|
on Efficiency and Productivity |
|
Issue of 2020‒08‒10
thirty-two papers chosen by |
| By: | Pillai N., Vijayamohanan; AM, Narayanan |
| Abstract: | One positive impact of the 1973 oil crises has been the concerted effort across the world to reduce energy consumption through energy use efficiency improvements. Improving energy efficiency ensures the objective of conserving energy and thus promoting sustainable development. Recognition of this fact has now appeared in terms of including the aim of improving efficiency as an important component of electrical energy policy in all the countries across the globe. A large number of studies have demonstrated that the aggregate energy efficiency inherently encompasses a number of factors that affect energy intensity, viz., a structural effect, representing the effect of changes in economic structure, an activity effect, representing the changes in the levels of aggregate activity, a wealth effect, representing changes in GDP, and an underlying energy efficiency effect, including a technical effect and an energy quality effect. This new light has in turn led to the development of the techniques of factorization or decomposition. Energy efficiency research in general has opened up three avenues of enquiry, namely, the measurement of energy productivity, the identification of impact elements (such as the three factors mentioned above) and the energy efficiency assessment. The traditional interest in energy efficiency has centred on a single energy input factor in terms of productivity that has become famous through an index method proposed by Patterson (1996). The enquiry that has proceeded from the problems associated with this method has led to identifying the effect source of variation, in terms of some decomposition analysis. Almost all the earlier studies have in general employed the method of indicators pyramid, based on which energy efficiency changes have been decomposed from other factors at each level of disaggregation using factorization method. The Laspeyres index decomposition approach was in vogue earlier that has now been replaced with methodologically superior Divisia approach, in terms of Logarithmic Mean Divisia index (LMDI). Finally, a new energy efficiency estimation method, criticizing the single factor energy efficiency method, has come up utilizing a multi-variate structure. Here we have a parametric (econometric) approach, in terms of frontier production function analysis, and a non-parametric approach, in terms of data envelopment analysis (DEA). |
| Keywords: | Energy Efficiency, Productivity, Kerala, Decomposition, Data Envelopment Analysis, Stochastic Frontier Model |
| JEL: | Q40 Q43 Q47 Q48 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101424&r=all |
| By: | Rajeswari Sengupta (Indira Gandhi Institute of Development Research); Harsh Vardhan (S.P. Jain Institute of Management and Research) |
| Abstract: | In this paper we analyse the beneficiaries of productivity gains in the Indian banking sector during the period from 1992 to 2019. We document the relative efficiency of different groups of banks by ownership. We find that the Indian banking sector, particularly the public sector banks experienced steady productivity growth from the mid 1990s till about 2010. We conduct a detailed descriptive analysis to examine the various stakeholders that the productivity gains have accrued to, over the years and across bank groups. We conclude that most of the gains may have accrued to the shareholders which for the public sector banks would mean the government. These gains presumably helped reduce the burden on the government of capitalising the public sector banks, especially during the 1997-2002 period of sharp rise in non performing assets. |
| Keywords: | Banking sector, Bank productivity, Beneficiaries, Efficiency gains |
| JEL: | G21 G28 D24 D61 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2020-024&r=all |
| By: | Mohammad Abdul Malek; Nusrat Abedin Jimi; Subal Kumbhakar; Plamen Nikolov |
| Abstract: | Improving productivity among farm enterprises is important, especially in low-income countries where market imperfections are pervasive and resources are scarce. Relaxing credit constraints can increase the productivity of farmers. Using a field experiment involving in Bangladesh, we estimated the impact of access to credit on the overall productivity of rice farmers, and disentangled the total effect into technological change (frontier shift) and technical efficiency changes. We found that relative to the baseline rice output per decimal, access to credit resulted in, on average, approximately a 14 percent increase in yield, holding all other inputs constant. After decomposing the total effect into the frontier shift and efficiency improvement, we found that, on average, around 11 percent of the increase in output came from changes in technology, or frontier shift, while the remaining 3 percent was attributed to improvements in technical efficiency. The efficiency gain was higher for modern hybrid rice varieties, and almost zero for traditional rice varieties. Within the treatment group, the effect was greater among pure tenant and mixed-tenant farm households compared with farmers than only cultivated their own land. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:feb:natura:00709&r=all |
