nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2019‒04‒29
eleven papers chosen by

  1. Sectoral proximity in manufacturing: an empirical application of cognitive and technological skills By Milene Simone Tessarin; Paulo Cesar Morceiro, Joaquim Jose Martins Guilhoto
  2. Land Reform and Productivity: A Quantitative Analysis with Micro Data By Tasso Adamopoulos; Diego Restuccia
  3. What a firm produces matters: diversification, coherence and performance of Indian manufacturing firms By Giovanni Dosi; Nanditha Mathew; Emanuele Pugliese
  4. Does International Financial Integration Increase the Standard of Living in Africa? A Frontier Approach By Gilles Dufrénot; Kimiko Sugimoto
  5. Firm heterogeneity, productivity, and the extensive margins of trade - differences between manufacturing firms in East and West Germany By Krenz, Astrid
  6. Potential Output in Canada: 2019 Reassessment By Dany Brouillette; Julien Champagne; Carol Khoury; Natalia Kyui; Jeffrey Mollins; Youngmin Park
  7. Sectoral productivity Growth and Innovation Policies By Ivanova, Olga; Chatzouz, Moustafa
  8. The gender gap in international trade: Female-run firms and the exporter productivity premium By Krenz, Astrid
  9. Improved productivity measurement in New Zealand's Longitudinal Business Database By Richard Fabling; David C. Maré
  10. Average Density Estimators: Efficiency and Bootstrap Consistency By Matias D. Cattaneo; Michael Jansson
  11. Innovation, Productivity, and Spillovers Effects: Evidence from Chile By Crespi, Gustavo; Figal Garone, Lucas; Maffioli, Alessandro; Stein, Ernesto H.

  1. By: Milene Simone Tessarin; Paulo Cesar Morceiro, Joaquim Jose Martins Guilhoto
    Abstract: This study proposes analyze the proximity in productive and technological terms between manufacturing sectors offering a new measure of cognitive proximity. There are three innovative contributions: an unprecedented production matrix created with information on multiproduct plants; a new index that captures productive and technological skills related to worker’s occupation; and methods of spatial econometrics were used in an innovative way to evaluate the proximity between productive sectors. Was used unpublished information from a special tabulation of PIA Empresa/IBGE, and RAIS. Statistical analyzes confirmed the existence of proximity between manufacturing sectors verified through the productive and technological skills of worker’s occupations. The neighborhood network was more dense among sectors that have occupations with the same skills and also between sectors of the same technological level. Sectoral spillovers were found on the neighborhood in the form of positive marginal effects on productivity and investment.
    Keywords: Sectoral proximity; productive and technological base; worker’s skills
    JEL: C21 L23 J31 O33
    Date: 2019–04–22
  2. By: Tasso Adamopoulos; Diego Restuccia
    Abstract: We assess the effects of a major land policy change on farm size and agricultural productivity using a quantitative model and micro-level data. We study the 1988 land reform in the Philippines that imposed a ceiling on land holdings, redistributed above-ceiling lands to landless and smallholder households, and severely restricted the transferability of the redistributed farm lands. We study this reform in the context of an industry model of agriculture with a non-degenerate distribution of farm sizes featuring an occupation decision and a technology choice of farm operators. In this model, the land reform can reduce agricultural productivity not only by misallocating resources across farmers but also by distorting farmers' occupation and technology decisions. The model, calibrated to pre-reform farm-level data in the Philippines, implies that on impact the land reform reduces average farm size by 34% and agricultural productivity by 17%. The government assignment of land and the ban on its transfer are key for the magnitude of the results since a market allocation of the above-ceiling land produces about 1/3 of the size and productivity effects. These results emphasize the potential role of land market efficiency for misallocation and productivity in the agricultural sector.
    Keywords: agriculture, productivity, land reform, misallocation, land market, crop choice.
