scholarly journals Effect of International Competition on Firm Productivity and Market Power

2018 ◽  
pp. 462-492
Author(s):  
Jan De Loecker ◽  
Johannes Van Biesebroeck
Keyword(s):  
Market Power ◽  
Total Factor Productivity ◽  
Productive Efficiency ◽  
International Competition ◽  
Future Research ◽  
Extensive Margin ◽  
Demand Side ◽  
Factor Productivity ◽  
Relevant Market ◽  
Potential Impact

This chapter proposes a framework to evaluate the potential impact of international competition on firm performance and highlights two points. First, it is important to consider effects on productive efficiency and market power in an integrated framework. The popular concept of (revenue) total factor productivity (TFP) combines both effects, which can lead to problems of estimation and interpretation. Second, greater international competition enlarges the relevant market and can affect both the number and the type of competitors a firm faces, as well as the nature of competition. While it is possible that firms respond by adjusting their production operations, pricing adjustments are all but guaranteed. The chapter contrasts three estimation approaches that start, respectively, from the demand side, the product extensive margin, and the production side. It concludes with a few avenues for future research.

Comparative analysis of efficiency and productivity growth in Canadian regional boreal logging industries

2003 ◽  
Vol 33 (9) ◽  
pp. 1653-1660 ◽  
Author(s):  
Atakelty Hailu ◽  
Terrence S Veeman
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Productive Efficiency ◽  
Set Covering ◽  
Data Envelopment Analysis Model ◽  
Factor Productivity ◽  
Data Set ◽  
Term Survival ◽  
Positive Effects ◽  
Logging Industry

The Canadian boreal logging industry has attracted little or no attention from economic researchers in spite of its importance for the competitiveness and long-term survival of other forest-based industries. This article uses a panel data set covering the period from 1977 to 1995 to analyze technical efficiency, technical change, and total factor productivity growth in the logging industries for six boreal provinces. The production technology is represented using a data envelopment analysis model. A transitive measure of productivity change that combines technical progress and changes in the degree of productive efficiency is computed. The empirical investigation reveals that logging activities in the boreal region are characterized by substantial efficiency differentials among the regions. Results from a Tobit analysis of efficiency differentials indicate that forest resource characteristics such as forest density and proportion of hardwood production were found to have positive effects. There was also evidence of significant positive scale effects. Engineering construction per area seems to be negatively related to efficiency. Total factor productivity in the boreal logging industry progressed at an average annual rate of 1.56%.

ANALYSIS OF COMPETITIVENESS OF THE TOURISM SECTOR EAST JAVA PROVINCE (A TECHNICAL EFFICIENCY & CONVERGENCE APPROACH)

2020 ◽  
Vol 8 (6) ◽  
pp. 294-304
Author(s):  
Suparno Suparno
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
High Efficiency ◽  
Government Expenditure ◽  
Spillover Effect ◽  
Productive Efficiency ◽  
Factor Productivity ◽  
Significance Level ◽  
Tourism Sector ◽  
Low Efficiency

