|
on Efficiency and Productivity |
|
Issue of 2024‒07‒29
twenty papers chosen by |
| By: | Kodongo, Odongo |
| Abstract: | This paper sought to establish the linkages between bank performance and real sector productivity. We use data for five East African countries (Ethiopia, Kenya, Rwanda, Tanzania, and Uganda) for the period 2014-2022. We initially deploy the traditional panel fixed effects regression and subsequently the instrument variable fixed effects estimation for robustness checks. Our results show a robust negative nexus between banking sector performance and real sector productivity. Second, we find that noninterest charges is the major channel of transmission of adverse effects from the banking sector to real sectors such as manufacturing, while the interest channel tends to transmit positive effects especially to the services sector. Based on these findings, we make several policy recommendations. |
| Keywords: | Real sector productivity, sectoral value-added, bank profitability, cost efficiency, East Africa |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:297986&r= |
| By: | Dakpo, K Hervé; Latruffe, Laure; Desjeux, Yann |
| Keywords: | Production Economics, Productivity Analysis, Research Methods/Statistical Methods |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344050&r= |
| By: | Mai Dao; Josef Platzer |
| Abstract: | We study U.S. labor productivity growth and its drivers since the COVID-19 pandemic. Labor productivity experienced large swings since 2020, due to both compositional and within-industry effects, but has since returned to its pre-pandemic trend. Industry-level panel regressions show that measures of labor market churn are associated with higher productivity growth both in the cross-section and over time. Sectors with higher investment in digitalization, particularly in teleworkable industries, also experience higher productivity growth on average. There has also been an increase in business formation since the pandemic, but its impact on productivity dynamics will likely need more time to be reflected in the data. |
| Keywords: | Productivity; COVID-19; Digitalization |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/124&r= |
| By: | Berg, Nikolas L.; Thayer, Anastasia W.; De Figueiredo Silva, Felipe; Vassalos, Michael; Smith, Nathaniel B. |
| Keywords: | Productivity Analysis, Production Economics, Farm Management |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343922&r= |
| By: | Kenny, Seán (Department of Economic History, Lund University) |
| Abstract: | This paper constructs annual GDP estimates for Ireland (1924-47) to join the first complete official aggregates. The new series is deployed to revisit Ireland’s economic performance in the post-independence decades. Ireland’s economy grew at 1.5 per cent per annum and average living standards improved by 40 per cent. The bulk of this was due to labour productivity improvements stemming from workers moving out of agriculture. Starting in 1924 captures the civil war recovery and paints a more positive picture of the 1920s, while the traditional narrative of a “mild” Great Depression is upheld. The 1930s recovery was aided by strong contributions from services and industry, while the economy contracted by 7 per cent during the early “Emergency”. Though supporting O’Rourke’s view that Irish growth was not unique against European peers, the new data provide evidence of stronger convergence against UK regions. Industry contributed most to growth during the period, growing at 3.6 per cent per annum. The equivalent rate for services was 1.3 per cent, though it contributed substantially during recovery periods. Agricultural output hardly changed due to its post-war contraction. This paper joins a growing number of studies that suggest that Ireland was poorer at independence than previously believed. |
| Keywords: | Historical National Accounts; Interwar period; Ireland; GDP; Comparative Growth; Regional GDP; Productivity |
| JEL: | N10 N14 O47 |
| Date: | 2024–05–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:luekhi:0258&r= |
| By: | Anna Valero; Bart van Ark |
| Abstract: | Comparatively sluggish productivity growth is one of the UK's biggest policy challenges. Past strategies to solve the problem have lacked both sustained commitment and proper evaluation. Anna Valero and Bart van Ark call for a growth and productivity institution to inform and coordinate policies over the long term. |
| Keywords: | productivity, uk economy, growth, industrial strategy |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:685&r= |
| By: | Zapata, Samuel D.; Abello, Pancho; Anderson, David P.; Palma, Marco A. |
| Keywords: | Demand And Price Analysis, Productivity Analysis, Production Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344028&r= |
| By: | Mick Dueholm; Aakash Kalyani; Serdar Ozkan |
| Abstract: | An analysis suggests labor issues like higher wages and hiring difficulties have prompted some firms to invest in automation, leading to productivity growth. |
| Keywords: | worker scarcity; wages; hiring; automation; productivity growth; earnings calls |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:98455&r= |
| By: | Geylani, Pinar Celikkol; Park, Timothy A.; Restrepo, Brandon J. |
