|
on Efficiency and Productivity |
|
Issue of 2022‒08‒15
nineteen papers chosen by |
| By: | Natália Barbosa (Universidade do Minho); Ana Paula faria (Universidade do Minho) |
| Abstract: | Digital technologies have the scope to engender positive effects on productivity at firm and aggregate level. However, empirical evidence and theoretical contributions are ambiguous as mixed findings and diverse explanations have been put forward. We use a rich and representative sample of Portuguese firms over the period 2014-2019 to empirically assess the relationship between digital technologies adoption and productivity. Based on estimations over the entire distribution of firm’s productivity, we find that heterogeneous digital technologies affect differently the dynamics of productivity and the convergence to the frontier. This leads to mixed findings with scope to diverse impact in the aggregate productivity. Moreover, positive and significant effects on productivity require an upgrading on the degree of sophistication and complementarity among digital technologies and benefit from the ability of firms to interact and learn with digitalised peers in the same industry. |
| Keywords: | Digital technologies, Productivity, Spillover effects |
| JEL: | L20 H81 L25 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0162&r= |
| By: | Mundt, Philipp; Savin, Ivan |
| Abstract: | We revisit the debate on the role of technological improvement and market share reallocation in determining aggregate productivity gains. Contrary to previous work that neglects dependencies between suppliers in global value chains, we explicitly account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input-Output Database, we show that market share reallocation has a markedly larger effect on productivity change than innovation. |
| Keywords: | input-output analysis,market share reallocation,productivity decomposition,production network,technological improvement |
| JEL: | C67 E24 L14 L16 O47 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bamber:179&r= |
| By: | Prema-chandra Athukorala; Hai Thanh Nguyen |
| Abstract: | This paper contributes to the fledgling literature on firm ownership and manufacturing productivity in transition economies by drawing on the experience of Vietnam. The empirical analysis uses a new a new establishment-level panel dataset over the period 2006-2017. The findings indicate that the transformation of the ownership structure under trade and investment policy reforms has contributed significantly to improving the productivity of the manufacturing sector, with both fully owned subsidiaries of multinational enterprises (MNEs) and MNE joint ventures with domestic private sector firms playing a pivotal role. Productivity of fully-owned MNE subsidiaries is significantly higher than that of MNE joint ventures, supporting the view that relaxing ownership restrictions on foreign direct investment have been instrumental in improving manufacturing productivity. Both state-owned enterprises (SOEs) and MNE-SOE joint ventures are at the bottom of the productivity ranking, suggesting that the MNE-SOE joint ventures are not immune to productivity-retarding factors affecting SOEs. |
| Keywords: | transition economies, Vietnam, manufacturing, multinational enterprises (MNEs), State owned enterprises (SOEs) |
| JEL: | F23 O14 P24 P23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2022-09&r= |
| By: | Asmare, Fissha; Jaraitė, Jūratė; Kažukauskas, Andrius |
| Abstract: | We explore the impact of climate change adaptation on the technical efficiency of Ethiopian farmers using panel data collected from 6,820 farm plots. We employ Green's (2010) stochastic frontier approach and propensity score matching to address selection bias. Our results reveal that climate change adaptation improves the efficiency of maize, wheat, and barley production. We also show that failure to account for selection bias underestimates the average efficiency level. Our findings imply that the expansion of climate change adaptation at larger scales will provide a double benefit by curbing climate-related risks and increasing the efficiency of farmers. Moreover, increasing credit access and introducing mechanisms that allow farmers to get enough amount of water during the main growing season will enhance the efficiency of subsistence farmers. |
| Keywords: | Crop Production/Industries, Risk and Uncertainty |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321197&r= |
| By: | Robert Stehrer |
| Abstract: | There is a widespread concern that new technologies and digitalization have strong negative impacts on labour demand. This paper analyses the impact of ICT capital accumulation and TFP growth on employment growth (persons and hours worked) and the labour income share in the pre- and post-crisis years. The cross-section results (over countries and industries) suggest that on average TFP growth has no significant influence on employment growth, and perhaps even a slightly positive one, which may point to increasing competitiveness. There is no evidence of significant impacts of the accumulation of ICT capital on employment growth, whereas a positive relationship is found between non-ICT capital accumulation and employment growth. Concerning labour income shares, results at the industry level point to a negative impact of TFP growth, but no effects of ICT capital accumulation. Domestic and foreign inter-industry linkages have – if at all – only modest impacts. These results are generally in line with some recent literature pointing towards only limited effects of new technologies on labour demand. |
| JEL: | C21 O33 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:161&r= |
