scholarly journals Productivity growth and job reallocation in the Vietnamese manufacturing sector

2019 ◽  
Vol 21 (2) ◽  
pp. 172-190
Author(s):  
Nguyen Khac Minh ◽  
Phung Mai Lan ◽  
Pham Van Khanh
Keyword(s):  
Manufacturing Industry ◽  
Decomposition Methods ◽  
Productivity Index ◽  
Aggregate Productivity ◽  
Large Firms ◽  
Firm Level ◽  
Content Type ◽  
Tfp Growth ◽  
Job Reallocation ◽  
Medium Firms

Purpose The purpose of this paper is to measure TFP growth and job reallocation in the Vietnamese manufacturing industry after the Doimoi period. Design/methodology/approach The study uses firm-level panel data from Vietnam’s annual enterprise survey data for 2000–2016 period in the Vietnamese manufacturing industry using Olley–Pakes static and dynamic productivity decomposition methods. Findings The aggregate productivity estimated from the WRDG method increased 2.323 percent, of which over 40 percent is due to the reallocation toward more productive firms. Olley–Pakes dynamic decomposition according to ownership, scale and industry shows that the contribution of private and state-owned firms and the contribution of small and medium firms and large firms to the TFP growth are 133, −33 percent, 58.56 and 41.44 percent, respectively. The within-firm productivity and net entry components are the main reasons for TFP growth rather than reallocation. The results show that the composition of the aggregate TFPs, estimated from WRDG, OP, LP and ACF, is correlated very high (over 80 percent) except for net entry components. Research limitations/implications The major limitation of this study is that the authors compute an aggregate productivity index using actual employment-based shares (still misallocation in labor), rather than optimal employment-based shares (no misallocation in labor). Originality/value Job reallocation between industries is attracting attention in developing countries, especially transition economies. However, knowledge about job reallocation among industries is limited. This paper assesses the level of job reallocation among private and state-owned firms, small and medium firms and large firms in Vietnam.

Creating Productive Jobs in East European Transition Economies: a Synthesis of Firm-Level Studies

2008 ◽  
Vol 204 ◽  
pp. 108-125 ◽  
Author(s):  
J. David Brown ◽  
John S. Earle
Keyword(s):  
Labour Market ◽  
Transition Economies ◽  
Market Reform ◽  
Aggregate Productivity ◽  
Firm Level ◽  
East European ◽  
Job Reallocation ◽  
Firm Turnover ◽  
Market Liberalisation ◽  
Productivity Gains

The challenge for labour market policy in the new member states and other transition economies of Eastern Europe has been to redress the sharp drops in employment and rises in unemployment in a way that fosters the creation of productive jobs. This paper first documents the magnitude and productivity of job and worker reallocation. It then investigates the effects of privatisation, product and labour market liberalisation, and obstacles to growth in the new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. We find that market reform has resulted in a large increase in the pace of job reallocation, particularly that occurring between sectors and via firm turnover. Unlike under central planning, the job reallocation during the transition has contributed significantly to aggregate productivity growth. Privatisation has not only stimulated intrasectoral job reallocation, but the reallocation is more productive than that among remaining state firms. The estimated effect of privatisation on firm productivity is usually positive, but it varies considerably across countries. The productivity gains from privatisation have generally not come at the expense of workers, but are associated rather with increased wages and employment.

Economic slowdown, NPA crisis and productivity behavior of Indian banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anju Goswami ◽  
Rachita Gulati
Keyword(s):  
Production Process ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Economic Stress ◽  
Productivity Index ◽  
Undesirable Output ◽  
Content Type ◽  
Tfp Growth ◽  
Robust Estimates ◽  
Indian Banks

