nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2019‒12‒16
fourteen papers chosen by

  1. Spatial Solution to Measure Regional Efficiency - Introducing Spatial Data Analysis (SDEA) By Alicja Olejnik; Agata Zoltaszek; Jakub Olejnik
  2. The Intellectual Spoils of War? Defense R&D, Productivity and International Spillovers By Enrico Moretti; Claudia Steinwender; John Van Reenen
  3. Performance Comparison of European Cooperative and Commercial Banks in a Low Interest Rate Environment By Petr Teply; Matej Kuc
  4. Economic Reforms, External Liberalization and Macroeconomic Performance in Vietnam By Le, Huong; Ho, Toan Manh
  5. On-field Performance Evaluation in Soccer based on Network Data Envelopment Analysis. By Thanasis Bouzidis
  6. Technological Change in the Production of New Scientific Knowledge: A Second Look By Link, Albert; Scott, John
  7. Agricultural Productivity and Rural Household Incomes: Household Survey Evidence from Zambia By Snyder, Jason; Jayne, Thomas; Mason, Nicole; Samboko, Paul
  8. Factors influencing efficiency of sweet potato farms in Nigeria By Adeyonu, Abigail G.; Ajiboye, Babatunde O.; Bamiro, Olasunkanmi M.; Isitor, Samuel U.
  9. Can economic and environmental benefits associated with agricultural intensification be sustained at high population densities? a farm level empirical analysis By Willy, Daniel Kyalo; Muyanga, Milu; Jayne, Thomas
  10. Foreign Direct Investment and Knowledge Diffusion in Poor Locations By Girum Abebe; Margaret McMillan; Michel Serafinelli
  11. Effects of Bank of Agriculture's (BOA) credit on yam farmer's productivity in federal capital territory, Abuja, Nigeria By Adebayo, C.O.; Yisa, E.S.; Samuel, D.C.
  12. Baumol versus Engel: Accounting for 100 years (1885-1985) of Structural Transformation in Japan By Fukao, Kyoji; Paul, Saumik
  13. Impact of farming techniques for cotton production in Côte d'Ivoire. A farm-level modelling approach By Tillie, Pascal; Louhichi, Kamel; Gomez-Y-Paloma, Sergio
  14. The Rise and Fall of US Manufacturing: Re-Examination of Long-Run Spatial Trends By Nicholas Crafts; Alexander Klein

  1. By: Alicja Olejnik (University of Lodz); Agata Zoltaszek (University of Lodz); Jakub Olejnik (University of Lodz)
    Abstract: The main objective of this paper is to introduce a new approach to measuring efficiency in regional studies through SDEA (Spatial Data Envelopment Analysis). The paper offers a proper mathematical elaboration and a highlight of the differences between classic DEA and newly developed method. Presented literature review and the discussion on theoretical examples, proves the need for new solution to measure regional efficiency, which takes into consideration region-specific spatial context. The introduced method, SDEA, incorporates explicitly spatial interactions (via the W matrix) into the model through spatially weighted inputs and outputs. An example study concerning healthcare efficiency of European regions will be presented to illustrate SDEA. We confront the efficiency results of classic DEA with results of SDEA, which is expanded by the spatial equivalents of inputs and outputs. The results suggest that classic DEA undervalues the regional healthcare efficiency, underestimating the region-specific spatial context.
    Keywords: spatial data envelopment analysis (SDEA), regional efficiency, spatial interaction, healthcare, diseases of affluence
    JEL: C44 C31 R15 I15
    Date: 2019–10–22
  2. By: Enrico Moretti; Claudia Steinwender; John Van Reenen
    Abstract: In the US and many other OECD countries, expenditures for defense-related R&D represent a key policy channel through which governments shape innovation, and dwarf all other public subsidies for innovation. We examine the impact of government funding for R&D - and defense-related R&D in particular - on privately conducted R&D, and its ultimate effect on productivity growth. We estimate models that relate privately funded R&D to lagged government-funded R&D using industry-country level data from OECD countries and firm level data from France. To deal with the potentially endogenous allocation of government R&D funds we use changes in predicted defense R&D as an instrumental variable. In both datasets, we uncover evidence of “crowding in” rather than “crowding out,” as increases in government-funded R&D for an industry or a firm result in significant increases in private sector R&D in that industry or firm. A 10% increase in government-financed R&D generates 4.3% additional privately funded R&D. An analysis of wages and employment suggests that the increase in private R&D expenditure reflects actual increases in R&D employment, not just higher labor costs. Our estimates imply that some of the existing cross-country differences in private R&D investment are due to cross-country differences in defense R&D expenditures. We also find evidence of international spillovers, as increases in government-funded R&D in a particular industry and country raise private R&D in the same industry in other countries. Finally, we find that increases in private R&D induced by increases in defense R&D result in significant productivity gains.
