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on Efficiency and Productivity |
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Issue of 2024‒05‒20
ten papers chosen by |
| By: | Kien Ngoc Do (FTU - Foreign Trade University, Hanoi, Vietnam); Huong Nguyen Giang (FTU - Foreign Trade University, Hanoi, Vietnam); Le Huy (FTU - Foreign Trade University, Hanoi, Vietnam); Nguyen Kim Phuong Thuy (FTU - Foreign Trade University, Hanoi, Vietnam) |
| Abstract: | This study disentangles the relationship between GVC participation and the technical efficiency of SMEs in Vietnam. We combine panel data obtained from the GSO Enterprise Census survey of SMEs in Vietnam including 567, 866 enterprises observations from 2015 to 2018. Regarding global value chain participation (GVC), TiVA databases by OECD are used to track GVC integration at sectoral level. We employ Stochastic frontier analysis (SFA) to gauge the relationship between a firm's technical efficiency and GVC participation in two modes of participation: backward integration and forward integration. The findings show the positive impacts of backward participation in rising technical efficiency levels. However, SMEs in sectors with deeper forward participation tend to have low technical efficiency. We find the heterogeneity in firm efficiency regarding firm-specific factors and location. |
| Keywords: | GVC participation, SMEs, Technical efficiency |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04528712&r=eff |
| By: | Mamun, Abdullah |
| Abstract: | The agriculture sector receives substantial fiscal subsidies in various forms, including through programs that are linked to production and others that are decoupled. As the sector has reached the technology frontier in production over the last three decades or so, particularly in high- and middle-income countries, it is intriguing to investigate the impact of subsidies on productivity at aggregate level. This study examines the impact of subsidies on productivity growth in agriculture globally using a long time series on the nominal rate of assistance for 42 countries that covers over 80 percent of agricultural production. The econometric results show heterogenous effects from various subsidy instruments depending on the choice of productivity measure. Regression results suggest a strong positive effect of input subsidies on both output growth and labor productivity. A positive but relatively small impact of output subsidies is found on output growth only. Subsidies that are mostly decoupled reveal no significant impact on any of the productivity measures. |
| Keywords: | agricultural productivity; agricultural technology; econometrics; globalization; input output analysis; subsidies |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2245&r=eff |
| By: | Wang, Haibo (Texas A&M International University); Sua, Lutfu; Dolar, Burak |
| Abstract: | This study explores the efficiency of Turkish banks under unconventional central bank monetary policies, a departure from studies in developed economies using CAMEL ratings. It introduces unique inputs and outputs distinct from those used in developed contexts. A notable contribution is the integrated CAMELS ratings-based data envelopment analysis, considering both desirable and undesirable variables. This integration results in a more realistic estimation of the overall system production possibility set, surpassing assumptions made by traditional CAMELS and DEA methods. The study reveals a significant relationship between Turkish bank efficiency, size, and type, with public capital deposit banks as well as banks with the highest number of branches displaying superior performance. The results show that non-performing loans (NPL), unemployment rates, government debt, exchange rates, and inflation rates have a meaningful impact on banking efficiency. Government debt and exchange rates have an inverse relationship with efficiency while the remaining variables are positively correlated. These findings in this study underline the potential for rising inflation to trigger financial instability, especially after abrupt and unforeseen inflation spikes. This study enhances our understanding of inflation's macroeconomic implications and its impact on the banking sector. |
| Date: | 2023–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:qx59v&r=eff |
| By: | Agostina Brinatti; Mingyu Chen; Parag Mahajan; Nicolas Morales; Kevin Shih |
| Abstract: | We study how random variation in the availability of highly educated, foreign-born workers impacts firm performance and recruitment behavior. We combine two rich data sources: 1) administrative employer-employee matched data from the US Census Bureau; and 2) firm-level information on the first large-scale H-1B visa lottery in 2007. Using an event-study approach, we find that lottery wins lead to increases in firm hiring of college-educated, immigrant labor along with increases in scale and survival. These effects are stronger for small, skill-intensive, and high-productivity firms that participate in the lottery. We do not find evidence for displacement of native-born, college-educated workers at the firm level, on net. However, this result masks dynamics among more specific subgroups of incumbents that we further elucidate. |
| Keywords: | Immigration; Firm Dynamics; productivity; H-1B visas; High-skill immigration |
| JEL: | F22 J61 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:98171&r=eff |
| By: | Marie Hogan; Aakash Kalyani |
