nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2025–04–28
seven papers chosen by
Angelo Zago, Universitàà degli Studi di Verona


  1. The Impact of Agricultural Extension Services on Female Farmers` Technical Efficiency: Evidence from Crop Producer Women in Uzbekistan By Djuraeva, Mukhayo; Babadjanova, Mashkhura; Primov, Abdulla; Egamberdiev, Bekhzod
  2. Predictive AI and productivity growth dynamics: evidence from French firms By Luca Fontanelli; Mattia Guerini; Raffaele Miniaci; Angelo Secchi
  3. Productivity and Market Power: The Case of Manufacturing Firms of Peru 2002-2019 By Tello, Mario D.; Tello-Trillo, Daniel Sebastian; Rojas Lara, Pablo Enrique
  4. Temperature and Productivity in Soccer By Vojtech Misak
  5. REVIVING THE MANUFACTURING INDUSTRY THROUGH SERVICIFICATION STRATEGY: EVIDENCE FROM INDONESIAN MICRODATA By MHA Ridhwan; Nurul Pratiwi; Sulistiyo K. Ardiyono; Amelia A. Hidayat
  6. Conditional Gains: When AI Investment Enhances Firm Efficiency By Kazakis, Pantelis
  7. Europe’s quest for global economic relevance: on the productivity paradox and the Draghi report By Capello, Roberta; Rodríguez-Pose, Andrés

