nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2022‒09‒12
nineteen papers chosen by

  1. Financial frictions and productivity: Firm-level evidence from Kazakhstan By Zarina Adilkhanova
  2. Environmental variables and power firms' productivity: micro panel estimation with time-Invariant variables By Bigerna, Simona; D'Errico, Maria Chiara; Polinori, Paolo
  3. Induced innovation, the distributive cycle, and the changing pattern of labour productivity cyclicality: a SVAR analysis for the US economy By Stamegna, Marco
  4. Work from Home Arrangements and Organizational Performance in Italian SMEs: Evidence from the COVID-19 Pandemic By Abrardi, Laura; Grinza, Elena; Manello, Alessandro; Porta, Flavio
  5. The Disconnect between Productivity and Profits in U.S. Oil and Gas Extraction By Matthew Higgins; Thomas Klitgaard
  6. Reigniting labour productivity growth in developing countries: Do structural reforms matter? By Kwamivi Gomado
  7. Bootstrapping Science? The Impact of a “Return Human Capital†Programme on Chinese Research Productivity By Ash, Elliott; Cai, David; Draca, Mirko; Liu, Shaoyu
  8. Economies of Density, Team Synergies and Unobserved Heterogeneity: A Study of Home Care Services By Bernard Bensaid; Solen Croiset; Robert J. Gary-Bobo
  9. Investing in Public R&D for a Competitive and Sustainable US agriculture By Baldos, Uris Lantz C.
  10. Productivity by Farm Size and Food Security By Lele, Uma
  11. Improving agricultural productivity in Papua New Guinea: Strategic and policy considerations By Benny, Dickson; Benson, Todd; Ivekolia, Mark; Kedir Jemal, Mekamu; Ovah, Raywin
  12. Productivity Country Factsheet 2022 By BAUER Peter; FEDOTENKOV Igor; GENTY Aurelien; SANCHEZ MARTINEZ Miguel
  13. The Socio-Economic Impact of Public Policies in the Space Sector in Italy By Massimo FLORIO; Paolo CASTELNOVO; Veronica LUPI; Valentina MORRETTA; Davide VURCHIO; Lorenzo ZIRULIA; Simonetta DI CIACCIO; Mauro PIERMARIA
  14. Team composition and productivity: evidence from nursing teams in the English National Health Service By Kelly, E.;; Propper, C.;; Zaranko, B.;
  15. Landscape-scale effects of farmers’ restoration decision making and investments in central Malawi: an agent-based modeling approach By Djenontin, Ida N.S.; Ligmann-Zielinska, Arika; Zulu, Leo C.
  16. Do stronger intellectual property rights increase patents? Natural experiments in Japan By Kuroiwa, Kenichi
  17. The contribution of business centers of private banks in the financing of SMEs in Algeria: Case of the wilaya of Bejaia By Nacer-Eddine Mouffok; Salim Saidani
  18. Performance Pay and Work Hours: US Survey Evidence By Artz, Benjamin; Heywood, John S.
  19. Relationship between Corporate Social Responsibility and Financial Performance By Salma EL IMRANI; Ahmed TAQI

  1. By: Zarina Adilkhanova (NAC Analytica, Nazarbayev University)
    Abstract: This paper studies the effect of financial frictions on firm-level total factor productivity in Kazakhstan using a large data set on medium and large enterprises from 2009 to 2017. We explain the effect of financial frictions on productivity growth and the microeconomic channels through which they may transmit to the real economy. The results demonstrate that productivity growth is vulnerable to debt growth due to the rising financial friction, which is helpful in understanding of reasons why financial crises lead to a persistent decline in economic activity.
    Keywords: Total Factor Productivity (TFP); Financial Frictions; Debt Growth
    JEL: D24 G30 O16
    Date: 2021–12
  2. By: Bigerna, Simona; D'Errico, Maria Chiara; Polinori, Paolo
    Abstract: Internal and external institutions play a crucial role in the firms’ decision-making process and their productivity. Along with internal institutional features, such as the corporate ownership structure, external institutions, such as the stringency of market and environmental regulations, shape the framework in which firms operate. This research explores the role of these determinants and their interactions in affecting the productivity changes of the power generating firms in 15 European countries between 2010 and 2016. In a first step, using the firm-level ORBIS dataset, we first the productivity changes over time of power generating companies (NACE Code Rev.2.3511) using the global Malmquist index. Then, in a second step, dynamic panel linear model is applied to investigate how the internal and external institutional variables affect the dynamic of the global Malmquist index. In a preliminary analysis a wide range of tests are performed to detect the presence of outliers, the returns to scale, the correlation among inputs, out- puts and the productivity indexes, the independence between the distribution of the productivity indexes and the second-stage institutional variables. The institutional variables are almost time-invariant, the procedure proposed by Kripfganz and Schwarz (2019) is applied to consistently identify the effects of time invariant variables. This new method provides valuable robustness against wrong assumptions on the exogeneity on the instruments. To capture the interplay among external 54 and internal institutional variables, interaction variables are used. Results highlight the need to fine-tune the environmental regulation with the firm-specific internal features, to avoid hindering firm-level productivity in the power generation sector.