    JEL: O3 O30 O31 O33 O38
    Date: 2019–11
  3. By: Petr Teply (Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics in Prague, Winston Churchill Sq. 4, 130 67 Prague, Czech Republic); Matej Kuc (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic)
    Abstract: Our aim is to empirically assess differences in behaviour and performance of European cooperative and commercial banks in a low interest rate environment. We employ dynamic panel data methods to assess the relative performance of both ownership structures based on a data set of nearly 1,000 banks from 11 European countries for the 2009-2015 period. Our findings are threefold. First, we find that commercial banks are more profitable than cooperative banks in all three metrics used (return on average assets, return on average equity and net interest margin). Second, commercial banks decrease their loan loss provisioning to maintain their profitability. Interestingly, this trend is not present in the financial statements of cooperative banks. Third, cooperative banks are significantly more stable than commercial banks in terms of Z-score. In addition, the Z-score of cooperative banks increased during the observation period, whereas the Z-score of commercial banks remained stable. Therefore, our results show structural differences in the priorities and behaviour of both ownership types in a low interest rate environment: European commercial banks focus on maintaining their profitability, whereas cooperative banks seek to increase their stability by increasing their capital buffers.
    Keywords: banks, cooperative banking, European Union, low interest rate environment, profitability, Z-score
    JEL: C23 G21 L25
    Date: 2019–12
  4. By: Le, Huong; Ho, Toan Manh (Thanh Tay University Hanoi)
    Abstract: This paper examines the macro-economic performance of Vietnam through the six phases of Doi Moi reform and analyzes the impact of external liberalization on economic growth, aggregate demand, employment and income distribution. The decomposition of aggregate demand suggests that private investment was the most important determinant of Vietnamese economic growth during the period of 1994 – 2011, while government expenditure has become more significant since 2005, and the external sector together with government expenditure are the important driving factors of Vietnamese economic growth since 2012. The decomposition of overall labor productivity highlighted the fact that sectoral productivity growth of the service sector plays an important role in the improvement of overall labor productivity in Vietnam.
    Date: 2019–11–07
  5. By: Thanasis Bouzidis (Department of Economics, University of Macedonia)
    Abstract: In this paper, we present for the first time the on-field production process of soccer teams as a mixed (serial and parallel) structure two-stage network system. According to this, the first stage consists of two distinct sub-processes (offense and defense) that operate in parallel. These respectively use players’ offensive and defensive actions as inputs to produce two different intermediate measures, namely, goals scored and prevention of goals conceded. These, in turn, are the inputs of the second stage (points’ accumulation sub-process) that produces accumulated points. Furthermore, based on a two-stage network Data Envelopment Analysis (DEA) model, we estimate the offensive, defensive, and athletic efficiency of soccer teams during a league season. According to our proposed framework, these three different efficiency scores are provided (for each soccer team under evaluation) by a single linear programming problem. For this purpose, aggregate-over-games statistics from the 2013-14 Greek premier soccer league are used.
    Keywords: Two-stage Network DEA; Soccer Teams; League Season.
    JEL: Z2
    Date: 2019–11
  6. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (Dartmouth College)
    Abstract: This paper presents and explains an approach for measuring technological change in the production of new scientific knowledge. The paper expands our previous work on this topic. Our approach is illustrated by using as an example new scientific journal publications from the U.S. National Institute of Standards and Technology. The empirical findings are consistent with the expectation that resource constraints will cause a breakdown in the process of creating new scientific knowledge and with the evidence that scientific research has been less productive in recent decades.