| By: | Ajayi, V.; Dolphin, G.; Anaya, K.; Pollitt, M. |
| Abstract: | What accounts for the recent widespread slowdown in the productivity in advanced economies has remained a puzzle. One plausible explanation has been attributable to regulation, particularly anti-competitive regulations and environmental regulations. This paper focuses on the regulated energy network sectors by undertaking three sets of analysis in examining TFP in a sample of OECD countries over the period 1995-2016. First, using the growth accounting method, we find that there is a substantial productivity puzzle for the electricity and gas sectors, which exhibits a lower TFP growth than the whole economy over the period, and falls postfinancial crisis. Second, we identify the impact of regulation on productivity using a panel regression analysis. Our findings indicate that TFP levels seem weakly explained by changes to the competitive environment of the energy sector. Third, we show that energy and climate policy has negatively and significantly reduced energy sector productivity, at the same time as increasing capital input to the sector. We also find that the strength of energy and climate policy is positively correlated with lower aggregate TFP growth. |
| Keywords: | Total factor productivity, growth accounting, regulation, energy networks, climate policy |
| JEL: | D24 O47 H23 |
| Date: | 2020–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2073&r=all |
| By: | Moretti, Enrico; Steinwender, Claudia; Van Reenen, John |
| 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. |
| Keywords: | Defense; Innovation; productivity; R&D |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14145&r=all |
| By: | Stiebale, Joel; Südekum, Jens; Woessner, Nicole |
| Abstract: | We study the impact of a recent digital automation technology - industrial robotics - on the distribution of sales, productivity, markups, and profits within industries. Our empirical analysis combines data on the industry-level stock of industrial robots with firms' balance sheet data for six European countries from 2004 to 2013. We find that robots disproportionally raise productivity in those firms that are already most productive to begin with. Those firms are able to increase their markups and overall profits, while they tend to decline for less profitable firms within the same industry, country and year. We also show that robots contribute to the falling aggregate labor income share through a rising concentration of industry sales in highly productive firms with low firm-specific labor shares. In sum, our paper suggests that robots boost the emergence of superstar firms within European manufacturing, and thereby shifts the functional income distribution away from wages and towards profits. |
| Keywords: | Automation,Robots,Productivity,Markups,Labor share,Superstar firms |
| JEL: | D4 L11 O33 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:347&r=all |
| By: | Christian Abele (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Agnès Bénassy-Quéré (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Lionel Fontagné (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We analyse the impact of both the Global Financial Crisis of 2008 and the European sovereign and banking crisis of 2011-13 on firm-level productivity in France, Italy and Spain. We firstly show that relying on a single break date in 2008 misses both the euro crisis and countries' institutional speci_cities. Secondly, although leverage and financial constraints affect firm-level productivity negatively, high-leverage firms su_er more from financial constraints only in Italy, when they are relatively small or when their debt is of short maturity. These results, which are robust to a series of alternative explanations, call for approaches taking into consideration country-level characteristics of financial institutions and time varying _nancing constraints of the firms, instead of pooling data and adopting a common break date. One size does not fit all when it comes to identifying the impact of financial crises on firm level productivity. |
| Keywords: | total factor productivity,firm-level data,financial constraints,crises |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-02883685&r=all |
| By: | Christopher F. Baum (Boston College; DIW Berlin; CESIS, KTH Royal Institute of Technology); Hans Lööf (CESIS, KTH Royal Institute of Technology); Andreas Stephan (Jönköping International Business School; DIW Berlin); Ingrid Viklund-Ros (CESIS, KTH Royal Institute of Technology) |