    Keywords: Environmental and Market regulation, Time-Invariant Variables, Global Malmquist Index, Electricity Sector
    JEL: C2 L5 L9 O4 Q4
    Date: 2022–08–11
  3. By: Stamegna, Marco
    Abstract: The empirical literature on induced technical change has explored the long-run relationship between real wages and labour productivity but still lacks an explicit treatment of the implications of the wage-productivity nexus for the business cycle. The present paper aims to fill this gap. By employing a four-dimensional structural vector autoregressive (SVAR) model for the US economy (1948-2019), we test an extended version of the Goodwin model that includes aggregate demand and decomposes the labour share into real wages and labour productivity. This paper adds to the existing literature in some respects. First, it contributes to the induced innovation literature, by showing that wage shocks have positive and persistent effects on labour productivity at business cycle frequencies. Second, it adds to the debate and empirical evidence on the distributive cycle. Impulse response functions show that, even when decomposing the labour share, empirical evidence supports the Goodwin pattern, although the profit-led regime turns out to be driven more by technology than distributive shocks. Finally, we address two relevant cyclical stylized facts of the US economy: since the mid-1980s, the procyclical pattern of labour productivity has vanished, and real wages have no longer been correlated with employment over the business cycle. We explore the hypothesis that the two changes are linked. In light of the theory of induced innovation, we argue that the decline in the cyclical correlation between output and labour productivity can be explained by a lessened incentive to invest in labour-saving innovations due to missing wage growth in the upturn of the business cycle. Impulse response functions qualitatively support this intuition.
    Keywords: Labour productivity; endogenous technical change; income distribution; SVAR
    JEL: E12 E24 E25 E32
    Date: 2022–07–21
  4. By: Abrardi, Laura; Grinza, Elena; Manello, Alessandro; Porta, Flavio
    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 coordi- nation 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
  5. By: Matthew Higgins; Thomas Klitgaard
    Abstract: U.S. oil and gas production boomed during the years leading up to the pandemic. From 2011 to 2019, oil production more than doubled and dry natural gas production rose by more than half. Remarkably, these gains occurred despite lackluster investment spending and hiring. Instead, higher production came largely from productivity gains, via wider adoption of fracking technologies. More recently, production recovered sluggishly from the pandemic downturn despite a quick recovery in prices. Our analysis in this post suggests that slower productivity growth and investors’ demand for higher returns have made U.S. firms willing to boost output only at a higher threshold oil price.
    Keywords: oil; natural gas extraction; productivity; profits; multifactor productivity (MFP); United States; fracking; inflation
    JEL: E2 E31
    Date: 2022–08–17
  6. By: Kwamivi Gomado
    Abstract: While the negative effects of the 2008 global financial crisis on labour productivity are still fresh in people's minds, the COVID-19 pandemic raises concerns that productivity will continue to decline. To boost labour productivity and regain economic performance, there is an empirical consensus on the role of structural reforms that allows an efficient reallocation of resources such as labour by reducing rigidities in markets. This study analyses the role of certain structural reforms in improving labour productivity in 35 developing countries over the period of 1990-2014.
    Keywords: Labour productivity, Business cycles, Economic growth, Reforms, International Monetary Fund
    Date: 2022
  7. By: Ash, Elliott (ETH Zurich); Cai, David (ETH Zurich); Draca, Mirko (University of Warwick, CAGE); Liu, Shaoyu (Columbia University)
    Abstract: We study the impact of a large-scale scientist recruitment program – China’s Junior Thousand Talents Plan (é ’å¹´å ƒäººè®¡åˆ’) – on the productivity of recruited scholars and their local peers in Chinese host universities. Using a comprehensive dataset of published scientific articles, we estimate effects on quantity and quality in a matched difference-in-differences framework. We observe neutral direct productivity effects for participants over a 6-year post-period: an initial drop is followed by a fully offsetting recovery. However, the program participants collaborate at higher rates with more junior China-based co-authors at their host institutions. Looking to peers in the hosting department, we observe positive and rising productivity impacts for peer scholars, equivalent to approximately 0.6 of a publication per peer scholar in the long-run. Heterogeneity analysis and the absence of correlated resource effects point to the peer effect being rooted in a knowledge spillover mechanism.
