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on Efficiency and Productivity |
| By: | Bruno Merlevede; Pablo Muylle (-) |
| Abstract: | Since the late 2000s, shocks and crises of various types have led to a revival of state intervention around the world. This paper builds a large firm-level dataset to analyze state ownership of firms in Europe for the period 2002-18. We confirm the underperformance of state-owned enterprises (SOEs) relative to privately-owned enterprises (POEs) found in earlier literature for this recent period for a range of firm-level performance indicators. We also examine the impact of SOEs on private firms. We find that larger SOE presence in an industry is associated with lower productivity growth and lower productivity levels among private firms in that industry, but does not affect industry dynamics in terms of entry and exit. This suggests potential aggregate productivity gains from reallocating resources from SOEs to POEs. Further, we show that employment is more stable and crisis-resistant at SOEs, and that SOEs are a more stable source of downstream input demand for other firms. Leveraging our dataset's cross-country nature, we find that SOEs are complements to, rather than substitutes for, lower quality institutions. |
| Keywords: | State ownership, Firm performance, Productivity, Spillover e ects, Privatization, Business dynamism |
| JEL: | H11 L25 L32 O47 P31 P52 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:25/1105 |
| By: | Longang, Saubaber Gamo; D., Soh Wenda Boris.; Bergaly, Kamdem Cyrile; Tamwo, Severin |
| Abstract: | In a bid to promote the adoption of certification schemes in the cocoa subsector, this study used data collected from 100 cocoa farmers applied on the two-stage double bootstrap data envelopment analysis (DEA) procedure to estimate the bias-corrected technical efficiency scores of cocoa producers with respect to the level of adoption of the Rainforest Alliance/UTZ cocoa certification scheme in the Centre region of Cameroon. The result indicates that yields per hectare remain low for cocoa farmers but is highest for partial adopters, followed by complete adopters and non-adopters; inefficiency remains rampant amongst cocoa farmers but declines as one moves from non-adoption to partial and then complete adoption. However, partial adoption appears to be more favourable for technical efficiency relative to complete adoption in the short run. Moreover, inefficiency is highest for nonadopters as their respective ages and the year of their experience increase. Likewise, non-adopters and partial adopters with secondary or higher level of schooling tend to be less efficient than complete adopters with similar level of schooling. This study therefore shows that the level of adoption of certification schemes matter for farmers’ technical efficiency. Hence certification bodies and agricultural extension programs should promote the adoption of certification schemes and encourage farmers to adopt the certification norms progressively and move from nonadoption to partial adoption in the short run and then to complete adoption in the long run. |
| Date: | 2023–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:africa:2r7qa_v1 |
| By: | Amiti, Mary; Duprez, Cedric; Konings, Jozef; Van Reenen, John |
| Abstract: | Using firm-to-firm transactions, we show that starting to supply a ‘superstar’ firm (large domestic firms, exporters and multinationals) boosts productivity by 8% after three years. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of “superstar spillovers”. Consistent with a model of technology transfer, we find bigger treatment effects from technology-intensive superstars and also falls in markups (in order to win superstar contracts). We also show that firms that start supplying superstar firms enjoy a ‘dating agency’ effect — an increase in the number of new buyers that is particularly strong within the superstar firm’s network. Taken together, the results suggest an important role for raising productivity through superstars’ supply chains regardless of multinational status. |
| Keywords: | FDI; productivity; spillovers |
| JEL: | F23 O30 F21 |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124676 |
| By: | Mohnen, Pierre (RS: GSBE other - not theme-related research, QE Econometrics); Mairesse, Jacques (Quantitative Economics); Notten, Ad (Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper reviews the empirical work that has been done over the period 2013-2023 on the topic of innovation and productivity. A visual graph based on keywords shows the main areas that have been investigated. The literature review is organized around the way the link between innovation and productivity has been analyzed, the data that have been used, and the evidence that has been obtained. The paper ends with suggestions of future research on the topic. |
| JEL: | D24 O30 O31 O32 |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025003 |
| By: | Elisabetta Iossa (CEIS & DEF, University of Rome "Tor Vergata"); Chiara Latour (University of Stockholm) |
| Abstract: | Do firms with higher legality standards contribute to better procurement outcomes? We address this question in the context of Italian public works procurement, by combining contract-level data on procurement and firm-level data on legality scores, using the Legality Rating System managed by the Italian Antitrust Authority. We find that higher legality scores are positively associated with a significant and economically important improvement in procurement efficiency, measured by shorter time delays and lower extra costs. |
| Keywords: | Cartels, corruption, firm efficiency, legality, procurement |
| JEL: | H57 K40 L4 |
| Date: | 2025–02–10 |
| URL: | https://d.repec.org/n?u=RePEc:rtv:ceisrp:592 |
