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on Small Business Management |
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Issue of 2021‒02‒08
twenty-six papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Rita Bessone Basto (Research Office of the Portuguese Ministry of the Economy and Digital Transition); Ana Martins (Research Office of the Portuguese Ministry of the Economy and Digital Transition); Guida Nogueira (Research Office of the Portuguese Ministry of the Economy and Digital Transition) |
| Abstract: | The competitiveness of an economy increasingly depends on its ability to innovate. Theory suggests that innovation makes an important contribution to growth both at the firm level and at the national level. Innovative economies that deliver new differentiated products and services and/or develop more efficient production processes are often more productive, more resilient and adaptable in the face of adversity and change, and better able to support higher living standards and thus greater well-being. However, because knowledge is a public good, without government support, private agents are likely to underinvest in R&D, as it usually leads to higher social returns than private ones. In this context, it is strategically important to use public funds to promote innovative activity in firms to achieve the optimal level of R&D investment. Since 2000, indirect public support through tax credits has become more prominent and is currently the main form of public R&D support for most OECD countries. This paper evaluates the impact of SIFIDE, the Portuguese system of tax incentives to corporate R&D investment, on firms’ behaviour. The results show the effectiveness of SIFIDE in promoting investment in R&D, both through the impact of the program on intangible investment and on R&D staff. |
| Keywords: | R&D tax credits, Innovation, BERD, SIFIDE, Propensity score matching, Differences-in-Differences. |
| JEL: | O31 O32 H25 H32 C31 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0158&r=all |
| By: | Christophe Schmitt (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine); Rico Baldegger |
| Abstract: | Welcome to the April issue of the Technology Innovation Management Review. |
| Keywords: | Digital entrepreneurship,digitalization,international entrepreneurship,entrepreneurial orientation,MSMEs,SMEs,export practices,facilitators,impacts,SME internationalization,network view,business network hubs,liability of foreignness,scaling,business model,training,coaching,digital marketing,support institutions,internationalization |
| Date: | 2020–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03045165&r=all |
| By: | Ross Levine; Yona Rubinstein |
| Abstract: | We study the effects of ability and liquidity constraints on entrepreneurship. We develop a three sector Roy model that differentiates between entrepreneurs and other self-employed to address puzzling gaps that have emerged between theory and evidence on entry into entrepreneurship. The model predicts—and the data confirm—that entrepreneurs are positively selected on highly-remunerated cognitive and non-cognitive human capital skills, but other self-employed are negatively selected on those same abilities; entrepreneurs are positively selected on collateral, but other self-employed are not; and entrepreneurship is procyclical, but self-employment is countercyclical. |
| Keywords: | entrepreneurship, human capital, occupational choice, corporate finance, business cycles |
| JEL: | L26 J24 G32 E32 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1722&r=all |
| By: | Inma Martínez-Zarzoso (University of Goettingen and University Jaume); Shampa Roy-Mukherjee (University of East London); Finn-Ole Semrau (Kiel Wold Institute); Anca M. Voicu (Rollings College) |
| Abstract: | We investigate the relationship between energy intensity and firms’ internationalization strategies by using data for Indian firms over the period 1987 to 2016 to estimate a panel data model that considers firm heterogeneity. Energy intensity is explained by the extensive and intensive margins of exports, estimated total factor productivity, foreign ownership, size and innovation activities. The main results indicate that exporters are more energy efficient than non-exporters, and that there is heterogeneity between industries. In particular, more energy-intensive industries present a higher reduction in energy intensity for exporters in comparison to non-exporters. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2021.1&r=all |
| By: | Gerard Hoberg; Yuan Li; Gordon M. Phillips |
| Abstract: | Using new measures of expanded Internet access in China and internet-based search, we examine how competitive shocks from China impact U.S. innovation through the markets for innovation and existing products. We identify shocks to innovation competition using the geography of Chinese internet penetration and Chinese import data. Increases in the ability of Chinese industry peers to gather knowledge through the internet are followed by reductions in U.S. R&D investment and subsequent patents, and increased patenting by Chinese firms. The new Chinese patents also cite the U.S. firms patents at a high rate, consistent with increased intellectual property competition. |