    Date: 2022
  8. By: Bernard Bensaid; Solen Croiset; Robert J. Gary-Bobo
    Abstract: In the home-care services industry, caregivers drive to visit patients scattered in a district and deliver various care services at the patient’s home. We use a unique data set, with a standard panel structure, recording the hours of service and the exact number of miles traveled by each employee. The estimated average transportation cost curves, giving the ratio of miles traveled per hour of service, as a function of hours of service at the patient’s home, typically exhibit economies of density. These results suggest that the home-care sector is characterized by excess entry and that a form of franchise-bidding regulation could be appropriate. We study the unobserved heterogeneity of employees and use a quadratic-inlogs, finite-mixture model with latent groups to uncover a finite number of employee types with different cost curves. Some types, but not all, have U-shaped average cost curves yielding an aggregate average transportation cost that is itself U-shaped. Economies of density are mainly due to team synergies operating at the district level. We also show that our model can be interpreted as a test of organizational efficiency based on the Beardwood-Halton-Hammersley (1959) theorem of combinatorial optimization.
    Keywords: home care services, elderly, economies of scale, economies of density, transportation costs, Beardwood-Halton-Hammersley theorem, applied econometrics, panel data, unobserved heterogeneity, finite mixture models, entropy criteria
    JEL: I11 I18 L22 L23
    Date: 2022
  9. By: Baldos, Uris Lantz C.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Productivity Analysis
    Date: 2022–08
  10. By: Lele, Uma
    Keywords: Agricultural and Food Policy, Food Security and Poverty, International Development
    Date: 2022–08
  11. By: Benny, Dickson; Benson, Todd; Ivekolia, Mark; Kedir Jemal, Mekamu; Ovah, Raywin
    Abstract: If smallholder farming households in Papua New Guinea achieve higher crop productivity levels, progress will be made along several dimensions of the development vision for PNG – increasing GDP for the agricultural sector and the overall economy; driving growth, diversification, and transformation of local rural economies; improving food consumption; and reducing poverty. In this paper, we examine recent data on yields for the most important crops grown in PNG, assess what yields might be achieved based on productivity data from areas of Indonesia with similar growing conditions, and sketch where policy reforms could provide incentives and access to technologies to achieve higher crop yields by all farmers across PNG.
    Keywords: PAPUA NEW GUINEA, OCEANIA, agricultural productivity, policies, crop yield, cash crops, smallholders, agriculture, food security, poverty reduction
    Date: 2022
  12. By: BAUER Peter (European Commission - JRC); FEDOTENKOV Igor (European Commission - JRC); GENTY Aurelien (European Commission - JRC); SANCHEZ MARTINEZ Miguel (European Commission - JRC)
    Abstract: Productivity is the key long-term determinant to ensure our high living standards in Europe. As such, it is of paramount importance to monitor and analyse its trends and drivers to understand what policy actions could be taken at EU and Member State level to sustain productivity and economic growth. This 2022 set of country factsheets on productivity presents some insights at national level for selected topics: i) Medium and long-term effects of the COVID-19 crisis; ii) Investment in intangible assets; and iii) Employment protection legislation and productivity. The list of countries covered includes: Belgium, Czechia, Germany, Spain, France, Italy, Hungary, the Netherlands, Poland, Portugal, Slovakia and Sweden.
    Keywords: Productivity, Country factsheet, COVID-19 crisis, Hysteresis, Intangible assets, Employment protection legislation
    Date: 2022–08
  13. By: Massimo FLORIO (Department of Economics, Management, and Quantitative Methods, University of Milan (Italy)); Paolo CASTELNOVO (Department of Economics, Management, and Quantitative Methods, University of Milan (Italy)); Veronica LUPI (Department of Economics, Management, and Quantitative Methods, University of Milan (Italy)); Valentina MORRETTA (Department of Economics, Management, and Quantitative Methods, University of Milan (Italy)); Davide VURCHIO (Department of Economics and Finance, University of Bari “Aldo Moro†(Italy)); Lorenzo ZIRULIA (Department of Economics, Management, and Quantitative Methods, University of Milan (Italy)); Simonetta DI CIACCIO (Italian Space Agency (Italy)); Mauro PIERMARIA (Italian Space Agency (Italy))
    Abstract: The purpose of this work is assessing the impact of the Italian Space Agency (ASI) on the innovation and performance of the Italian space system. Based on descriptive evidence from three surveys and econometric analysis using balance-sheet, patent and scientometric data, we find that, when considering upstream companies and downstream intermediate users in the field of Earth observation (EO) as a whole, the socio-economic benefit – taxpayer cost ratio is higher than 1, and is particularly high in the downstream EO sector. As regards the upstream sector, the econometric analysis shows a significant effect of procurement on economic performance and innovation. Also for the downstream sector (companies and research centres), descriptive evidence from the surveys shows a positive effect of EO data on economic performance and innovation. Finally, we observe a significant impact of ASI also on scientific productivity.
