nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2015‒03‒05
fifteen papers chosen by

  1. Industry Spillovers Effects on Productivity of Large International Firms By Aldieri, Luigi; Vinci, Concetto Paolo
  2. Decompositions of Profitability Change Using Cost Functions: A Comment By E. Grifell-TatjeÌ; C. A. K. Lovell
  3. Multinational Networks, Domestic,and Foreign Firms in Europe By Bruno Merlevede; Matthijs De Zwaan; Karolien Lenaerts; Victoria Purice
  4. Republic of India : Accelerating Agricultural Productivity Growth By World Bank Group
  5. Looking at the determinants of efficiency in banking: evidence from Italian mutual-cooperatives By Francesco, Aiello; Graziella, Bonanno
  6. Gender differentials and agricultural productivity in Niger By Backiny-Yetna, Prospere; McGee, Kevin
  7. Distance, Time since Foreign Entry, and Knowledge Spillovers from Foreign Direct Investment By Bruno Merlevede; Victoria Purice
  8. Does Minimum Tillage with Planting Basins or Ripping Raise Maize Yields? Meso-panel Data Evidence from Zambia. By Ngoma, Hambulo; Mason, Nicole M.; Sitko, Nicholas
  9. Does Gender Matter when Evaluating the Economic Impacts of Smallholder Land Titling in Zambia? By Hichaambwa, Munguzwe; Chamberlin, Jordan; Sitko, Nicholas
  10. Globalisation, Structural Change and Labour Productivity Growth in BRICS Economy By Jagannath Mallick
  11. The Roles of Import Competition and Export Opportunities for Technical Change By Claudia Steinwender
  12. Determinants of total factor productivity of Polish districts. The impact of territorial capital By Dorota Ciołek; Tomasz Brodzicki
  13. Producer Companies in India : Potential to Support Increased Productivity and Profitability of Poor Smallholder Farmers By Helen Leitch
  14. Impacts of the World Trade Organization on Chinese Exports By WAKASUGI Ryuhei; ZHANG Hongyong
  15. A Prospective Analysis of Participatory Research on Conservation Agriculture in Mozambique. By Grabowski, Philip; Kerr, John; Donovan, Cynthia; Mouzinho, Bordalo

  1. By: Aldieri, Luigi; Vinci, Concetto Paolo
    Abstract: The aim of this paper is to explore the impact of intra- and inter-industry spillover components on productivity of large International firms. We use data from all EU R&D investment scoreboards editions issued every year until 2011 by the JRC-IPTS (scoreboards). The analysis is based upon a new dataset composed of 879 worldwide R&D-intensive manufacturing firms whose information has been collected for the period 2002-2010. Given the panel data structure of the sample, ad hoc econometric techniques that deal with both firm’s unobserved heterogeneity and weak exogeneity of the right hand-side variables are implemented. The main contribution to the literature is that of further investigating the industry spillovers at firm level within the Triad for a period of time that considers also the economic crisis. In order to measure the distribution of the firm’s research interests through the different technological areas, we use the patent distribution over technological sectors according to the International Patent Classification (IPC). The patent distribution relies on the whole number of patent applications filed to the European Patent Office until 2011. The empirical results suggest a significant impact of R&D spillover effects on firms’ productivity but the results are quite differentiated according to the spillover stock type and this may represent a relevant source of policy implications.
    Keywords: Panel Data Models; R&D Spillovers; Total Factor Productivity growth
    JEL: C23 O33 O47
    Date: 2015–02–25
  2. By: E. Grifell-TatjeÌ (Universitat AutoÌ€noma de Barcelona); C. A. K. Lovell (School of Economics, The University of Queensland)
    Abstract: Recently Diewert (2014) decomposed cost change into the product of four drivers. He then combined three of these drivers with a novel measure of returns to scale to decompose profitability change. We use an implicit Konus input quantity index to show that his expression for profitability change is the product of a price recovery index and an implicit productivity index, and we extend his analysis by exploiting new relationships between theoretical Konus and empirical Fisher price indexes to obtain two new decompositions of profitability change. One pairs a Konus price recovery index with a Fisher implicit productivity index, the other has pure Fisher structure, and we note the advantages of each.