| JEL: | D43 F13 L21 L26 O31 O34 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28231&r=all |
| By: | Yoonseok Lee (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Mary E. Lovely (Department of Economics, Maxwell School, Syracuse University, 110 Eggers Hall, Syracuse, NY 13244); Hoang Pham (Oregon State University) |
| Abstract: | This paper studies two novel productivity characteristics of foreign acquisition on high-tech manufacturing firms: the dynamic and the non-Hicks-neutral effects. A dynamic productivity effect of foreign ownership arises when adoption of foreign technology and management practices takes time to fully realize. Furthermore, these dynamic adjustments may be capital or labor augmenting as adoption of advanced production technologies tends to have non-neutral productivity implications in developed countries. We propose and implement an econometric framework to estimate both effects using firm-level data from China's manufacturing sector. Our framework extends the nonparametric productivity framework developed by Gandhi, Navarro and Rivers (2020), in which identification is achieved using a firm's first-order conditions and timing assumptions. We find strong evidence of dynamic and non-neutral effects from foreign ownership, with significant differences across investment sources. Investment from OECD sources is found to provide a long-term productivity boost for all but the largest recipients, while that from Hong Kong, Macau and Taiwan does not raise performance. These findings have implications for China's declining labor share and for the rising domestic value-added content of its high-tech exports |
| Keywords: | Foreign Direct Investment, Productivity Dynamics, Non-Hicks-Neutral Effect, China's Manufacturing Sector, Nonparametric Model |
| JEL: | F23 D24 L25 C51 F61 P33 L60 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprwps:236&r=all |
| By: | Elchin Aghazada; Gaygysyz Ashyrov |
| Abstract: | In view of the missing consensus on how corruption relates to firm innovation, this paper empirically studies the relationship between petty corruption and product, process, marketing and organizational innovations in the post-Soviet region. Exploiting cross-sectional firm-level data from the fifth round of the Business Environment and Enterprise Performance Survey (BEEPS V), the paper argues that institutional context has utmost importance when approaching this link. Probit estimations for a full sample of post-Soviet countries indicate a positive link between bribes and firm innovation. Considering variations in institutional development levels, the paper distinguishes three clusters of countries within the region with respect to the quality of institutional structures based on Worldwide Governance Indicators (WGI) data from the World Bank. The results reveal that the grease-the-wheel effect of bribery on firm innovation strongly remains in countries with weak institutional quality. To explore this link further, the paper made several additional estimations and robustness checks. |
| Keywords: | corruption, bribery, firm innovation, product innovation, process innovation, marketing innovation, organizational innovation, institutions, post-Soviet region |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:mtk:febawb:129&r=all |
| By: | Andreas Beerli (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Jan Ruffner (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Siegenthaler (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Giovanni Peri (Department of Economics, UC Davis, USA) |
| Abstract: | We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform. |
| Keywords: | border region, cross-border workers, free movement of persons, firm performance, firm relocation, immigration policy, immigration restrictions, labor mobility, skilled immigration |
| JEL: | F22 J22 J24 J61 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:20-486&r=all |
| By: | C. Feger (AgroParisTech, MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Laurent Mermet (AgroParisTech, CESCO - Centre d'Ecologie et des Sciences de la COnservation - MNHN - Muséum national d'Histoire naturelle - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Accounting for biodiversity and ecosystems is a new and growing field of research. This is the first time four major areas of leading research in this field have been identified and reviewed simultaneously on the basis of their differences in scope (company, ecosystem or national) and purposes (logics of management accounting or balance sheet). In this paper, the usefulness of pursuing the growth in the developing field of "ecosystem-centric management accounting" is highlighted and makes assessment and monitoring of environmental results possible. In the field of social and environmental accounting, the suggested classification offers one form of response to the main test which arises from discussions over the interlinking of private and collective accounting systems. |
