nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2019‒12‒23
29 papers chosen by

  1. Efficiency analysis of bank branches: production and profitability approaches (Case study of Bank EFG Syariah) By Bakhtiar, Toni
  2. Talents from Abroad. Foreign Managers and Productivity in the United Kingdom. By Dimitrios Exadactylos; Massimo Riccaboni; Armando Rungi
  3. Compositional Changes in Aggregate Productivity in an Era of Globalisation and Financial Crisis By Catherine Fuss; Angelos Theodorakopoulos
  4. Technical and scale efficiency of Indonesian rural banks By , abdul.mongid
  5. What drives the performance of Swedish lower secondary schools? By Christophe André; Jon Pareliussen; Hyunjeong Hwang
  6. Agricultural productivity growth, technical progress and efficiency decline in Central Africa By Akamin, Ajapnwa; Molua, Ernest L.
  7. Markup Cyclicality: Evidence From Belgian Manufacturing Firms By Asmae EL GALLAA
  8. Productivity Dynamics in French Woodworking Industries. By Enrico De Monte; Anne-Laure Levet
  9. Firms' Efficiency, Exits and Government procurement contracts By Evguenia Bessonova
  10. The Influence of Corporate Governance and Corporate Social Responsibility on Financial Performancewith Efficiency as Mediating Variable By Jamali, Hisnol; T, Sutrisno; Subekti,; Assih, Prihat
  11. Productivity Effects of Internationalisation Through the Domestic Supply Chain: Evidence from Europe By Bruno Merlevede; Angelos Theodorakopoulos
  12. The Intellectual Spoils of War? Defense R&D, Productivity and International Spillovers By Enrico Moretti; Claudia Steinwender; John Van Reenen
  13. Global economic growth and agricultural land conversion under uncertain productivity improvements in agriculture By Lanz, Bruno; Dietz, Simon; Swanson, Timothy
  14. Opting Out, Collective Contracts and Labour Flexibility: Firm-Level Evidence for The Italian Case By Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea
  15. Analysis of profit efficiency of smallholder common bean farmers in Malawi By Mapemba, Lawrence; Mgomezulu, Wisdom Richard; Kalua, Gracious
  16. Economic efficiency in table-egg enterprise in Abia state, Nigeria By Onu, D.O.; Okoronkwo, F.C.; Onyenweaku, C.F.
  17. Agricultural Vulnerability and Adaptation to Climatic Changes in Malaysia: Review on Paddy Sector By Alam, Md. Mahmudul; Siwar, Chamhuri; Jaafar, Abdul Hamid; Talib, Basri; Bin Osman Salleh, Khairulmaini
  18. Labor Market Effects of Technology Shocks Biased toward the Traded Sector By Luisito Bertinelli; Olivier Cardi; Romain Restout
  19. Women on boards: do quotas affect firm performance? By Cécile Casteuble; Laetitia Lepetit; Thu Tha Tran
  20. Quality Upgrading and Export Performance in the Asian Growth Miracle By Chris Papageorgiou; Fidel Perez-Sebastian; Nikola Spatafora
  21. Analysis of technical efficiency among Irish potato farmers in plateau state, Nigeria By Obi-Egbedi, Ogheneruemu; Gulak, Dominic Midawa
  22. The impact of electricity prices on jobs and investment in the Belgian manufacturing industry By Gert Bijnens; Joep Konings; Stijn Vanormelingen
  23. Efficiency of using agricultural land in Kazakhstan By Aigul Yerseitova; Sara Issakova; Leila Jakisheva; Almarа Nauryzbekova; Altynay Moldasheva
  24. Exporting and productivity as part of the growth process: Causal evidence from a data-driven structural VAR By Tommaso Ciarli; Alex Coad; Alessio Moneta
  25. Informality and Aggregate Productivity: The Case of Mexico By Jorge Alvarez; Cian Ruane
  26. Determinants of maize yield variability on smallholder farms in Western Kenya By Sussy, Munialo; Shadrack, Nyawade; Oluoch-Kosura, W.
