nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2019‒03‒18
fifteen papers chosen by
Angelo Zago
Università degli Studi di Verona

  2. Estimating effects of information and communication technology (ICT) on productivity of manufacturing industries in South Africa By Lefophane, M.; Kalaba, M.
  3. The consequences of U.S. technology changes for productivity in advanced economies By Elstner, Steffen; Rujin, Svetlana
  4. Environmental Performances in Europe: An Empirical Analysis of the Convergence among Manufacturing Sectors By Giovanni Morleo; Marianna Gilli; Massimiliano Mazzanti
  5. Irish retail bank profitability 2003-20018 By Nevin, Ciarán
  6. Model and measure the relative efficiency of a four-stage production process. An NDEA multiplier relational model under different systems of resource distribution preferences between sub-processes By Pinto, Claudio
  7. Employee Wellbeing, Productivity and Firm Performance By Jan-Emmanuel De Neve; Christian Krekel; George Ward
  8. Productivity is higher among some service firms when broadband becomes available, but not all By Stefanie Haller; Seán Lyons
  9. Productivity and Trade Growth in Services: How Services Helped Power Factory Asia By Shepherd, Ben
  10. Productivity, Market Penetration and Allocation of Sales By Zhe, Chen; Sun, Xiaonan
  11. Climate Finance Portfolio Management: Measuring Efficiency ($/CO2) at Risk By Suarez, Ronny
  12. Determinants of Total Factor Productivity: The cases of the main Latin American and emerging economies of Asia (1960 - 2015) By Wilman Gómez; Carlos Esteban Posada; Remberto Rhenals
  13. What gains and distributional implications result from trade liberalization? By Maria Bas; Caroline Paunov
  14. Assessing firm heterogeneity within industries for the Chilean economy By Diego Vivanco
  15. Investments in big data analytics and firm performance: an empirical investigation of direct and mediating effects By Elisabetta Raguseo; Claudio Vitari

  1. By: Bruno Merlevede; Victoria Purice (-)
    Abstract: Supplying inputs to foreign affiliates is consistently found to be an important source of productivity gains for domestic firms. We analyse the impact of border regimes on the existence and size of cross-border indirect productivity effects, exploiting variation in the pace and extent of European integration of seven Central and Eastern European countries and their neighbours during the period 2000-2010. EU-membership is a necessary condition for positive cross-border indirect productivity effects through backward linkages. Schengen area participation further magnifies cross-border effects. Our results bear testimony to the successful EU integration of CEECs and warn about potential productivity costs to local firms should border restrictions be reinstated.
    Keywords: Banking; FDI, Productivity, Spillovers, Borders
    JEL: F2 D24
    Date: 2019–03
  2. By: Lefophane, M.; Kalaba, M.
    Abstract: The paper serves to examine whether the growth in labour productivity (LP) in the manufacturing sector following policy reforms after democracy can be attributed to ICT. To achieve this, we examine the link between ICT intensity and LP growth of 23 manufacturing industries for the period 1970-2016 and sub-periods 1970-1995 and 1996-2016. The industries are disaggregated into two groups which are namely �more ICT intensive� and �less ICT intensive� using the ICT intensity index. Four dummy variable regression models are applied to test for the relationship between ICT intensity of industries and LP growth. The findings suggest that LP growth of more ICT intensive industries accelerated more than that of their counterparts. The results underscore the need for policy measures to increase ICT use with the aim of improving LP performance of industries.
    Keywords: ICT intensity, LP growth, manufacturing industries; Productivity Analysis
    Date: 2018–09–25
  3. By: Elstner, Steffen; Rujin, Svetlana
    Abstract: Since at least the mid-2000's, many advanced economies have experienced low productivity growth. This development is often related to the declining productivity gains at the technology frontier, which is commonly assumed to be determined by the U.S. We challenge this explanation by studying the effects of changes in U.S. technology on the productivity level in other advanced economies. Overall, we find positive but small spillover effects of U.S. technology shocks. The elasticity of foreign labor productivity with respect to a one percent increase in the U.S. technology level is significantly lower than one for many countries. The recent U.S. productivity slowdown, therefore, had a limited effect on productivity developments in advanced economies. Furthermore, our results suggest that institutional factors are not able to explain cross-country differences in the size of the spillover effects. If any, regulation of the service sector seems to play a role.