| Abstract: | Les recherches en comptabilité sur le thème de la biodiversité et des écosystèmes constituent un champ nouveau et en plein essor. Pour la première fois, quatre grands domaines d'innovation en la matière sont ici identifiés et discutés conjointement, sur la base de leurs différences de périmètres (entreprise, de l'écosystème ou national) et de finalités (logiques de comptabilités de gestion ou de bilan). L'importance de poursuivre le développement du domaine émergent des « comptabilités de gestion écosystème-centrées», qui rend possible l'évaluation et le suivi des résultats environnementaux, est mise en lumière. La typologie proposée apporte une forme de réponse au défi majeur de l'articulation entre les comptabilités privées et les comptabilités collectives dans le champ des comptabilités sociales et environnementales. |
| Keywords: | extra-financial reporting,ecosystems,indicators,accounting,biodiversity,natural capital,environment,ecological indicators,nonfinancial reporting |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02549016&r=all |
| By: | Ho Fai Chan; Uwe Dulleck; Jonas Fooken; Naomi Moy; Benno Torgler |
| Abstract: | Increasing the tax compliance of self-employed business owners (particularly of trade- specific service providers) remains an ongoing challenge for tax authorities. From a compliance point of view, cash transactions are particularly problematic when services are paid for on the spot, as such exchanges are difficult to audit. As a novelty we present experimental evidence testing 11 different policy strategies in a setting that allows for cash transactions. Our sample includes both students and non-students active in service industries characterised by the opportunity to engage in cash transactions. While our results offer a positive outlook for the interventions reporting a significant effect, they particularly speak to the potential of moral suasion to increase compliance, as it may be implemented at relatively low cost. However, a carrot (offering support in tax declarations) as well as a stick (increasing the threat of audits) approach may be promising for increased compliance, especially where there is an evasion opportunity in cash-for-service payments between small businesses and individual customers who may share a common benefit from tax evasion. A stick approach is particularly efficient for those inclined to use cash transactions. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:cra:wpaper:2021-01&r=all |
| By: | Heinrich, Torsten; Yang, Jangho; Dai, Shuanping |
| Abstract: | Understanding the microeconomic details of technological catch-up processes offers great potential for informing both innovation economics and development policy. We study the economic transition of the PR China from an agrarian country to a high-tech economy as one example for such a case. It is clear from past literature that rapidly rising productivity levels played a crucial role. However, the distribution of labor productivity in Chinese firms has not been comprehensively investigated and it remains an open question if this can be used to guide economic development. We analyze labor productivity and the dynamic change of labor productivity in firm-level data for the years 1998-2013 from the Chinese Industrial Enterprise Database. We demonstrate that both variables are conveniently modeled as Lévy alpha-stable distributions, provide parameter estimates and analyze dynamic changes to this distribution. We find that the productivity gains were not due to super-star firms, but due to a systematic shift of the entire distribution with otherwise mostly unchanged characteristics. We also found an emerging right-skew in the distribution of labor productivity change. While there are significant differences between the 31 provinces and autonomous regions of the P.R. China, we also show that there are systematic relations between micro-level and province-level variables. We conclude with some implications of these findings for development policy. |
| Keywords: | structural change; China; labor productivity; heavy-tailed distributions; microdata |
| JEL: | J24 L11 O10 O3 O53 R12 |
| Date: | 2020–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105011&r=all |
| By: | Lorenc Kociu; Kledian Kodra |
| Abstract: | Using the econometric models, this paper addresses the ability of Albanian Small and Medium-sized Enterprises (SMEs) to identify the risks they face. To write this paper, we studied SMEs operating in the Gjirokastra region. First, qualitative data gathered through a questionnaire was used. Next, the 5-level Likert scale was used to measure it. Finally, the data was processed through statistical software SPSS version 21, using the binary logistic regression model, which reveals the probability of occurrence of an event when all independent variables are included. Logistic regression is an integral part of a category of statistical models, which are called General Linear Models. Logistic regression is used to analyze problems in which one or more independent variables interfere, which influences the dichotomous dependent variable. In such cases, the latter is seen as the random variable and is dependent on them. To evaluate whether Albanian SMEs can identify risks, we analyzed the factors that SMEs perceive as directly affecting the risks they face. At the end of the paper, we conclude that Albanian SMEs can identify risk |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.03598&r=all |
| By: | Batabyal, Amitrajeet; Yoo, Seung Jick |