| By: | Djidonou, Robert (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Foster-McGregor, Neil (RS: GSBE MGSoG, Mt Economic Research Inst on Innov/Techn); Mathew, Nanditha (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG) |
| Abstract: | Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in reducing poverty and inequality by generating the majority of jobs, income, and pathways to better employment opportunities. However, informal enterprises are often characterized by low productivity and significant decent work deficits. In Sub-Saharan Africa, where a large share of the workforce is engaged in informal enterprises, transitioning to formality is essential for enhancing productivity, fostering economic growth, and ensuring decent work for all. A critical pathway for informal firms to formalize is through production and worker linkages with formal firms. Using a sample of 13, 626 informal firms from three Sub-Saharan African countries, this study examines the performance effects of informal firms with formal linkages and explores the mediating role of human capital. We find that formal backward linkages—where informal firms source inputs from formal firms—are significantly more common than other types of formal-informal linkages. Employing heteroskedasticity-based identification, our findings reveal that the productivity gains from these linkages are not automatic - higher human capital is essential for firms to benefit from knowledge and technology transfers. This highlights the critical role of absorptive capacity in enabling informal firms to leverage knowledge and technology transferred through formal backward linkages, thereby emphasizing the importance of targeted capacity-building interventions in fostering inclusive economic growth. |
| JEL: | J40 L14 L25 O12 O17 O33 |
| Date: | 2025–02–14 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025006 |
| By: | Marydas, Sneha (RS: GSBE MGSoG, Maastricht Graduate School of Governance); Mathew, Nanditha (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG); De Marzo, Giordano; Pietrobelli, Carlo (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | In this study, using a novel dataset that matches firm-level data with online job vacancy data, we investigate the effects of firms’ digital technology adoption on future hiring and the dynamics of hiring and training, focusing on different types of technologies and categories of occupations. First, we examine the impact of adopting different types of digital technologies, namely AI, Advanced ICT, and Basic ICT, on future firm hiring. Our findings reveal that less advanced digital jobs (eg. Basic ICT, Advanced ICT) are substituted by more advanced digital jobs (eg. AI), while the advanced technology adoption by firms leads to increased overall hiring of non-digital roles. Second, we show that there is a positive relationship between training and new hiring only for one occupational category, namely, managers, with no significant relationship for other occupations. Third, we investigate the joint effect of training and technology adoption for firm performance. Our findings reveal that digital technology adoption enhances a firm’s financial performance only when combined with internal staff training. The sole exception is AI, which yields positive performance benefits even in the absence of training. |
| JEL: | O33 O12 L20 D22 |
| Date: | 2025–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025004 |
| By: | Lallement, Laura |
| Abstract: | The COVID-19 pandemic has dramatically affected workplaces, productivity, and innovation across France. As society continues to navigate this unprecedented crisis, understanding these impacts is paramount for policy formulation, aimed at fostering economic recovery and future resilience. This policy brief examines the implications of the pandemic on these areas, drawing from literature such as Abi Younes et al. (2020), Furman et al. (2020), OECD (2020), and Sanofi (2022). |
| Date: | 2023–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:osf:thesis:wdxuk_v1 |
| By: | Bianca Minuth (ESCP Business School, Paris, France); Paul Pronobis (Free University of Bozen-Bolzano, Italy) |
| Abstract: | This study examines how corporate social responsibility (CSR) performance relates to firms’ disclosure tone in CSR reports and their resulting cost of capital. Our empirical analysis reveals that firms with superior CSR performance exhibit systematic patterns in their disclosure tone, characterized by increased usage of positive language and decreased usage of negative language. In contrast, firms with lower CSR performance show no significant strategic communication patterns. Our analysis reveals a complex relationship between CSR performance, disclosure tone, and cost of capital. While CSR performance and optimistic disclosure tone individually have positive associations with cost of capital, their interaction exhibits a significant negative relationship. This finding suggests that the impact of CSR performance on cost of capital is contingent on the optimistic tone employed in CSR disclosures. Firms with strong CSR performance can enhance the favorable impact on their financing costs by adopting a more optimistic disclosure tone, potentially offsetting the standalone positive association between CSR performance and cost of capital. Further analysis reveals that these effects are more pronounced in the pre-NFRD period, indicating that the transition from voluntary to mandatory reporting altered the economic consequences of CSR disclosure strategies. |
| Keywords: | CSR Performance; Disclosure Tone; Cost of Capital; Strategic Communication; Non-financial Reporting. |
| JEL: | M14 M48 Q5 G3 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bzn:wpaper:bemps109 |