| Keywords: | Productivity Analysis, Research And Development/ Tech Change/Emerging Technologies, Production Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343704&r= |
| By: | de Bromhead, Alan (University College Dublin); Kenny, Seán (Department of Economic History, Lund University) |
| Abstract: | This paper constructs the first estimates of Irish regional GDP over the twentieth century and traces the relative economic performance of Ireland’s regions since independence. Using an array of data sources available at a county level, output inAgriculture, Industry and S ervices in benchmark census years is estimated. Applying a variety of alternative measures, we find a reduction in regional inequality over the period that is similar to the broader European pattern. Regional convergence over the period 1926-1991 was driven by both within-sector convergence in productivity and structural change. Our paper helps to understand the regional dimensions to Irish economic development from the birth of a newly independent state up to the eve of Ireland's growth 'miracle' in the 1990s, when the first official efforts were initiated to construct these figures. Finally, we connect our estimates to these official figures to examine GDP at the level of NUTS regions up to 2021. |
| Keywords: | Regional GDP; Ireland; Economic History; Inequality; Economic Growth |
| JEL: | N34 N94 O18 R11 R12 |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:luekhi:0259&r= |
| By: | F. Aresu; E. Marrocu; R. Paci |
| Abstract: | This paper investigates the economic impact of European Structural and Investment Funds (ESIF) for 262 EU NUTS2 regions over the period 2000-2019. Differently from previous contributions, we focus on the impact of ESIF on regional Total Factor Productivity (TFP) growth, which allowed us to account for other sources of regional investments. A relevant contribution of this study is the thorough examination of the effect of the four main funds included in ESIF on the productivity of a comprehensive set of EU regions. Results show the prevailing effectiveness of the European Regional Development Fund (ERDF), featuring a great deal of heterogeneity over time and across EU geographic areas. Moreover, by analyzing the role played by the European Agricultural Fund (EAFRD) on the TFP of the agricultural sector, we found that its growth impact crucially depends on the initial level of regional sectoral TFP. Our results contribute to a deeper understanding of ESIF economic impact and suggest policy implications for enhancing their contribution to regional economic development. |
| Keywords: | European Structural and Investment Funds;regional development;Spatial Error Model;European Union |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202412&r= |
| By: | Ye, Lei; Xu, Meng; Lin, Bin; Wang, Xiaoxi |
| Keywords: | Crop Production/Industries, Productivity Analysis, Food Consumption/Nutrition/Food Safety |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343865&r= |
| By: | Basilio Tavares Ramos, Erica; Dias Paes Ferreira, Marcelo; De Carvalho Reis Neves, Mateus |
| Keywords: | Production Economics, Agricultural And Food Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343654&r= |
| By: | Alexander Quispe; Rodrigo Grijalba |
| Abstract: | Advancements in Artificial Intelligence, particularly with ChatGPT, have significantly impacted software development. Utilizing novel data from GitHub Innovation Graph, we hypothesize that ChatGPT enhances software production efficiency. Utilizing natural experiments where some governments banned ChatGPT, we employ Difference-in-Differences (DID), Synthetic Control (SC), and Synthetic Difference-in-Differences (SDID) methods to estimate its effects. Our findings indicate a significant positive impact on the number of git pushes, repositories, and unique developers per 100, 000 people, particularly for high-level, general purpose, and shell scripting languages. These results suggest that AI tools like ChatGPT can substantially boost developer productivity, though further analysis is needed to address potential downsides such as low quality code and privacy concerns. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.11046&r= |
| By: | Flores, Ivan; Hutchins, Jared P.; Sherrick, Bruce J.; Mashange, Gerald |
| Keywords: | Land Economics/Use, Agricultural Finance, Production Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343880&r= |
| By: | Okeke, Clement |
| Abstract: | The impact of Information and Communication Technology (ICT) on firm performance has become the subject of active research in the last four decades. This study’s goal is to review the effect of ICT on the financial performance of firms in the consumer goods sector as measured by their Return on Capital Employed (ROCE) with firm size added as a control variable. For a period of ten (10) years, from 2013 to 2022, the study used thirteen (13) listed consumer goods companies in Nigeria. An ex-post facto research approach was used, and secondary data were gathered from the companies’ annual reports for the period under review. EViews version 12 was used to do correlation and regression analysis. The findings show that Funding for ICT Hardware (FICTH)and Funding for ICT Software (FICTS) have a negative and insignificant effect on the financial performance of listed consumer goods firms in Nigeria. The study suggests that stakeholders, especially managers in the consumer goods sector should always review all options carefully before venturing into any procurement of additional computer hardware or software bearing in mind the negative impact of their ROCE. |