| Abstract: | We study decision-making by a regional authority (RA) that uses enterprise zones to attract members of the creative class---referred to as entrepreneurs---to its region. The enterprise zones provide a local public good (LPG) L to entrepreneurs who become members. First, we compute the utility maximizing number of entrepreneurs N to attract and the optimal provision level of the LPG. Second, if the LPG L is chosen optimally, then, given N, we determine an expression for the utility of an entrepreneur. Third, we calculate how much an entrepreneur would be willing to pay to become a member of an enterprise zone and then discuss the potential existence of an efficient and revenue-neutral equilibrium. Finally, we comment on some theoretical difficulties stemming from the twin facts that the number of enterprise zones created and the number of entrepreneurs attracted to these zones have to be integers. |
| Keywords: | Creative Class, Enterprise Zone, Entrepreneur, Local Public Good, Membership |
| JEL: | R11 R58 |
| Date: | 2020–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105414&r=all |
| By: | Ni, Bin; Kato, Hayato; Liu, Yang |
| Abstract: | This study uses unique division-level data of Japanese firms to examine how foreign direct investment (FDI) affects domestic employment. Contrary to most previous studies focusing on the effect on net employment growth, we decompose it into gross job creation and gross job destruction. We find that FDI destination plays an important role: FDI to Asia increases job creation, while FDI to Europe or North America decreases it. A frictional search-and-matching model with heterogeneous jobs can explain the differential effects. The model provides additional predictions on job creation and destruction by job type, which are also empirically confirmed. |
| Keywords: | Outward FDI, firm-establishment-division-level data, multinational enterprises (MNEs), large-firm search model, high/low-skilled jobs |
| JEL: | F23 J21 J23 |
| Date: | 2021–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105522&r=all |
| By: | Brita Bye; Taran Faehn |
| Abstract: | Since the financial crisis in 2008, slow growth has riddled Europe and the Covid-19 pandemic is amplifying the challenge. Promoting economic growth and transforming to a more knowledge-based industrial structure will be high on the agenda for the coming decades. We study how more and better human capital can contribute to knowledge accumulation and structural change by means of a dynamic endogenous growth model, with Norway as a numerical case. Human capital has two main roles in productivity growth: to increase the innovative capacity by participating in research and development (R&D), and to increase the absorptive capacity in sectors that trade and can learn from abroad. We find that in a small, open economy sectors where human capital, R&D and trade interact, and enable absorption, tend to grow fastest. |
| Keywords: | absorptive capacity, computable general equilibrium model, endogenous growth, human capital, innovation, research and development |
| JEL: | C68 F43 O30 O41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8857&r=all |
| By: | Antoine Gervais; James R. Markusen; Anthony J. Venables |
| Abstract: | The comparative advantage of many cities is based on their efficiency in the production of ‘functions’, e.g., business services such as finance, law, engineering, or similar functions that are used by firms in a wide range of sectors. Firms that use these functions may choose to source them locally, or to purchase them from other cities. The former case gives rise to cities developing a pattern of sectoral specialization, and the latter a pattern of functional specialization. A two-city country trades with the larger world, and workers within the country are mobile between the two cities. Productivity in a given function varies across cities, giving rise to urban comparative advantage. This may be due to exogenous technological differences (Ricardian) or to city- and function-specific scale economies. Sectors differ in the intensity with which they use different functions, giving rise to a pattern of sectoral and functional specialisation. We generate a number of economic insights, and examine the model’s predictions empirically over a 20-30-year period for US states. As geographic fragmentation costs fall, both our theory and empirical analysis show that sector concentration and regional specialization fall for sectors and rise for functions (occupations). |
| JEL: | F12 F23 R11 R12 R13 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28352&r=all |
| By: | Enrico Bergamini; Georg Zachmann |
| Abstract: | This research identifies existing and potential specialisation in green technologies in European Union regions, and proposes an approach to identify policies that can help to realise this potential. Using the Organisation for Economic Cooperation and Development’s REGPAT database for regionalised patent data, we estimate the potential advantage European NUTS2 regions could have in 14 green technologies. We use network proximity between technologies and between regions to understand technological/regional clusters, and... |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:40007&r=all |
| By: | Thomas Grebel; Lionel Nesta (Université Côte d'Azur, CNRS, GREDEG (France)) |