  27. Water Productivity for Boro Rice Production: Study on floodplain Beels in Rajshahi, Bangladesh By Hossain, Istiaque; Siwar, Chamhuri; Bin Mokhta, Mazlin; Dey, Madan Mohan; Jaafar, Abd. Hamid; Alam, Md. Mahmudul
  28. The joint impact of improved maize seeds on productivity and efficiency: implications for policy By Abro, Zewdu Ayalew; Debela, Bethelem; Kassie, Menale
  29. Microdata Analysis of Japanese Farmers’ Productivity: Estimating Farm Heterogeneity and Elasticity of Substitution among Varieties By Yuko Akune; Nobuhiro Hosoe

  1. By: Bakhtiar, Toni
    Abstract: Until 2015, market share of Indonesian Islamic banking was still below of total 5% Indonesian banking market share. One effort to increase the market share is to spin off its Islamic business unit into Islamic commercial banks. One of the banks that undergoes the process was Bank EFG Syariah. However,Bank EFG Syariah has not been showing an optimal performance, which is indicated by reduced levels of corporate profitability in 2015. The aim of this study was to develop a performance model for measuring the relative efficiency and potential improvement capabilities of Bank EFG Syariah branches for the period 2014 and 2015. Data Envelopment Analysis (DEA) technique is utilitized here under production and profitability models. Another purpose was to investigate the production and profitability aspects of branches and to measured productivity change of Bank EFG Syariah branches between period. In this study the nature of efficiency and productivity change was investigate through the Malmquist Index. The results showed that there was an increase of 6% in high production-high profitable branches group, a decreased of 8% of the low production-high profitable branches group, a decreased of 7% the high production-low profitable branches group, and an increased of 4% in low production-low profitable branches group. This research also showed the average productivity increase of branches Bank EFG Syariah, between the period 2014-2015.
    Date: 2018–01–14
  2. By: Dimitrios Exadactylos (IMT School for advanced studies); Massimo Riccaboni (IMT School for advanced studies); Armando Rungi (IMT School for advanced studies)
    Abstract: In this paper, we test the contribution of foreign management on firms competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that a domestic manufacturing firm becomes on average between 9% and 12% more productive after hiring at least one foreign manager. Interestingly, productivity gains by domestic firms after recruiting foreign managers are similar in magnitude to gains after foreign acquisitions as from previous literature. Eventually, we do not find significant gains by foreign-owned firms hiring foreign managers. Our identification strategy combines difference-in-difference and matching techniques to challenge reverse causality. We proxy firms competitiveness either by total factor productivity or by technical efficiency derived from stochastic frontier analyses. Eventually, we argue that limits to the circulation of talents, as for example in case of a Brexit event, may hamper the allocation of labor productive resources.
    Keywords: managers; productivity; job mobility; spillovers; multinational enterprises; migration
    JEL: F22 F23 L23 L25 J61 M11
    Date: 2019–12
  3. By: Catherine Fuss; Angelos Theodorakopoulos
    Abstract: We demonstrate that common modeling assumptions underlying micro-unit productivity indices induce biases in the evolution and decomposition of standard aggregate productivity measures. After controlling for such biases, we decompose aggregate productivity based on groups of economically significant firm types. We show that large incumbent firms that both export and import determine the evolution of aggregate productivity for the Belgian manufacturing sector. Over time, the increase in average productivity outweighs the decline in the covariance between market shares and productivity of this group. The former result stems from stronger learning-by-doing effects for granular firms. The latter suggests an increase in resource misallocation due to market distortions. This pattern intensifies after the 2008 financial crisis. All other firm types, if anything, contribute negatively to aggregate productivity and productivity growth.
