nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2017‒05‒28
eight papers chosen by

  1. Productivity and business performance: apprasail of SME in Côte d’Ivoire By KOUADIO, Hugues
  2. The Causes and Costs of Misallocation By Diego Restuccia; Richard Rogerson
  3. Working Paper 263 - Factor Productivity and Potential Output Growth in South Africa By AfDB AfDB
  4. New Road Infrastructure: The Effects on Firms By Stephen Gibbons; Teemu Lyytikäinen; Henry Overman; Rosa Sanchis-Guarner
  5. The Impact of CSR Certification on Firm Profitability, Wages and Sales By Peter Huber; Eva Abramuszkinová Pavlíková; Marcela Basovníková
  6. Education Systems and Foreign Direct Investment; Does External Efficiency Matter? By Elise Wendlassida Miningou; Sampawende J Tapsoba
  7. Analysis of energy use efficiency in Japanese factories:Industry agglomeration effect for energy efficiency By Kenta Tanaka; Shunsuke Managi
  8. Regional Competition in US Banking – Trends and Determinants By Alexander Erler; Horst Gischer; Bernhard Herz

  1. By: KOUADIO, Hugues
    Abstract: This paper proposes a nonparametric analysis of the performance of companies in Côte d’Ivoire. The study focuses, initially, on the determination of technical efficiency scores using the Data Envelopment Analysis method (DEA), and econometric modeling the type tobit to determine the factors associated with technical efficiency companies. Our results do not support the conclusion of the technical efficiency of enterprises. Only 12 companies of 727 or 1.67% of our sample companies have reached their production frontier. Among the explanations of business productivity business characteristics (size, nature of business), financial factors (debt burden) and environmental factors (labor movement, strikes and social unrest) predict the level of productivity of firms.
    Keywords: Enterprize; Productivity; performance; DEA; nonparametric
    JEL: D22 O12 O17
    Date: 2016–02–29
  2. By: Diego Restuccia; Richard Rogerson
    Abstract: Why do living standards differ so much across countries? A consensus in the development literature is that differences in productivity are a dominant source of these differences. But what accounts for productivity differences across countries? One explanation is that frontier technologies and best practice methods are slow to diffuse to low income countries. The recent literature on misallocation offers a distinct but complementary explanation: low income countries are not as effective in allocating their factors of production to their most efficient use. We provide our perspective on three key questions. First, how important is misallocation? Second, what are the causes of misallocation? And third, beyond the direct cost of lower contemporaneous output, are there additional costs associated with misallocation? A summary of our answers is as follows. Misallocation appears to be a substantial channel in accounting for productivity differences across countries, but the measured magnitude of the effects depends on the approach and context. Researchers have not yet found a dominant source of misallocation; instead, many specific factors seem to contribute a small part of the overall effect. Beyond the static cost of misallocation, we believe that the dynamic effects of misallocation on productivity growth are significant and deserve much more attention going forward.
    JEL: E0 E1 O0 O1 O4 O5
    Date: 2017–05
  3. By: AfDB AfDB
    Date: 2017–05–17
  4. By: Stephen Gibbons; Teemu Lyytikäinen; Henry Overman; Rosa Sanchis-Guarner
    Abstract: This paper estimates the impact of new road infrastructure on employment and labour productivity using plant level longitudinal data for Britain. Exposure to transport improvements is measured through changes in accessibility, calculated at a detailed geographical scale from changes in minimum journey times along the road network. These changes are induced by the construction of new road link schemes. We deal with the potential endogeneity of scheme location by identifying the effects of changes in accessibility from variation across small-scale geographical areas close to the scheme. We find substantial positive effects on area level employment and number of plants. In contrast, for existing firms we find negative effects on employment coupled with increases in output per worker and wages. A plausible interpretation is that new transport infrastructure attracts transport intensive firms to an area, but with some cost to employment in existing businesses.
    Keywords: productivity, employment, accessibility, transport
    JEL: D24 O18 R12
    Date: 2017–05
  5. By: Peter Huber (WIFO); Eva Abramuszkinová Pavlíková; Marcela Basovníková
    Abstract: We use synthetic control group methods to analyse the causal impact of CSR certification on the economic performance of a small set of Italian manufacturing firms that underwent SA8000 certification in 2009 or 2010. We find no evidence of a positive or negative impact of SA8000 certification on firm profitability and wages. The only outcome variable for which effects are positive and weakly significant in many instances are firms' turnover to assets ratios. From this we conclude that SA8000 certification has no strong impact on firm profitability and wage costs, but that it may be a viable marketing tool that increases company sales.
    Keywords: Corporate Social Responsibility, Synthetic Control Groups, Company Performance, SA8000 certification
    Date: 2017–05–22
  6. By: Elise Wendlassida Miningou; Sampawende J Tapsoba
    Abstract: This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it focuses on the external efficiency and applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows by applying GMM regression technique. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, this study shows that the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, nonlandloked countries and countries in the low and medium human development groups.
    Keywords: Human capital;FDI, Education System, External Efficiency, Education and Economic Development
    Date: 2017–03–30
  7. By: Kenta Tanaka (Faculty of Economics, Musashi University); Shunsuke Managi (Urban Institute, Kyushu University)
    Abstract: Improving energy efficiency is the one of the best environmental/resource policy. Previous studies have measured energy efficiency in the industrial sector. We further contribute understanding what factors affect energy efficiency changes. This study measures energy efficiency based on plant level data in the Japan'paper/pulp industry and cement industry as energy intensive sectors. We then reveal the relationship between industry agglomeration effect and energy efficiency of each factory. Our results show several important findings. First, energy efficiency has improved in recent years in the paper and pulp industry as well as the cement industry. However, the factors for improvement of energy efficiency differ between each industry. Second, industry agglomeration affects energy efficiency. In the paper and pulp industry, the same industry agglomerations contribute to improvements in the energy efficiency. However the agglomeration effect is negative for energy efficiency in the cement industry.
    Keywords: Energy efficiency, Productivity analysis, Industry agglomeration, Data envelopment analysis
    Date: 2017–05
  8. By: Alexander Erler (Department of Business, Economics and Law, University of Bayreuth); Horst Gischer (Faculty of Economics and Management, Otto-von-Guericke-University Magdeburg); Bernhard Herz (Department of Business, Economics and Law, University of Bayreuth)
    Abstract: Competition in the US banking industry as measured by the Lerner Index has on average increased substantially during the last decade. At the same time, regional differences in competition on the state level have decreased considerably. Based on a dynamic panel framework we find that these developments are mainly driven by industry specific factors such as the costs to income ratio. The empirical evidence indicates that inefficiency and the Lerner index are significant negatively correlated. Macroeconomic conditions appear to have supported these trends in competition, however, to a somewhat lesser extent.
    Keywords: competition, US banking, efficiency, regional markets
    JEL: D40 G21 L19
    Date: 2017–05

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