| Abstract: | We investigate the determinants of the sign of Research and Development reaction functions of rival firms. Using a two-stage n-firm Cournot competition game, we show that this sign depends on four types of environments in terms of product rivalry and technology spillovers. We test the predictions of the model on the world's largest manufacturing corporations. Assuming that firms make R&D investments based on the R&D effort of the representative rival company, we develop a dynamic panel data model that accounts for the endogeneity of the decision of the rival firm. Empirical results thoroughly corroborate the validity of the theoretical model. |
| Date: | 2020–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03042941&r=all |
| By: | Mathieu Doussineau (European Commission - JRC); Christian Saublens (Saublens & Saublens); Nicholas Harrap |
| Abstract: | Smart specialisation is conceptualised as research and innovation policymaking encompassed in a holistic place-based view of development. It combines an organisational bottom-up approach with a structural approach, stressing interactions among local and international actors that participate and facilitate reflexive learning processes. The issue of governance is key and multi-level governance is instrumental for advancing with the goal of the strategy on the ground. The need to connect top-down EU policies with place-based facts and ambitions that translate into competitive advantage, generating growth and jobs, makes governance the cornerstone of the smart specialisation process. In the context of the revision of the existing strategies the need to reassess the coherence of policy intervention is of crucial importance to address the local but also the global challenges faced by EU territories. |
| Keywords: | Smart specialisation, regional policy, intervention logic, evaluation, methodology |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc121110&r=all |
| By: | Chen, Cheng; Steinwender, Claudia |
| Abstract: | When managers have objectives beyond maximizing monetary profits, inefficiencies may arise. An increase in competition may then force managers to improve the productivity of the firm in order to ensure survival. While this hypothesis has received ample theoretical attention, empirical evidence is scarce, mainly because preferences of managers are typically unobserved. In this paper, we exploit the fact that a large literature has documented specific non-monetary preferences of family managers. Using Spanish firm-level data, we compare how family-managed and professionally-managed firms react to import competition shocks. We find that import competition leads to productivity increases in family-managed firms that are initially unproductive. Productivity improvements are driven by family management as opposed to family ownership or non-managing family members. Furthermore, we show that these managers increase efficiency by reducing material usage, which is consistent with them trying to increase their short-term cash flow in order to survive. Finally, productivity improvements seem to be particularly pronounced in multi-generational family firms that also introduce organizational changes. |
| Keywords: | import competition; productivity; family firms; managers |
| JEL: | D23 F14 L21 L22 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108229&r=all |
| By: | Guillermo Jose Navarro del Toro |
| Abstract: | One of the goals of any business, in addition to producing high-quality, community-accepted products, is to significantly increase sales. Unfortunately, there are regions where new marketing technologies that make it possible to reach a larger number of potential consumers, not only at the regional level, but also at the state and national level, are not yet used. This research, which included qualitative and quantitative methods, as well as interviews applied to owners, employees and clients of three sausage companies, seeks to measure the impact of digital marketing in the Altos of Jalisco, Mexico. Thus, in addition to inquiring about the degree of knowledge they have regarding information and communication technologies (ICT) to expand their markets to areas with higher population density, another goal is to know the opinion about their manufactured products, their quality and acceptance. It should not be forgotten that companies are moving to an increasingly connected world, which enables entrepreneurs to get their products to a greater number of consumers through the Internet and smart devices, such as cell phones, tablets and computers; and thus ensure the survival of the company and a longer stay in the market. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.06603&r=all |
| By: | Mayang Sekar Pembayun Khamisan (Trisakti School of Management, Kyai Tapa 20, 11440, Jakarta, Indonesia Author-2-Name: Silvy Christina Author-2-Workplace-Name: Trisakti School of Management, Kyai Tapa 20, 11440, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This study aims to obtain empirical evidence about the factors that influence tax avoidance. The independent variables tested in this research were financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on assets with e Cash Effective Tax Rate (CETR) used as a dependent variable in this study. Methodology/Technique - The companies used in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2016-2018. The number of research samples used were 162 data. The method of sampling used purposive sampling and this research used multiple regression analyses to test the hypothesis. Finding - This research provides the result that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on assets have no influence on tax avoidance. Originality/value - The difference between this study and previous studies is that this study focuses on financial distress, tax loss carried forward and corporate governance. Type of Paper - Empirical. |