    Keywords: Profitability,Productivity,Implicit Index Numbers
    JEL: C43 D24
    Date: 2015–03
  3. By: Bruno Merlevede; Matthijs De Zwaan; Karolien Lenaerts; Victoria Purice (-)
    Abstract: This paper introduces two datasets, AUGAMA, a panel of European firms for the period 1996-2011, and EUMULNET, a European Multinational Network data set. These datasets are constructed on the basis of the Amadeus database issued by Bureau Van Dijk Electronic Publishing. We document the process of building these data sets from the raw Amadeus data for 26 European countries. We show that the data sets adequately approximate the structure of the European economy across countries, regions, and industries as portrayed by data from Eurostat (Structural Business Statistics) and Cambridge Econometrics. As an illustration of possible application, we use the datasets to test a number of results from the theoretical literature regarding the productivity of multinational firms vis-a-vis domestic firms.
    Keywords: multinationals, firm performance, total factor productivity, firm-level data
    JEL: F23
    Date: 2015–02
  4. By: World Bank Group
    Keywords: Environmental Economics and Policies Agriculture - Agricultural Research Social Protections and Labor - Labor Policies Economic Theory and Research Agriculture - Agribusiness Environment Macroeconomics and Economic Growth
    Date: 2014–05
  5. By: Francesco, Aiello; Graziella, Bonanno
    Abstract: Italy has experienced a restructuring and consolidation process in the banking industry since the 1990s’ that is expected to foster efficiency and competition. Despite the reforms, a peculiarity of the industry is the persistence of small mutual-cooperative banks (BCCs) active in narrowed markets. The scope of this paper is to evaluate the level and the dynamics of BCC efficiency compared with other bank-types and to analyze its main determinants over the period 2006-2011. Efficiency is firstly estimated with stochastic frontiers and then used as dependent variable in fixed and random effects models that have been run to regress BCC efficiency against individual and environmental factors. The latter are meant to gauge the structure of the provincial banking market, that is to say the reference market of BCCs. Results show that BCCs perform better than other banks, even though efficiency has decreased over time, owing to the effect of the current crisis. Furthermore, BCC efficiency increases with market concentration and demand density and decreases as bank branches increase in local markets. This holds whatever the frontier (cost or profit). Finally, local development negatively affects (only) cost efficiency, while BCCs gain in generating profits when systemic credit risk increases.
    Keywords: Mutual-cooperative banks; local markets; stochastic frontiers; efficiency determinants
    JEL: C13 D21 D22 G21 O16 P13
    Date: 2015–03–01
  6. By: Backiny-Yetna, Prospere; McGee, Kevin
    Abstract: Most of the poor in Sub-Saharan Africa live in rural areas where agriculture is the main income source. This agriculture is characterized by low performance and its productivity growth has been identified as a key driver of poverty reduction. In Niger, as in many other African countries, productivity is even lower among female peasants. To build policy interventions to improve agricultural productivity among women, it is important to measure the potential gap between men and women and understand the determinants that explain the gap. This paper uses the Oaxaca-Blinder decomposition methodology at the aggregate and detailed levels to identify the factors that explain the productivity gap. The analysis finds that in Niger on average plots managed by women produce 19 percent less per hectare than plots managed by men. It also finds that the gender gap tends to be widest among Niger's most productive farmers. The primary factors that contribute to the gender productivity gap in Niger are: (i) farm labor, with women facing significant challenges in accessing, using, and supervising male farm labor; (ii) the quantity and quality of fertilizer use, with men using more inorganic fertilizer per hectare than women; and (iii) land ownership and characteristics, with men owning more land and enjoying higher returns to ownership than women.
