nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2023‒03‒13
nine papers chosen by

  1. Inter-industry and Intra-industry Switching as Sources of Productivity Growth: Structural Change of Finland’s ICT Industries By Kuosmanen, Natalia; Kuosmanen, Timo
  2. Wages and Productivity in Argentinian Manufacturing. A Structuralist and Distributional firm-level Analysis By María Celeste Gómez; Maria Enrica Virgillito
  3. The Impacts of the Tokyo and Saitama ETSs on the Energy Efficiency Performance of Manufacturing Facilities By LU Guanyu; TANAKA Kenta; ARIMURA Toshi H.
  4. New approaches to shipbuilding capacity assessments By Karin Gourdon; Laurent Daniel; Takuya Adachi; Emilie Berger
  5. Automation and Productivity: Evidence from Thai Manufacturing Firms By Kanit Sangsubhan; Kumpon Pornpattanapaisankul; Pisacha Kambuya
  6. The slowdown in Finnish productivity growth: Causes and consequences By Sara Calligaris; Outi Jurvanen; Auri Lassi; Francesco Manaresi; Rudy Verlhac
  7. Advanced digital technologies and investment in employee training: Complements or substitutes? By Brunello, Giorgio; Rückert, Désirée; Weiss, Christoph; Wruuck, Patricia
  8. Firms’ financial vulnerabilities during COVID-19: Was the French support package too generous ? By Sarah Guillou; Karsten Mau; Tania Treibich
  9. Localized technological change By Kristiaan Kerstens; Jens Krüger; Zhiyang Shen

