nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2024‒02‒05
eight papers chosen by

  1. Intellectual Property Rights and the Efficiency of International Production Networks: Evidence from the Automotive Industry By Giuseppe Cavaliere; Graziano Moramarco; Alireza Naghavi
  2. Collaborative Micro-productivity Project: Establishment-Level Productivity Dataset, 1972-2020 By G. Jacob Blackwood; Cheryl Grim; Rachel Nesbit; Cody Tuttle; Zoltan Wolf
  3. Assessing the impact of a firm's export and import status on its efficiency By Knobel, Alexander (Кнобель, Александр); Zaytsev, Yuriy (Зайцев, Юрий); Sedalishchev, Vladimir (Седалищев, Владимир); Bagdasaryan, Kniaz (Багдасарян, Княз); Kuznetsov, Dmitry (Кузнецов, Дмитрий); Besov, Vladislav (Бесов, Владислав); Yeremin, Vladimir (Еремин, Владимир)
  4. Stagnant Wages in the Face of Rising Labor Productivity: The Potential Role of Industrial Robots By Klaus Prettner
  5. ICT Usage Intensity in the Hungarian Corporate Sector: Stylised Facts on Microdata By Tamas Berki
  6. Do Pension Fund Equity Investments Raise Firm Productivity? Evidence From Danish Data By Beetsma, Roel; Jensen, Svend E. Hougaard; Pinkus, David; Pozzoli, Dario
  7. From the Pandemic to the Pitch. Unraveling COVID-19's Effect on Workers' Performance By Galindo, Arturo; Tovar, Jorge
  8. Artificial intelligence and the skill premium By David E., Bloom; Prettner, Klaus; Saadaoui, Jamel; Veruete, Mario