    Keywords: space industry, Earth observation, socio-economic impact
    JEL: D61 H50 O32 O38
    Date: 2022–01
  14. By: Kelly, E.;; Propper, C.;; Zaranko, B.;
    Abstract: We study the impact of team composition on productivity in a setting where team production is particularly important: nursing teams in the English National Health Service (NHS). Composition is measured both in terms of the quantity of staff and the quality of staff, as measured by qualifications, rank and experience. We use a panel dataset that links daily staffing rotas with inpatient mortality records for a single NHS Trust that includes 3 large hospitals and 52 wards. Our results show that the probability of a patient death is lower for teams with a greater number of qualified and senior nursing staff, but find no statistically significant impacts of increased numbers of support staff or agency workers. There are returns to experience for qualified staff, with a lower probability of a patient death in teams where nurses have more experience in the Trust, and returns to both team- and ward (physical location)-specific experience, with a lower probability of death for patients treated by staff who regularly work together and on the ward in question. Our results also provide evidence of the value of bosses, with higher mortality rates when there is an unexpected absence of a senior nurse who leads the team.
    JEL: I11 J24 J45 M50
    Date: 2022–07
  15. By: Djenontin, Ida N.S.; Ligmann-Zielinska, Arika; Zulu, Leo C.
    Abstract: Local farmers’ engagement and contributions are increasingly underscored in resources restoration policy. Yet, empirical context-situated understanding of the environmental impacts of farmer-led restoration remains scant. Using six Agent-based Modeling (ABM) simulations that integrate multi-type data, we explore the potential spatial-temporal aggregate patterns and outcomes of local restoration actions in Central Malawi. Findings uncover a 10-year positive trend and spatially explicit potential restoration extent and intensity, greenness, and land productivity, all varying by farmer’s participation level. Landscape regreening is modestly promising with fluctuating greenness levels and low, slightly incremental, then steady land-productivity levels. Findings also show appropriate incentives, restoration knowledge, and inspiring local leadership as propitious management options for boosting local restoration. Bundling these enabling management and policy options would maximize local restoration. Findings suggest empowering bottom-up restoration efforts for enhanced environmental impacts. We also demonstrate the potential of using ABM to offer insights for spatially targeted, evidence-based restoration policy implementation and monitoring.
    Keywords: Forest Landscape Restoration (FLR); greenness; participation; productivity; Space-time patterns
    JEL: Q15
    Date: 2022–05–24
  16. By: Kuroiwa, Kenichi
    Keywords: Agricultural and Food Policy, Production Economics, Productivity Analysis
    Date: 2022–08
  17. By: Nacer-Eddine Mouffok (Université Abderrahmane Mira [Béjaïa]); Salim Saidani (Université Abderrahmane Mira, Algeria)
    Abstract: The renewal policy is one of the policies that companies resort to enforce after a period of starting their activity.We note that the rapid technological advancements in machine design are preparing many enterprises to improve their performance and develop production in a better and more advantageous form.And our study makes it possible to develop a rational policy for the acquisition of machines in an industrial installation.
    Keywords: Banks,bejaia,business center,credit,SMEs. JEL Classification Codes: G310,G320,changement,l'innovation,l'environnement,Productivité,flexibilité,Processus. Code Jel :O32,O33,L22 change,innovation,environment,Productivity,flexibility,Process. JEL Classification Codes:O32,L22
    Date: 2022–06–04
  18. By: Artz, Benjamin (University of Wisconsin, Oshkosh); Heywood, John S. (University of Wisconsin, Milwaukee)
    Abstract: We examine the hypothesis that performance pay increases work hours. If performance pay incentivizes greater hours, this could cause the demonstrated link between performance pay and poorer worker health. Using US survey data, we confirm greater work hours and an increased likelihood of long working hours for performance pay workers. This remains in worker fixed effect estimates and in worker with employer fixed effect estimates. The magnitudes remain sufficiently large to support the potential role of long hours as an intermediary between performance pay and reduced worker health. Despite managers being the most likely to both receive performance pay and work long hours, we show this association largely reflects sorting and not the behavioral response evident for other workers.