    JEL: O11 O13 O14 O4 O53 Q1 R2 R52
    Date: 2019–04–18
  3. By: Giovanni Dosi; Nanditha Mathew; Emanuele Pugliese
    Abstract: Economic growth and development of a country involves accumulation of knowledge and dynamic capabilities (Cimoli et al., 2009). Past research has begun to investigate the capability accumulation and macro-economic development of countries and sectors (Dosi et al., 1990), also by means of introduction of new products (Hausmann and Rodrik, 2003). In this work, recognizing that firms are the actual domain in which production takes place, we focus on the firm-level process of capability accumulation and diversification in a developing country. We investigate the relationship between diversification (and coherent diversification) and firm performance by employing an extensive database of Indian manufacturing firms with detailed information on product mix of firms. We claim that such an understanding of firmsù incentives to diversify is relevant not only for the corporate management, but also for the diversification of countries and thereby its development. First, we explore the reasons behind firmsù strategy to diversify, i.e, which firms choose a broad product scope and whether the change in the scope of the firm results in improved performance in terms of firm profitability and sales growth. Second, we look at the idiosyncratic characteristics of different products, by emphasizing the synergies of a product line with respect to the overall product basket of the firm. In this line, we develop a measure that captures the synergies and economies of scope between different products, and observe that the firmsù future performance crucially depend on the interactions between the products that comprise its basket. Overall, our results are consistent with an intangible-capabilities model of firm diversification: diversification results in improved firm performance if the firm has underused capabilities and the new production line is able to exploit them.
    Keywords: Diversification; Coherence; Endogenous Switching.
    Date: 2019–04–18
  4. By: Gilles Dufrénot (Aix-Marseille Univ. CNRS, EHESS, Centale Marseille, IRD, AMSE, Marseille, France & CEPII); Kimiko Sugimoto (Konan University (Hirao School of Management), Japan)
    Abstract: We investigate whether a higher financial integration with the rest of the world can help the African countries reduce their production inefficiency and/or push up their efficient frontier of production. We use two alternative empirical approaches based, respectively, on a stochastic frontier analysis and quantile regressions. We provide evidence of heterogeneous situations across countries and time. This paper proposes a new approach for defining, at the aggregate level, a link between financial openness and production efficiency. We show that one size does not fit all: international financial integration can increase or decrease African countries' standard of living.
    Keywords: African countries, financial openness, stochastic frontier, quantile regression
    JEL: F33 F34 F36 F41
    Date: 2019–04
  5. By: Krenz, Astrid
    Abstract: I investigate the relationship between the extensive margins of imports and exports (the number of countries traded with and the number of goods traded) and firm productivity using a newly constructed and rich panel data set of German manufacturing firms for the years 2009-2014. I do for the first time construct a data set based on German trade data and firm data that accounts for the substantial change in the German register of firms statistics after 2012. The extensive margins are significantly and positively associated with firm-level productivity both for West and East German firms in cross-sectional estimations, which is in line with the previous literature. Productivity is higher in firms that import and export more goods and trade with more countries. However, results based on panel analyses reveal that especially for East German firms the relationship becomes insignificant when unobserved firm heterogeneity is controlled for. The results point to a high degree of firm heterogeneity, of factors that are relevant and differ within the firm only, for firms in East Germany.
    Keywords: Extensive margins of trade,Firm Productivity,Germany,Firm Heterogeneity
    JEL: F14 L25 L60
    Date: 2019
  6. By: Dany Brouillette; Julien Champagne; Carol Khoury; Natalia Kyui; Jeffrey Mollins; Youngmin Park
    Abstract: Potential output is expected to grow on average at 1.8 per cent over 2019–21 and at 1.9 per cent in 2022. While the contribution of trend labour input to potential output growth is expected to decrease between 2019 and 2022, the contribution of trend labour productivity is projected to increase. Relative to the April 2018 reassessment, the profile for potential output growth rates is similar, albeit revised slightly down in 2020 and 2021. Underlying this new profile are negative revisions to the business investment outlook relative to April 2018 that are mostly offset by stronger projections for population growth. Based on various alternative scenarios, the range for potential output growth estimates widens from 1.5 to 2.1 per cent in 2019 to 1.3 to 2.5 per cent in 2022.
