|
on Efficiency and Productivity |
| By: | Miranda De Souza Almeida, Felipe; Spolador, Humberto F.S. |
| Keywords: | Productivity Analysis, Production Economics, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343554 |
| By: | Miklós Koren; Álmos Telegdy |
| Abstract: | Using a novel Hungarian dataset on firms and their Chief Executive Officers (CEOs), we estimate the impact of hiring expatriate CEOs. By examining foreign acquisitions where the new owner replaces the incumbent CEO with an expatriate or a local CEO, we address the selection into both acquisition and CEO hiring. Firms led by expatriate CEOs show 13 percent total factor productivity growth, 95 percent sales growth, and increase both exports and domestic sales. Hiring expatriate CEOs enhances firm performance in both international and domestic markets. Our findings suggest that expatriates have superior general management skills. |
| Keywords: | expatriate CEO, foreign acquisition, firm performance, Hungary |
| JEL: | F23 F61 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11164 |
| By: | Park, Timothy A.; Holmes, Marionette |
| Keywords: | Community/Rural/Urban Development, Productivity Analysis, Agribusiness |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343903 |
| By: | Otgun, Hanifi; Fulginiti, Lilyan E.; Perrin, Richard K. |
| Keywords: | Productivity Analysis, Production Economics, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343572 |
| By: | Asravor, Jacob; Wiredu, Alexander Nimo; Zeller, Manfred |
| Keywords: | Production Economics, Productivity Analysis, Crop Production/Industries |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344063 |
| By: | Takeshima, Hiroyuki; Kishore, Avinash; Kumar, Anjani |
| Keywords: | Production Economics, Productivity Analysis, Research Methods/Statistical Methods |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343591 |
| By: | Emmanuel Dhyne (Economics and Research Department, National Bank of Belgium); Pablo Muylle (Ghent University) |
| Abstract: | While past decades were characterized by economic liberalization and deregulation, there re-mains an enduring presence of political influence over the private economy. Such influence can either benefit (e.g. government support addressed at survival and growth prospects) or harm (e.g. reduced efficiency and innovation) firms. This study investigates the impact of government ownership among suppliers on the behavior and performance of privately-held firms. We argue that this channel of government influence on the private economy plays a prominent role, in addition to that of political connections (i.e. the direct presence of politicians on the boards of firms), a more established channel of political influence. Leveraging Belgian firm-level trans-action data, the research reveals that purchasing inputs from state suppliers is associated with lower firm profitability and productivity, along with higher leverage and employment. Notably, the relationship between state suppliers and performance persists even when controlling for the direct presence of politicians on the boards of firms. These findings underscore the influence of government support on firms’ behavior and financial performance and highlight the importance of considering both state suppliers and political connections when assessing the comprehensive impact of government influence on private enterprises |
| Keywords: | Governmental Influence, SOE Suppliers, Political Connections, Economic Liberalization, Firm Performance. |
| JEL: | D22 D72 G38 H11 H32 L33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202407-451 |
| By: | Ghozi Naufal Ali (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Ester Dwi Sabtu (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Muhammad Putra (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Qisha Quarina (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada) |
| Abstract: | Pollution (in this term, air pollution) is an environmental phenomenon that negatively impacts the lives of the broader community and harms all aspects of the human dimension, such as health and the economy. This study aims to quantify the impact of pollution on worker productivity in developing countries using longitudinal data from Indonesia in two periods (2007 and 2014) and utilizing satellite data to represent air pollution data better. This study uses an instrumental variable (IV) approach and expands it by quantifying health aspects as one of the transmissions in the relationship between pollution and productivity. The result is that pollution negatively impacts worker productivity, with a dominant negative effect transmitted by health factors and determines their productivity. For this reason, the government is involved in tackling increasing pollution to minimize the increase in disease cases while minimizing economic losses from this phenomenon in the future. |
| Keywords: | Pollution; Labor Productivity; Instrumental Variable (IV); Mediation Analysis; Developing Country |