    Keywords: performance related pay, hours worked
    JEL: J22 J33
    Date: 2022–07
  19. By: Salma EL IMRANI (FSJES Tanger); Ahmed TAQI (FSJES Tétouan)
    Abstract: Recently, attention has focused more on the importance of the social component and its contribution to the development of corporates, especially on their economic and financial aspects, where the parties concerned see that social responsibilityis of particular importance which will improve profitability and profitability of their businesses without endangering society. In this regard, this study aims to examine the relationship between Corporate Social Responsibility (CSR) and Financial Performance (FP) which have become two closely related concepts from an academic and practical point of view even if they appear different from each other. To measure the CSR variables, we used the (ESG) criteria, while to measure the CFP, we used the Return On Assets (ROA) financial ratio. These chosen variables have been widely used in previous studies and have confirmed their potential influences on the financial performance of companies. The study is conducted using a quantitative methodology based on the analysis of extra-financial data (ESG) collected from the "Covalence" database and financial data from 154 multinationals. However, the descriptive statistics and the analyzes of the statistical modeling by multiple regression, were carried out using the scientific environment of the development Spyder 4.2.5 for Python. The results of statistical tests carried out to test the validity of the sub-hypotheses putted to confirm the central hypothesis (H1) showed that Social (S) and Governance (G) practices have a positive and statistically significant impact on CSR. Conversely, they reported the absence of a statistically significant linear or complex relationship between Environmental (E) practices and CFP. As a result, the study revealed the existence of a positive and statistically significant relationship between CSR and financial performance, namely that social is profitable. The conclusions drawn from this empirical study are proof that social policies increase financial performance. As a result, the study recommends encouraging companies to double the effort and integrate the social component into their short-term and long-term strategies for the financial benefit it generates for the economic entity.
    Abstract: Récemment, l'attention s'est concentrée plus sur l'importance du volet social et sa contribution au développement des entreprises, notamment sur leurs aspects économiques et financiers, où les parties concernées voient que la responsabilité sociale est d'une importance particulière qui améliorera la rentabilité et la profitabilité de leurs entreprises sans mettre en danger la société. À cet égard, la présente étude vise à examiner la relation entre la responsabilité sociale des entreprises (RSE) et la performance financière (PF) qui sont devenues deux concepts étroitement liés d'un point de vue académique et pratique même s'ils apparaissent différents l'un de l'autre. Pour mesurer les variables RSE, nous avons utilisé les critères (ESG) alors que pour mesurer la PFE, nous avons utilisé le ratio financier Return On Assets (ROA). Ces variables choisies ont été largement utilisées dans des études antécédentes et ont confirmé leurs influences potentielles sur la performance financière des entreprises. L'étude est conduite par une méthodologie quantitative basée sur l'analyse des données extra-financières (ESG) recueillies auprès de la base de données "Covalence" et celles financières de 154 multinationales. Pourtant, les statistiques descriptives et les analyses de la modélisation statistique par la régression multiple, ont été réalisées à l'aide de l'environnement scientifique du développement Spyder 4.2.5 pour Python. Les résultats des tests statistiques réalisés pour tester la validité des sous-hypothèses posées afin de confirmer l'hypothèse centrale (H1) ont montré que les pratiques Sociales (S) et celles de Gouvernance (G) ont un impact positif et significatif sur la RSE. À l'inverse, ils ont déclaré l'absence d'une relation linéaire ou bien complexe statistiquement significative entre les pratiques Environnementales (E) et la PFE. En conséquence, l'étude a révélé l'existence d'une relation positive et statistiquement significative entre la RSE et la performance financière, à savoir que le social est rentable. Les conclusions tirées de cette étude empirique sont la preuve que les politiques sociales accroissent la performance financière. De ce fait, l'étude recommande d'encourager les entreprises à redoubler d'efforts et faire intégrer le volet social dans leurs stratégies à court terme et à long terme pour l'avantage financier qu'il génère pour l'entité économique.
    Keywords: Corporate Social Responsibility,Financial Performance,ESG criteria,ROA,Responsabilité Sociale des Entreprises,Performance financière,Critères ESG
    Date: 2022–06–06

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