  1. By: Djuraeva, Mukhayo; Babadjanova, Mashkhura; Primov, Abdulla; Egamberdiev, Bekhzod
    Abstract: Extension services start to emerge in recent years but their impact on the production efficiency of women farmers is not empirically assessed in Central Asia. This paper investigates the role of extension services in improving female farmers’ technical efficiency scores while analyzing the impact of farm characteristics explaining the efficiency differentials across female farmers in rural areas of Samarkand and Tashkent in Uzbekistan. Unique and primary cross-sectional data were collected during July and August 2022 for female crop-producing farmers. A sample of 145 female-headed farming entities was selected for the survey by using a multistage, random sampling technique. To analyze the data in the scope of our research objective, we used an endogenous stochastic frontier production function and calculated the technical efficiency score of the sampled female farmers. Our findings reveal that extension participation was found to be endogenously determined and was addressed through the best possible valid instruments – individual consulting, distance from the household to the main road, and distance to the main market. The analysis demonstrates that access to extension services and the number of visits of extension agents have a positive impact on technical efficiency levels among women crop producers. Moreover, analysis shows the positive impact of private extension services whereas state-managed extension agencies do not have a significant impact on production efficiency. Recognition of the determinants of women farmers’ technical efficiency scores and the impact of extension services adoption ensures that targeted extension approaches should be encouraged and developed during the state policy reforms to address the existing gaps in resource-use management.
    Keywords: Agricultural extension services, female farmers, gender inclusivity, endogenous stochastic frontier model, crop productivity, Uzbekistan, Central Asia
    JEL: N50 O13 D13 D24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:312435
  2. By: Luca Fontanelli (University of Brescia, Department of Economics and Management, CMCC Foundation – Euro-Mediterranean Center on Climate Change); Mattia Guerini (University of Brescia, Deparment of Economics and Management and Fondazione Eni Enrico Mattei); Raffaele Miniaci (University of Brescia, Department of Economics and Management); Angelo Secchi (PSE – University Paris 1 Pantheon-Sorbonne, CMCC Foundation – Euro-Mediterranean Center on Climate Change)
    Abstract: While artificial intelligence (AI) adoption holds the potential to enhance business operations through improved forecasting and automation, its relation with average productivity growth remain highly heterogeneous across firms. This paper shifts the focus and investigates the impact of predictive artificial intelligence (AI) on the volatility of firms’ productivity growth rates. Using firm-level data from the 2019 French ICT survey, we provide robust evidence that AI use is associated with increased volatility. This relationship persists across multiple robustness checks, including analyses addressing causality concerns. To propose a possible mechanisms underlying this effect, we compare firms that purchase AI from external providers (“AI buyers†) and those that develop AI in-house (“AI developers†). Our results show that heightened volatility is concentrated among AI buyers, whereas firms that develop AI internally experience no such effect. Finally, we find that AI-induced volatility among “AI buyers†is mitigated in firms with a higher share of ICT engineers and technicians, suggesting that AI’s successful integration requires complementary human capital.
    Keywords: Artificial intelligence, productivity growth volatility, coarsened exact matching
    JEL: D20 J24 O14 O33
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:fem:femwpa:2025.11
  3. By: Tello, Mario D.; Tello-Trillo, Daniel Sebastian; Rojas Lara, Pablo Enrique
    Abstract: This paper uses seven standard market power indicators (price-cost margin, and six drawn upon the production approach) to estimate the effect market power on the rate of change of total factor productivity for a sample of formal manufacturing firms of Peru for the period 2002-2019. After applying exogeneity tests and implementing panel data with fixed effects instrumental variable method, the results are not clear about the causal relationship between market power and firms' TFP. However, when the Double-Debiased machine learning (DML) causal method is applied for fixed effects panel data with and without instruments, firms market power robustly seems not to affect their respective total factor productivity regardless of the market power indicators and instruments used. The paper also presents four examples which are consistent with this causal result suggesting that the relationship between market power and productivity needs to be analyzed on a case-by-case basis considering the product development of sectors, the influence and activities of firms and economic groups in the domestic economy and foreign markets, and the level of development of the country's productive structure.
    Keywords: Market power;total factor productivity;Causal machine learning
    JEL: D24 L11 L60
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:idb:brikps:14044
  4. By: Vojtech Misak (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: This paper examines the impact of temperature on soccer team productivity using match-level data from ten countries across three continents. The results show that temperature affects multiple performance metrics, often in non-linear ways. Specifically, attacking efficiency is enhanced in warmer conditions, leading to increased goal productivity and improved shot conversion rates. Conversely, defensive performance appears to weaken in warmer conditions, with a decrease in defensive pressure and passing accuracy. Player aggression follows an inverted U-shaped pattern in relation to temperature. The effects of temperature vary across different leagues and climate regions. The relationship between temperature and outcome measures tends to be stronger in lower leagues, while the Champions League is the least influenced overall. Teams from colder regions experience a larger decline in passing volume when playing in high temperatures, with the effect being particularly pronounced in Brazil.
    Keywords: Football, Soccer, Temperature, Weather, Productivity
    JEL: K14 K42 K49
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_07
  5. By: MHA Ridhwan (Bank Indonesia); Nurul Pratiwi (Bank Indonesia); Sulistiyo K. Ardiyono (Bank Indonesia); Amelia A. Hidayat (Bank Indonesia)
    Abstract: This study investigates the role of servicification within Indonesia’s manufacturing sector, focusing on its impact on productivity, global value chain (GVC) participation, and regional diversity in servicification practices. Empirical results indicate that servicification is positively correlated with firm productivity, with a 10% increase in service intensity linked to approximately a 1% productivity boost. The study further explores the differential impact of servicification across regions, technological classifications, and firm sizes. It reveals that in regions such as Java and Sumatra, high-value-added sectors benefit more from service integration, while the Eastern of Indonesia (EoI)’s reliance on primary manufacturing highlights challenges due to skill gaps and resource constraints. Also, based on regional survey data, they reveal how the integration of services—such as logistics, R&D, and customer support—into manufacturing operations can drive productivity and increase the sector’s competitiveness. This analysis provides policy recommendations to optimize servicification, enhance GVC participation, and support the transition to a service-oriented manufacturing landscape.
    Keywords: Servicification, Manufacturing Sector, Productivity, Global Value Chains, Digitalization
    JEL: L60 L25
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:idn:wpaper:wp032024
  6. By: Kazakis, Pantelis
    Abstract: The rapid adoption of artificial intelligence (AI) in the corporate world has raised important questions about its impact on firm performance. This paper examines whether investments in AI—measured by the share of AI-skilled workers—are associated with improvements in firm efficiency. The analysis reveals that AI investment alone does not lead to higher efficiency. That is, firms employing more AI-skilled labor do not, on average, perform more efficiently than others. However, the results show that this relationship depends on firm context. Firms operating in more competitive markets appear to benefit more from AI investment. Additionally, firms that engage more heavily in tax avoidance also realize greater efficiency gains from AI, possibly due to their more aggressive or strategic resource allocation practices.
    Keywords: artificial intelligence (AI), firm efficiency, market power, tax avoidance
    JEL: D40 E22 G30 H26 L11
    Date: 2025–04–02
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124246
  7. By: Capello, Roberta; Rodríguez-Pose, Andrés
    Abstract: Europe’s existential economic challenge has been laid bare in Mario Draghi’s September 2024 competitiveness report. The continent faces a profound productivity crisis, one that threatens to relegate Europe to the margins of global economic influence. Yet, while the report offers a comprehensive diagnosis and prescribes remedies for Europe’s anaemic productivity growth, it overlooks a crucial dimension: the power of place. This paper examines how this territorial oversight undermines the report’s effectiveness. We argue that Europe’s path to renewed economic vigour lies not in homogeneous continental strategies, but in harnessing its potential and diverse regional capabilities. The continent’s economic renaissance depends on recognising that its apparent weakness – its territorial diversity – may indeed be a great strength. From our perspective, unlocking Europe’s latent potential requires policies tailored to regional specificities. Only by embracing rather than suppressing its endogenous potential, wher-ever it can be found, can Europe hope to reverse its productivity decline. The challenge ahead is not merely technical but fundamentally territorial: Europe must craft a future where productivity growth emerges from its territorial distinctiveness, not in spite of it.
    Keywords: Draghi report; European competitiveness; regional dimension
    JEL: R10 R58
    Date: 2025–01–01
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:127768

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