Survey |
| JEL: | F1 F2 L2 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:258&r=eff |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Nilsson , Magnus (CIRCLE, Lund University) |
| Abstract: | In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed. |
| Keywords: | technological competencies; firm performance; accessibility; knowledge; innovation; geography |
| JEL: | L25 O18 O30 |
| Date: | 2013–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_024&r=eff |
| By: | Møen, Jarle (Dept. of Business and Management Science, Norwegian School of Economics); Thorsen, Helge Sandvig (Dept. of Economics, Norwegian School of Economics) |
| Abstract: | The returns to R&D literature is large and has been surveyed on several occasions. We complement previous surveys by using formal meta analytic techniques to analyse publication bias. We find evidence consistent with a strong positive bias in the part of the literature that controls for unobserved firm fixed effects. The reason may be that fixed effects specifications are particularly susceptible to measurement errors and therefore have a high probability of producing implausibly low return estimates. Implausible estimates are likely to be filtered out before being reported, and our analysis suggest that 26 % of a hypothetical complete literature is missing. Future reviews should take into account that the full effect of negative specifications biases may be masked by reporting and publication bias. |
| Keywords: | Returns to R&D; Meta-analysis; Publication bias; Funnel asymmetry; Trim-and-fill method; FAT-PET |
| JEL: | C83 D24 O31 |
| Date: | 2013–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2013_012&r=eff |
| By: | Anna Ruzik-Sierdzinska; Claudia Villosio; Michele Belloni; Maciej Lis; Monika Potoczna |
| Abstract: | This NEUJOBS research report focuses on links between age, productivity and lifelong learning. Various data sources (EU-SILC, LFS, Structure of Earnings Survey, SHARE, ELSA, SHARELIFE) and methodological approaches were used in this report. Our analysis identifies clusters of countries with common characteristics of age-earnings profiles (for certain groups of employees) and allows for an explanation of those differences. Some differences can be attributed to the share of sectors, education types, and occupations in country-specific employment. Others are due to labour market institutions and the (dis)incentives to work at older ages provided by social security systems. Additionally, the dynamics of earnings after age 50 differ less between educational and occupational groups than at earlier ages. We show that the dynamics of average wages are strongly influenced by the timing of entering and leaving labour market. An estimation of the impact of LLL on productivity (measured by earnings) at older ages shows that for employees aged 50+, participation in training increases wages in the short-term. |
| Keywords: | Productivity, Age-Earning Profiles, Lifelong Learning |
| JEL: | J24 J31 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnrepo:0114&r=eff |
| By: | Huang, Can (chuang@zju.edu.cn; School of Management, Zhejiang University); Wu, Yilin (School of Statistics, Renmin University of China); Mohnen, Pierre (mohnen@merit.unu.edu; UNU-MERIT / MGSoG); Zhao, Yanyun (School of Statistics, Renmin University of China) |
| Abstract: | This paper examines whether the government support in favour of firms located in the Haidian district of Beijing, which includes the Zhongguancun Science Park, was effective in terms of innovation and economic performance. We use a dataset of 500 manufacturing firms that results from a merger of the 2007 nation-wide innovation survey and the Annual Survey of Industrial Enterprises databases from the National Bureau of Statistics. We find that among all firms (state- or collectively-owned, non-state- or collectively-owned and Hong Kong, Macau, Taiwan or other foreign-funded firms) that received direct government support for innovative activities only the non-state- or collectively-owned domestic firms invested more in innovation than the firms that did not receive such support. However, despite higher government support, domestic firms have lower labour productivity than foreign-funded firms, including those funded from Hong Kong, Macau, or Taiwan. |
| Keywords: | CDM, innovation policy, Haidian, evaluation |
| JEL: | O32 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013058&r=eff |
| By: | Sophia Du Plessis, Ada Jansen and Dieter von Fintel |
| Abstract: | The question about the productivity of slavery is a strongly debated issue, for example in the USA the seminal work by Engerman and Fogel (1974), “Time on the Crossâ€, sparked a flurry of publications debating the issue from different angles. The debate about the economic worth of slaves in the Cape of Good Hope already started with Pasques de Chavonnes (the only member of the Council of Policy who opposed the principle of using slave labour) who in 1717 remarked that slavery would inhibit economic development since ‘the money spent on slavery is dead money’. In this paper we provide an overview of slave prices and the value of their marginal productivity in the Cape Colony and ultimately we ask whether Cape slavery was “dead moneyâ€. Our approach is to estimate a hedonic price function for slaves in the Cape Colony for the time period 1700-1725 using the Changing Hands database, and comparing these with slave productivity estimates from the opgaafrollen. The initial price paid for a slave is, by conjecture, constituted by current marginal productivity of slaves plus the expected net present value of slave characteristics (which by implication will yield productivity returns in the future). These productive characteristics