    Keywords: Gender and Health,Housing&Human Habitats,Labor Policies,Gender and Law,Gender and Development
    Date: 2015–02–01
  7. By: Bruno Merlevede; Victoria Purice (-)
    Abstract: This paper investigates the effect of foreign direct investment on the productivity of local firms. We decompose traditional country-wide spillover measures in different components according to both distance between foreign and domestic firms and timesince- foreign-entry. We find larger and faster spillover effects for local suppliers of foreign firms at shorter distance, driven mainly by recent foreign entrants. Irrespective of distance, foreign firms of medium maturity generate backward spillover effects that fade away with longer presence. A positive effect on local competitors is not significantly affected by distance and requires the presence of mature foreign firms.
    Keywords: FDI, Spillovers, Dynamics, Timing, Regions, Distance
    JEL: F2 D24
    Date: 2014–12
  8. By: Ngoma, Hambulo; Mason, Nicole M.; Sitko, Nicholas
    Abstract: Raising agricultural productivity to meet growing food demands while increasing the resilience of rain-fed farm systems to climate variability is one of the most pressing contemporary development challenges in Sub-Saharan Africa (SSA). Anchored on the three core principles of minimum tillage (MT), crop residue retention, and crop rotation; conservation agriculture (CA) technologies have been actively promoted over nearly the last two decades as potential solutions to raise farm productivity in the context of increased climate variability.
    Keywords: Land Economics/Use, Productivity Analysis, Public Economics,
    Date: 2015–01
  9. By: Hichaambwa, Munguzwe; Chamberlin, Jordan; Sitko, Nicholas
    Abstract: Rural land titling has stronger impacts on farm investments for female title-holders than for male title-holders. This effect is particularly pronounced for investments which are less capital-intensive. The gendered impacts of smallholder ownership of land titles may have to do with systematic differences in tenure security under traditional systems. Policies and programmes aimed at encouraging female access to land titles can improve the economic impact of agricultural land titling through increases in productivity and land productivity enhancing investments.
    Keywords: Land Economics/Use,
    Date: 2015–01
  10. By: Jagannath Mallick
    Abstract: Globalisation, has intensified the demand preference for quality labour, that embodies more knowledge and competency/skill to maximise the production in one hand, and it has also changed the life style and consumption behavior of the society on the other. As a consequence, this has led to significant changes in the composition and structure of the economy, and also, the reallocation of labour. The study examines the reallocation effect (or structural change) and the direct effect of globalization on labour productivity growth in BRICS countries. The study also examines the relative role of consumption factors and other factors for the structural development during globalization. The study uses shift–share analysis, dynamic panel data method and input-output tables for the empirical analysis during 1990-91 to 2011-12. The findings show that the contribution of structural change is relatively significant in China and India. The globalization measures including international trade and FDI are found to have significant impact on the upsurge of labour productivity growth in BRICS, where the consumption demand predominates among the factors of structural development.
    Keywords: Globalisation, FDI, Trade, Labour productivity, Structural Change, BRICS
    JEL: F1 J01 J08 R1
    Date: 2015–02
  11. By: Claudia Steinwender
    Abstract: A variety of empirical and theoretical trade papers have suggested and documented a positive impact of trade on the productivity of firms. However, there is less consensus about the underlying mechanism at work. While trade papers focus on access to export markets, other papers stress the importance of import competition. Since imports and exports (and even tariffs affecting either) are usually highly correlated, it is unclear which mechanism the existing empirical papers uncover. This paper conducts a "horse race" between export opportunities and import competition. Using Spanish firm level data, instrumenting for exports and imports with tariff changes and controlling for selection, I find robust evidence that access to export markets leads to productivity increases, but only for firms that were already highly productive before. The evidence on import competition is weaker. If anything, initially low-tech firms manage to increase their productivity in response to increased competition from abroad. The latter finding is at odds with most trade models, so I propose a model incorporating non-profit maximizing managers to reconcile theory with the evidence. Empirically, I find that all productivity upgrades are driven by increased R&D, patenting, and product innovation. Access to export markets also leads to the adaptation of foreign technologies. There is no evidence that either mechanism leads to increased full time employment, instead full time workers seem to be replaced by part-time or temporary workers.