| Abstract: | We examine the impact of offshoring on patenting and total factor productivity as a measure on technical change using a panel of 7,000 mainly small Swedish manufacturing firms over the period 2001-2014. We apply the United Nations Broad Economic Categories (BEC) system to identify offshoring-related intermediate imports. The empirical analysis shows that a positive link between offshoring and innovation exists. However, the effects are much weaker and less significant when self-selection and reverse causality from innovation to offshoring are considered. |
| Keywords: | offshoring, patent, trademark, innovation, productivity, panel data |
| JEL: | C23 F23 O47 O33 O52 |
| Date: | 2020–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:1014&r=all |
| By: | Soroush, Golnoush; Cambini, Carlo; Jamasb, Tooraj; Llorca, Manuel |
| Abstract: | It is generally accepted that institutions are important for economic development. However, whether the performance of regulated utilities within a country is affected by the quality of institutions is yet to be investigated thoroughly. We analyse how the quality of regional institutions impact performance of Italian electricity distribution utilities. We use a stochastic frontier analysis approach to estimate cost functions and examine the performance of 108 electricity distribution utilities from 2011 to 2015. This unique dataset was constructed with the help of the Italian Regulator for Energy, Networks, and Environment. In addition, we use a recent dataset on regional institutional quality in Italy. We present evidence that utilities in regions with better government effectiveness, responsiveness towards citizens, control of corruption, and rule of law, also tend to be more cost efficient. The results suggest that national regulators should take regional institutional diversity into account in incentive regulation and efficiency benchmarking of utilities. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:oeg:wpaper:2019/05&r=all |
| By: | Atkin, David; Khandelwal, Amit; Osman, Adam |
| Abstract: | We use tailored surveys and benchmarking in the flat-weave rug industry to better understand the shortcomings of standard productivity measures. TFPQ performs poorly because of variation in product specifications across firms. Controlling for specifications aligns TFPQ with lab benchmarks. We also collect quality metrics to construct quality productivity (the ability to produce quality given inputs) and find substantial dispersion across firms. This motivates interest in multi-dimensional productivity, or capability. As quality productivity is negatively correlated with TFPQ, TFPR may perform better at capturing capabilities in settings where better firms make products with more demanding specifications that have greater input requirements. |
| Keywords: | productivity |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14227&r=all |
| By: | Eita, Joel Hinaunye; Pedro, Marcio Jose |
| Abstract: | The study investigates the determinants of total factor productivity in selected sectors of the Angolan economy for the period of 1995 and 2017. The empirical results indicate that foreign direct investment is positively and significantly associated with an increase in total factor productivity in all sectors. Moreover, openness of the economy and the exchange rate have a positive impact on total factor productivity in the manufacturing sector. However, the impact of these two variables is negative on total factor productivity in the primary and service sectors. Furthermore, the study results reveals that an increase in inflation causes a decrease in total factor productivity in the manufacturing and service sectors, whilst positively associated with an increase in total factor productivity in the primary sector. Finally, official development assistance has a negative effect on total factor productivity in the primary and service sectors, whilst having a positive effect on total factor productivity in the manufacturing sector. The results imply that to ensure sustainable total factor productivity growth, Angola should pursue policies that attract foreign direct investment. The effect of other variables such as openness of the economy, inflation, official development assistance and exchange rate depends on sectors. This suggest that it is important to come up with policies, which are sector-specific in order to improve total factor productivity growth. |
| Keywords: | Angola; total factor productivity; ARDL |
| JEL: | C13 C50 C51 O4 O49 |
| Date: | 2020–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101304&r=all |
| By: | Sara Amoroso (European Commission - JRC); Roberto Martino (European Commission - RTD) |
