AGGREGATE MARKUP DYNAMICS: EVIDENCE FROM CHINA

2021 ◽  
pp. 1-21
Author(s):  
YUE WEN
Keyword(s):  
Trade Liberalization ◽  
Decomposition Method ◽  
Dynamic Change ◽  
Manufacturing Firms ◽  
Sample Period ◽  
Upward Trend ◽  
Firm Level ◽  
Industry Level ◽  
New Perspective

Unlike previous studies that focus on the change of firm-level markup, this study focuses on the change of industry-level aggregate markup. From the data of China’s manufacturing firms in 1999–2007, this study exploits the dynamic change of aggregate markup by using the decomposition method which is proposed by Melitz and Polanec (2015). The result shows that China’s manufacturing aggregate markup has an upward trend during the sample period, which mainly comes from the contribution of surviving firms. On the contrary, the contribution of entering and exiting firms to the aggregate markup is negative. Further analysis shows that trade liberalization is one of the reasons to promote the increase of China’s manufacturing aggregate markup. This study provides a new perspective for understanding the dynamic change of the aggregate markup.

Trade liberalization and productivity of Indian manufacturing firms

2019 ◽  
Vol 13 (1) ◽  
pp. 73-98 ◽  
Author(s):  
Bishwanath Goldar ◽  
Isha Chawla ◽  
Smruti Ranjan Behera
Keyword(s):  
Trade Liberalization ◽  
Fixed Effects ◽  
Value Added ◽  
Good Deal ◽  
Manufacturing Firms ◽  
Econometric Models ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to assess the impact of India’s trade liberalization during the late 1990s and 2000s on productivity of manufacturing firms and verify whether the productivity-enhancing impact of reductions in input tariffs was greater than that of output tariff cuts, as found in some earlier studies. Design/methodology/approach Firm-level (company-level) data drawn from Prowess database are used for the estimation of total factor productivity (TFP) at the firm level, done by using the Levinsohn–Petrin methodology. Econometric models are estimated to explain firm-level TFP. The explanatory variables used are output and input tariff rates and quantitative restrictions on imports at the industry level and firm characteristics such as firm size, export intensity and import intensity. Firm-level panel data for 2002-2010 or for a longer period 1998-2010 are used for the estimation of econometric models. Model estimation is done by applying the fixed-effects model and IV-2SLS, 3SLS estimators and EC2SLS estimators. Findings Trade liberalization had a significant positive effect on the productivity of Indian manufacturing firms. The lowering of output tariff had a greater beneficial impact on TFP of Indian manufacturing firms than the lowering of tariff on intermediate inputs. Originality/value Good deal of care has been taken in the measurement of output and inputs for the purpose of TFP measurement. Two alternative frameworks, gross output and value added, are used. This helps in making a better estimate of the impact of trade liberalization on TFP.

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.

Servitization of Industry: New Evidence

2021 ◽  
Vol 65 (8) ◽  
pp. 22-30
Author(s):  
V. Kondrat’ev ◽  
G. Kedrova ◽  
V. Popov
Keyword(s):  
Economic Policy ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
New Economic Policy ◽  
Firm Level ◽  
Policy Regime ◽  
Goods And Services ◽  
New Business ◽  
Use Of Services

A significant increase in the use of services is observed for some industries in GVCs (Global Value Chains). The paper has shed light on important dimension of the servitization which is the sale and export of services by manufacturing firms, often bundled together with goods. Firm-level data confirm that many firms are involved both in the production of goods and services and that there are complementarities between these activities. Not only manufacturing firms are involved in the distribution, transport and logistics services needed for their international operations in GVCs but also, they provide installation, maintenance, repair services as well as a variety of other business support and complementary services that increase value for their customers. The servitization has important policy implications, particularly when taking into account the fact that trade in services is generally more restricted than trade in goods. As the lines between goods and services are blurred, economic policy today might be more challenging than in the past, particularly for companies moving to new business models that imply more interactions with customers and a more intensive use of digital technologies. Services themselves are split into different modes of supply for which there are different levels of economic policy. A closer look at the mechanisms of value creation in the case of services suggests that there are still the needs of new economic policy addressed at business models described as value networks or value shops. As technologies become more disruptive and more companies move to ‘servicified’ GVCs, the need for a more consistent international economic policy regime, particularly at the multilateral level, will become more urgent.