PurposeThis paper aims to investigate the productivity behavior of Indian banks in the presence of non-performing assets (NPAs) over the period 1999 to 2017. The study examines whether Indian banks withstand the shocks of the global financial crisis (GFC) of 2007–2009 and sustain their total factor productivity (TFP) levels in the post-crisis economic turbulent period or not.Design/methodology/approachThe robust estimates of TFP and its components: efficiency change and technical change are obtained using the state-of-the-art and innovative sequential Malmquist-Luenberger productivity index (SMLPI) approach. The key advantages of this approach are that it explicitly allows the joint production of undesirable output (NPAs in our case) along with desirable inputs and outputs in the production process and precludes the possibility of spurious technical regress.FindingsThe empirical results of the study reveal that the Indian banking system has experienced a (−1) percent TFP regress, contributed solely by efficiency loss during the period under investigation. The GFC has slowed down the growth trajectory of TFP growth in the Indian banking industry. Among ownership groups, the effect of the GFC was pronounced on the public sector banks.Practical implicationsThe practical implication drawn from the study is that the Indian banks have not been able to successfully transmit the use of installed technology in a way to generate early warning signals and mitigate the risk of defaults so as to maximize their productivity gains in the banking industry.Originality/valueThis study is perhaps the first one to understand the productivity dynamics of the Indian banks in response to both endogenous (i.e. NPA crisis) and exogenous (i.e. global financial and economic stress) crises. Moreover, the authors obtain the robust estimates of TFP growth of Indian banks by explicitly accounting for NPAs as an undesirable output and equity as a quasi-fixed input in the bank production process.

Impact of corporate social responsibility intensity on firm-specific risk and innovation: evidence from Japan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Megumi Suto ◽  
Hitoshi Takehara
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research And Development ◽  
Manufacturing Industry ◽  
Corporate Sustainability ◽  
Idiosyncratic Risk ◽  
Firm Level ◽  
Content Type ◽  
Specific Risk ◽  
Corporate Social

Purpose The purpose of this paper is to investigate investors’ perception of corporate social responsibility (CSR) and its risk-mitigating effects on firm-level innovation in Japan from 2006 to 2017. The authors examine the influence of CSR intensity on firm-specific risks, focusing on the risk-moderating effect of CSR on innovation. Design/methodology/approach The authors conducted a simple slope analysis and panel data regressions with input and output innovation measures and idiosyncratic risk based on an asset-pricing model. Findings The results demonstrate that CSR intensity not only reduces firm-specific risk directly but also indirectly by negatively moderating the relationship between firm-level innovation and idiosyncratic risk. Research limitations/implications Signaling trust to capital markets, CSR engagements in the manufacturing industry are clearly important for innovative firms with active research and development undertakings. Practical implications Corporate managers should further expand their efforts to make non-financial disclosures available, considering the interactions between CSR intensity and research and development financial risk. Originality/value In the context of Japanese firms, this study demonstrates the interaction between CSR practices and innovation activities from the perspective of long-term management of corporate sustainability.

Productivity growth, catching-up and technology innovation in microfinance institutions in India: evidence using a bootstrap Malmquist Index approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asif Khan ◽  
Rachita Gulati
Keyword(s):  
Productivity Growth ◽  
Productivity Index ◽  
Productivity Change ◽  
Microfinance Institutions ◽  
Truncated Regression ◽  
Content Type ◽  
Tfp Growth ◽  
Catching Up ◽  
Double Bootstrap ◽  
Size Groups

PurposeThis paper aims to examine the total factor productivity (TFP) change and its components: efficiency change and technical change in microfinance institutions (MFIs) in India operating from 2005 to 2018. The study also scrutinizes the variations in productivity levels across the distinct organizational form and size groups of MFIs. In addition to this, the authors identify the contextual factors that determine TFP growth, catching-up and technology innovation in MFIs.Design/methodology/approachThe study employs a smooth homogeneous bootstrap estimation procedure of Simar and Wilson (1999) for obtaining reliable estimates of Malmquist indices –productivity and its components – in a data envelopment analysis (DEA) framework for individual MFIs. In order to identify the determinants of productivity change and its components, the study follows Simar and Wilson's (2007) guidelines and applies a bootstrap truncated regression model. The double bootstrap procedure performs well, both in terms of allowing correct estimation of bias and deriving statistically consistent productivity estimates in the first and root mean square errors in the second stage of the analysis.FindingsThe empirical results reveal that the MFIs have shown average productivity growth of 6.70% during the entire study period. The observed productivity gains are primarily contributed by a larger efficiency increase at the rate of 4.80%, while technical progress occurs at 2.3%. Nonbanking financial companies (NBFC)-MFIs outperformed non-NBFC-MFIs. Small MFIs show the highest TFP growth in terms of size groups, followed by the large MFIs and medium MFIs. The bootstrap truncated regression results suggest that the credit portfolio, size and age of MFIs matter in achieving higher productivity levels.Practical implicationsThe practical implication drawn from the study is that the Indian MFI industry might adopt the latest technology and innovations in the products, risk assessment and credit delivery to improve their productivity levels. The industry must focus on enhancing the managerial skill of its employees to achieve a high productivity level.Originality/valueThis study is perhaps the initial attempt to explain the productivity behavior of MFIs in India by deploying a statistically robust double bootstrap procedure in the DEA-based Malmquist Productivity Index (MPI) framework. The authors estimate the bias-adjusted productivity index and its decompositions, which represent more reliable and statistically consistent estimates. For contextual factors responsible for driving productivity change, the study deploys a bootstrap truncated regression approach.