| Abstract: | In this paper, we develop a new firm-level measure of distance to the productivity frontier that accounts for international technology spillovers stemming from the use of imported intermediate goods. The trade-weighted technological distance to frontier is matched with sector- and country-level data on regulation and firm dynamics (entry and exit rates) of 16 European countries. Using our measure of trade-adjusted technology gap, we investigate the role of labour, capital, and product market regulatory frameworks in the technology catch-up process, gauging the effect of firms' dynamics in mediating and moderating the impact of regulation on the technology gap. Our study offers a novel perspective and insights to the analysis of the link between framework conditions and technological distance to frontier. While most scholars argue that less regulation always favours productivity growth and the diffusion of technology, our results provide a more nuanced picture. Deregulation is not a one-size-fits-all solution that leads to faster technology diffusion, instead heterogeneity in business dynamism and countries' regulatory structures need to be considered. |
| Keywords: | Innovation diffusion, Framework conditions, Business dynamics, Technological frontier |
| JEL: | L16 L50 M21 O33 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:202004&r=all |
| By: | Schimmelpfennig, David; Lowenberg-DeBoer, James |
| Abstract: | In the United States average adoption rates have increased for precision agriculture (PA) technologies used to produce many field crops. PA makes use of information collected on the farm to target site-specific, intensive management of farm production. The United States Department of Agriculture (USDA) Agricultural Resource Management Survey (ARMS) allows close examination of regional patterns of adoption, and how crop types and region interact with differences in farm sizes and soil productivity variability to influence adoption rates. The most common PA technologies are guidance systems that use global positioning systems (GPS) to steer tractors and other farm equipment. Remote sensing, soil mapping, and yield mapping all use GPS to geolocate data and create maps used to guide farm management decision. Variable rate input-application technologies (VRT) make use of remote images, soil tests, yields maps and other sources of information to apply different, more precise levels of inputs in farmer’s fields. GPS guided VRT fertilization was introduced in the early 1990s and increased slowly over the last three decades. The ARMS data for winter wheat (2017), corn (2016) and soybeans (2012) showed use of VRT seeding and pesticide applications growing rapidly. The data indicated that PA technology was being used on farms across all sizes and all regions, with adoption occurring more rapidly on larger farms. VRT use on soybean farms was highest in areas of higher soil variability. |
| Keywords: | Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:haaepa:304070&r=all |
| By: | Laurin James; Michael Koelle; Simon Quinn |
| Abstract: | Can large capital injections increase the productivity of microenterprises? We use the lens of a production function to re-examine two previous randomised controlled trials that allocated capital grants to microenterprises. We find that productivity is higher for treated firms, and accounts for 16–34 percent of the revenue effects of capital grants. We find that treatment tilts the asset composition towards durables with a technology component: a result consistent with an important role for capital- embodied technology. These productivity effects are still present six years after the grants, suggesting that the intervention has put microenterprises on a different tra- jectory. |
| Keywords: | Economic development Microenterprises Formality and informality embodied technology Total factor productivity |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2019-13&r=all |
| By: | Cem Özgüzel (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Productivity differences across Turkish provinces is one of the highest among the OECD countries. In this paper, I estimate agglomeration effects for Turkish provinces to shed light on the causes of productivity differences and provide evidence on the importance of such effects in a developing country context which literature needs. I use a novel administrative dataset recently made available at NUTS-3 level, for 81 provinces of Turkey for the period 2008-2013 and carry out a two-step estimation. Using a variety of panel data techniques and historical instruments to deal with estimation concerns, I estimate an elasticity of labor productivity with respect to the density of 0.057-0.06, which is higher than in developed countries and around the levels observed in developing countries. I find that domestic market potential matters even more than density and is the most significant determinant of the productivity differences across Turkish provinces. Finally, in stark contrast with the evidence coming from developed countries, I do not find any effects for positive sorting of workers across provinces. This finding suggests that urbanisation patterns may be operating differently in developing countries, indicating the need for further evidence from such countries. |
