nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2019‒11‒18
nine papers chosen by

  1. The impact of robots on labour productivity: A panel data approach covering 9 industries and 12 countries By Andre Jungmittag; Annarosa Pesole
  2. Debt maturity and firm performance: evidence from a quasi-natural experiment By Antonio Accetturo; Giulia Canzian; Michele Cascarano; Maria Lucia Stefani
  3. Concordance and Complementarity in IP Instruments By Marco Grazzi; Chiara Piccardo; Cecilia Vergari
  4. The impact of swarm robotics on arable farm size and structure in the UK By Lowenberg-DeBoer, James; Behrendt, Karl; Godwin, Richard; Franklin, Kit
  5. Founding Teams and Startup Performance By Joonkyu Choi; Nathan Goldschlag; John Haltiwanger; J. Daniel Kim
  6. Overcapacities in banking: measurements, trends and determinants By Gardó, Sándor; Klaus, Benjamin
  8. On the relationship between corporate social responsibility and competitive performance in Brazilian Small and Medium Enterprises - empirical evidence from a stakeholders’ perspective By Back, Paula Regina
  9. Non-performing loans in the euro area: does market power matter? By Maria Karadima; Helen Louri

  1. By: Andre Jungmittag (European Commission – JRC); Annarosa Pesole (European Commission - JRC)
    Abstract: Based on the expectation that the intensified use of robots contributes to the growth of labour productivity, this paper presents estimates of Cobb-Douglas production functions, using data for 12 EU countries and 9 manufacturing industries. The empirical results for the models pooling all available data confirm that stocks of robots per 1 million Euros non-ICT capital input contribute significantly to labour productivity growth in the period from 1995 to 2015. The results remain robust, when the whole observation period is split into two subsamples from 1995 to 2007 and from 2008 to 2015. Furthermore, the model is used to assess the impact of an increase of robots use on the labour productivity in each of the 9 manufacturing industries considered.
    Keywords: Automation, labour productivity, panel data, production function, productivity measurement, robots
    Date: 2019–10
  2. By: Antonio Accetturo (Bank of Italy); Giulia Canzian (European Commission - DG Joint Research Centre (JRC)); Michele Cascarano (Bank of Italy); Maria Lucia Stefani (Bank of Italy)
    Abstract: Asymmetric information between lenders and borrowers may lead to a suboptimal provision of long term credit by banks; this may have negative effects on firms' investments and, as a consequence, future growth. In this paper we analyze a policy intervention -- Mutuo di Riassetto (MR) -- launched by an Italian regional government, aimed at increasing firms' debt maturity. Using a combination of difference-in-differences and instrumental variable approaches, we find that the MR program had a temporary impact on debt maturity by raising firms' share of long-term debt only for the first two years after the start of the program. The policy did not have relevant effects on performance: firms registered a short-term increase in intangible assets and (to a lesser extent) profitability, but did not display any permanent rise in terms of sales, tangible assets, labor cost, or credit access. We also find that firms involved in the MR program observed a significant rise in the probability to default.
    Keywords: policy evaluation, debt maturity, firm performance
    JEL: H4 G3
    Date: 2019–11
  3. By: Marco Grazzi; Chiara Piccardo; Cecilia Vergari
    Abstract: This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues, growth and profitability. By resorting to the virtual universe of Italian manufacturing firms this work provides a rather complete picture of the Intellectual Property (IP) strategies pursued by Italian firms, in terms of patents and trademarks, and we study whether the two instruments for protecting IP exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance exert any effect on performance.
    Keywords: Trademarks, Patents, Innovation, Intellectual Property, Complementarity, Concordance, Technological proximity, firm performance, firm growth, firm performance, firm growth
    Date: 2019–11
  4. By: Lowenberg-DeBoer, James; Behrendt, Karl; Godwin, Richard; Franklin, Kit
    Abstract: Swarm robotics has the potential to radically change the economies of size in agriculture and this will impact farm size and structure in the UK. This study uses a systematic review of the economics of agricultural robotics literature, data from the Hands Free Hectare (HFH) demonstration project which showed the technical feasibility of robotic grain production, and farm-level linear programming (LP) to estimate changes in the average cost curve for wheat and oilseed rape from swarm robotics. The study shows that robotic grain production is technically and economically feasible. A preliminary analysis suggests that robotic production allows medium size farms to approach minimum per unit production cost levels and that the UK costs of production can compete with imported grain. The ability to achieve minimum production costs at relatively small farm size means that the pressure to “get big or get out” will diminish. Costs of production that are internationally competitive will mean reduced need for government subsidies and greater independence for farmers. The ability of swarm robotics to achieve minimum production costs even on small, irregularly shaped fields will reduce pressure to tear out hedges, cut infield trees and enlarge fields.
    Keywords: Agribusiness, Crop Production/Industries, Farm Management, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–05–16
  5. By: Joonkyu Choi; Nathan Goldschlag; John Haltiwanger; J. Daniel Kim
    Abstract: We explore the role of founding teams in accounting for the post-entry dynamics of startups. While the entrepreneurship literature has largely focused on business founders, we broaden this view by considering founding teams, which include both the founders and the initial employees in the first year of operations. We investigate the idea that the success of a startup may derive from the organizational capital that is created at firm formation and is inalienable from the founding team itself. To test this hypothesis, we exploit premature deaths to identify the causal impact of losing a founding team member on startup performance. We find that the exogenous separation of a founding team member due to premature death has a persistently large, negative, and statistically significant impact on post-entry size, survival, and productivity of startups. While we find that the loss of a key founding team member (e.g. founders) has an especially large adverse effect, the loss of a non-key founding team member still has a significant adverse effect, lending support to our inclusive definition of founding teams. Furthermore, we find that the effects are particularly strong for small founding teams but are not driven by activity in small business-intensive or High Tech industries.