| Abstract: | An analysis of the diffusion of PCs, smart devices, cloud computing and 3D printing suggests that AI may spread in a pattern similar to those of PCs and cloud computing. |
| Keywords: | artificial intelligence; personal computers; cloud computing; productivity growth |
| Date: | 2024–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:98109&r=eff |
| By: | Ryan A. Decker; John Haltiwanger |
| Abstract: | The COVID-19 pandemic and its aftermath have featured a surge in business entry (Decker and Haltiwanger 2024). A natural question is whether the elevated entry seen in recent years will have positive implications for aggregate productivity growth given the historically important role of business entry for productivity dynamics (Decker et al. 2014, Alon et al. 2018). |
| Date: | 2024–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2024-04-19-1&r=eff |
| By: | Boris Chafwehe; Andrea Colciago; Romanos Priftis |
| Abstract: | This paper proposes a New Keynesian multi-sector industry model incorporating firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We examine the impacts of a sustained fossil fuel price hike on sectoral size, labor productivity, and inflation. Final good sectors are ex-ante heterogeneous in terms of energy intensity in production. For this reason, a higher relative price of fossil resources affects their profitability asymmetrically. Further, it entails a substitution effect that leads to a greener mix of resources in the production of energy. As production costs rise, less efficient firms leave the market, while new entrants must display higher idiosyncratic productivity. While this process enhances average labor productivity, it also results in a lasting decrease in the entry of new firms. A central bank with a strong anti-inflationary stance can circumvent the energy price increase and mitigate its inflationary effects by curbing rising production costs while promoting sectoral reallocation. While this entails a higher impact cost in terms of output and lower average productivity, it leads to a faster recovery in business dynamism in the medium-term. |
| Keywords: | Energy; productivity; firm entry and exit; monetary policy |
| JEL: | E62 L16 O33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:811&r=eff |
| By: | Filewod, Ben |
| Abstract: | Recent work has revived two intertwined challenges to aggregate production functions (the ‘identity’ and ‘aggregation’ problems). This paper examines both problems in the context of aggregate industryby- country analysis, first demonstrating the relevance of the identity problem for industry-level analysis and tracing its origin in the System of National Accounts. Using a case study of materials quality in global forestry and logging, the paper then compares estimates from fully physical versus conventional (monetary) production functions to isolate the aggregation problem and show that credible inference depends on appropriately modelling heterogeneity in production processes. Materials quality is measured via finite mixture modelling applied to global satellite data. Attempting to estimate the parameters of a common production technology yields poor results, because of differences in production processes between countries. The paper offers a practical approach for dealing with heterogeneity via Data Envelopment Analysis and heterogeneous coefficient panel estimators, and concludes with guidance to help applied industry-level analysis recognize and avoid both the identity and aggregation problems. |
| Keywords: | data envelopment analysis; aggregation; value-added identity; sector; input quality; production functions; Taylor & Francis deal |
| JEL: | C43 E23 L73 Q23 |
| Date: | 2024–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122388&r=eff |
| By: | Xun Zhou; Timo Kuosmanen |
| Abstract: | Understanding input substitution and output transformation possibilities is critical for efficient resource allocation and firm strategy. There are important examples of fixed proportion technologies where certain inputs are non-substitutable and/or certain outputs are non-transformable. However, there is widespread confusion about the appropriate modeling of fixed proportion technologies in data envelopment analysis. We point out and rectify several misconceptions in the existing literature, and show how fixed proportion technologies can be correctly incorporated into the axiomatic framework. A Monte Carlo study is performed to demonstrate the proposed solution. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.12462&r=eff |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Alvaro Brunini (Uruguay XXI) |
| Abstract: | Exporting plays a central role in economic growth, especially in small economies. In this work we analyze an industrial policy aimed at fostering exports: the Temporary Admission Regime (TA). To this aim we use a panel of Uruguayan firms for the period 2005-2016. We use two evaluation techniques: binary treatment effects on matched firms and continuous treatment effects. These techniques allow controlling for selectivity into the treatment and selection bias. We find positive effects of Temporary Admission on trade performance, and particularly on export performance, while there are no clear effects on the firm’s total factor productivity and employment. |
| Keywords: | industrial policy, temporary admission, export performance, productivity, causal effect |
| JEL: | F13 F14 F16 O24 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-02-24&r=eff |