| Keywords: | local labor markets,spatial wage disparities,developing country,Turkey |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02878368&r=all |
| By: | Wang, Sun Ling; Mosheim, Roberto; Nehring, Richard; Njuki, Eric |
| Keywords: | Farm Management, Financial Economics, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2020–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uerser:303975&r=all |
| By: | Anderson, Simon P; De palma, Andre |
| Abstract: | We show for CES demands with heterogeneous productivities that profit, revenue, and output distributions lie in the same closed power-family as the productivity distribution (e.g., the "Pareto circle"). The price distribution lies in the inverse power-family. Equilibrium distribution shapes are linked by linear relations between their density elasticities. Introducing product quality decouples the CES circle, and reconciles Pareto price and Pareto sales revenue distributions. We use discrete choice underpinnings to find variable mark-ups for a more flexible demand formulation bridging CES to Logit and beyond. For logit demand, exponential (resp. normal) quality-cost distributions generate Pareto (log-normal) economic size distributions. |
| Keywords: | Box-Cox; CES; closed power-family distributions; generalised (log-)normal; Logit; Mark-ups; monopolistic competition; Pareto; Power; Quality |
| JEL: | F12 L13 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14168&r=all |
| By: | Breitenbach, Marthinus C; Ngobeni, Victor; Ayte, Goodness |
| Abstract: | In this novel paper, we make use of a non-parametric method known as Data Envelopment Analysis (DEA) to analyse the 31 most infected countries during the first 100 days since the outbreak of the COVID-19 coronavirus for the efficiency in containing the spread of the virus – a question yet to be answered in the literature. Our model showed 12 of the 31 countries in our sample were efficient and 19 inefficient in the use of resources to manage the flattening of their COVID-19 contagion curves. Among the worst performers were some of the richest countries in the world, Germany, Canada, the USA and Austria, with efficiency between 50 and 60 per cent - more inefficient than Italy, France and Belgium, who were some of those hardest hit by the spread of the virus. |
| Keywords: | Pandemic, COVID-19, Flattening the Curve, Data Envelopment Analysis, Non-Pharmaceutical Interventions, Healthcare, Technical Efficiency, Healthcare system efficiency barometer. |
| JEL: | C61 D24 I10 |
| Date: | 2020–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8872&r=all |
| By: | G. Garau; S. Deriu |
| Abstract: | Fontela in his seminal work (1989) set up the distributional rule of productivity gain in the Input–Output context (Total Factor Productivity Surplus, TFPS). Garau (1996) proposed an extension to identify a measure of surplus, called Purchasing Power Transfer (PPT). This measure is given by the productivity gains and the market surplus generated by extra–profits conditions derived from rental position detained by agents. Such a decomposition is very useful from our point of view since it would provide information about the degree of non–competitiveness in different markets. In our paper, we compute and explain Fontela's TFPS comparing it with Garau's PPT for Italy for the year 2009-2014. |
| Keywords: | input-output;Total Factor Profuctivity Surplus;Relative Price |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202003&r=all |
| By: | Fernando Alexandre (NIPE and University of Minho); Pedro Bação (University of Coimbra, CeBER, FEUC); João Cerejeira (NIPE and University of Minho); Hélder Costa (NIPE/University of Minho); Miguel Portela (NIPE and University of Minho) |
| Abstract: | Since late 2014, Portuguese Governments adopted ambitious minimum wage policies. Using linked employer-employee data, we provide an econometric evaluation of the impact of those policies. Our estimates suggest that minimum wage increases reduced employment growth and profitability, in particular for financially distressed firms. We also conclude that minimum wage increases had a positive impact on firms’ exit, again amplified for financially distressed firms. According to these results, minimum wage policies may have had a supply side effect by accelerating the exit of low profitability and low productivity firms and, thus, contributing to improve aggregate productivity through a cleansing effect. |
| Keywords: | minimum wage, financially distressed firms, productivity |
| JEL: | E24 J38 L25 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:04/2020&r=all |
| By: | Álvarez, Inmaculada C.; Gude, Alberto; Orea, Luis |