| JEL: | J21 J22 J24 Q52 Q53 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202403004 |
| By: | Kostas Mouratidis (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK); Georgios Papapanagiotou (Department of Economics, University of Macedonia, Greece); Christoph Thoenissen (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK) |
| Abstract: | The level of productivity is an important macroeconomic indicator that informs monetary policy decisions. Since the 2008 financial crisis, UK productivity has plunged and remained below its pre-crisis level for more than a decade. Evidence that the European debt crisis was generated by a fall of productivity and subsequent current account deficit of South euro area countries raises challenging questions about the impact of productivity on the UK’s business cycle. We measure this impact by accounting for both permanent and transitory shocks to total factor productivity (TFP) and investment-specific technology (IST). Our results suggest that permanent positive TFP and IST shocks worsen the trade balance by increasing domestic absorption and appreciating the real exchange rate. However, the real exchange rate itself has no effect on net trade. In contrast, cyclical productivity shocks do not impact trade or the real exchange rate. Finally, our findings show that the financial crisis had a long-run negative impact on both output and trade. |
| Keywords: | Productivity, Trade Balance, International Business Cycle, Cointegration and GVAR |
| JEL: | C11 C23 C32 F14 F21 F32 F44 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:shf:wpaper:2024005 |
| By: | Jaedo Choi; Andrei A. Levchenko; Dimitrije Ruzic; Younghun Shim |
| Abstract: | We quantify the contribution of the largest firms to South Korea's economic performance over the period 1972-2011. Using firm-level historical data, we document a novel fact: firm concentration rose substantially during the growth miracle period. To understand whether rising concentration contributed positively or negatively to South Korean real income, we build a quantitative heterogeneous firm small open economy model. Our framework accommodates a variety of potential causes and consequences of changing firm concentration: productivity, distortions, selection into exporting, scale economies, and oligopolistic and oligopsonistic market power in domestic goods and labor markets. The model is implemented directly on the firm-level data and inverted to recover the drivers of concentration. We find that most of the differential performance of the top firms is attributable to higher productivity growth rather than differential distortions. Exceptional performance of the top 3 firms within each sector relative to the average firms contributed 15% to the 2011 real GDP and 4% to the net present value of welfare over the period 1972-2011. Thus, the largest Korean firms were superstars rather than supervillains. |
| JEL: | F12 F16 L11 N15 O40 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32648 |
| By: | Zhou, Jiajun; Mennig, Philipp; Sauer, Johannes |
| Keywords: | Production Economics, Productivity Analysis, Agricultural And Food Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343528 |
| By: | Beckman, Jayson; Dong, Fengxia; Ivanic, Maros; Jägermeyr, Jonas; Villoria, Nelson |
| Abstract: | Increasing agricultural productivity is vital to ensure that global food demand can be met. However, the impact of a changing climate on temperatures and precipitation could potentially influence agricultural productivity by affecting crop yields. This report combines the latest estimates of yield changes from the Agricultural Model Intercomparison and Improvement Project with projections of future productivity changes in the form of total factor productivity (TFP) to gain a better understanding of the future of agricultural production (and thus of food supply). Yield estimates are used from a high greenhouse gas emissions scenario (to show an upper bound, as the impact of climate on yields is the strongest) for corn, rice, soybeans, and wheat. Yield changes are then combined with TFP estimates across four scenarios where research and development (R&D) assumptions determine the rate of TFP growth. Finally, the changes in yields and TFP, in conjunction with changes in populations and incomes, are assessed to shape the projected state of food supply in 2050. The results suggest that with no additional R&D expenditures, climate change would result in a production-consumption gap. When R&D investments are increased by amounts corresponding to the remaining three scenarios, TFP growth is sufficient to mitigate the impacts of climate change and projected population/income growth to maintain production at a level to meet global demand for food. |
| Keywords: | Climate Change, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:uersrr:344129 |
| By: | Schling, Maja; Saenz, Magaly |
| Keywords: | Land Economics/Use, Agricultural And Food Policy, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343527 |