| Keywords: | Financial Distress, Tax Loss Carried Forward, Institutional Ownership, Managerial Ownership, Audit Committee, Audit Quality, Firm Size, Return on Assets, Cash Effective Tax Rate. |
| JEL: | M41 M49 |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr190&r=all |
| By: | Lahcen Bounader; Mohamed Doukali |
| Abstract: | We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises’ access to banks’ financing, and that firm-specific variables are key determinants of firms’ financing decisions. |
| Keywords: | Financial statements;Loans;Collateral;Trade credits;Banking;WP,firm,long-term debt,short-term debt |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/239&r=all |
| By: | Liam Brunt (Norwegian School of Economics and CEPR); Cecilia García-Peñalosa (Aix-Marseille University, CNRS, EHESS, AMSE and CEPR) |
| Abstract: | A large literature characterizes urbanisation as the result of productivity growth attracting rural workers to cities. We incorporate economic geography elements into a growth model and suggest that causation runs the other way: when rural workers move to cities, the resulting urbanisation produces technological change and productivity growth. Urban density leads to knowledge exchange and innovation, thus creating a positive feedback loop between city size and productivity that sets off sustained economic growth. The model is consistent with the fact that urbanisation rates in Western Europe, and notably in England, reached unprecedented levels by the mid-18 th century, the eve of the Industrial Revolution. |
| Keywords: | industrialization, urbanisation, innovation, long-run growth |
| JEL: | N13 O14 O41 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2101&r=all |
| By: | Laure-Anne Parpaleix (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres) |
| Abstract: | Since short-termism has come under criticism, how can a firm's strategic choices take account of long-term interests? Can long-term shareholding be fostered, and would it suffice? To answer these questions, this article examines how we apprehend the long term. Instead of defining it in relation to the investment horizon of a firm's plans, innovation forces us to see the long term as a firm's capacity for "regeneration", i.e., for recurrently renewing not just its product line but also its fields of innovation. From this perspective, the issue has less to do with shareholders keeping their stake in the firm during a cycle of product development than with their adherence to a "logic of regeneration". Two concepts recently introduced by the PACTE Act (raison d'être and société à mission) offer important means for making finance compatible with the long term. Corporate engagements on innovations for a desirable future can thus be entrenched in bylaws, beyond eventual changes of shareholders. |
| Date: | 2019–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03030229&r=all |
| By: | MARSCHINSKI Robert (European Commission - JRC); DE AMORES HERNANDEZ Antonio (European Commission - JRC); AMOROSO Sara (European Commission - JRC); BAUER Peter (European Commission - JRC); CARDANI Roberta (European Commission - JRC); CSEFALVAY Zoltan (European Commission - JRC); GENTY Aurelien (European Commission - JRC); GKOTSIS Petros (European Commission - JRC); GREGORI Wildmer (European Commission - JRC); GRASSANO Nicola (European Commission - JRC); HERNANDEZ GUEVARA Hector (European Commission - JRC); MARTINEZ TUREGANO David (European Commission - JRC); NARDO Michela (European Commission - JRC); PATARACCHIA Beatrice (European Commission - JRC); POTTERS Lesley (European Commission - JRC); RATTO Marco (European Commission - JRC); ROMAN Maria Victoria (European Commission - JRC); RUEDA CANTUCHE Jose (European Commission - JRC); SANCHEZ MARTINEZ Miguel (European Commission - JRC); TACCHELLA Andrea (European Commission - JRC); TUEBKE Alexander (European Commission - JRC); VEZZANI Antonio |
| Abstract: | This report informs the debate on Europe's economic competitiveness and how it can be sustained under the pressures of globalisation. It presents a series of research findings from different areas of analytical work carried out at the 'Growth and Innovation' Directorate of the Joint Research Centre. The focus is on current challenges, with topics ranging from global value chains analysis to competition policy, and from the possible reasons for the recent EU productivity stagnation to the economic damage implied by FDI restrictions. The common denominator of all contributions is their aim to inform discussions on competitiveness and their relevance for EU economic policy. |
| Keywords: | competitiveness, productivity, global value chains, competition policy, restrictive regulation, mode 5 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc123232&r=all |