DOES INNOVATION ENHANCE PRODUCTIVITY IN CASE OF SELECTED INDIAN MANUFACTURING FIRMS?

2018 ◽  
Vol 64 (05) ◽  
pp. 1225-1250
Author(s):  
SEENAIAH KALE ◽  
BADRI NARAYAN RATH

This study examines the effects of innovation on productivity of Indian Manufacturing firms. Despite the voluminous literature on this area, the demanding line, i.e., various types of innovation effects on productivity growth, received little attention particularly in the Indian context; hence, our study fills the gap by employing firm-level data from Hyderabad and Bengaluru cities of India from 2011 to 2013. The estimated results confirm the significant impact of innovation on productivity upsurge in Indian manufacturing firms. Further, we investigate the spatial aspects of innovation considering the two cities separately. However, such city-based analysis does not produce any different findings.

2017 ◽  
Vol 107 (5) ◽  
pp. 322-326 ◽  
Author(s):  
Ryan A. Decker ◽  
John Haltiwanger ◽  
Ron S. Jarmin ◽  
Javier Miranda

A large literature documents declining measures of business dynamism including high-growth young firm activity and job reallocation. A distinct literature describes a slowdown in the pace of aggregate labor productivity growth. We relate these patterns by studying changes in productivity growth from the late 1990s to the mid 2000s using firm-level data. We find that diminished allocative efficiency gains can account for the productivity slowdown in a manner that interacts with the within-firm productivity growth distribution. The evidence suggests that the decline in dynamism is reason for concern and sheds light on debates about the causes of slowing productivity growth.


2010 ◽  
Vol 12 (2) ◽  
pp. 227-242
Author(s):  
Sahminan Sahminan ◽  
Yati Kurniati

This paper examines export behaviour of manufacturing firms in Indonesia. We use firm-level data from survey of medium and large Indonesian manufacturing industries over the period 1990-2000. Using panel data regression technique, we find the following regularities. First, there is a persistency in the firm’s decision to export as well as proportion of exported output. Second, higher wage, larger number of production employment, higher productivity and higher share of foreign ownership lead to higher probability of a firm to export. Third, higher wage leads to higher proportion of exported output. However, higher productivity or higher share of foreign ownership leads to lower proportion of exported output. Fourth, while real exchange rate does not significantly affect the probability of firms to export, it significantly affects the proportion of exported output. Fifth, both probability to export and proportion of exported output was significantly much lower during the 1997/1998’s Asian crisis. Finally, looking at the export behaviour across industries, the estimation results show that there is a variation of export behavior across industries.Keywords: Export, manufacture, Indonesia.JEL Classification: F14, F13, D21


Author(s):  
Mariana Iootty ◽  
Paulo Correa ◽  
Sonja Radas ◽  
Bruno Škrinjarić

2020 ◽  
pp. 1-17
Author(s):  
ATHIPHAT MUTHITACHAROEN ◽  
KRISLERT SAMPHANTHARAK

We use firm-level data from ASEAN5 to examine the significance of tax-motivated profit shifting by multinational enterprises and to analyze how anti-avoidance measures mitigate the profit shifting. We show that (1) tax-motivated profit shifting is statistically and economically significant, especially for manufacturing firms, (2) auditing and transfer-pricing scrutiny is more effective in reducing profit shifting than documentation requirement alone and (3) tax-motivated profit shifting is prominent for large firms, while anti-tax avoidance measures result in the absence of profit shifting detected from small manufacturing firms. The findings have important implications for developing countries with weak governance but dependent on MNEs.


2008 ◽  
Vol 11 (02) ◽  
pp. 151-186 ◽  
Author(s):  
Pablo Gonzalo Ramirez ◽  
Toyohiko Hachiya

In this study we examined Japanese firm-level data to test whether increments in intangible assets will leads to differences in productivity growth. Our results show that the marginal contribution of inputs varies a greatly among sectors, industries and depending on firm's size. Therefore, marginal increments in intangibles investments are not always associated with productivity growth suggesting that when intangibles exceed a threshold, additional investments could be inefficient. We conclude that among intangibles, firm-specific organizational capital and advertising are two of the critical factors in determining the productivity growth.


Econometrica ◽  
2020 ◽  
Vol 88 (5) ◽  
pp. 2037-2073 ◽  
Author(s):  
Michael Peters

Markups vary systematically across firms and are a source of misallocation. This paper develops a tractable model of firm dynamics where firms' market power is endogenous and the distribution of markups emerges as an equilibrium outcome. Monopoly power is the result of a process of forward‐looking, risky accumulation: firms invest in productivity growth to increase markups in their existing products but are stochastically replaced by more efficient competitors. Creative destruction therefore has pro‐competitive effects because faster churn gives firms less time to accumulate market power. In an application to firm‐level data from Indonesia, the model predicts that, relative to the United States, misallocation is more severe and firms are substantially smaller. To explain these patterns, the model suggests an important role for frictions that prevent existing firms from entering new markets. Differences in entry costs for new firms are less important.


2017 ◽  
Vol 08 (02) ◽  
pp. 1750012 ◽  
Author(s):  
Bishwanath Goldar ◽  
Yashobanta Parida ◽  
Deepika Sehdev

India’s organized manufacturing sector experienced a 11% fall in its carbon di oxide (CO2) emissions intensity during 2009–2012, while a majority of the manufacturing plants achieved over a 30% fall during the corresponding period. How did such a reduction in CO2 emissions intensity affect the export competitiveness of Indian manufacturing firms? Using firm-level data for 2009–2013, this paper attempts to empirically answer that question. It is found that large firms and capital intensive firms have achieved a relatively faster decline in CO2 emissions intensity and that containment of CO2 emissions in manufacturing firms did not cause any major loss in their export competitiveness. Rather, it is found to be positively associated with increases in exports.


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