| By: | Emmanuel Dhyne; Amil Petrin; Valerie Smeets; Frederic Warzynski |
| Abstract: | We study how increased import competition affects the evolution of productivity in a small open economy. We use a production survey of Belgian firms where we observe quarterly firm-product data at the 8-digit level on value and quantities sold together with firm-level labor, capital, and intermediate inputs from 1997 to 2007, a period marked by a stark decline in tariffs applied to Chinese goods. We extend the methodology developed in Dhyne et al. (2022) to estimate firm-product measures of productivity. We find that a 1% increase in the import share leads to a 1.05% gain in productivity. This elasticity translates into gains from competition over the sample period exceeding 1.2 billion euros, which is over 2.5% of the average annual value of manufacturing output in Belgium. We show firms appear to be less productive the further away from their ”core” competency product. We also find that firms respond to competition by focusing more on their core products. Instrumenting import share with changes in Chinese tariffs magnifies the effect of competition as the coefficient increases tenfold moving from OLS to IV. |
| JEL: | F10 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11155 |
| By: | Marco Clemens (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University); Jan Sauermann (Institute for Evaluation of Labor Market and Education Policy (IFAU), Uppsala Center for Labor Studies (UCLS), and the Institute of Labor Economics (IZA)) |
| Abstract: | Performance pay has been shown to have important implications for worker and firm productivity. Although workers’ skills may directly matter for the cost of effort to reach performance goals, surprisingly little is know about the heterogeneity in the effects of incentive pay across workers. In this study, we apply a dynamic difference-in-differences estimator to the introduction of a generous bonus pay program to study how salient performance thresholds affect incentivized and non-incentivized performance outcomes for low- and high-skilled workers. While we do find that individual incentive pay did not affect workers’ performance on average, we show that this result conceals an underlying heterogeneity in the response to individual performance pay: individual performance pay has a significant effect on the performance of high-skilled workers but not for low-skilled workers. The findings can be rationalized with the idea that the costs of effort differ by workers’ skill level. We also explore whether agents alter their overtime hours and find a negative effect, possibly avoiding negative consequences of longer working hours. |
| Keywords: | performance pay, incentives, productivity, skills, panel data |
| JEL: | M52 J33 C23 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iaa:dpaper:202405 |
| By: | Agnes Norris Keiller; Áureo de Paula; John Van Reenen |
| Abstract: | Standard methods for estimating production functions in the Olley and Pakes (1996) tradition require assumptions on input choices. We introduce a new method that exploits (increasingly available) data on a firm’s expectations of its future output and inputs that allows us to obtain consistent production function parameter estimates while relaxing these input demand assumptions. In contrast to dynamic panel methods, our proposed estimator can be implemented on very short panels (including a single cross-section), and Monte Carlo simulations show it outperforms alternative estimators when firms’ material input choices are subject to optimization error. Implementing a range of production function estimators on UK data, we find our proposed estimator yields results that are either similar to or more credible than commonly-used alternatives. These differences are larger in industries where material inputs appear harder to optimize. We show that TFP implied by our proposed estimator is more strongly associated with future jobs growth than existing methods, suggesting that failing to adequately account for input endogeneity may underestimate the degree of dynamic reallocation in the economy. |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:azt:cemmap:15/24 |
| By: | Zhang, Jian; Mishra, Ashok K.; Hazrana, Jaweriah |
| Keywords: | International Development, Agribusiness, Marketing |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343641 |
| By: | Gray, Wayne; Linn, Joshua (Resources for the Future); Morgenstern, Richard D. (Resources for the Future) |