    Keywords: aggregate productivity, decomposition, globalisation, trade, granularity, learning
    Date: 2018–04–01
  4. By: , abdul.mongid
    Abstract: The existence of the rural bank in the Indonesian’ financial market is more pronounced recently than ever especially after the Asian crisis in 1997. The ability of rural banks to shield during the crisis and the state programs to develop small and medium enterprises (SMEs), make the role of rural banks more pivotal. Rural banks begin to fill in the gap of financial services in rural areas. Recently, the issue of efficiency has received attention among academic researchers. This study estimates the technical and scale efficiency of rural banks in Indonesia during the period of 2006 and 2007 by using the non-parametric approach – Data Envelopment Analysis (DEA). The results suggest that the degree of technical efficiency is found to be lower than the degree of scale efficiency which indicates that portion of overall inefficiency is due to producing below the production frontier rather than producing at an inefficient scale. In addition, majority of the banks in the sample exhibit suboptimal scale which imply that output should be expanded to reach the optimal scale.
    Date: 2018–01–10
  5. By: Christophe André; Jon Pareliussen; Hyunjeong Hwang
    Abstract: This paper presents the econometric analysis of lower secondary school performance carried out for the chapter on education of the 2019 OECD Economic Survey of Sweden. The dataset covers most Swedish schools providing education for 9th graders. Student socio-economic background has a considerable impact on academic results. Policy inputs are also correlated with results, notably in schools with pupils from weaker socio-economic backgrounds, but teacher qualifications and spending per student are endogenous. For-profit private schools underperform compared to non-profit and public schools, albeit with strong heterogeneity between schools. The introduction of an indicator of competition, based on the density of schools, suggests that intensified school competition lowers results in schools with a high share of pupils from weaker socio-economic backgrounds. Schools, and especially those achieving weaker results, have scope to raise their performance by improving their adaptation to student needs. This Working Paper relates to the 2019 OECD Economic Survey of Sweden mic-snapshot/
    Keywords: competition, education, efficiency, stochastic frontier analysis, Sweden
    JEL: C23 H75 I21 I28
    Date: 2019–12–19
  6. By: Akamin, Ajapnwa; Molua, Ernest L.
    Keywords: Productivity Analysis, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–09
  7. By: Asmae EL GALLAA
    Abstract: Countercyclical markup is a leading hypothesis in representative agent models of macroeconomic fluctuations; however, substantial heterogeneity across firms is documented at the micro-level. I test this hypothesis using an extensive firm-level data on Belgian manufacturing firms covering the period 1996-2014. I measure a firm’s markup as the wedge between its output elasticity of material inputs and their share in revenues. Consistent with recent studies challenging the findings of countercyclical markups I find that, on average, firmlevel markups appear to be procyclical. However, firms’ markups appear to be procyclical or acyclical depending on their size, age, end-use of products, and technological intensity.
    Keywords: countercyclical markups, business cycles, production function estimation, materials share
    Date: 2018–08–01
  8. By: Enrico De Monte; Anne-Laure Levet
    Abstract: This paper investigates productivity dynamics of firms active in French woodworking 4- digit industries. For this purpose we analyze firm-level data from the two fiscal data bases FICUS (1994 - 2008) and FARE (2008 - 2016). Based on firm-level productivity measures, recovered from the estimation of a value-added Cobb-Douglas production function, we mainly study the industries’ aggregate productivity growth related to entry and exit. Also, by constructing a transition matrix we investigate firms’ probability to survive, enter or exit given a specific ranking of their productivity. We find that all industries increased considerably their aggregate productivity between 1994 and 2016, where the by far largest part of this positive development is contributed by survivors productivity improvement. Entrants contribute negatively to aggregate productivity growths while the contribution of exitors varies in sign for different industries. Also, we find that firms reveal high persistence in their productivity ranking over time and that entry and exit is more probable for low productive and small firms.
    Keywords: production function estimation, aggregate productivity, productivity decomposition, technological change, firm entry and exit.