Services Outsourcing and Productivity Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 192-209 ◽  
Author(s):  
Sonia Mukherjee
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Core Competencies ◽  
Marketing Research ◽  
Manufacturing Firms ◽  
Professional Services ◽  
Business Services ◽  
Positive Role ◽  
Firm Level ◽  
The Impact

The article studies the impact of outsourcing services on the productivity growth of the Indian manufacturing firms. By the term services we mean different expenses on services incurred by the manufacturing firms, such as, advertising, marketing, research and development, consultancy, auditing, business services, knowledge-based services, technical, legal and other professional services (including information communication and technology services). With further expansion in newer services, a higher demand has come from the Indian manufacturing sector. With intensive usage of services in the manufacturing production process, the performance and the manufacturing can focus on the core competencies with outsourced and cheaper services from expert service provider. For this purpose, the firm-level data have been collected from the annual financial statements of the Centre for Monitoring of the Indian Economy’s Prowess database. The econometric results conclude that services have played a positive role in improving the productivity growth of the aggregate Indian manufacturing firms and at the disaggregated level, especially for industrial groups such as food, beverage and tobacco; textiles, gems and jewellery; transport; machinery; metal, rubber and plastic; leather and footwear; and chemicals, services have played a favourable role in boosting the productivity growth. JEL: D24, L80, L60

The impact of exporting on women's employment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Begum Dikilitas ◽  
Burcu Fazlioglu ◽  
Basak Dalgic
Keyword(s):  
Manufacturing Firms ◽  
Female Employment ◽  
Women's Employment ◽  
Employment Rate ◽  
Women’S Employment ◽  
Firm Level ◽  
Content Type ◽  
Time Period ◽  
Employment Rates ◽  
The Impact

PurposeThis paper aims to examine the effect of exports on women's employment rate for Turkish manufacturing firms over a recent period of 2003–2015.Design/methodology/approachThe authors establish treatment models and use propensity score matching (PSM) techniques together with difference-in-difference methodology.FindingsThe results of the study indicate that starting to export increases women’s employment rate for manufacturing firms. Gains in female employment rates are observed for the firms operating in low and medium low technology intensive sectors, low-wage sectors as well as laborlabor-intensive goods exporting sectors.Originality/valueThe authors complement previous literature by utilizing a rich harmonized firm-level dataset that covers a large number of firms and a recent time period. The authors distinguish between several sub-samples of firms according to technology intensity of the sector in which they operate, wage level and factor intensity of exports and investigate whether or not women gain from trade in terms of employment opportunities.

Industry Characteristics, Risk Premiums, and Debt Pricing

2016 ◽  
Vol 92 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Dan Amiram ◽  
Alon Kalay ◽  
Gil Sadka
Keyword(s):  
Industry Structure ◽  
Empirical Literature ◽  
Time Varying ◽  
External Shocks ◽  
Expected Loss ◽  
Firm Level ◽  
Risk Premiums ◽  
Industry Level ◽  
Debt Pricing ◽  
Loan Portfolios

ABSTRACT Despite theoretical and anecdotal evidence highlighting the importance of industry-level analyses to lenders, the empirical literature on debt pricing has focused almost exclusively on firm-level forces that affect expected loss. This paper provides empirical evidence that industry-level characteristics relate to debt pricing through risk premiums. We address the empirical challenges that arise when testing these theories by using a proprietary dataset of time-varying and forward-looking measures of industry characteristics. These characteristics include growth, sensitivity to external shocks, and industry structure, all measured at the six-digit NAICS level. Our results show that lenders demand higher spreads to bear industry-level risk. The relation exists within subsamples with constant credit ratings, and strengthens when lenders' loan portfolios are less diversified and during periods when diversification is difficult. Therefore, our results suggest that industry characteristics relate to debt pricing by informing lenders not only about expected loss, but also about risk premiums. JEL Classifications: G31; G32; G33; M21.

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.

scholarly journals Local product space and firm-level churning in exported products

2019 ◽  
Vol 28 (6) ◽  
pp. 1473-1496
Author(s):  
Cilem Selin Hazir ◽  
Flora Bellone ◽  
Cyrielle Gaglio
Keyword(s):  
Product Space ◽  
Local Environment ◽  
Product Market ◽  
Manufacturing Firms ◽  
Entry And Exit ◽  
Micro Data ◽  
Firm Level ◽  
The Core ◽  
Local Product ◽  
Core Capabilities

Abstract This article explores the determinants of changes to the range of exports at the firm level with a focus on the role played by the firm’s local environment. It extends the model developed by Bernard et al. (2010) to a multiregional setting to account for localized externalities. The model is tested using French micro-data on monoregional manufacturing firms covering the period 2002–2007. Our main finding is that the local product space has an impact on exporters’ product-market entry and exit decisions. Firms tend to modify their exported product mix to achieve congruence with the core products of the locality. Also, firms receive higher revenue from the export of products that are more related to the core capabilities of the locality.

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