  1. By: Kuosmanen, Natalia; Kuosmanen, Timo
    Abstract: Abstract Structural change is an important driver of productivity growth at the aggregate level. While previous productivity decompositions account for the contributions of market entry and exit, they overlook continuing firms that switch from one industry to another. We develop an improved productivity decomposition that accounts for both intra-industry and inter-industry switching, is applicable to both static and inter-temporal settings, and ensures consistent aggregation of firm level productivity to the industry level. The proposed decomposition is applied to Finland’s information and communication technology (ICT) industry in the first two decades of the 21st century. This industry experienced major structural changes due to the rapid downfall of Nokia, the world’s largest mobile phone manufacturer at the beginning of our study period. Our results reveal that the sharp decline of labor productivity was associated with the structural changes, whereas the surviving firms that continued in the same industry managed to improve their productivity. Our results indicate that industry switching can dampen or enhance the productivity impacts of structural change, especially during the times of crisis and recession.
    Keywords: Entry and exit, Labor productivity, Product switching, Reallocation of resources
    JEL: D24 L16 O47
    Date: 2023–02–27
  2. By: María Celeste Gómez (Universidad Nacional de Córdoba/CONICET); Maria Enrica Virgillito (Scuola Universitaria Superiore Sant’Anna)
    Abstract: Wages and productivity represent two of the most relevant variables to consider in economic development. Given the low productivity levels that emerging countries reveal, the accumulation of productive capabilities and a narrower dispersion across sectors would enable emerging countries to overcome the middle-income trap. Y et, this positive trend in productivity should translate into higher wages. Thus, we pose the following questions applied to a middle-income trapped country: is there a link between labour productivity and wages in the Argentine manufacturing sector? Does it differ across techno-productive classes or wage levels? Which factors affect this nexus, considering premature deindustrialisation? Using a firm-level dataset from 2010 to 2016, we perform quantile regression estimates to evaluate the link between productivity and wages across the conditional wage distribution among manufacturing firms. Based on a structural analysis, we identify the differences in these elasticities at 2-ISIC code levels and across Pavitt taxonomies. Our results confirm a positive , but extremely low, pass-through between productivity and wages in the Argentinian manufacturing firms, different across sectors according to their techno-productive capabilities, robust under different empirical strategies
    Keywords: Gains from productivity, Development, Asymmetries
    JEL: J31 D24 L6 O14 C21
    Date: 2023–02
  3. By: LU Guanyu; TANAKA Kenta; ARIMURA Toshi H.
    Abstract: This study aims to reveal the extent to which the Tokyo and Saitama emissions trading schemes (ETSs) affect the energy efficiency of manufacturing facilities, based on the Economic Census for Business Activity and Census of Manufacture. In this analysis, we estimate the energy efficiency of facilities in Japan using stochastic frontier analysis (SFA). Then, we estimate how much the facilities’ energy efficiency is influenced by the Tokyo and Saitama ETSs. Our results show that the energy efficiency of targeted facilities decreased during the announcement period. Our estimation results show no difference in energy inefficiency between targeted and nontargeted facilities in the implementation period of the ETSs. Additionally, the estimation results imply that carbon leakages through outsourcing did not occur during the implementation period.
    Date: 2023–02
  4. By: Karin Gourdon; Laurent Daniel; Takuya Adachi; Emilie Berger
    Abstract: Accurate measurement of shipbuilding capacity is critical to inform market stakeholders of excess capacity issues. This report presents several approaches to improve the estimates of shipbuilding capacity. It shows how the use of average production would allow for smoothening the proxy of capacity in the yard-by-yard production approach. It discusses how firm level indicators, such as productivity, can also be considered. An analysis of productivity developments for a sample of shipbuilding firms shows that their productivity evolves in function of the market situation which, therefore, should be taken into account in the proxies of capacity based on yard production. Finally, the report studies how mergers and acquisitions of shipbuilding firms may impact capacity.
    Keywords: capacity, mergers and acquisitions, productivity, shipbuiding
    Date: 2023–02–16
  5. By: Kanit Sangsubhan; Kumpon Pornpattanapaisankul; Pisacha Kambuya
    Abstract: Rapid advances in the automation technology have led to a rise of public interest among researchers and policy makers. In manufacturing, most papers proved that industrial robots and automation is a key enabler to improve firm’s competitiveness and the overall growth of country. However, the often referred to picture of this new technology as “job killers†caused by the decoupling of wages and output per worker. Using Thai manufacturing firm-level data, this paper provides empirical evidence that there is a positive relationship between firms adopting automated process and their TFP. However, being in EEC area shows mixed results. We also find that automation investment has positive significant effect on total employment. Furthermore, there is some evidence that automation is driving an increase in demand for skilled workers and has reduced unskilled activities.
    Keywords: Automation; Robots; Total factor productivity; Labor productivity; Employment; Skills; Firm investment
    JEL: D24 E24 O14 O33
    Date: 2023–02
  6. By: Sara Calligaris; Outi Jurvanen; Auri Lassi; Francesco Manaresi; Rudy Verlhac
    Abstract: This report analyses the trends in Finnish productivity growth over the 2000s and 2010s. It describes its key features, makes comparisons to a benchmark of 16 OECD countries, and studies the causes of its sudden and prolonged slowdown which began at the end of the 2000s. The analysis focuses on the role of two contemporaneous demand shocks that hit the Finnish economy: the Nokia crisis and the Great Trade Collapse of 2009.Matching detailed firm-based information on structural characteristics of productivity growth with global input-output tables and National Accounts data, the report highlights how the prolonged drop in demand from the domestic computer and electronics sector may have induced a persistent drag on Finnish productivity growth. The report concludes with policy implications to strengthen Finnish resilience to idiosyncratic shocks to key sectors or large firms, while supporting long-term productivity growth and competitiveness.
    Keywords: GVCs, productivity
    JEL: E22 E65 O47
    Date: 2023–02–16
  7. By: Brunello, Giorgio; Rückert, Désirée; Weiss, Christoph; Wruuck, Patricia
    Abstract: Using firm-level data covering the 27 EU countries, the UK and the US, we show that employers tend to reduce investment in training per employee after adopting advanced digital technologies (ADT). We estimate with a control function approach firm-level production functions augmented with two factors, the training stock per employee and digital technology use. We show that ADT use and employee training are substitutes in production, implying that an increase in the former negatively affects the marginal productivity of the latter, and that a decline in the cost of introducing ADT reduces employers' investment in training per employee. These findings point to challenges in realizing high levels of firmsponsored training for employees in increasingly digital economies.
    Date: 2023
  8. By: Sarah Guillou (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Karsten Mau (Maastricht University [Maastricht]); Tania Treibich (Maastricht University [Maastricht], OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: We exploit detailed and comprehensive data from France, combining firms' balance sheet information and trade records, to uncover the role of firm characteristics in their exposure to the COVID-19 pandemic. Next, we study the impact of three governmental support policies on firms' liquidity position in 2020: the wage subsidy scheme (AP), the solidarity fund (FSE) and the loan guarantee (PGE). We highlight four dimensions of heterogeneity for policy efficiency in our analysis: the type of liquidity shock, sector and size groups and labor productivity deciles. Our microsimulation exercise shows that aggregate policy support matches very well total liquidity losses. Yet, the compensation scheme was not perfect as these aggregate figures hide heterogeneous policy efficiency across firms and policies. Nearly one fourth of firms were over-compensated, which allowed them to improve their liquidity position, but those that suffered the highest liquidity losses did not receive enough support. Our simulation shows that 7.4 billion (bn) euros of subsidies were given to firms in excess of their liquidity loss. The share of overcompensated firms rises to 39% when we account for the guaranteed loans. We locate them mostly in the wholesale and retail, manufacturing and culture and leisure sectors. Yet, most firms were not fully compensated. This was especially the case for those that became illiquid in 2020, very large firms, highly productive firms, and firms in the hospitality and construction sectors.
    Date: 2023–01–16
  9. By: Kristiaan Kerstens (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Jens Krüger; Zhiyang Shen
    Date: 2022–10–14

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