    Keywords: scientific publications; technological change; R&D; knowledge production function;
    JEL: O33 O38
    Date: 2019–12–10
  7. By: Snyder, Jason; Jayne, Thomas; Mason, Nicole; Samboko, Paul
    Keywords: Productivity Analysis, Consumer/Household Economics
    Date: 2019–09
  8. By: Adeyonu, Abigail G.; Ajiboye, Babatunde O.; Bamiro, Olasunkanmi M.; Isitor, Samuel U.
    Keywords: Crop Production/Industries, Productivity Analysis
    Date: 2019–09
  9. By: Willy, Daniel Kyalo; Muyanga, Milu; Jayne, Thomas
    Keywords: Productivity Analysis, Community/Rural/Urban Development
    Date: 2019–09
  10. By: Girum Abebe (EDRI, Ethiopia); Margaret McMillan (Tufts); Michel Serafinelli (University of Essex)
    Abstract: We use a plant level survey to identify interactions between domestic plants and foreign direct investment (FDI) in Ethiopia’s manufacturing sector. Almost one third of Ethiopian plants report being linked to FDI through labor sharing, forward and backward linkages and competition in input and output markets. Domestic plant managers report that through these linkages with FDI, they learn about production processes, managerial and organizational practices and exporting. We quantify the spillovers from FDI at the local level by comparing changes in total factor productivity (TFP) among domestic plants in districts where a large greenfield foreign plant produced and districts where FDI in the same industry and around the same time was licensed but not yet operational. Over the four years starting with the year of the FDI opening, the TFP of domestic plants is 11 percent higher in treated districts, employment in these domestic plants increases and new domestic plants open.
    Keywords: Foreign Direct Investment, productivity, localized knowledge spillovers, plant-to-plant labor mobility.
    JEL: F21 R10 D24
    Date: 2019–10
  11. By: Adebayo, C.O.; Yisa, E.S.; Samuel, D.C.
    Keywords: Agricultural Finance, Productivity Analysis
    Date: 2019–09
  12. By: Fukao, Kyoji (Hitotsubashi University); Paul, Saumik (Newcastle University)
    Abstract: This paper examines the drivers of the long-run structural transformation in Japan. We use a dynamic input-output framework that decomposes the reallocation of the total output across sectors into two components: the Engel effect (demand side) and the Baumol effect (supply side). To perform this task, we employ 13 seven-sector input-output tables spanning 100 years (1885 to 1985). The results show that the Engel effect was the key explanatory factor in more than 60% of the sector-period cases in the pre-WWII period, while the Baumol effect drove structural transformation in more than 75% of such cases in the post-WWII period. Detailed decomposition results suggest that in most of the sectors (agriculture, commerce and services, food, textiles and transport, communication and utilities), changes in private consumption were the dominant force behind the demand-side explanations. The Engel effect was found to be the strongest in the commerce and services sector, which contributed to the rapid growth of GDP in Japan throughout the 20th century.
    Keywords: long-run structural transformation, the Engel effect, Baumol's cost disease effect, sectoral productivity growth
    JEL: O40 O10
    Date: 2019–10
  13. By: Tillie, Pascal; Louhichi, Kamel; Gomez-Y-Paloma, Sergio
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–09
  14. By: Nicholas Crafts; Alexander Klein
    Abstract: We re-examine the long-run geographical development of U.S. manufacturing industries using recent advances in spatial concentration measures. We construct spatially-weighted indices of the geographical concentration of U.S. manufacturing industries during the period 1880 to 1997 using data from the Census of Manufactures and Bureau of Labor Statistics. Doing so we improve upon the existing indices by taking into account industrial structure and checkerboard problem. Several important new results emerge. First, we find that average spatial concentration was much lower in the late 20th- than in the late 19th-century and that this was the outcome of a continuing reduction over time. Second, spatial concentration of industries did not increase in early twentieth century as shown by traditional indices but rather declined, implying that we do not find an inverted-U shape pattern of long-run spatial concentration. Third, the persistent tendency to greater spatial dispersion was characteristic of most manufacturing industries. Fourth, even so, economically and statistically significant spatial concentration was pervasive throughout this period.
    Keywords: manufacturing belt; spatial concentration; transport costs
    JEL: N62 N92 R12
    Date: 2019–12

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