| Abstract: | The industrial sector is an increasingly important area of focus for national-level greenhouse gas (GHG) emissions mitigation policies. Modeling specific industrial sector mitigation options requires data to estimate both benchmark emissions in the absence of the policies and marginal abatement costs.Major emitting manufacturing industries in the United States include iron and steel, cement, pulp and paper, petroleum refining, organic chemicals, and nitrogenous fertilizer. These industries use complex production processes, manufacturing a wide array of products involving multiple technologies and inputs. Unlike the power sector, where much of the technical and economic information needed to construct credible models is in the public domain, much of the relevant industry data are proprietary, with limited public access. The most comprehensive industrial data sources for the United States are the Economic Censuses conducted every five years, although the publicly available information is limited.A potential solution to these limitations is via access to the confidential plant-level data collected by the Census Bureau and available to qualified researchers. These data permit examination of the range of emissions from individual plants within an industry as well as changes in those emissions over time. The data from Economic Census years also contain information on physical output quantities for some products manufactured by these industries.This paper reports on our efforts to develop the databases and estimate separate models for each of the six noted industries and includes both descriptive and econometric analyses, along with simulations of alternative policies.The descriptive analysis reveals substantial within-industry heterogeneity in GHG emissions intensity, measured as the ratio of GHG emissions to output. This heterogeneity reflects plant-level differences in technologies, fuels, specific products manufactured, and other factors. In the econometric analysis, energy prices affect energy intensity and profits, and the responsiveness varies substantially across industries. For example, the response of GHG intensity (not total emissions reduction)to changes in fuel prices is about twice as large in the petroleum and cement industries as in the other industries studied.Based on the econometric results, the simulations reveal that carbon prices of $20 per metric ton of GHG reduce emissions by 8–32 percent across the industries considered. These reductions reflect short- and medium-run responses such as input substitution and limited technology adoption. The total emissions reductions vary across industries in accordance with their estimated responsiveness to energy prices; we estimate the largest total emissions reductions for cement and fertilizers and the smallest total emissions reductions for pulp and paper. |
| Date: | 2024–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-10 |
| By: | Manel Zidi (ESSECT - Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis); Helmi Hamdi (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | The objective of this article is to empirically examine the effect of financing structure on the market share of banks, and their performance in Tunisian banks. To this end, we gathered financial statements of ten commercial banks over the period 2012-2019, and we employed the panel-corrected standard error (PCSE) regression. The empirical results show that the bank capital structure measured by the equity to total assets ratio negatively affects bank performance while the debt to total assets ratio can be a robust and positive driver of bank performance. Through this research, we recommend to Tunisian commercial banks to reduce their operating costs through a better management of their resources, and to find cheaper sources of financing such as increasing equity. We also recommend to Tunisian commercial banks to diversify further their revenues in order to enhance their performance and to generate more profits. |
| Keywords: | Capital Structure, Bank Profitability, Bank Performance JEL Classifications: G21, C23, L2 |
| Date: | 2024–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04616733 |
| By: | Robert Stehrer; Bernhard Dachs; Maria Yoveska |
| Abstract: | In view of the importance of the export economy for Austria this study examines the role and characteristics of Austrian exporting firms compared with non-exporting firms. Specifically, it assesses how the share of exporting firms has developed in recent years, whether exports have become more important for firms over time and to what extent exporters have an advantage over other firms (export premium). The results show that about two third of the Austrian manufacturing firms are engaged in exporting activities and indicate that – in line with existing literature - exporting firms are larger, more productive, generate higher surpluses, invest more, and spend more on environmental protection than non-exporters. Further, the results highlight that only a small number of firms account for a large share of Austrian manufacturing exports. Finally, the results point towards a mutual positive relationship between export behaviour, productivity, and R&D expenditures. |
| Keywords: | Export premium, Firm-level analysis, productivity and exporting |
| JEL: | F14 D22 |
| Date: | 2022–07 |
| URL: | https://d.repec.org/n?u=RePEc:wsr:ecbook:y:2022:m:07:i:viii-002 |