    Keywords: labor productivity,international spillover effects,technology shocks,structural VARs
    JEL: O40 E24 C32 F00
    Date: 2019
  4. By: Giovanni Morleo (University of Ferrara; SEEDS, Italy); Marianna Gilli (University of Ferrara; SEEDS, Italy); Massimiliano Mazzanti (University of Ferrara; SEEDS, Italy)
    Abstract: This study focuses on the environmental performances of the European manufacturing industry. Our aim is to test the existence of both absolute and conditional ß-convergence as well as s-convergence in the environmental productivity (i.e., for each sector, the ratio between value added and carbon dioxide emissions) of 14 sectors for the period 1995-2009 using data from the WIOD database. The results support the hypothesis of ß-convergence and highlight other factors such as trade openness. In addition, the results indicate that the sectorial share of value added can affect sectorial environmental performances, as shown by a higher speed of convergence. No statistical evidence of s-convergence is found.
    Keywords: environmental performances; manufacturing industry; ß-convergence; s-convergence; sector performances
    JEL: L52 Q53 Q55
    Date: 2019–03
  5. By: Nevin, Ciarán (Central Bank of Ireland)
    Abstract: This FS Note explores trends in the profitability of the Irish retail banking sector over the past 15 years, using a sample of 39 other EU banks as a comparison group. Changes in the net interest margin (NIM) are decomposed into the share and yield effects on assets and liabilities, respectively. This is the first such decomposition to focus on the banking system in Ireland. The results suggest that the low interest rate environment has coincided with an increase in the NIM of Irish banks but with a decrease in the NIM for a sample of other EU banks. In the case of Irish banks, the increase in the NIM is largely the result of a yield effect on liabilities (cheaper funding). Furthermore, there is some evidence that this effect may be diminishing in recent years.
    Date: 2018–11
  6. By: Pinto, Claudio
    Abstract: Measuring the relative efficiency of a production process with the DEA considers the production process as a “black box” that uses inputs to transform them into outputs. In reality, many production processes are carried out by carrying out several interconnected activities that are usually grouped into phases that are in turn interconnected. For this reason, measuring the relative efficiency of a production process within the DEA technique requires shaping it as a network system (in others words to consider the production process as interconnected sub-process). In the case of network systems, the NDEA approach has developed many models to measure their relative efficiency: independent models, connected models and relational models. In particular, the relational model allows to measure at the same time both the efficiency of the system and the efficiency of the sub-process once the operations between the latter have been considered. In our opinion, many real production processes can be modelled as a network of four sub-processes that are differently interconnected with each other. In this paper we will model a production process as a network of four sub-processes with shared variables and fixed preferences about the allocation of system resources between them. To measure the relative efficiency of the process and its parts we will develop an input-oriented NDEA model in the multiplier version. To solve the model we will use virtual data under several resources allocation preference’s structure. Then we will conclude that 1) a production process with four interconnected sub-processes can represent a large number of real production processes, so the NDEA model developed here can potentially be used for many applications, 2) the resource allocation preference system inter-sub-process influences the measurement of relative efficiency.
    Keywords: network DEA, performances management, internal structure, inputs-outputs system.
    JEL: C61 C67 M0
    Date: 2019–03–08
  7. By: Jan-Emmanuel De Neve; Christian Krekel; George Ward
    Abstract: Does higher employee wellbeing lead to higher productivity, and, ultimately, to tangible benefits to the bottom line of businesses? We survey the evidence and study this question in a meta-analysis of 339 independent research studies, including the wellbeing of 1,882,131 employees and the performance of 82,248 business units, originating from 230 independent organisations across 49 industries in the Gallup client database. We find a significant, strong positive correlation between employees' satisfaction with their company and employee productivity and customer loyalty, and a strong negative correlation with staff turnover. Ultimately, higher wellbeing at work is positively correlated with more business-unit level profitability.
    Keywords: employee satisfaction, engagement, employee productivity, firm performance, wellbeing, meta-analysis
    JEL: I31 J24
    Date: 2019–03
  8. By: Stefanie Haller; Seán Lyons
    Abstract: Using internet services over broadband connections may help some firms become more productive, generating more output from a given amount of labour and capital equipment. However, there is mixed evidence internationally about how large this benefit has been in practice and which types of firms are most likely to improve their productivity by using these technologies. In this research we examine the effects of broadband availability on the productivity of service sector firms.