    JEL: C13 C14 D24 D30 O47
    Date: 2019
  9. By: Evguenia Bessonova (Bank of Russia, Russian Federation)
    Abstract: This study provides evidence that productivity growth trends in Russia are similar to those in other countries where technology leaders enjoy productivity growth with a gap increasing between them and other companies. The survival analysis suggests that the most efficient firms quit the market at a faster rate than firms in other efficiency groups in the Russian economy. Survival functions of the least efficient firm do not always differ significantly from those of other companies. Results based on public procurement data provide evidence that additional financing from government contracts helps both the most and the least efficient firms to survive and shelters them from competitive pressure. In the short run, the positive effect of winning government procurement contracts for leaders seems to be only observed in their home regions, providing indirect evidence that the public procurement system does not support all types of firms with growth potential but only those affiliated with local authorities. Intervention in the mechanism of market selection through the system of public procurement could have a strong negative effect on economic growth as it provides incentives for inefficient firms without growth potential to stay in the market longer.
    Keywords: TFP growth, efficiency, productivity gap, government procurement contracts, firms’ exits.
    JEL: D24 H57 L52
    Date: 2019–10
  10. By: Jamali, Hisnol; T, Sutrisno; Subekti,; Assih, Prihat
    Abstract: The purpose of this research was to investigate and analyze the direct effect of corporate governance and corporate social responsibility on financial performance and their indirect effect through efficiency. This research used quantitative approach with samples of manufacturing firms which were selected using purposive sampling that listed in Indonesia Stock Exchange. There were 297 observations years-firms (2009-2012). The results of this research showed that corporate governance didn’t have effect on financial performance (ROA &Tobins Q), neither direct nor indirect effect through efficiency. In contrast, there was empirical evidence that corporate social responsibility has positive influence on financial performance (ROA), either direct or indirect effect through efficiency. However, corporate social responsibility has negative effect on financial performance (Tobins Q), either direct or indirect effect through efficiency.
    Date: 2017–11–28
  11. By: Bruno Merlevede; Angelos Theodorakopoulos
    Abstract: This paper analyses whether indirect effects of internationalisation occur through the domestic supply chain. We investigate productivity effects for a given firm resulting from the import or export of intermediate inputs by domestic upstream and downstream industries. Using a rich sample of manufacturing firms in 19 EU countries, we find evidence that domestic access to intermediate inputs that are also destined to foreign countries is associated with higher levels of revenue productivity. Further, our results highlight two common, but important, misspecification biases: ignoring the dynamic nature of productivity and estimating a value-added instead of a gross-output production function.
    Keywords: offshoring, inshoring, supply chain, total factor productivity, trade, learning
    Date: 2018–09–01
  12. 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: O30
    Date: 2019
  13. By: Lanz, Bruno; Dietz, Simon; Swanson, Timothy
    Abstract: We study how stochasticity in the evolution of agricultural productivity interacts with economic and population growth at the global level. We use a two-sector Schumpeterian model of growth, in which a manufacturing sector produces the traditional consumption good and an agricultural sector produces food to sustain contemporaneous population. Agriculture demands land as an input, itself treated as a scarce form of capital. In our model both population and sectoral technological progress are endogenously determined, and key technological parameters of the model are structurally estimated using 1960-2010 data on world GDP, population, cropland and technological progress. Introducing random shocks to the evolution of total factor productivity in agriculture, we show that uncertainty optimally requires more land to be converted into agricultural use as a hedge against production shortages, and that it significantly affects both optimal consumption and population trajectories.
    Keywords: agricultural productivity; economic growth; endogenous innovations; environmental constraints; food security; global population; land conversion; stochastic control
    JEL: C61 J11 O11 O13 O31 Q16 Q24
    Date: 2018–03–01
  14. By: Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea
    Abstract: This article analyses the role of deviations from higher level collective agreements adopted in firm-level bargaining to regain higher labour mobility, net positive employment effects and a resurgence of labour productivity. Using Italian firm level data, after performing preliminary pooled ordinary least squares and fixed effects estimates, we adopt a difference-in-difference approach combined with a propensity score matching. All the estimations show that opting out clauses notably increases both hiring and separations, but without significant variations in terms of net employment. In addition, no significant labour productivity gains are obtained. The only significant change concerns the increase in the share of temporary workers.