Determinants of return-on-equity in USA, German and Japanese manufacturing firms

2019 ◽  
Vol 45 (3) ◽  
pp. 445-451 ◽  
Author(s):  
Stephanie M. Weidman ◽  
Daniel J. McFarland ◽  
Gulser Meric ◽  
Ilhan Meric
Keyword(s):  
Manufacturing Industry ◽  
Financial Analysis ◽  
Important Determinant ◽  
Multivariate Regression Analysis ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Return On Equity ◽  
The Usa

Purpose DuPont financial analysis is generally used in micro-economic studies to compare an individual firm’s financial performance with industry averages. The purpose of this paper is to undertake a macro-economic cross-sectional analysis of the determinants of return-on-equity (ROE) in USA, German and Japanese manufacturing firms. Design/methodology/approach The authors use cross-sectional log-linear multivariate regression analysis to determine the elasticity of ROE to changes in net profit margin (NPM), total assets turnover (TAT) and equity multiplier (EQM) in USA, German and Japanese manufacturing firms. The authors obtain the data for the analysis from the COMPUSTAT Research Insight/Global Vintage database. Findings With data for all manufacturing firms, the authors find that the most important determinant of ROE is NPM in all three countries. The least important determinant of ROE is TAT in the USA and Germany, and EQM in Japan. Electronics is the most important manufacturing industry in all three countries, the authors also apply the analysis to data for the electronics manufacturing firms in the three countries. The authors find that an increase of 10 percent in NPM increases ROE by about 9.8 percent in Germany, by about 8.3 percent in the USA, and by about 6.9 percent in Japan. An increase of 10 percent in TAT increases ROE by about 2.2 percent in Germany and by about 1.5 percent in Japan. An increase of 10 percent in EQM increases ROE by about 1.9 percent in Germany and by about 1.5 percent in the USA. Practical implications The empirical findings of this study can provide useful insights for financial managers regarding the determinants of ROE they should focus on to achieve the greatest impact on ROE. Originality/value DuPont analysis is generally used as a micro-economic tool at the firm level. This study is a macro-economic application of the tool to study the cross-sectional determinants of ROE at the industry level.

Misallocation and reallocation of resources in Vietnamese manufacturing firms

2020 ◽  
Vol 47 (7) ◽  
pp. 1605-1627
Author(s):  
Phuong Thi Nguyen ◽  
Minh Khac Nguyen
Keyword(s):  
Market Share ◽  
Choice Model ◽  
Manufacturing Sector ◽  
Productivity Change ◽  
Aggregate Productivity ◽  
Firm Level ◽  
Content Type ◽  
Resource Misallocation ◽  
Productivity Decomposition ◽  
Exit Decisions