include gender, age and origin. We furthermore investigate whether the gradual increase in slave prices was driven by overall price levels in the economy, by the importation of “better quality†slaves over time or by the policy induced change in demand for labour away from European wage labour to slave labour. Lastly, we investigate whether slave prices matched the value of their marginal product by comparing estimates of the hedonic price series with estimates of marginal productivity. Real prices track marginal productivity closely, suggesting that slavery was profitable over most of the period. However, this effect is heterogeneous, with small farmers showing no signs of profitability and the opposite for large farmers. Small farmers attempted to mimic the production process of large farmers unsuccessfully, and consequently many impoverished farmers had made over-investments in slavery. |
| Keywords: | Slave prices, productivity |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:385&r=eff |
| By: | Rui Albuquerque; Luis Brandao-Marques; Miguel A. Ferreira; Pedro Matos |
| Abstract: | We develop and test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data on cross-border mergers and acquisitions (M&A) and corporate governance in 22 countries, we find that cross-border M&As are associated with subsequent improvements in the governance, valuation, and productivity of the target firms’ local rivals. This positive spillover effect is stronger when the acquirer is from a country with stronger shareholder protection and if the target’s industry is more competitive. We conclude that the international market for corporate control promotes the adoption of better corporate governance practices around the world. |
| Keywords: | Foreign direct investment;Corporate governance;Spillovers;Competition;Foreign direct investment, Corporate governance, Cross border mergers and acquisitions, Spillovers |
| Date: | 2013–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:13/234&r=eff |
| By: | Elena Pokryshevskaya; Evgeny Antipov |
| Abstract: | We demonstrate how publicly available ratings of Internet stores can be used to perform actionable importance-performance analysis (IPA). We use a panel of 422 non-food online merchants, which allows us to account for store-specific effects, and therefore obtain better estimates of each attribute’s influence on purchase intention. Our approach is economical, as merchants do not have to spend money on surveys that firms typically have to conduct for IPA. We have enhanced traditional importance-performance analysis by deriving attribute importance indirectly using the Shapley Value decomposition of a first-difference regression’s R2. We have also modified the standard “importance-performance” graph by adding the information about the directions of changes in attribute ratings between the two periods, which made it easier to point out strategic mistakes. We demonstrate the diagnostic power of our approach by doing the actual importance-performance analysis for two of the stores. The potential of enhancing the expert system using other methods and other types of publicly available data is discussed. |
| Keywords: | Shapley value, importance-performance analysis, panel data, e-commerce. |
| JEL: | L81 M31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:08man2013&r=eff |
| By: | Rosa, Julio Miguel (Industry Canada, Economic Research and Policy Analysis Branch); Mohnen, Pierre (UNU-MERIT / MGSoG, and CIRANO) |
| Abstract: | On the one hand, firms prefer to perform R&D in an open mode (letting R&D be performed extramurally or even selling their R&D services) to benefit from knowledge spillovers and complementarities between internal and external R&D. On the other hand, they may also like to perform R&D in a closed mode (funding and executing their R&D intramurally) to minimize outgoing externalities. We examine the dynamic process by which firms change the way of doing R&D and how these strategic choices of doing R&D affect their productivity growth. This study is based on the Statistics Canada Research and Development in Canadian Industry survey (RDCI), which collects data on R&D performed in the business sector in Canada. The paper is based on data for the period 1997 to 2006. The panel dimension of the data allows to control for unobserved characteristics of R&D performers by estimating a multinomial Logit model with unobserved heterogeneities using maximum simulated likelihood (MSL) method. |
| Keywords: | R&D, State Dependence, Dynamic Multinomial Logit, Panel-data, Maximum Simulated Likelihood, Open Innovation |
| JEL: | C35 L23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013060&r=eff |
| By: | Athar, Iqbal; Khan, Muhammad Irfan; Ali, Saffar |
| Abstract: | This study sets out to discover the determinants of compensation of the chief executive officers in the banking industry of Pakistan. Accounting based performance measures and size of the firm have been used as predictors. Results of the study are consistent with arguments, suggesting significant and positive impact of size (assets) of the firm on CEO compensation while no association is found with either of the performance measure of the firm except income before tax (IBT). Return on Assets and Return on Equity failed to explain the given phenomenon. The study further elaborates that number of employees (NOEMP) greatly influences on CEO compensation but negatively. This relationship may be due to the unique characteristics of Pakistan's social and economic structure. |
| Keywords: | Compensation, Corporate Governance, Corporate Control, Return on Assets,Return on Investment |
| JEL: | G34 G21 |
| Date: | 2012–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42402&r=eff |