    Keywords: Import competition, technical change, productivity, exporting
    JEL: F12 F13 F14 L25
    Date: 2015–02
  12. By: Dorota Ciołek (Institute for Development, Sopot, Poland; University of Gdansk, Faculty of Economics, Department of Macroeconomics, Gdańsk, Poland); Tomasz Brodzicki (University of Gdansk, Faculty of Economics; Institute for Development)
    Abstract: In contrast to most previous analyzes in the present study we have adopted a highly spatially disaggregated NUTS-4 level, or districts, which is particularly relevant for analysis of spatial and territorial interactions and relationships. At this level of aggregation presence of various externalities and spillovers in development processes can be detected. Territorial capital, as a specific carrier concept of territorial cohesion is significantly different from the classical factors of production. We thus can assume that the territorial capital does not affect directly the production, but indirectly through the impact on TFP. The analysis uses different specifications of an econometric model with TFP as the dependent variable. We attempt to identify potential interactions between spatial districts. This requires, however, determination of the value of GDP per capita of Polish districts and, secondly, estimation of TFP for counties. The results are very interesting and to a large extent in line with theoretical postulates. On the basis of in-depth discussion of the results obtained we have developed a series of recommendations for economic policy. The paper uses the results of the project financed by the Polish National Science Centre “Concept of the territorial cohesion in cohesion policy. Implications for Economic Growth" (no. 2012/05/B/HS4/04212).
    Keywords: regional development, estimation of GDP per capita, TFP determinants, territorial capital, spatial econometrics
    JEL: O40 O47 R11 R12 C31
    Date: 2015–01
  13. By: Helen Leitch
    Keywords: Finance and Financial Sector Development - Microfinance Private Sector Development - E-Business Rural Development Knowledge and Information Systems Law and Development - Corporate Law Finance and Financial Sector Development - Debt Markets Rural Development
    Date: 2014–12
  14. By: WAKASUGI Ryuhei; ZHANG Hongyong
    Abstract: Chinese exports dramatically increased in the early 2000s as China reformed its economy to become more free and open via its entry into the World Trade Organization (WTO), which clearly affected the productivity and exports of Chinese firms. This paper, using firm-level panel data from the Chinese electric machinery, electronics equipment, and telecommunications equipment industries, confirms that after the entry into the WTO, the export decision of Chinese firms was accelerated by a rise in productivity that was not uniform among the ownership structures. By disaggregating the firms into three groups—private domestic firms (PDFs), state-owned enterprises (SOEs), and foreign invested enterprises (FIEs)—our empirical estimation reveals that the economic reform via the entry into the WTO had a "productivity effect" on Chinese exports which commonly enhanced firms' exports according to their productivity levels, but had an asymmetric "ownership effect" on their exports among the three groups, which was less favorable for exports of SOEs in comparison with that of FIEs and PDFs.
    Date: 2015–02
  15. By: Grabowski, Philip; Kerr, John; Donovan, Cynthia; Mouzinho, Bordalo
    Abstract: The development of improved agricultural technologies has tremendous potential for improving the livelihoods of smallholder farmers in sub-Saharan Africa. Conservation agriculture (CA) has been widely promoted to improve farmers’ productivity and decrease their vulnerability to climate change. However, the benefits and challenges associated with reducing tillage vary by soil type and rainfall regime and the different minimum tillage technologies (basins, jab-planters, ox-drawn rippers, and tractor rippers) have unique labor, knowledge and financial requirements for effective use. Due to the complexity of both the livelihood strategies of resource-poor farmers and of their agro-ecological conditions, widespread adoption of any one form of CA is unlikely.
    Keywords: Agricultural and Food Policy,
    Date: 2015–02

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