PurposeThis research identifies the level of misallocation in Vietnamese manufacturing sector for the period 2000–2015. Meltiz and Polanec dynamic productivity decomposition is used to compare the relative productivity contributions from surviving, entering and exiting firms to aggregate productivity change by the type of ownership. Heckman's two-step model is used to examine the effect of misallocation and industry- and firm-level factors on entry or exit decision and market share of firms in Vietnamese manufacturing sector.Design/methodology/approachThe level of misallocation and efficiency gains in total factor productivity (TFP) are assessed using Hsieh and Klenow (2009) productivity decomposition framework for the period 2000–2015. The dynamic productivity decomposition of Meltiz and Polanec (2015) is used to compare the relative contributions from surviving, entering and exiting firms to aggregate productivity change. The effects of misallocation and other factors on entry or exit decisions and market share of firms are determined by using Heckman choice model.FindingsThe results indicate three main points. Firstly, resource misallocation is found to be highest among state-owned enterprise (SOEs) and low technology industries. TFP is found to 81.2% greater if there is no resource misallocation among firms. Secondly, the aggregate productivity change for the entering, exiting and surviving firms is 35% due to productivity reallocation among three groups. Finally, the decision of entry or exit as well as the market share of firms are influenced by misallocation and industry- and firm-level factors such as Vietnam's WTO entry, tax policy, financial frictions, industrial concentration, technology gap, capital intensity, human capital, scale of firm, time entry and FDI spillovers. The result finds the higher misallocation level is, the lower the probability and market share for a new firm to enter in the industry is.Research limitations/implicationsThe main limitation of the study is that the market is assumed perfectly competitive and the method has only decomposed misallocation of resources to those arising from output and capital distortions. The results of Heckman choice model only clarify on the sub-sample of state-owned enterprises and low technology firms.Originality/valueThe focus of many previous research papers on resource misallocation was generally to look at the level of misallocation in developed countries. However, knowledge about the effect of misallocation and other factors on entry or exit decisions and market share of firms is limited, particularly in the context of developing countries. This paper clarifies the level of misallocation in Vietnamese manufacturing sector and the effect of misallocation and other factors on entry or exit decisions and market share of firms.

Age-related productivity decrease in high-waged and low-waged employees

2019 ◽  
Vol 40 (6) ◽  
pp. 1151-1170
Author(s):  
Liis Roosaar ◽  
Jaan Masso ◽  
Urmas Varblane
Keyword(s):  
Fixed Effects ◽  
Manufacturing Industry ◽  
Labour Productivity ◽  
Firm Level ◽  
Content Type ◽  
Older Employees ◽  
Age Related ◽  
Knowledge Intensive ◽  
Relative Productivity ◽  
Practical Implications

Purpose The purpose of this paper is to clarify whether the age-productivity curve is different for low-waged and high-waged employees. Design/methodology/approach Productivity growth is decomposed at the firm level into contributions by hired, separated and staying workers. Based on a matched employer-employee database of Estonian firms from 2006 to 2014 and considering the age as well as wages of employees, a panel data model with fixed effects is constructed to show the relative productivity of each cohort of employees. Findings High-waged employees appeared to be relatively more productive than low-waged employees and middle-aged were more productive than young or old employees. However, the productivity difference between young and old employees was not statistically significant. The age-productivity curve of high-waged employees appeared to be flatter than that of low-waged employees. Only in knowledge intensive services were the low-waged old employees statistically significantly less productive than high-waged old employees. In the manufacturing industry, the young were more productive than in services, in knowledge intensive services the old were less productive than in traditional services. Research limitations/implications The productivity of employees is only analysed for cohorts of employees. Practical implications Employers can be encouraged to hire older employees because old employees are shown to remain at least as productive as young employees. Originality/value The decomposition of labour productivity at the firm level is further developed, as the statistical difference between the productivity of different groups of employees is analysed.

Dynamic and static analysis of agricultural productivity in China

2018 ◽  
Vol 10 (2) ◽  
pp. 293-312 ◽  
Author(s):  
Panpan Diao ◽  
Zhonggen Zhang ◽  
Zhenyong Jin
Keyword(s):  
Agricultural Production ◽  
Agricultural Productivity ◽  
Policy Implications ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Western Region ◽  
Content Type ◽  
Tfp Growth ◽  
The Western Region

Purpose The purpose of this paper is to analyze agricultural total factor productivity (TFP) and input redundancies in different regions of China, and to bring out the policy implications for improving efficiency in agricultural production as well as environment protection. Design/methodology/approach Based on the provincial panel data during 1995-2014, the agricultural productivity of China and its regional disparity are analyzed. First, the agricultural TFP and its decomposition are dynamically evaluated by means of data envelopment analysis-Malmquist productivity index. Second, the agricultural radial production efficiency in year 2014 and the input redundancy changes from 1995 to 2014 are measured based on the BCC-slacks-based measure model. Findings The results showed that the overall agricultural TFP of China grew 4.3 percent annually during 1995-2014, mainly as a result of technical progress. However, the declines of technical efficiency and scale efficiency slowed down the agricultural TFP growth. The TFP growth in the Western region and Central region far exceeded the Eastern region in last few years. In 2014, most effective decision-making units were in the Western region. The input redundancies in the agricultural production increased substantially after 2006, especially for the pesticide use amount, reservoir capacity and agricultural machinery power. Originality/value Combining the dynamic and static analyses, the paper fulfilled the study of China’s agricultural productivity and the input redundancies in recent years, and also presented the regional disparities.