    Keywords: Opting Out, Collective Bargaining, Labour Flexibility, Difference in Difference
    JEL: J5 J51 J53 J63 J81 J82
    Date: 2019–12
  15. By: Mapemba, Lawrence; Mgomezulu, Wisdom Richard; Kalua, Gracious
    Keywords: Crop Production/Industries
    Date: 2019–09
  16. By: Onu, D.O.; Okoronkwo, F.C.; Onyenweaku, C.F.
    Keywords: Productivity Analysis, Production Economics
    Date: 2019–09
  17. By: Alam, Md. Mahmudul (Universiti Utara Malaysia); Siwar, Chamhuri; Jaafar, Abdul Hamid; Talib, Basri; Bin Osman Salleh, Khairulmaini
    Abstract: Climate change has mixed impacts on agriculture and the impacts are different in terms of areas, periods and crops. The changing factors of climate have been exerting strong negative impacts on Malaysian agriculture, which is apprehended to result in shortages of water and other resources for long term, worsening soil condition, disease and pest outbreaks on crops and livestock, sea-level rise, and so on. Due to climate change, agricultural productivity and profitability is declining. Despite continuous increases of government subsidy, area of paddy plantation is decreasing and the adaption practices are ineffective. As climate change is universal and its existence is indefinite, the farmers need to adapt to and find ways to mitigate the damages of climatic variation in order to sustain agricultural productivity and attain food security for the
    Date: 2019–02–24
  18. By: Luisito Bertinelli; Olivier Cardi; Romain Restout
    Abstract: Motivated by recent evidence pointing at an increasing contribution of asymmetric shocks across sectors to economic fluctuations, we explore the sectoral composition effects of technology shocks biased toward the traded sector. Using a panel of seventeen OECD countries over the period 1970-2013, our VAR evidence reveals that a permanent increase in traded relative to non-traded TFP lowers the traded hours worked share by shifting labor toward the non-traded sector, and has an expansionary effect on the labor income share in both sectors. Our quantitative analysis shows that the open economy version of the neoclassical model can reproduce the reallocation and redistributive effects we document empirically once we allow for technological change biased toward labor together with additional specific elements. Calibrating the model to country-specific data, the model can account for the cross-country dispersion in the reallocation and redistributive effects we document empirically once we let factor-biased technological change vary across sectors and between countries. Finally, we document evidence which supports our hypothesis of factor-biased technological change as we find empirically that countries where capital-intensive industries contribute more to the increase in traded TFP are those where capital relative to labor efficiency increases.
    Keywords: Sectoral technology shocks, factor-augmenting efficiency, Open economy, Labor reallocation across sectors, CES production function, Labor income share
    JEL: E22 F11 F41 F43
    Date: 2019
  19. By: Cécile Casteuble (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Laetitia Lepetit (LAPE - Laboratoire d'Analyse et de Prospective Economique - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges); Thu Tha Tran (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this paper, we investigate the impact of gender quotas on firm performance using countries worldwide that have introduced a gender quota with sanction as a quasi-natural experiment. Our statistical analysis shows that board members' characteristics significantly change after the implementation of the gender quota. The results of our empirical analysis provide evidence that gender quotas have a neutral impact on firm performance in the short term and in the longer term, independently of changes in directors' age, education, nationality, experience or independence. Our findings provide evidence that policymakers can use mandatory quotas to force firms to achieve gender balance on corporate boards without a negative impact on firm performance. Our results also suggest that policymakers create unrealistic expectations for women to boost firm performance. JEL Classification: G34, G38.