| Keywords: | Information and Communication Technology (ICT), Return on Capital Employed |
| JEL: | G3 G30 L2 L8 L86 L89 O14 O30 O32 |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121293&r= |
| By: | Giordano Mion; Joana Silva |
| Abstract: | We examine how firms adjust their production and technology in response to exogenous trade shocks. We develop a model in which revenue TFP can be distinguished from quantity TFP, and where skill upgrading is explicitly embedded into the firm's technology choice. Within our framework, firms respond to export and import shocks by adjusting their trade-off between quantity and quality, as well as the skill composition of their workforce. Ultimately, these decisions impact firms' quantity and revenue TFP, marginal costs, prices, and markups. We quantify the model using detailed firm and product data from Brazil and show how export and import shocks, instrumented using exogenous changes in exchange rates, GDP, and tariffs, affect a wide array of firm margins. Our results indicate both skill and quality upgrading in response to export shocks, while import shocks foster technology upgrading and productivity improvements. |
| Keywords: | exports, imports, shocks, skill upgrading, quality, technology, quantity TFP, revenue TFP, markups |
| Date: | 2024–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2009&r= |
| By: | Will Brett-Harding; Henry G. Overman |
| Abstract: | This briefing looks at the causes and consequences of UK spatial disparities and what, if anything, policy can do to address them. |
| Keywords: | Election 2024, Economic geography, Productivity, UK Economy, election2024 |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepeap:059&r= |
| By: | Giorgio Barba Navaretti; Matteo Bugamelli; Emanuele Forlani; Gianmarco I. P. Ottaviano |
| Abstract: | Understanding producers' selection into exporting and its consequences for micro-founded gravity estimation calls for an in-depth analysis of the interplay between aggregate exports and the distribution of producers' productivity. Yet, knowledge about such interplay is still rather limited from both a theoretical and an empirical standpoint. We supplement this knowledge by studying how different moments of the distribution of producers' productivity affect the trade elasticity, and in turn how shocks that alter those moments in different ways may have different impacts on aggregate exports. We first show that, to obtain an unbiased measure of that elasticity, gravity regressions have to account not only for the share of producers that export, but also for their productivity premium relative to all producers. This is particularly important when the share is small and the premium is large, that is, when aggregate exports are driven by few overperforming 'superstar exporters'. We then assess how aggregate exports react to shocks entailing the same change in the first moment of the distribution of producers' productivity, but different changes in its higher moments. Our empirical results confirm that taking into full consideration the productivity premium of exporters and the occurrence of 'superstar exporters' is crucial to correctly explain and predict the response of aggregate exports to different productivity shocks. |
| Keywords: | trade flows, superstar exporters |
| Date: | 2024–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2010&r= |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Vezzulli, Andrea |
| Abstract: | Despite the remarkable growth in frontier technology adoption (FTR) in the Global South, empirical evidence concerning their socioeconomic impacts in the context of Africa is hard to find. This study, therefore, employs macro data for a sample of 39 African countries to bridge three pressing gaps in the growth literature. First, we examine the impact of FTR on economic growth. Second, the study assesses whether FTR and egalitarian democracy synergistically enhance economic growth. Third, this study examines the heterogeneous effects of FTR across growth quantiles. Robust evidence, based on the dynamic system-GMM and the method of moments quantile regression, reveals the following: first, FTR promotes economic growth, but the effect is modest; second, egalitarian democracy amplifies the growth-enhancing impact of FTR, but only at higher thresholds of egalitarianism. Third, although FTR is growth-enhancing across all growth quantiles, the effect diminishes from the 1st to the 9th quantile. However, in the presence of egalitarian democracy, FTR significantly enhances growth across all growth quantiles from the 1st to the 9th. We conclude that progress in egalitarian democracy and investments for enhancing FTR are crucial for economic growth in Africa. |
| Keywords: | Africa; Economic growth; Democracy; Egalitarian democracy; Frontier technology readiness |
| JEL: | O31 O38 O55 P48 Q01 |
| Date: | 2024–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121246&r= |