  1. By: Giuseppe Cavaliere; Graziano Moramarco; Alireza Naghavi
    Abstract: This paper investigates the potential benefits of intellectual property rights (IPR) institutions for international production networks. Using unique data on manufacturer-supplier linkages in the automotive industry, we establish a positive empirical relationship between the productivity and efficiency of manufacturing firms and IPR protection in their suppliers’ locations. Notably, IPRs do not have the same impact on ownership networks, and protection of physical property rights does not generate any improvement in performance. We confirm that the results are not driven by other firm-level characteristics and address potential endogeneity concerns by employing a novel gravity-based IV approach, followed by a GMM analysis.
    Keywords: International production networks, Intellectual property rights, Ownership, Internalization, Automotive industry, Knowledge dissipation, Firm efficiency
    JEL: F21 F23 L14 L25 L62 O34 G32
    Date: 2024–01–16
  2. By: G. Jacob Blackwood; Cheryl Grim; Rachel Nesbit; Cody Tuttle; Zoltan Wolf
    Abstract: We describe the process for building the Collaborative Micro-productivity Project (CMP) microdata and calculating establishment-level productivity numbers. The documentation is for version 7 and the data cover the years 1972-2020. These data have been used in numerous research papers and are used to create the experimental public-use data product Dispersion Statistics on Productivity (DiSP).
    Date: 2023–12
  3. By: Knobel, Alexander (Кнобель, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Zaytsev, Yuriy (Зайцев, Юрий) (The Russian Presidential Academy of National Economy and Public Administration); Sedalishchev, Vladimir (Седалищев, Владимир) (The Russian Presidential Academy of National Economy and Public Administration); Bagdasaryan, Kniaz (Багдасарян, Княз) (The Russian Presidential Academy of National Economy and Public Administration); Kuznetsov, Dmitry (Кузнецов, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration); Besov, Vladislav (Бесов, Владислав) (The Russian Presidential Academy of National Economy and Public Administration); Yeremin, Vladimir (Еремин, Владимир) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Improving the efficiency of firms is one of the most important factors in economic growth. There are studies pointing to a possible increase in the productivity of firms as a result of their involvement in international trade. Partly, these differences are due to the fact that more efficient firms initially enter the international market (selection effect), but beyond this effect there is a direct effect on the productivity of participation in international trade. In addition, there is reason to believe that simultaneous participation in both exporting and importing activities (e.g. as a result of being embedded in value chains) may have a greater effect. Using econometric and analytical methods of data analysis, the heterogeneity of causal relationships between the increase in productivity of enterprises and their export and import status was revealed. However, the paper developed a methodology to identify enterprises whose potential involvement in international trade can contribute most to the growth of their productivity. The results of this research can be used for: the patterns established, as well as quantitative estimates of the magnitude of the effects corresponding to them, can be used to refine the forecasts of the effects of economic policy in the scenario analysis. Estimates of the effects of lowering the barriers to firms' export market entry on the productivity of Russian enterprises.
    Keywords: production frontier, export status, efficiency, international trade, productivity, selection effect, stochastic frontier model, high-dimensional model
    JEL: D21 F23 L22 B17 F13
    Date: 2022–11–11
  4. By: Klaus Prettner (Department of Economics, Vienna University of Economics and Business)
    Abstract: Over the past decades, labor productivity and per capita GDP have increased steadily, while real wages for most workers have remained stagnant. This development challenges conventional economic insights according to which the remuneration of a production factor is determined by its productivity. Augmenting an otherwise standard production function with industrial robots as a substitute for workers allows to reconcile the two trends. If workers are compensated according to their marginal product, wages may decrease when robot use intensifies, whereas output and measured labor productivity both increase. Using data on labor input, physical capital input, and industrial robot use in the United States, I show that a sizable part of the observed wedge between wages and labor productivity can be explained using such a framework.
    Keywords: automation, productivity, wage growth, inequality
    JEL: J31 O11 O33 O40
    Date: 2023–12
  5. By: Tamas Berki (Magyar Nemzeti Bank (the Central Bank of Hungary))
    Abstract: In this paper, we investigate the information and communication technology (ICT) usage patterns of Hungarian companies, relying on a company-level questionnaire survey conducted in 2020, and combining it with data from corporate annual reports. Our main objective is to construct an index of ICT usage patterns in the Hungarian business sector that reflects the digitisation level (ICT usage intensity) of companies and amalgamates into a single indicator the questionnaire survey information relevant to ICT usage. After aggregating (scoring) the qualitative questionnaire data, we used factor analysis to identify four distinct areas that are associated with the digitisation levels of the different business functions. These are the following: area responsible for integrating business functions, e-administration, IT infrastructure, and marketing and communications. The digitisation headline index is derived from the subindices of these four areas. Our paper also aims to map the patterns of ICT use by company size, sector, productivity and export activity. The intensity of ICT use is closely correlated with company size, export activity and productivity. Companies with more employees or higher productivity tend to be more intensive users of technologies. Firms that also export tend to use ICT more extensively than non-exporting ones. Technology use varies markedly from sector to sector, both in terms of the range of technologies used and their sophistication.
    Keywords: use of information and communication technologies, enterprise microdata, questionnaire survey, composite index, factor analysis.
    JEL: C43 C81 L25 O30
    Date: 2024
  6. By: Beetsma, Roel (University of Amsterdam); Jensen, Svend E. Hougaard (Department of Economics, Copenhagen Business School); Pinkus, David (Department of Economics, Copenhagen Business School); Pozzoli, Dario (Department of Economics, Copenhagen Business School)
    Abstract: We have constructed a comprehensive dataset that integrates ownership information with Danish registers, enabling us to empirically document a significant relationship between pension fund equity investment and firm productivity. Following such an investment, we observe a substantial increase in firm productivity, averaging between 3% and 5%. This finding is robust and persists across various methodological considerations, including selection issues and a broad array of refinements, such as controlling for the firm’s status as an exporter and the types of co-investors. The productivity effect increases with the equity stake. Additionally, we find that pension funds tend to invest for longer periods than other institutional investors, such as private equity. Consistent with this fact, the estimated productivity increase is positively correlated with the duration of the equity investment by pension funds. Furthermore, the productivity increase is particularly pronounced for unlisted and small firms. These combined findings are consistent with pension funds engaging in long-term financing commitments and alleviating financial constraints on firms, enabling them to make productivity-enhancing investments. Our results suggest that public policies aimed at stimulating pension funding and encouraging pension fund equity holdings could enhance the productivity of the economy.
    Keywords: pension funds; productivity; equity; structural estimation
    JEL: D22 D24 G32
    Date: 2024–01–18
  7. By: Galindo, Arturo (Inter-American Development Bank); Tovar, Jorge (Universidad de los Andes)
    Abstract: There is a growing body of literature on the impact that COVID-19 has on workers' performance upon recovery. This paper explores that question using granular data from professional athletes. Using a difference-in-difference estimation strategy and estimating an n-dimensional performance index, we find that performance drops upon recovery during the first thirty days a􀅌er infection by 13, 4%. Exploiting the mountainous geography of Colombia, our results indicate that the main driver of such a drop is performing at high altitudes.
    Keywords: COVID-19; Football; Soccer; Workers Performance
    JEL: H12 I18 J21 J40 O54 Z20
    Date: 2024–01–18
  8. By: David E., Bloom; Prettner, Klaus; Saadaoui, Jamel; Veruete, Mario
    Abstract: What will likely be the effect of the emergence of ChatGPT and other forms of artificial intelligence (AI) on the skill premium? To address this question, we develop a nested constant elasticity of substitution production function that distinguishes between industrial robots and AI. Industrial robots predominantly substitute for low-skill workers, whereas AI mainly helps to perform the tasks of high-skill workers. We show that AI reduces the skill premium as long as it is more substitutable for high-skill workers than low-skill workers are for high-skill workers.
    Keywords: Automation; Artificial Intelligence; ChatGPT; Skill Premium; Wages; Productivity
    Date: 2023–12

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