scholarly journals Interconnecting exporter types with export growth and decline patterns

2018 ◽  
Vol 28 (1) ◽  
pp. 61-76 ◽  
Author(s):  
Tiia Vissak ◽  
Oliver Lukason ◽  
Maria-Jesus Segovia-Vargas
Keyword(s):  
Design Methodology ◽  
Export Growth ◽  
Business Strategies ◽  
Firm Level ◽  
Financial Reports ◽  
Content Type ◽  
Level Data ◽  
Firm Level Data ◽  
Growth Decline ◽  
Export Shares

Purpose This paper aims to find out if different exporter types dominate among matched mature Spanish and Estonian firms and whether these types are associated with specific export growth/decline patterns. Design/methodology/approach This study is based on firm-level data from the Estonian Business Register’s database of annual financial reports and SEPI Foundation’s survey on Spanish firms’ business strategies. From both countries, 242 firms were included and the period 2009-2013 was chosen. Findings Committed exporters (with 75 per cent or higher export shares) dominated in Estonia and experimental exporters (with export shares mostly below 10 per cent) in Spain. While in Estonia, the most frequent export growth/decline pattern encompassed four consecutive growth years, in Spain, it had two consecutive growth years and then two decline years. Spanish firms’ export growth/decline patterns were more random: 12 patterns of 16 fell within the range of a random walk assumption, while in Estonia, only 5 patterns were within the range. Contingency existed between exporter types and export growth/decline patterns only for the whole sample. Originality/value This paper studies if committed/aggressive/active exporters experience more export fluctuations than passive/experimental exporters, and how random export growth/decline patterns are.

Estimations of business exposure to corruption in Malaysia

2020 ◽  
Vol 27 (4) ◽  
pp. 1273-1287
Author(s):  
Selamah Abdullah Yusof ◽  
Mohd Nahar Mohd Arshad
Keyword(s):  
Design Methodology ◽  
Public Officials ◽  
Firm Level ◽  
Content Type ◽  
Business Operations ◽  
The World Bank ◽  
Level Data ◽  
Firm Level Data ◽  
Binary Logit ◽  
Enterprise Survey

Purpose This study aims to investigate the level of business exposure to corruption in Malaysia. The authors estimate the effect of bribe requests from business establishments by public officials and identify the level of vulnerability of businesses to such requests. Design/methodology/approach This study uses firm-level data from the World Bank Malaysia Enterprise Survey 2014. The analyses are based on binary logit, tobit and generalized ordered logit regressions. Findings The authors find that one-fifth of firms applying for construction permits or had visits or meetings with tax officials were expected to pay bribes. Firms’ encounters with corruption were higher still when applying for import (29%) or operating license (24.7%). About 40% of the firms considered corruption an obstacle to their business operations to the degree of moderate, major and even severe. On average, 11% of firms’ total annual sales were apportioned for informal gifts or “speed money.” The authors also find that larger, younger and women-managed/owned companies were more likely to be targeted for bribe payments. The amount of bribe paid by foreign-owned firms was higher than the local firms. Manufacturing firms had lower incidences of bribe requests, but the amount paid was higher than services-related companies. Firms run or owned by women also, on average, paid a higher amount bribe. Social implications These findings should be taken into consideration in the efforts to eradicate corruption affecting businesses in Malaysia. Originality/value This study is unique in the sense that it is based on firm-level data for a Malaysian case.

Access to finance and firm innovation

2018 ◽  
Vol 10 (1) ◽  
pp. 73-94 ◽  
Author(s):  
MccPowell Sali Fombang ◽  
Charles Komla Adjasi
Keyword(s):  
South Africa ◽  
Trade Credit ◽  
Microfinance Institutions ◽  
African Countries ◽  
Access To Finance ◽  
Firm Level ◽  
Firm Innovation ◽  
Content Type ◽  
Level Data ◽  
Firm Level Data