| Abstract: | This paper examines the role of both intra and inter-industry spillovers when estimating regional aggregate production functions. To our knowledge, this is the first paper that examines technological and spatial externalities simultaneously using sector-level data. The proposed model also extends the standard spatial econometric models by modeling interregional (spatial) dependence through the economic criteria of migration flows. We apply our methodology to the Spanish provinces over the 2001-2013 period. Our results reveal the simultaneous presence of both Marshallian and Jacobian externalities. The spillovers of private production factors are negative in most of the sectors, indicating the presence of inter-regional and inter-sectoral competition for skilled labor and private capital. Our results also indicate that the core-periphery theory can be applied to both fully efficient and inefficient sectors, a finding that should be examined more deeply in the future. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:oeg:wpaper:2019/01&r=all |
| By: | Baum, Christopher F (Boston College, DIW Berlin & Centre of Excellence for Science and Innovation Studies); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stephan, Andreas (Jönköping University, DIW Berlin & Centre of Excellence for Science and Innovation Studies); Viklund-Ros, Ingrid (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | We examine the impact of offshoring on patenting and total factor productivity using a panel of 7,000 mainly small Swedish manufacturing firms over the period 2001-2014. We apply the United Nations Broad Economic Categories (BEC)system to identify offshoring-related intermediate imports. The results show that the link between offshoring on the one hand and innovation and productivity on the other is largely explained by self-selection and reverse causality. We find a positive but statistically weak impact of offshoring on innovation, and no effect on productivity. |
| Keywords: | offshoring; patent; trademark; innovation; productivity; panel data |
| JEL: | C33 D24 F61 L23 O31 |
| Date: | 2020–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0486&r=all |
| By: | Moyo, Delani; Tursoy, Turgut |
| Abstract: | The study examines the impact of inflation and exchange rate on the financial performance of commercial banks in South Africa. The study covers four largest commercial banks in South Africa, namely; Standard bank, Nedbank, Capitec bank and Firstrand bank for the period 2003-2019. To measure the financial performance return on equity was used as the dependent variable and inflation and exchange rate as the independent variables. To achieve the objective of the study, the ARDL, FMOLS and DOLS models are used. The findings illustrated that there is a significant inverse relationship between inflation and the return on equity and there is a weak relationship between exchange rate and the return on equity. |
| Keywords: | Financial Performance, Return on Equity, Inflation, Exchange Rate, Commercial Banks, South Africa. |
| JEL: | G2 G21 |
| Date: | 2020–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101383&r=all |
| By: | Gabriel Di Bella; Oksana Dynnikova; Slavi T Slavov |
| Abstract: | The short answer: The size of the Russian State has not increased much in the last few years, but its economic footprint remains significant. Concretely, the state's size increased from about 32 percent of GDP in 2012 to 33 percent in 2016, not far from the EBRD's estimate of 35 percent for 2005-10. This is different from the mainstream narrative, which contends that the state's size doubled in the last decade. However, a deep state footprint is reflected in a relatively high state share in formal sector activity (close to 40 percent) and formal sector employment (about 50 percent). The deep footprint is also reflected in market competition and efficiency. Although sectors in which the state is present are more concentrated, concentration is large even in sectors where the state's share is low. This suggests the need to protect and promote competition, in particular in state procurement. Finally, state-owned enterprises' performance appears weaker than that of privately-owned firms, which may be subtracting from growth. |
| Keywords: | Economic growth;Social security funds;Total factor productivity;Private investments;Foreign investment;Russian State,State-Owned Enterprises,Transition Economies,state 's share,SOEs,state 's size,economic concentration |
| Date: | 2019–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/053&r=all |
| By: | Kampkötter, Patrick; Maier, Patrick |