    Keywords: gender quotas,Corporate governance,firm performance
    Date: 2019–11–28
  20. By: Chris Papageorgiou; Fidel Perez-Sebastian; Nikola Spatafora
    Abstract: We explore the contribution of product-quality upgrading to the export performance of six fast-growing Asian economies: China, India, Indonesia, Malaysia, South Korea, and Thailand. We focus on measuring the impact of quality upgrading on the changes in these countries’ sectoral export shares during 1970–2010. We build a multisector Ricardian trade model which allows for changes in product quality, and calibrate it to generate predictions about export volumes. Unlike previous literature, our approach allows estimation without employing domestic production data. Our results point to quality upgrading being a key driver of export shares.
    Date: 2019–11–27
  21. By: Obi-Egbedi, Ogheneruemu; Gulak, Dominic Midawa
    Keywords: Research and Development/Tech Change/Emerging Technologies, Crop Production/Industries
    Date: 2019–09
  22. By: Gert Bijnens; Joep Konings; Stijn Vanormelingen
    Abstract: Belgium is losing manufacturing jobs and it is losing these jobs at a faster pace compared to most other European countries. Whilst the impact of labour costs on the competitiveness of our industry is much debated and documented, the impact of the price of electricity remains unquantified. Using data of 10 European, highly industrialised countries, we estimate the impact of electricity prices on jobs and investment in Belgian manufacturing. We estimate that the elasticity of employment with respect to the electricity price is on average -0.30 and the elasticity of investment equals on average - 0.55. This means that a drop in the price of electricity of 1% would lead, holding all other things equal, to 0.30% extra manufacturing jobs and 0.55% extra manufacturing investment. Our findings are robust to different calculation methods. Others have estimated that electricity prices in Belgium are 10%-35% higher than in the neighbouring countries. Combining this information with the estimated elasticities, we calculate a price drop of 10% of the Belgian electricity price would lead within the manufacturing industry to an increase of 12,000 full-time jobs and an increase of €550 Million in yearly investment. These numbers are likely to be an underestimation of the impact. We take a conservative stance on the price handicap and Belgium has historically specialised in the most electricity intensive sectors. Furthermore, our approach does not quantify spillovers to other manufacturing nor services industries.
    Date: 2018–03
  23. By: Aigul Yerseitova (M. Kh. Dulati Taraz State University); Sara Issakova (M. Kh. Dulati Taraz State University); Leila Jakisheva (M. Kh. Dulati Taraz State University); Almarа Nauryzbekova (M. Kh. Dulati Taraz State University); Altynay Moldasheva (M. Kh. Dulati Taraz State University)
    Abstract: The paper evaluates the use efficiency of agricultural land in the Republic of Kazakhstan using physical and relative measures, as well as a consolidated criterion defined as the volume of gross output of crops per 100 ha of agricultural land. The assessment of agricultural land use was conducted in the period between 2012 and 2016, after which the acquired results were benchmarked against the results of 1990. That year was set as a reference point since it gives an indication of the Republic's achievements in agriculture while it was still part of the USSR. The undertaken analysis has shown that between 2012 and 2016, most agricultural land use metrics tended to have a positive dynamic. Despite that, the country has never regained the agricultural performance level it had back in 1990. The agricultural land use score according to the consolidated criterion has also demonstrated an insufficient land use performance compared to Russia, Belarus and Ukraine. The approved ABI Growth Government Program for 2017-2021 outlines efforts aimed at the efficient utilization of the country's land resources, helping boost the output of domestic products.
    Keywords: land,agricultural land,efficiency metrics for land resources use,cropland,crop yield,gross yield of plant and livestock products,efficiency,performance
    Date: 2018–12–30
  24. By: Tommaso Ciarli; Alex Coad; Alessio Moneta
    Abstract: This paper introduces a little known category of estimators - Linear Non-Gaussian vector autoregression models that are acyclic or cyclic - imported from the machine learning literature, to revisit a well-known debate. Does exporting increase firm productivity? Or is it only more productive firms that remain in the export market? We focus on a relatively well-studied country (Chile) and on already-exporting firms (i.e. the intensive margin of exporting). We explicitly look at the co-evolution of productivity and growth, and attempt to ascertain both contemporaneous and lagged causal relationships. Our findings suggest that exporting does not have any causal influence on the other variables. Instead, export seems to be determined by other dimensions of firm growth. With respect to learning by exporting (LBE), we find no evidence that export growth causes productivity growth within the period and very little evidence that exporting growth has a causal effect on subsequent TFP growth.