| By: | Juan Luis Gómez-Reino (Inter-American Development Bank); Santiago Lago-Peñas (Governance and Economics research Network (GEN). University of Vigo (Spain)); Jorge Martinez-Vazquez (International Center for Public Policy, Georgia State University, USA) |
| Abstract: | The standard theory of optimal jurisdictional size hinges on the existence of economies of scale in the provision of local public goods and services. However, despite its relevance for forced local amalgamation programs and related policies, the empirical evidence on the existence of such economies of scale remains elusive. The main goal of this paper is to produce an updated and comprehensive quantitative review of the existence of economies of scale in the provision of local public goods using a meta-analysis approach to systematize the wide range of empirical approaches and modeling frameworks found in the previous literature. Our analysis confirms the presence of moderately increasing to constant returns to scale in the provision of local services across traditional local service sectors such as education, water and sanitation, and garbage collection. We identify best practices for future empirical research in this area, which should rely on physical output as the metric of activity, production cost data as the measure of input expense, and a translog specification function for the modeling of cost functions. Finally, we find evidence that the determinants of output cost elasticity include bidirectional publication bias and population density but do not include the presence or absence of modern “lean” production technologies or the (perceived) capital intensity of the sector, contrary to conventional wisdom. These findings have significant policy implications for countries considering jurisdictional consolidation programs. |
| Date: | 2021–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2116&r= |
| By: | Sondès Kahouli; Xavier Pautrel (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | This paper shows that accounting for the growing interdisciplinary literature supporting the causality between energy efficiency and health and the empirical evidence reassessing the impor tance of health in workforce productivity, could explain a part of the paradoxal relationship found between energy efficiency and energy consumption. We build a 3-period overlapping generations model where we assume that residential energy inefficiency induces chronic disease for adults and bad health for elderly. We also assume that workers' health has an effect of their labor productivity. Our results suggest, in particular, that if mostly old (respectively young) people health is affected, the health impact of residential energy efficiency should have a backfire (resp. rebound) influence on residential energy consumption, by promoting precautionary saving (resp. by rising labor productivity). In policy terms, by showing that the link between energy efficiency and energy consumption is far from being just associated with technical conditions about preferences and/or production technology, our research emphasizes how crucial and complex are for governments the discussion and policy action dealing with the connection between energy conservation policies, health insurance system and growth. |
| Keywords: | Energy efficiency,Health,Precautionary saving,Labor productivity,Overlapping generations model. JEL classification D58,Q43 |
| Date: | 2022–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03652352&r= |
| By: | Pi, Lulu; Zheng, Xiaoyong; Li, Zheng; Rejesus, Roderick M. |
| Keywords: | Research Methods/Statistical Methods, Productivity Analysis, Production Economics |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322128&r= |
| By: | Wang, Sun Ling; Olver, Ryan; Bonin, Daniel; Dodson, Laura L.; Williams, Ryan C. |
| Keywords: | Productivity Analysis, Production Economics, Environmental Economics and Policy |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322595&r= |
| By: | Kentaro Asai (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - 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, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - 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: | This paper examines the employment and productivity effects of the working hour reform in Portugal that reduced the standard hours from 44h to 40h in 1996-7. Using the variation across establishments in the intensity of treatment, I find that the establishments that were more treated experienced lower post-reform employment growth, although to a modest degree. Despite of the large reduction in the labor hour input, there is no statistically significant negative effect on sales, leading to a large improvement in labor efficiency measured by sales per hour. However, these overall effects mask substantial heterogeneity in responses: establishments in capital intensive sectors reduced employment without decline on sales, while those in labor intensive sector rather attempted to maintain employment, but their sales were negatively affected. These results provide indirect evidence consistent with the theories that highlight the role of scale effects and capital substitution effects. |
| Keywords: | Working Hour,Labor Demand,Productivity,Labor Market Working Hour,Labor Market Imperfections |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-03728157&r= |
| By: | Nandini E. S; Sudharani R; Suresh N |