This research analysis of tourism competitiveness is based on the very high disparity problem in the condition of the tourism sector in East Java Province. With a sample of 10 districts / cities and using investment data, tourist visits, population, government spending and tourism sector PDRB, it is produced that investment and tourist visits have a positive but not significant effect on tourism sector PDRB because due to the probability > 0.05. While the population and government expenditure have a positive and significant effect on the tourism sector PDRB due to the probability < 0.05. Fixed effect models that are formed are:PSP = 39485712 + 0.018 INV + 0.389 TOURIST + 22.304 POP + 0.065 GEX + e               To measure tourism competitiveness, it is used with technical efficiency and total factor productivity where it is produced: Sidoarjo Regency, Malang City and Surabaya City are regencies / cities that have the highest level of technical efficiency with a value of 100% technical efficiency. Whereas with the calculation of total factor productivity in Gresik Regency (21,350), Jember Regency (16,543) and Kediri Regency (15,650) are regencies / cities that have the highest productivity. Based on the calculation of technical efficiency and total factor productivity results are obtainedL1) High efficiency and productive, Jember Regency; (2) High efficiency and less productive, Sidoarjo Regency, Malang City and Surabaya City; (3) Low and productive efficiency, Kediri Regency, Lamongan Regency and Gresik Regency; and (4) Low efficiency and less productive, Banyuwangi Regency, Pasuruan Regency and Pasuruan City.               The spillover effect occurs in Pasuruan City, where the economy of Pasuruan City is affected by investments from Sidoarjo Regency and Surabaya City as indicated by the significance level of 0.051 Surabaya City investment and 0.048 for Sidoarjo Regency investment which means smaller and equal to 0.05.               The calculation of convergence shows that the average convergence of regencies / cities in East Java to leader regions over 15 years and 5 months means that districts / cities need an average of 15 years and 5 months to match the conditions of tourism in the city of Surabaya.

scholarly journals Proximity and Investment: Evidence from Plant-Level Data *

2013 ◽  
Vol 128 (2) ◽  
pp. 861-915 ◽  
Author(s):  
Xavier Giroud
Keyword(s):  
Travel Time ◽  
Total Factor Productivity ◽  
Extensive Margin ◽  
Sample Period ◽  
Factor Productivity ◽  
Firm Level ◽  
Level Data ◽  
Plant Level

Abstract Proximity to plants makes it easier for headquarters to monitor and acquire information about plants. In this article, I estimate the effects of headquarters’ proximity to plants on plant-level investment and productivity. Using the introduction of new airline routes as a source of exogenous variation in proximity, I find that new airline routes that reduce the travel time between headquarters and plants lead to an increase in plant-level investment of 8% to 9% and an increase in plants’ total factor productivity of 1.3% to 1.4%. The results are robust when I control for local and firm-level shocks that could potentially drive the introduction of new airline routes, when I consider only new airline routes that are the outcome of a merger between two airlines or the opening of a new hub, and when I consider only indirect flights where either the last leg of the flight (involving the plant’s home airport) or the first leg of the flight (involving headquarters’ home airport) remains unchanged. Moreover, the results are stronger in the earlier years of the sample period and for firms whose headquarters is more time-constrained. In addition, they also hold at the extensive margin, that is, when I consider plant openings and closures.

scholarly journals Informality: Causes and Consequences for Development

2020 ◽  
Vol 12 (1) ◽  
pp. 525-546 ◽  
Author(s):  
Gabriel Ulyssea
Keyword(s):  
Experimental Studies ◽  
Structural Models ◽  
Future Research ◽  
Extensive Margin ◽  
Factor Productivity ◽  
Open Area ◽  
Economic Literature ◽  
Welfare Impacts ◽  
Effective Policy ◽  
Aggregate Effects

This article reviews the economic literature on informality, its causes, and its consequences for development. It covers a comprehensive body of research that ranges from well-identified experimental studies to equilibrium macro models, and which more recently includes structural models that integrate both micro and macro effects. The results available in the literature indicate that lowering the costs of formality is not an effective policy to reduce informality but may generate positive aggregate effects, such as higher output and total factor productivity (TFP). The most effective formalization policy is to increase enforcement on the extensive margin but not on the intensive margin of informality. The former generates substantial gains in aggregate TFP and output, without necessarily increasing unemployment. However, the overall welfare impacts are likely to depend on the transitional dynamics between steady states, which remains an open area for future research.

scholarly journals Measuring total factor productivity in agriculture: a bibliometric review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Łukasz Kryszak ◽  
Katarzyna Świerczyńska ◽  
Jakub Staniszewski
Keyword(s):  
Total Factor Productivity ◽  
Secondary Data ◽  
Future Research ◽  
Policy Reforms ◽  
Factor Productivity ◽  
Content Type ◽  
Main Research ◽  
Agriculture Economics ◽  
Future Research Agenda ◽  
Bibliometric Review