| Abstract: | Performance measurement and evaluation systems are among the most common management instruments. An integral element of this process is the use of targets, typically set in appraisal interviews and formalized via written target agreements. In this paper, we investigate the relationship between performance management and evaluation systems and individual effort, proxied by the commonly used concept of work engagement. Using four waves of a new representative, linked employer-employee data set, the Linked Personnel Panel (LPP), we apply fixed effects estimations to account for unobserved heterogeneity. Our results show positive and statistically significant relationships between the presence of a performance management and evaluation process and employee engagement on the individual level. We are further able to differentiate between appraisal interviews and written target agreements which allows us to show a positive effect of appraisal interviews and an additional positive effect of target agreements. In addition, we find first evidence that these direct relationships are partially mediated by goal clarity and procedural fairness. |
| Keywords: | Target Agreements,Performance Appraisals,Work Engagement,Goal Clarity,Procedural Fairness |
| JEL: | D23 J01 J33 M41 M52 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:136&r=all |
| By: | Amodio, Francesco; Martinez-Carrasco, Miguel |
| Abstract: | This paper studies how asymmetric information over inputs affects workers' response to incentives and self-selection at the workplace. Using daily records from a Peruvian egg production plant, we exploit a sudden change in the worker salary structure and find that workers' effort, firm profits, and worker participation change differentially along the two margins of input quality and worker type. Firm profits increase differentially from high productivity workers, but absenteeism and quits of these workers also differentially increase. Evidence shows that information asymmetries over inputs between workers and managers shape the response to incentives and self-selection at the workplace. |
| Keywords: | asymmetric information; incentives; input heterogeneity; Self-selection |
| JEL: | D22 D24 J24 J33 M11 M52 M54 O12 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14213&r=all |
| By: | Lawless, Martina; Rehill, Mark |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp659&r=all |
| By: | Subal C. Kumbhakar; Norman V. Loayza; Vivian Norambuena |
| Abstract: | This paper discusses and illustrates the analytical foundations of international comparisons (or benchmarking) for assessing a country’s potential for improvement along various dimensions of social and economic development. By providing a methodology for international benchmarking, discussing various alternatives and choices, and presenting a cross-country illustration, the paper can help practitioners be less arbitrary and more systematic in their approach to international comparisons, as well as more realistic in their expectations for a country’s improvement. The paper presents the stochastic frontier approach and applies it to estimate feasible frontiers or benchmarks for each variable, country, and year. It then interprets a country’s (one-sided) departure from the benchmark as inefficiency or potential for improvement. This contrasts with the literature that compares countries by looking at raw variables or indicators, without considering that countries differ in structural endowments that constrain the maximum performance that a country could achieve in a policy-relevant horizon. The Stochastic Frontier approach also improves upon the literature that uses regression residuals to measure performance. Regression residuals are hard to interpret as inefficiency, because they are mixed with noise and take positive and negative values. As an illustration, the paper uses a panel of 142 countries with yearly data for 2005–14 and considers a set of 10 development indicators. It finds that the potential for improvement does not follow a simple relationship with economic development, with some lower-income countries being closer to their own feasible frontier than more advanced countries are. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp498&r=all |
| By: | Philippe Askenazy (CMH - Centre Maurice Halbwachs - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, ENS Paris - École normale supérieure - Paris) |
| Abstract: | In this paper, we propose a basic model with two types of capital: productive capital directly involved in the production process and capital devoted to monitoring workers. Surveillance capital intensifies workers' job strain, while wage recognition encourages their engagement. Firms face a double trade-off between the two types of capital and between incentives and labour costs. Under simple assumptions, up to a certain threshold, technological innovation improves productivity , wages and profits at the same pace, leading to a flat labour share in income. Then, once the threshold is breached, profit-maximization initiates a transfer from productive capital to monitoring tools. This progressive shift generates a decline in the labour share and a productivity slowdown, despite greater job strain. The model suggests the possibility of a third phase in which productivity and wages recover. |