Purpose The study aims to examine the importance of access to finance in firm innovation by using firm-level data from the World Bank enterprise survey (WBES) on selected African countries. Design/methodology/approach This study utilises firm-level data from the WBES database and computes aggregate innovation index by using multiple correspondent analysis. The authors then apply instrumental variable models (to control for possible endogeneity between innovation and finance) to assess the link between finance and innovation. Findings The research finds that finance in the form of overdraft overwhelmingly drives innovation in all selected countries – Cameroon, Kenya, Morocco, Nigeria and South Africa. Trade credit enhances innovation among firms in Nigeria, South Africa and Cameroon, while asset finance drives innovation amongst firms in Cameroon, Nigeria and South Africa. Practical implications Policy incentives such as tax breaks could be put in place for financial intermediaries that have shown proof of extending loans to financially constraint firms to enable them to innovate. Furthermore, different financial institutions such as microfinance institutions can be supported to increase credit to enterprises. Partnerships with organisations willing to fund firms and support start-ups should be encouraged. One of such support mechanisms could be specialised schemes such as a credit guarantee scheme to encourage and secure lending to enterprises to promote innovation. Originality/value This paper provides empirical insights into how finance enhances innovation in African enterprises. It also shows how different finance structures (overdraft, asset finance and trade credit) affect firm innovation in different African countries.

scholarly journals The Origins and Dynamics of Export Superstars

2018 ◽  
Vol 34 (1) ◽  
pp. 28-47
Author(s):  
Caroline Freund ◽  
Martha Denisse Pierola
Keyword(s):  
Developing Countries ◽  
Large Firm ◽  
Export Growth ◽  
Export Diversification ◽  
Detailed Data ◽  
New Firms ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Manufacturing Trade

Abstract Export superstars are important for export growth and diversification and are typically born large. Firm-level data on manufacturing trade from 32 developing countries show that the top five exporters account for on average nearly one-third of exports, 47 percent of export growth, and a third of the growth due to export diversification over a five-year period. Within countries and industries, export growth is positively correlated with the share of exports in the top five firms. Most of the top five exporters were already large five (or eight) years ago or are new firms; it is rare for these export superstars to emerge from the bottom half of the distribution of firm sizes. For countries where detailed data exist, superstars are producers, not traders, and are primarily foreign owned.

A neglected input to production: the role of ICT-schooled employees in firm performance

2017 ◽  
Vol 38 (3) ◽  
pp. 373-391 ◽  
Author(s):  
Eva Hagsten ◽  
Anna Sabadash
Keyword(s):  
Data Sets ◽  
Firm Level ◽  
Broadband Internet ◽  
Content Type ◽  
Institutional Settings ◽  
Level Data ◽  
Firm Level Data ◽  
Information And Communication ◽  
Econometric Approach

Purpose The purpose of this paper is to broaden the perspective on how information and communication technology (ICT) relates to productivity by introducing a novel ICT variable: the share of ICT-schooled employees in firms, an intangible input often neglected or difficult to measure. Design/methodology/approach Based on a Cobb-Douglas production function specification, the association between the share of ICT-schooled employees and firm productivity is estimated by the use of unique comparable multi-linked firm-level data sets from statistical offices in six European countries for the period of 2001-2009. Findings There are indications that the share of ICT-schooled employees significantly and positively relates to productivity, and also that this relationship is generally more persistent than that of ICT intensity of firms, measured as the proportion of broadband internet-enabled employees. However, the strength of the association varies across countries and demonstrates that underlying factors, such as industry structure and institutional settings might be of importance too. Research limitations/implications Data features and the way to access harmonised firm-level data across countries affect the choice of econometric approach and output variable. Practical implications The results emphasise the importance of specific ICT skills in firms independently of where in the organisation the employee works. Originality/value Studies on associations between employees with specific (higher) education based on formal credentials and productivity are rare. Even more uncommon is the cross-country setting with harmonised data including general ICT intensity of firms.

Firm size and the political cycle premium

2015 ◽  
Vol 41 (10) ◽  
pp. 1077-1095
Author(s):  
Chris B Malone ◽  
Hamish Anderson ◽  
Peng Cheng
Keyword(s):  
New Zealand ◽  
Small Firms ◽  
The Political ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
Political Cycle ◽  
Firm Level Data ◽  
The Usa ◽  
Political Term

Purpose – The purpose of this paper is to use firm-level data to examine whether the political cycle differentially relates to small vs large firms in New Zealand; a country that operates a unicameral political system has a short three-year political term and a right-of-centre stock market premium exists. Design/methodology/approach – Using firm-level data from 1972 to 2010, the authors examine monthly returns during right-of-centre National governments and left-of-centre Labour governments. The authors apply Santa Clara and Valkanov (2003) regression analysis approach to examine the political cycle impact on firm returns. Findings – Like in the USA, New Zealand’s political cycle premium is driven by small firms; however, the results are opposite. In New Zealand, periods governed by the right of the political spectrum produce significantly higher stock returns than those from the left and this finding is primarily driven by small firms who perform particularly poorly under left-of-centre governments. Research limitations/implications – Small firms were relatively heavily affected by the move to an open, deregulated economy; they were also less able to cope with tight monetary conditions, and periods of sharply falling inflation. New Zealand’s three-year political term may encourage newly formed governments to implement relatively fast moving shifts in policy where a more reasoned and steady approach would be warranted. Originality/value – This is the first paper to use firm-level data outside of the USA to examine the political cycle impact.