PurposeTotal factor productivity (TFP) has become a prominent concept in agriculture economics and policy over the last three decades. The main aim of this paper is to obtain a detailed picture of the field via bibliometric analysis to identify research streams and future research agenda.Design/methodology/approachThe data sample consists of 472 papers in several bibliometric exercises. Citation and collaboration structure analyses are employed to identify most important authors and journals and track the interconnections between main authors and institutions. Next, content analysis based on bibliographic coupling is conducted to identify main research streams in TFP.FindingsThree research streams in agricultural TFP research were distinguished: TFP growth in developing countries in the context of policy reforms (1), TFP in the context of new challenges in agriculture (2) and finally, non-parametric TFP decomposition based on secondary data (3).Originality/valueThis research indicates agenda of future TFP research, in particular broadening the concept of TFP to the problems of policy, environment and technology in emerging countries. It provides description of the current state of the art in the agricultural TFP literature and can serve as a “guide” to the field.

THE DETERMINANTS OF TOTAL FACTOR PRODUCTIVITY IN THE MALAYSIAN AUTOMOTIVE INDUSTRY: ARE GOVERNMENT POLICIES UPGRADING TECHNOLOGICAL CAPACITY?

2016 ◽  
Vol 61 (04) ◽  
pp. 1550046 ◽  
Author(s):  
KOZO OTSUKA ◽  
KAORU NATSUDA
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Automotive Industry ◽  
Panel Data Analysis ◽  
International Competition ◽  
Government Policies ◽  
Factor Productivity ◽  
Technological Capacity ◽  
Adverse Impacts

This paper examines the determinants of total factor productivity (TFP) in the Malaysian automotive industry, focusing on the effectiveness of government policies. Our panel data analysis shows that the productivity of the automotive industry in Malaysia highly depends on the technology embodied within imports. Government policies have not contributed to the technological upgrading of the industry. The policies to protect the domestic producers from international competition and to favor bumiputra firms seem to have adverse impacts on productivity.

scholarly journals Understanding the components of profitability and productivity change at the micro level

2019 ◽  
Vol 69 (5) ◽  
pp. 1061-1079 ◽  
Author(s):  
Bernd Andreas Wiech ◽  
Athanassios Kourouklis ◽  
James Johnston
Keyword(s):  
Total Factor Productivity ◽  
Scale Effects ◽  
Future Research ◽  
Productivity Change ◽  
Factor Productivity ◽  
Productivity Measurement ◽  
Firm Level ◽  
Content Type ◽  
Using Data ◽  
Productivity Indicators

Purpose The purpose of this paper is to present a refined framework providing clarity in terms of the components of profitability and productivity change from the perspective of the firm level. Design/methodology/approach The literature is analysed with a scoping study and a systematic literature review. Productivity measurement approaches are compared using data at the product level. Findings The definition of total factor productivity (TFP) in the literature negatively affects the accuracy of profitability and productivity measurement. In the usual case of a dynamic output mix, TFP change encompasses biasing output mix effects relating to profitability, but not to productivity change. Therefore, this paper defines changes of a ratio of output quantities to input quantities not as TFP change, but as quantitative profitability (QP) change. A framework is proposed decomposing profitability change into price recovery and QP change, whereas the latter comprises of valid productivity change (encompassing technological, technical efficiency and productivity-related scale effects) and output mix change (encompassing proportion, quality, output switching and profitability-related scale effects). Research limitations/implications Future research should include literature from the industrial organisation field of economics. The presented framework should be transferred to the standard production function framework used in economics. Practical implications The paper can help preventing faulty decision making or distrust due to the use of biased profitability or productivity indicators. TFP-based productivity indicators are unsuitable for most firms. To measure productivity meaningfully, firms should use adequate approaches (e.g. standard input- or adjusted total factor productivity-based ones). Originality/value The paper contributes to a more accurate performance measurement approach, as researchers and practitioners better understand the components of profitability and productivity change.

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