    Keywords: Broadband availability; Services sector; Productivity
    Date: 2019–01
  9. By: Shepherd, Ben (Asian Development Bank Institute)
    Abstract: This paper uses a theory-based measure of productivity-based comparative advantage to examine the trade performance of developing Asian economies in manufacturing and services over the 1995–2011 period. We find that the growth in service exports was nearly as rapid as that in manufacturing over this period—a little-appreciated fact. Services are therefore an integral part of “Factory Asia.” Moreover, the results from a quantitative model of trade show that revealed productivity measures are often comparable between manufacturing and services at a disaggregated level, although the results differ markedly across sectors and economies. We also find evidence of rapid growth in revealed productivity in some service subsectors, comparable to that in manufacturing. Our findings suggest that oversimplifying the relationship between patterns of specialization and subsequent economic transformation and growth patterns misses important elements of reality.
    Keywords: services; trade; comparative advantage; productivity; Asia
    JEL: F14 F15 L80
    Date: 2019–01–16
  10. By: Zhe, Chen; Sun, Xiaonan
    Abstract: This paper investigates how firm productivity is associated with the sales allocation of Chinese exporters. We demonstrate that highly productive firms are less export oriented compared with less productive ones. This negative correlation between firm productivity and export intensity among exporters remains robust when we control firm ownership, factor intensity, and rule out impacts of processing trade. In order to rationalize our empirical findings, we extend the Arkolakis (2010) model to allow marketing cost elasticities to be heterogeneous across markets. A higher marketing cost elasticity domestically gives rise to a faster sales expansion in the home market as firm productivity grows. The fact that this negative correlation is more pronounced among firms who belong to advertising intensive industries supports the model predictions.Further evidence helps to rule out alternative explanations such as the effects of variable markup and product quality.
    Keywords: Productivity, Marketing Cost, Export Intensity, Market Competition, F14, F23
    Date: 2019–03
  11. By: Suarez, Ronny
    Abstract: In this paper, we introduced the Efficiency ($/CO2) at Risk indicator. It could be used to compare performance, to evaluate asset allocation, to execute a portfolio optimization and/or to establish risk appetite policies.
    Keywords: Climate finance, Efficiency at Risk
    JEL: C0
    Date: 2019–03–11
  12. By: Wilman Gómez; Carlos Esteban Posada; Remberto Rhenals
    Date: 2018–12–01
  13. By: Maria Bas (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Caroline Paunov (OECD - Directorate for Science - Technology and Innovation)
    Abstract: This paper investigates the distributional impacts of trade liberalization across firms, consumers and workers. Using firm-product-level census data for Ecuador, we exploit exogenous tariff changes at entry to the World Trade Organization. We show that with input tariff cuts firms access higher quality and new input varieties. Consequently, firms increase their product scope and quality, while their production's skill-intensity increases and costs decrease. "Real" productivity (TFPG) increases only in the medium run, following adjustments to produce more and higher quality products. Positive immediate revenue productivity (TFPR) gains result because firms' markups increase. Consumers still gain as quality-adjusted prices decrease and varieties increase. Workers benefit differentially: skilled workers' wages rise compared to less skilled worker's wages. Input-tariff liberalization also has distributional impacts across firms. Only more productive firms with high markups increase product scope and quality and gain market shares. With output-trade liberalization the least productive firms decrease their product scope.
    Keywords: gains from trade,input and output tariff reductions,product scope,product quality,market share,quantity and revenue total factor productivity (TFPQ - TFPR),skill premium,markups,price,foreign inputs quality and variety,firm-product-level data,Ecuador
    Date: 2019–02
  14. By: Diego Vivanco
    Abstract: Current efforts to measure Trade in Value Added (TiVA) using Input-Output Tables (IOT) have come across challenges regarding the homogenous production functions assumptions embedded in them. This work proposes a method to account for the heterogeneity within industries for the Chilean economy, providing technical coefficients related to market orientation, firm’s size and ownership. This method is capable of overcoming the aggregate nature of the IOT, and reports a more detailed characterization of firms addressing the three dimensions aforementioned. By doing this, the proposal is capable of showing the heterogeneity in production functions within industries.
    Date: 2019–02
  15. By: Elisabetta Raguseo (Polito - Politecnico di Torino [Torino]); Claudio Vitari (IAE de Paris)
    Date: 2017–11–06

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