    Keywords: Productivity; Exporting; Learning-by-exporting; Causality; Structural VAR; Independent Component Analysis.
    Date: 2019–12–20
  25. By: Jorge Alvarez; Cian Ruane
    Abstract: We assess the aggregate productivity impact of distortions arising from labor regulations in Mexico and how they interact with informality. Using employment surveys and a firm-level economic census, we document a number of novel features about informal firms in Mexico. We then construct and estimate a model of heterogeneous firms and endogenous informality to study the micro and macro impacts from various policy reforms. Some reforms may have large impacts on informal employment but small impacts on aggregate productivity.
    Date: 2019–11–27
  26. By: Sussy, Munialo; Shadrack, Nyawade; Oluoch-Kosura, W.
    Keywords: Crop Production/Industries, Productivity Analysis
    Date: 2019–09
  27. By: Hossain, Istiaque; Siwar, Chamhuri; Bin Mokhta, Mazlin; Dey, Madan Mohan; Jaafar, Abd. Hamid; Alam, Md. Mahmudul (Universiti Utara Malaysia)
    Abstract: Context: Water productivity is considered as an important indicator of Agriculture productivity because of the scarcity of freshwater. More yield or output against same or less amount of water has become the global interest. Objectives: This study measures the productivity of water on the floodplain land in terms of Boro rice cultivation for two floodplain beels in Rajshahi Bangladesh. Materials & Methods: For this study, the production and market price data were collected by direct observation based on 30 samples in the year 2006-07. Results: This study found gross water productivity of rice yield as 0.47 kg m-3 in beel Mail and 0.43 kg m-3 in beel Chandpur. In monetary value, water productivity per cubic meter irrigation water were TK 5.65, TK 3.42 and TK 2.64 based on gross return, net return considering cash costs and net return considering full costs in beel Mail. In beel Chandpur these values were TK 5.19 m-3, TK 2.87 m-3 and TK 2.14 m-3, respectively. The usage of average irrigated water in the boro rice farms were estimated 10730.05 m-3 and 11236 m-3 with an average production of yield 4992.95 kg and 4783.20 kg in beel Mail and beel Chandpur. Statistical result shows that keeping irrigation water constant, a 1% increase of boro rice yield will increase water productivity at 0.916% in beel Mail and 0.972% in beel Chandpur. The water productivity in beel Mail was 4.65% higher than beel Chandpur due to the intervention of community based fish culture management. Conclusion: The findings of this study will help to govern and improve production by proper utilizing floodplain lands
    Date: 2019–02–24
  28. By: Abro, Zewdu Ayalew; Debela, Bethelem; Kassie, Menale
    Keywords: Productivity Analysis, Crop Production/Industries
    Date: 2019–09
  29. By: Yuko Akune (Nihon University, Tokyo, Japan); Nobuhiro Hosoe (National Graduate Institute for Policy Studies, Tokyo, Japan)
    Abstract: Modern theories of trade and economic geography pay particular attention to the role of product differentiation under monopolistic competition in manufacturing, while agriculture is considered to produce homogeneous goods. By contrast, agribusiness studies shed light on active entrepreneurs who have high productivity and are engaged in product differentiation by creating new products in their niches. Given these two contradicting views of agriculture, we examine the incidence of farm heterogeneity and product differentiation. This study uses microdata of Japanese farmers to estimate their total factor productivity. We find that heterogeneity is relatively low in the horticulture, grain and soybean (excluding rice), and fruit farming sectors, and high in the livestock sectors. In addition, the degree of product differentiation is relatively high in the livestock sectors, and the elasticity of substitution is as high as three, which is similar to findings in earlier studies on agriculture and manufacturing.
    Date: 2019–11

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.