    Keywords: Labour markets; Potential output; Productivity
    JEL: E00 E22 E23 E24 E37 E6
    Date: 2019
  7. By: Ivanova, Olga; Chatzouz, Moustafa
    Abstract: This papers studies the sectoral differences in the impacts of various innovation policies, human capital and R&D intensity on the productivity growth using econometric panel data techniques. We analyze the development of the sectoral productivity as depending on both knowledge creation and knowledge adoption, where both channels of productivity growth can be influenced by various types of R&D related public policy. We use the combination of the most recent EU-KLEMS database and OECD data for econometric analysis on six aggregated sectors of the economy. In contrast with other existing studies our econometric analysis covers the whole of the economy and includes various traditional, industrial and services sectors. The main contribution of the paper is in highlighting the differences between economic sectors and identifying potential for sector-specific innovation policies.
    Keywords: Endogenous growth, R&D, panel data, R&D policy, industrial sectors
    JEL: O47
    Date: 2019–04–23
  8. By: Krenz, Astrid
    Abstract: Female-run firms are less likely to be exporters although they exert positive influence in various aspects in an economy and society. With a new and comprehensive data set on manufacturing plants, I investigate the exporter productivity premium of female-run firms in Germany. The results show that female-run firms gain a higher exporter-productivity premium than male-run firms. I find evidence for selection into exporting but no impact for learning from exporting for female-run exporting firms. These results give hint to discrimination barriers that female-run firms face when they are exporting as compared to male-run firm exporters.
    Keywords: Gender Inequality,Exporter-Productivity Premium,Germany,Firm Heterogeneity
    JEL: F14 L25 L60 O12
    Date: 2019
  9. By: Richard Fabling (Independent researcher); David C. Maré (Motu Economic and Public Policy Research)
    Abstract: Accounts information that businesses supply to Inland Revenue for tax purposes provide over 96% of the observations in the productivity dataset in the Longitudinal Business Database. In 2013, material changes in the data collected halted the annual updating of the productivity dataset. This paper describes a method for accounting for these raw data discontinuities, and revisits the prior productivity dataset methodology, implementing wholesale changes that improve the overall quality of the data and the versatility of the productivity dataset.
    Keywords: Stats NZ Longitudinal Business Database; production function; multifactor productivity; administrative data
    JEL: D20 D24
    Date: 2019–03
  10. By: Matias D. Cattaneo; Michael Jansson
    Abstract: This paper highlights a tension between semiparametric efficiency and bootstrap consistency in the context of a canonical semiparametric estimation problem. It is shown that although simple plug-in estimators suffer from bias problems preventing them from achieving semiparametric efficiency under minimal smoothness conditions, the nonparametric bootstrap automatically corrects for this bias and that, as a result, these seemingly inferior estimators achieve bootstrap consistency under minimal smoothness conditions. In contrast, "debiased" estimators that achieve semiparametric efficiency under minimal smoothness conditions do not achieve bootstrap consistency under those same conditions.
    Date: 2019–04
  11. By: Crespi, Gustavo; Figal Garone, Lucas; Maffioli, Alessandro; Stein, Ernesto H.
    Abstract: This paper estimates the direct and spillover effects of two matching grants schemes designed to promote firm-level research and development (R&D) investment in Chile on firm productivity. Because the two programs target different kinds of projects—the National Productivity and Technological Development Fund (FONTEC) subsidizes intramural R&D, while the Science and Technology Development Fund (FONDEF) finances extramural R&D carried out in collaboration with research institutes—analyzing their effects can shed light on the process of knowledge creation and diffusion. The paper applies fixed-effects techniques to a novel dataset that merges several waves of Chile’s National Manufacturing Surveys collected by the National Institute of Statistics with register data on the beneficiaries of both programs. The results suggest that while both programs have had a positive impact on participants’ productivity, only FONDEF-funded projects have generated positive spillovers on firms’ productivity. The analysis reveals that the spillover effects on productivity display an inverted-U relationship with the intensity of public support. Spillover effects were found to occur only if firms were both geographically and technologically close.
    Keywords: Chile, impact evaluation, innovation, matching grants programs productivity, spillover effects
    Date: 2019–02

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