Dynamic Structure of Production and Productivity Change

2021 ◽  
pp. 137-176
Author(s):  
Elvira Silva ◽  
Spiro E. Stefanou ◽  
Alfons Oude Lansink
Keyword(s):  
Economic Growth ◽  
Technical Change ◽  
Economies Of Scale ◽  
Capacity Utilization ◽  
Dynamic Structure ◽  
Productivity Change ◽  
Dynamic Adjustment ◽  
Firm Level ◽  
Total Productivity ◽  
And Performance

The concept of efficiency involves measuring the current practice against the maximum potential for a given technology. This chapter addresses the intertemporal measurement of economic growth and performance at the firm level, the dynamic generalizations of the economies of scale and scope, and capacity utilization in the context of the directional distance technology dynamic adjustment. These concepts serve as the foundation to characterizing the Luenberger total productivity indicator and its change at the firm level. The decomposition of the Luenberger total productivity change indicator is developed into the contribution of technical inefficiency change, scale inefficiency change, and technical change. Each of these components is impacted by different policy remedies.

Firm-Level Determinants of Foreign Investment and M&A Activity

2020 ◽  
pp. 1676-1705
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

Firm-Level Determinants of Foreign Investment and M&A Activity

2016 ◽  
pp. 265-292
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

scholarly journals Efficiency and Productivity Evaluation of the Moroccan Judicial System

2021 ◽  
Vol 17 (27) ◽  
pp. 282
Author(s):  
Yassine Achenchabe ◽  
Mohammed Akaaboune
Keyword(s):  
Technical Change ◽  
Economies Of Scale ◽  
Returns To Scale ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Productivity Change ◽  
Judicial Reform ◽  
Data Envelopment ◽  
Efficiency And Productivity ◽  
Positive Effect

This paper focuses on measuring the efficiency and productivity change in 110 Moroccan courts between 2013 and 2018, which is the period of implementation of the judicial reform. The study also measures the technical and scale efficiency using the Data Envelopment Analysis method under output orientation. The Malmquist index was used to measure the productivity change decomposed into efficiency and technical change. The results show a low level of courts efficiency of 53.2%, with increasing returns to scale for most courts except administrative ones. The total factor productivity of courts shows an improvement of 6.3%, mainly due to technical change, except for the commercial courts whose productivity deteriorated during the study period. These results show the positive effect of the reform. Courts still have a margin for improving their efficiency by increasing inputs in order to benefit from economies of scale or by improving judges' productivity.

INNOVATION CAPABILITY, ABSORPTIVE CAPACITY AND SMES PERFORMANCE IN PAKISTAN: THE MODERATING EFFECT OF BUSINESS STRATEGY

2018 ◽  
Vol 13 (Number 2) ◽  
pp. 1-11
Author(s):  
Muhammad Zulqarnain Arshad ◽  
Darwina Arshad
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
Business Strategy ◽  
Innovation Capability ◽  
Research Directions ◽  
Conceptual Paper ◽  
And Performance ◽  
New Research ◽  
The Relationship ◽  
Crucial Part

The small and medium-sized enterprises (SMEs) play a crucial part in county’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total businesses. The performance of SMEs depends upon many factors. The main aim for the research is to examine the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan. This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and SMEs Performance. Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in Pakistan’s SMEs context.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

Determining the structure of pharmaceutical industry in Iran

2019 ◽  
Vol 13 (1) ◽  
pp. 101-115
Author(s):  
Sara Emamgholipour ◽  
Lotfali Agheli
Keyword(s):  
Pharmaceutical Industry ◽  
Economies Of Scale ◽  
Monopolistic Competition ◽  
Pharmaceutical Market ◽  
Data Availability ◽  
Market Demand ◽  
Firm Level ◽  
Content Type ◽  
Measure Concentration ◽  
Pharmaceutical Industries