How does the globalization of firms affect corruption in developing economies?

2017 ◽  
Vol 21 (3) ◽  
pp. 256-270 ◽  
Author(s):  
Bokyeong Park ◽  
Onon Khanoi
Keyword(s):  
Foreign Investment ◽  
Developing Economies ◽  
Probit Model ◽  
Policy Implications ◽  
Firm Level ◽  
Content Type ◽  
Exporting Firms ◽  
Country Level ◽  
Level Data ◽  
Firm Level Data

Purpose The purpose of this paper is to examine how firms’ characteristics related to globalization affect their perception on corruption and actual experiences in bribery. It focuses on two indicators of globalization, namely, foreign ownership and export, and confines the scope to developing economies. Design/methodology/approach This analysis uses firm-level data with observation over 60,000 collected from 94 developing economies. The paper employs the probit model to examine how firm characteristics related to globalization affect corruption perception (CP) and incidence. Findings The empirical results reveal that for foreign-invested companies, there is a substantial discrepancy between the perceived corruption and the actual. Although they are involved in bribery as frequently as, or less frequently than local firms, they have greater CPs. Exporting firms are more frequently solicited for bribes, but the effect disappears when time spent for government contact is controlled for. Consequently, foreign investment partly contributes to the corruption control, but the export orientation of firms rather aggravates corruption due to regulative environments in developing economies. Practical implications This study provides policy implications that the corruption control through globalization requires streamlining of administration procedure related to foreign investment or trade and, thus, shortening time to deal with public officials. In addition, governments need to emphasize the importance of foreign investment and prevent unethical practices mediated by local partners. Originality/value The greatest novelty of this paper lies in using firm level data instead of country level unlike most of the literature. Moreover, the authors focus on firms only in developing economies. As well, unlike most studies using only perception indicators as the proxy of corruption, this paper considers both CPs and actual incidence, and compares each other.

scholarly journals Are firms paying more for performance?

2016 ◽  
Vol 37 (2) ◽  
pp. 323-343 ◽  
Author(s):  
John Forth ◽  
Alex Bryson ◽  
Lucy Stokes
Keyword(s):  
Economic Importance ◽  
Firm Level ◽  
Wage Bill ◽  
Content Type ◽  
Level Data ◽  
Bonus Payments ◽  
Firm Level Data ◽  
Nationally Representative ◽  
Substantial Change ◽  
Two Sectors

Purpose – The purpose of this paper is to investigate changes in the economic importance of performance-related-pay (PRP) in Britain through the 2000s using firm-level data. Design/methodology/approach – The authors utilise nationally representative, monthly data on the total wage bill and employment of around 8,500 firms. Using these data, the authors decompose the share of the total economy-wide wage bill accounted for by bonuses into the shares of employment in the PRP and non-PRP sectors, the ratio of base pay between the two sectors, and the gearing of bonus payments to base pay within the PRP sector. Findings – The growth in the economic importance of bonuses in Britain in the mid-2000s – and subsequent fluctuations since the onset of recession in 2008 – can be almost entirely explained by changes in the gearing of bonus to base pay within the PRP sector. There has been no substantial change in the percentage of employment accounted for by PRP firms; if anything it has fallen over time. Furthermore, movements in the gearing of bonuses to base pay in the economy are heavily influenced by changes in Finance: a sector which accounts for a large proportion of all bonus payments in Britain. Research limitations/implications – The paper demonstrates the importance of understanding further how firms decide the size of bonus payments in a given period. Originality/value – This is the first paper to present monthly firm-level data for Britain on the incidence and size of bonus payments in the 2000s.