    Date: 2019–11
  6. By: Gardó, Sándor; Klaus, Benjamin
    Abstract: This paper takes an eclectic approach to investigating the notion of overcapacities in banking along the dimensions of (i) banking sector size, (ii) bank competition and (iii) banking infrastructure/efficiency, thereby offering a nuanced and granular view of the topic. In terms of measurement, a newly developed composite indicator synthesises these different layers into a single metric of overcapacities in banking, comparing developments in major advanced economies across the globe over the period from 2006 to 2017. Offering a relative comparison across countries and time, the composite indicator suggests that most countries in the sample have managed to reduce overcapacities in banking since the onset of the global financial crisis, albeit to varying degrees, as some were better able to adapt to the changing environment than others, in particular by deleveraging, rationalising costly physical infrastructure and exploiting the benefits of technological innovation. A panel framework is then used to analyse a number of hypotheses derived from the literature, with the aim of shedding light on the determinants of overcapacities in banking, the direction of the relationship, and their relative importance. The results indicate that non-bank competition, the interest rate environment as well as bank business models are the most important driving factors of the overall degree of overcapacity in banking. With respect to the specific dimensions, non-bank competition seems to be particularly relevant for the size pillar, while demographic features and technological innovation appear to play a prominent role for explaining the competition and infrastructure/efficiency dimensions. The findings provide useful insights for policy makers concerning the possible design, calibration and effectiveness of potential policy responses that aim to address the issue of overcapacities in banking. JEL Classification: C12, C23, G21, L1, O57
    Keywords: bank competition, bank size, composite indicator, efficiency, overcapacity
    Date: 2019–11
  7. By: Ngo-Hoang, Dai-Long
    Abstract: Variables of production value, material, interest, labor, output affecting economic efficiency in rice land in the Mekong Delta region (big impact in the first major component), need to be considered These factors in the assessment of alluvial soil with yellow red patchy layer (Pf) - 3 large value crops in the first major component, need to be concerned about the continuation of 3 crops on the type this land. The final report in the subject "regional development policy" by students of the Department of Geography will clarify this through the method of analyzing the main components of economic efficiency using rice land, the Mekong Delta case.
    Date: 2019–05–09
  8. By: Back, Paula Regina
    Abstract: This paper aims to show that the strategic incorporation of socially responsible actions, in small and medium enterprises contribute to improving the competitiveness of those organizations. The analysis is from a multi-stakeholder perspective. It investigates the link among firms’ relationship with key stakeholders with the objective to find out if there is a competitive advantage in applying Corporate Social Responsibilities practices. Besides the direct influence of Corporate Social Responsibility practices on competitive performance, the mediating connection of relationship improvements has been analyzed. By using their influence, stakeholders hold the key to the environment in which the organization operates and its subsequent financial performance. The empirical analysis was constructed on survey data through structural equation modeling (SEM). To accomplish this assignment data were collected from a sample of Brazilian SMEs. Participants were firms from the Southern region of Brazil mainly from the State of Rio Grande do Sul, Santa Catarina, and Parana. The outcome shows that there is a strong connection between the development of Social Responsibilities practices and relational improvements. In addition, the significant relationship in developing Social Responsibilities Practices positively translates, with a high accuracy outcome into competitive performances.
    Date: 2019–01–14
  9. By: Maria Karadima (Athens University of Economics and Business); Helen Louri (Athens University of Economics and Business and London School of Economics HO/EI)
    Abstract: As consolidation in the banking sector has increased impressively in the wake of the global financial crisis, the question of the impact of market power on bank risk has become topical again. In this study we investigate empirically the impact of market power as evidenced by concentration (CR5 and HHI) and (lack of) competition (Lerner indices) on the change in NPL ratios (ÄNPL). We use an unbalanced panel dataset of 646 euro area banks over the period 2005-2017. Since the distribution of ÄNPL is found not to be normal but positively skewed, we employ a penalized quantile regression model for dynamic panel data. We find conflicting results which are in line with the argument that more concentration does not always imply less competition. The results suggest that competition supports stability when NPLs increase but concentration enhances faster NPL reduction. In addition, we find that the effect of bank concentration is stronger in periphery euro area countries while the effect of competition is enhanced in banking sectors with higher foreign bank presence. Finally, bank competition is more beneficial for commercial banks in reducing NPLs than for savings and mortgage banks, while commercial banks are more prone to creating NPLs than the other two bank types. A tentative conclusion of our study could be that post-crisis consolidation facilitates the faster reduction of NPLs, while as the situation normalizes competition discourages the growth of new NPLs. Policy makers should take such findings into account by encouraging consolidation especially in periphery countries but also inserting competition in the banking sector through either regulating anti-competitive behavior or inviting new and/or foreign entrants.
    Keywords: Non-performing loans; Competition; Lerner index; Concentration; Quantile regression; PQRFE estimator; PIVQRFE estimator
    JEL: C23 C51 G21

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