Purpose As the pharmaceutical industry is one of the key sectors of the health-care system, the identification of its structure is of particular importance. This paper aims to determine the structure of the pharmaceutical industry in Iran to provide appropriate solutions for pricing and regulation by policymakers. Iran is a growing pharmaceutical market with over $4bn in sales, so the supply side needs to be examined to meet the domestic consumption. Design/methodology/approach This research is a descriptive and retrospective analytical study which examines the Iranian pharmaceutical industry through library studies and using pharmaceutical data of the country’s Food and Drug Administration during 1992-2016. Due to data availability in firm level, the concentration ratio of N leading firms and the Herfindahl–Hirschman index are used to measure the concentration of the pharmaceutical market in 2014 and 2016. Findings The results show that pharmaceutical manufacturing, importing companies and distributing companies play roles in monopolistic competition market, loose oligopoly market and oligopoly market, respectively. For all companies, the magnitudes of Herfindahl–Hirschman indices indicate non-competitive settings. As a result, these companies set their own prices, and market demand affects their sales. In addition, demand for medicines is shaped in the form of supply-induced demand. Research limitations/implications This research was accomplished with no computational limitation. However, it was confined to only one country, one industry and the mentioned period of study. Practical implications The pharmaceutical manufacturers have no influence on medicine prices, and government pricing regulations lessen the market power of such market agents. However, the easy entry to and exit from market stimulate producers to participate in manufacturing activities. The pharmaceutical importers may expand their imports in response to entry new actors; however, the new entrants weaken the coordination on pricing decisions. Social implications As pharmaceutical distributers act in an oligopoly market, they can collude, reduce competition and lower the welfare of pharmaceutical consumers. In such conditions, high investment requirements and economies of scale may discourage the entry of new firms. Originality/value Although there are various studies on market structure in non-pharmaceutical industries, this study is a new effort to measure concentration in the Iranian pharmaceutical market and to determine its structure.

scholarly journals Total Factor Productivity of Major Crops in Southern Ethiopia: A Dis-Aggregated Analysis of the Growth Components

2021 ◽  
Vol 13 (6) ◽  
pp. 3388
Author(s):  
Merihun Fikru Meja ◽  
Bamlaku Alamirew Alemu ◽  
Maru Shete
Keyword(s):  
Technical Change ◽  
Economies Of Scale ◽  
Crop Productivity ◽  
Parametric Estimation ◽  
Living Standard ◽  
Empirical Literature ◽  
Southern Ethiopia ◽  
Data Set ◽  
Significance Level ◽  
Available Technology

(1) Background: Even though agriculture is the backbone of the Ethiopian economy, the improvements made regarding crop productivity appeared insufficient and had slow progress. Several studies suggest possible ways to identify the challenges in the productivity of the crop sub-sector. Nevertheless, there are gaps in the empirical literature in both knowledge and methods. The current study intends to identify the factors that affect growth in the productivity of teff, maize, barley, wheat, and sorghum crops. (2) Methods: Cobb-Douglass stochastic production function is estimated using a panel data set of the Living Standard Measurement Survey. To address the objectives of the study, a parametric estimation with a time-varying decay model with deterministic and stochastic components was adopted. (3) Results and Discussion: The effect of inputs on aggregate output was positive and significant at the 1% significance level, implying the presence of economies of scale. Variation in the inefficiency term explained 46.4% of the total variance in the composed error term. The average productivity of major crops was 6.19 per year. This study implied that technical change in the production of major crops increased by 22% with better use of available technology. (4) Conclusions and Policy Implication: The findings pinpoint that farmers should focus on technical change and intensification of improved agricultural inputs.

scholarly journals Firm Level Strategy, Organization Culture and Performance of Food and Beverage Manufacturing Firms in Kenya

2018 ◽  
Vol 13 (8) ◽  
pp. 224 ◽  
Author(s):  
Zachary B. Awino ◽  
Dominic C. Muteshi ◽  
Reginah K. Kitiabi ◽  
Ganesh P. Pokhariyal
Keyword(s):  
Policy Formulation ◽  
Manufacturing Firms ◽  
Organization Culture ◽  
Hierarchical Regression ◽  
Firm Level ◽  
Food And Beverage ◽  
Improved Performance ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The study tested the impact of organization culture on the on the relationship between firm-level strategy and performance of food and beverage manufacturing firms in Kenya. The opinion of the CEO/MDs from 125 firms in this sector was sought by application of a structured questionnaire; the collected data was analysed using hierarchical regression analysis. The paper stated hypothesis that organizational culture has a significant effect on the relationship between firm-level strategy and performance. The results supported the hypothesis. Therefore, firm development of strong organization culture to support firm-level strategy for higher performance is paramount. These findings will contribute to government policy formulation for sector’s expansion and competitiveness and management drives in building a positive organization culture to support firm-level strategy for improved performance.

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