Pre-training competencies and the productivity of apprentices

2017 ◽  
Vol 5 (1) ◽  
pp. 59-79 ◽  
Author(s):  
Anika Jansen ◽  
Harald Ulrich Pfeifer
Keyword(s):  
Problem Solving ◽  
Practical Implication ◽  
Willingness To Participate ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Individual Level ◽  
Training Costs ◽  
Level Data ◽  
Firm Level Data

Purpose The purpose of this paper is to investigate the relationship between pre-training competencies of apprentices and their productivity at the workplace. Design/methodology/approach For the analysis, the authors use firm-level data on apprentices’ oral and writing competencies and competencies in basic mathematics, information technology and problem solving. The authors regress the apprentices’ productivity on these school competencies and include a number of firm and apprentice-specific control variables. By reducing the authors’ data set to firms that only have one apprentice the authors transform the firm-level data into quasi individual-level data. Findings The main findings are that not all competencies are equally related to productivity. Problem-solving competencies followed by oral and writing competencies show the strongest relation to the productive potential of apprentices. IT competencies are also positively but weakly related to the apprentices’ productivity. In contrast, higher levels of basic mathematical competencies leave productivity levels largely unchanged. Differentiating between occupational groups, the authors find that the positive relation between the competencies and productivity predominantly exists in commercial occupations rather than in industrial and technical occupations. Practical implications The results show that better school competencies are associated with a higher productivity of apprentices, which in turn lowers the firms’ training costs. From a policy perspective, this finding is important because it implies that, by improving the apprentices’ competencies, the firms’ willingness to participate in the apprenticeship system can be increased. Moreover, the results are important for training firms because they show on which competencies firms should focus in their recruitment decision. Originality/value The paper studies for the first time the relation between pre-training competencies and productivity of apprentices at the working place. A practical implication from the authors’ analysis is that it could be useful to implement tools measuring the problem solving and oral and writing competencies of apprenticeship applicants in the process of recruitment.

scholarly journals The missing middle phenomenon in Indian manufacturing sector: myths or realities?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P. C. Parida ◽  
Arup Mitra ◽  
Kailash Ch. Pradhan
Keyword(s):  
Design Methodology ◽  
Manufacturing Sector ◽  
Financial Indicators ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
Level Information ◽  
Indian Manufacturing Sector ◽  
Missing Middle ◽  
The Relationship

PurposeThis study attempts to examine the missing middle (MM) phenomena in the context of the Indian manufacturing sector using the unit level information from the database of Ministry of Corporate Affair, Government of India.Design/methodology/approachUnlike the previous studies, the present study first bifurcated the missing enterprises into two categories such as “permanently” dropped and “reappeared,” in order to pursue a meaningful analysis and derive conclusions with policy insights. Various financial indicators were used to explain the causes of MM phenomena during 2009–2010 and 2016–2017, in a logistic framework.FindingsThe study found that profit margin ratio is higher for the group of medium sized enterprises which continued in comparison to the units which dropped out permanently. Similar is the case with the ratio of investment turnover. The econometric results, however suggest that the relationship between the chances of a firm being dropped out and financial indicators is weak as the coefficients of various financial indicators are found to be statistically significant only for a few years.Originality/valueThe study suggests that the missing middle phenomenon is not a myth in India as very large number of medium-sized firms have been disappearing from the market over the years. Based on firm level data it identifies the factors which resulted in such a phenomenon.

Free lunch or vital support? Export promotion in The Netherlands

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcel van den Berg
Keyword(s):  
Small Businesses ◽  
Export Performance ◽  
Export Promotion ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
Advanced Economies ◽  
Export Shares ◽  
The Impact ◽  
Matching Techniques

Purpose The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs). Design/methodology/approach The authors confront participation data of an EPP targeting SMEs with rich firm-level data and use propensity score matching techniques combined with regression analysis. Findings The authors show that exports generated by participants do generally rise in the years after program entry, however, export growth does not outpace that of comparable, but unsupported firms. Nonetheless, there is some evidence suggesting that export shares in sales rise faster among program entrants, particularly in the first and second years after participation. Furthermore, the authors present evidence suggesting that the probability of becoming a permanent exporter is higher for participants relative to beginning exporters that did not receive support from the program. Originality/value The analysis contributes to the still relatively small literature dealing with the impact of government export promotion instruments on export performance using firm-level micro-data. The subject of analysis are Dutch small businesses. SMEs, particularly operating in advanced economies, are a group that is not frequently considered separately in this respect.

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