| Abstract: | Ce document propose un modèle avec deux types de capital : le capital productif directement impliqué dans le processus de production et le capital consacré au suivi des travailleurs. Le capital de surveillance intensifie la pression sur l'emploi des travailleurs, tandis que la reconnaissance des salaires encourage leur engagement. Les entreprises sont confrontées à un double arbitrage entre les deux types de capital et entre les incitations et les coûts du travail. Sous des hypothèses simples, jusqu'à un certain seuil, l'innovation technologique améliore la productivité, les salaires et les profits au même rythme, ce qui conduit à une stagnation de la part du travail dans la valeur ajoutée. Ensuite, une fois le seuil franchi, la maximisation des profits amorce un transfert du capital productif vers les outils de suivi des travailleurs. Ce transfert progressif génère une diminution de la part du travail et un ralentissement de la productivité, malgré une plus grande pression professionnelle. Le modèle suggère la possibilité d'une troisième phase au cours de laquelle la productivité et les salaires se redressent. |
| Keywords: | declining labour share,productivity slowdown,effort-reward imbalances,surveillance * |
| Date: | 2020–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02877703&r=all |
| By: | Ferrando, Annalisa; Mulier, Klaas; Verschelde, Marijn; Cherchye, Laurens; De Rock, Bram |
| Abstract: | We propose a new methodology to recover firm-time varying financial constraints from firms’ production behavior. We model financial constraints as the profitability that firms forgo when budget constraints on production inputs bind, impeding them from using the optimal level of inputs and technology. We estimate and validate our measure using unique data combining firms’ balance sheets with survey information on self-reported financial constraints, like loan rejections. In contrast to three popular indices of financial constraints, our measure recovers financial constraints beyond observable firm characteristics, recovers cross-sectional and time-varying stylized facts of financial constraints, and is applicable to both public and private firms. JEL Classification: E44, G00, G30, G32 |
| Keywords: | access to finance, financial constraints, identification, indicators, production function |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20202420&r=all |
| By: | Flavio Calvino; Daniele Giachini; Mattia Guerini |
| Abstract: | We investigate upon the shape and the determinants of the age distribution of business firms. By employing a novel dataset covering the population of French businesses, we highlight that a geometric law provides a reasonable approximation for the age distribution. However, relevant systematic deviations and sectoral heterogeneity appear. We develop a stochastic model of firm dynamics to explain the mechanisms behind this evidence and relate them to business dynamism. Results reveal a long-term decline in entry rates and lower survival probabilities of young firms. Our findings bear important implications for aggregate outcomes, notably employment growth. |
| Keywords: | Firm demographics; age distribution; business dynamism. |
| Date: | 2020–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2020/20&r=all |
| By: | Balazs Zelity (Department of Economics, Wesleyan University) |
| Abstract: | This research explores theoretically, empirically and quantitatively the role of age diversity in determining aggregate productivity and output. Age diversity has two conflicting effects on output. On the one hand, due to skill complementarity across different cohorts, age diversity may be beneficial. On the other hand, rapid skill-biased technological change makes age diversity costly as up-to-date education tends to be concentrated among younger cohorts. To study this trade-off, I first build an overlapping-generations (OLG) model which, in view of these two opposing forces, predicts a hump-shaped relationship between age diversity and GDP per capita. This prediction is established analytically, and also quantitatively using real-world population data in an extended computational version of the model. The prediction is then tested using country-level panel data with a novel instrument, and regional data from Europe. Moving one standard deviation closer to the optimal level of age diversity is associated with a 1.5% increase in GDP per capita. In addition, consistent with the predictions of the model, the optimal level of age diversity is lower in economies where skill-biased technological change is more prevalent. |
| Keywords: | age diversity, education, experience, human capital, demographics, skill-biased |
| JEL: | E24 O40 J24 O15 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:wes:weswpa:2020-004&r=all |