| Abstract: | The study focuses on the Impact of Environmental Accounting on the Profitability of Companies listed on the Bombay Stock Exchange. The study has considered the Amount spent on Environmental protection as an Independent variable and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share as the Dependent variable. The present study is to analyses the relationship between Amounts spent on Environmental protection costs and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share. The data is collected from 18 companies listed on the Bombay Stock Exchange for 10 years from the Annual reports of companies. The data collected were analysed using Panel data Regression in E-Views. Results revealed that there is a significant Relationship between Environmental protection Cost and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share. The study shows that Environmental accounting impact positively on Firms profitability. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.00716&r= |
| By: | Carlianne Patrick; Mark Partridge |
| Abstract: | We use confidential Census microdata to compare outcomes for plants in counties that “win” a new plant to plants in similar counties that did not to receive the new plant, providing empirical evidence on the economic theories used to justify local industrial policies. We find little evidence that the average highly incentivized large plant generates significant productivity spillovers. Our semiparametric estimates of the overall local agglomeration function indicate that residual TFP is linear for the range of “agglomeration” densities most frequently observed, suggesting local economic shocks do not push local economies to a new higher equilibrium. Examining changes twenty years after the new plant entrant, we find some evidence of persistent, positive increases in winning county-manufacturing shares that are not driven by establishment births. |
| Keywords: | local economic development, agglomeration externalities, persistence |
| JEL: | R11 H25 R38 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:22-21&r= |
| By: | Rocco Macchiavello; Ameet Morjaria |
| Abstract: | Well-functioning markets allocate assets to owners that improve firms’ management and performance. We study the effects of ownership changes on coffee mills in Rwanda – an industry in which managing relationships with farmers and seasonal workers is important and that has seen many ownership changes in recent years. We combine administrative data, a survey panel of mills and an original survey of acquirers that allows us to construct acquirer-specific and target-specific control groups. A difference-in-differences design reveals that ownership changes do not improve performance unless the mill is acquired by a foreign firm. Our preferred interpretation – supported by detailed survey evidence that considers alternative hypotheses – is that foreign firms successfully implement management changes in key operational areas. Upon acquisition, both domestic and foreign owned mills attempt to implement similar changes, but domestic firms face resistance from workers and farmers. Domestic owners have relationships with their local communities, which can create opportunities to establish new mills and acquire existing ones. However, these same relationships create pressure to maintain status-quo relational arrangements, which makes it harder to implement managerial changes. |
| JEL: | D24 G32 G34 L25 N57 O12 O16 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30230&r= |
| By: | MORIKAWA Masayuki |
| Abstract: | This study documents the adoption, intensity, and productivity of work from home (WFH) practices since the onset of the COVID-19 pandemic using panel data from original firm surveys in Japan. According to the results, at the end of 2021, the ratio of WFH-adopting firms and the intensity of WFH decreased substantially compared to when the first state of emergency was declared in 2020. Second, although the mean productivity of WFH improved by a few percentage points, it is still approximately 20% lower than that at the usual workplaces. The firms’ evaluation of remote workers’ productivity at home is similar to the results obtained from a survey of employees engaged in WFH. Third, the majority of firms are planning to discontinue the WFH practice and revert to the conventional workstyle after the end of COVID-19, indicating that there is a large gap between firms’ intentions and the desire of remote workers. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22061&r= |
| By: | Miguel Espinosa; Christopher T. Stanton |
| Abstract: | We study direct productivity changes and spillovers after a randomized training program for the frontline workers in a Colombian government agency. While trained workers improved their individual production, we also find substantial spillovers that affected managers' productivity. We use email data and a survey to explore the mechanisms behind these spillovers and find that managers' increased output arises from reductions in the need to help lower level employees. Accounting for spillovers to manager productivity changes the organization's implied return on investment from the training program, expanding the set of training investments that can be supported. |
| JEL: | J24 L2 M5 M53 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30224&r= |
| By: | Krisna Gupta |
| Abstract: | Indonesian government has been working hard in engaging with the world market as average tariff keeps on decreasing. However, it seems to rely on Non-Tariff Measures (NTM) rather than tariffs to protect its industries. This paper inspects whether these measures hurt firms by limiting their access to better quality and cheaper foreign inputs. This paper builds on Amiti and Konings (2007) to inspect the impact of trade policy shocks to firm’s Total Factor Productivity (TFP). The results suggest unintended consequences of protectionism: tariff and NTMs hurt firms’ TFP and labour absorption significantly. The impact is less severe for bigger firms, confirming heterogeneous effect of trade policy. As the country is looking to boost foreign investment, the paper makes a strong case for reducing protection to keep mark-up in domestic manufacturing high as an incentive. |