Haze pollution, new-type urbanization and regional total factor productivity growth: based on a panel dataset involving all 31 provinces within the territory of China

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruihan Zhang ◽  
Bing Sun ◽  
Mingyao Liu ◽  
Jian Hou
Keyword(s):  
Total Factor Productivity ◽  
Critical Mass ◽  
Estimation Method ◽  
Productivity Index ◽  
Factor Productivity ◽  
Content Type ◽  
Tfp Growth ◽  
Haze Pollution ◽  
New Type ◽  
Spatiotemporal Heterogeneity

Purpose This paper aims to analyze the spatiotemporal heterogeneity of regional total factor productivity (TFP) growth and explores how haze pollution and different levels of new-type urbanization affect China’s economic growth. Design/methodology/approach This paper constructs an index for evaluating the TFP growth of China’s 31 provinces by integrating slack-based measures and the Global Malmquist (GM) productivity index. Meanwhile, the panel threshold estimation method is used to examine the complex relationships among haze pollution, new-type urbanization and TFP growth. Findings The results reflect conspicuous spatiotemporal heterogeneity in TFP growth in China. Interestingly, the influence of haze pollution on TFP growth is limited by the “critical mass” of new-type urbanization in China. When new-type urbanization does not cross the first threshold, haze pollution has a negative but non-significant effect on TFP growth. When new-type urbanization crosses the first threshold but not the second, haze pollution has a significant positive impact on TFP growth. When new-type urbanization crosses the second threshold, haze pollution significantly and positively affects TFP growth with the strongest positive effect. Originality/value This study innovates by combining haze pollution and TFP growth and proposing an integrated framework from the perspective of new-type urbanization, providing insight into how different degrees of new-type urbanization impact the mechanism between haze pollution and TFP growth. Using panel data in China and emphasizing green development, a sustainable economy and new-type urbanization, this study contributes to the current studies on haze pollution and economic development based on developed countries.

Total-factor energy efficiency in China’s sugar manufacturing industry

2015 ◽  
Vol 7 (3) ◽  
pp. 360-373 ◽  
Author(s):  
Lei Ru ◽  
Wei Si
Keyword(s):  
Energy Efficiency ◽  
Manufacturing Industry ◽  
Sugar Industry ◽  
Probit Model ◽  
Firm Level ◽  
Data Set ◽  
Total Recovery ◽  
Content Type ◽  
Fractional Probit ◽  
Sugar Mills

Purpose – The purpose of this paper is to evaluate the total-factor energy efficiency (TFEE) in China’s sugar manufacturing industry using firm-level data from 2002/2003 to 2012/2013 crushing seasons, and further explore the determinants of TFEE. Design/methodology/approach – Modified data envelopment analysis is used to measure the TFEE of each sugar mill during the crushing seasons. Then heteroskedastic fractional probit model is applied to estimate the determinants of TFEE because of the bounded nature of TFEE and heteroskedasticity of unbalanced panel. Findings – The results show that throughout the crushing seasons, the average TFEE is 0.57; there are spatial differences of TFEE in Guangxi sugar industry, highest in southern area; the TFEE of foreign-owned sugar mills is larger than that of private-owned and state-owned sugar mills; the larger the enterprise size, the higher the TFEE; private ownership, large size, raw material, safe productivity, total recovery rate as well as technical progress can improve TFEE significantly. Originality/value – This paper analyzes TFEE using a rich data set at firm level, allowing the existence of firm heterogeneity, as well as being complementary to the study of energy efficiency in China’s sugar industry. Moreover, ownership structure is involved in the determinants of TFEE, which is rarely done in literature. Lastly, heteroskedastic fractional probit model is employed to recognize the bounded nature of TFEE as well as selection bias of unbalanced panel to study the determinants of TFEE.

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