| Keywords: | Total factor productivity, Tariff, Non-tariff Measures, manufacturing, trade liberalization. |
| JEL: | O14 O53 F14 F15 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2021-21&r= |
| By: | Abrardi Laura (DIGEP, Politecnico di Torino, Italy); Grinza Elena (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; CEBRIG Université Libre de Bruxelles; LABORatorio Riccardo Revelli); Manello Alessandro (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; IRCrES-CNR); Porta Flavio (Department of Economics, University of Bergamo, Italy) |
| Abstract: | We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers' concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers' concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH. |
| Keywords: | Work From Home (WFH), Teleworking, Agile Working, Smart Working, Organizational Performance, Labor Productivity, Management by Objectives (MBO), COVID-19, Small- and Medium-sized Enterprises (SMEs), Survey Data. |
| JEL: | D23 D24 M54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:076&r= |
| By: | P. Aishwarya; Sudharani R; Suresh N |
| Abstract: | Current research helps in understanding both positive and negative impacts of capital structure on profits of Indian automobile companies by using variables like Return on Capital Employed, Return on Long Term Funds, Return on Net Worth, Gross Profit Margin, and Operating Profit, and Return on Asset. The study hypothesized that RoCE, RoLT, and RoNW have a positive effect and GP, OP and ROA have a negative impact on debt-equity and interest coverage ratios i.e capital structure of the companies. Also, the study proves that the relationship between profitability and capital structure variables is strongly significant. The hypothesis was tested by using fixed effect and random effect models by considering 10 years of data (from 2010-2019) from 17 automobile companies. The result of the study recommends that the firms can improve their performance by using an optimal capital structure. Also, a fair mix of debt and equity should be established to ensure that the firm maintains capital adequacy. Firms can thus be able to meet their financial compulsions and investments that can promise attractive returns. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.00720&r= |
| By: | Marwan-Al-Qays Bousmah (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille], CEPED - UMR_D 196 - Centre population et développement - IRD - Institut de Recherche pour le Développement - UPC - Université Paris Cité); Collins Iwuji (University of Sussex); Nonhlanhla Okesola (AHRI - Africa Health Research Institute [KwaZulu-Natal]); Joanna Orne-Gliemann (BPH - Bordeaux population health - UB - Université de Bordeaux - Institut de Santé Publique, d'Épidémiologie et de Développement (ISPED) - INSERM - Institut National de la Santé et de la Recherche Médicale); Deenan Pillay (UCL - University College of London [London]); Francois Dabis (BPH - Bordeaux population health - UB - Université de Bordeaux - Institut de Santé Publique, d'Épidémiologie et de Développement (ISPED) - INSERM - Institut National de la Santé et de la Recherche Médicale); Joseph Larmarange (CEPED - UMR_D 196 - Centre population et développement - IRD - Institut de Recherche pour le Développement - UPC - Université Paris Cité); Sylvie Boyer (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille]) |
| Abstract: | Universal HIV testing is now recommended in generalised HIV epidemic settings. Although home-based HIV counselling and testing (HB-HCT) has been shown to be effective in achieving high levels of HIV status awareness, little is still known about the cost implications of universal and repeated HB-HCT. We estimated the costs of repeated HB-HCT and the scale economies that can be obtained when increasing the population coverage of the intervention. We used primary data from the ANRS 12249 Treatment as Prevention (TasP) trial in rural South Africa (2012-2016), whose testing component included six-monthly repeated HB-HCT. We relied on the dynamic system generalised method of moments (GMM) approach to produce unbiased short- and long-run estimates of economies of scale, using the number of contacts made by HIV counsellors for HB-HCT as the scale variable. We also estimated the mediating effect of the contact quality - measured as the proportion of HIV tests performed among all contacts eligible for an HIV test - on scale economies. The mean cost (standard deviation) of universal and repeated HB-HCT was $24.2 (13.7) per contact, $1694.3 (1527.8) per new HIV diagnosis, and $269.2 (279.0) per appropriate referral to HIV care. The GMM estimations revealed the presence of economies of scale, with a 1% increase in the number of contacts for HB-HCT leading to a 0.27% decrease in the mean cost. Our results also suggested a significant long-run relationship between mean cost and scale, with a 1% increase in the scale leading to a 0.36% decrease in mean cost in the long run. Overall, we showed that significant cost savings can be made from increasing population coverage. Nevertheless, there is a risk that this gain is made at the expense of quality: the higher the quality of HB-HCT activities, the lower the economies of scale. |
| Keywords: | AIDS/HIV,Prevention,Cost of care,Economies of scale,Interventions,Clinical trials,South Africa |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03701046&r= |