Democracy and Firm Productivity: Evidence from Indonesia

2021 ◽  
pp. 1-30
Author(s):  
Ama Baafra Abeberese ◽  
Prabhat Barnwal ◽  
Ritam Chaurey ◽  
Priya Mukherjee
Keyword(s):  
Business Environment ◽  
Political Regime ◽  
Firm Productivity ◽  
Critical Determinant ◽  
Firm Level ◽  
Regime Changes ◽  
Level Data ◽  
Micro Level ◽  
Business Regulations

Abstract While recent work suggests democracy does cause growth, the channels through which this effect occurs remain unclear. Exploiting quasi-random variation in the timing of district-level political regime changes induced by the collapse of President Soeharto's government, we study the micro-level drivers of the democracy-growth relationship. Using Indonesian firm-level data, we find that democratization leads to an increase in firm productivity, a critical determinant of economic growth. Further, we find evidence of an improvement in the quality of local business regulations and the business environment for firms.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

scholarly journals The Unemployment of Today and Tomorrow in Romania

2014 ◽  
Vol 2 (1) ◽  
pp. 52
Author(s):  
Mictat Garlan
Keyword(s):  
Labor Migration ◽  
Business Environment ◽  
Political Regime ◽  
National Commission ◽  
Economic Policies ◽  
Active Population ◽  
Before And After ◽  
The One ◽  
State Enterprises

For any political regime the employment and unemployment of active population represents the most pressing social and economic obligation. in Romania, any comparative study before and after 1990, on 2 x 2 decades of different economic policies, can observe the damaging effects which they had forced privatization of state enterprises on the labor market, with over 1,000,000 declared unemployed in 1999, compared to zero unemployed in 1989. After this disaster, and after a short economic rehabilitation, it followed another crisis, with a further increase in unemployment of ANOFM, from 445,000 persons in 2009 to 626,960 persons in 2010 to 740,000 in 2011 of 674,000 in November 2012 , 512 333 persons in December 2013 to 724,000 persons in March 2014. These data indicate that in Romania the crisis is not over yet. in parallel to these developments there have been published the analyzes of the National Commission for Prognosis, but with some significant deviations in two directions. On the one hand, the calculations are made on the formula BIM records, and on the other hand, they are in the direction of a lower estimates. So, in the estimates of performed forecasts for the years 2014 -2017, with trend analysis and analysis of previous years, the total number of unemployed in 2011 was to be of 730 200 persons. in 2012 the total number of unemployed was to be of 701,200 persons, in 2013 of 726,000 persons, of 705,000 persons in 2014, of 690,000 in 2015 and of 685,000 in 2016. Without contesting the effort to accuracy of this Commission and the fact that any forecast includes a dose of risk too, there are obviously immeasurable variables that were not taken into account. We refer to the quality of business environment, revenues polarization, with decreasing trends in wages, to labor migration especially medium and high qualified. We refer to the existing difficulties in the allocation of development credits, to the corruption of officials from the local councils the excess of electoral concerns of governments, with the necessity of different approaches for each of them. With this supplement of fren factors we can say that on prospective 2 years, the registered unemployment from National Institute of Statistics, will not fall below 740.000 persons. To these things, it must be added the volume of more than twice unregistered persons, which means a total of approx. two million persons, this being the actual estimation of the non-employed population, to which has reached in Romania today.

The effect of the Sarbanes–Oxley Act on firm productivity

2016 ◽  
Vol 9 (2) ◽  
pp. 120-142
Author(s):  
Hsihui Chang ◽  
Helen HL Choy
Keyword(s):  
Capital Investment ◽  
Negative Impact ◽  
Firm Productivity ◽  
Firm Level ◽  
Content Type ◽  
A Value ◽  
Sarbanes Oxley ◽  
Output Elasticity ◽  
Level Data

Purpose This paper aims to examine the effect of the Sarbanes–Oxley Act (SOX), which was signed by President George W. Bush and came into effect on July 30, 2002, on firm productivity. Design/methodology/approach The authors use the total factor productivity (TFP) as our measure of firm productivity. Findings Analyzing annual firm-level data from the Compustat database for the period of 1991-2006, the authors find that firm productivity increases at a higher rate in the post-SOX period. The results indicate that, although firms incur significant costs in complying with the requirements of the SOX, they also benefit from these requirements as evidenced by the improved productivity over time post-SOX. There is also a shift in the output elasticities from capital toward labor. The SOX has a positive effect on the output elasticity of labor but a negative impact on that of capital. Research limitations/implications The results have the following important implications. The SOX is a value-enhancing regulation in that it not only strengthens a firm’s corporate governance but also improves its productivity. However, compliance with the SOX can impose a long-term cost on firms: the decrease in the capital investment, leading to a decline in the output elasticity of capital. If this decline in the capital investment continues, it can have an adverse effect on firm productivity in the long term. Originality/value This paper extends the literature along the line of the actual operational effects of the SOX regulation by examining its effect on the productivity of firms.

Exporting and environmental performance: where you export matters

2022 ◽  
Author(s):  
Juan S. Blyde ◽  
Mayra A. Ramírez
Keyword(s):  
Developing Countries ◽  
High Income ◽  
Firm Level ◽  
Percentage Point Increase ◽  
Level Data ◽  
Point Increase ◽  
Firm Level Data ◽  
Micro Level ◽  
The Relationship

Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.

scholarly journals The innovation gender gap in transition countries

2021 ◽  
Author(s):  
Antonella Biscione ◽  
Dorothée Boccanfuso ◽  
Raul Caruso ◽  
Annunziata de Felice
Keyword(s):  
Transition Economies ◽  
Gender Gap ◽  
Intangible Assets ◽  
Business Environment ◽  
Transition Countries ◽  
Enterprise Performance ◽  
Firm Level ◽  
Oaxaca Decomposition ◽  
Level Data ◽  
Firm Level Data

AbstractThis paper investigates the sources of the possible gender ownership gap in innovativeness in a set of Transition economies by means of firm-level data coming from the Business Environment and Enterprise Performance Survey (BEEPS V) conducted in 2012–2014. Through the Blinder-Oaxaca decomposition we highlight the factors explaining the differences in the propensity to innovate between female-owned and male-owned firms. We find that the innovation disparity between firms with females among their owners and those having only male owners is mainly due to the differences in endowment effects. Tangible and intangible assets affect the innovation gap between the two groups of firms.

Competition and Product Innovation by Turkish Firms

2016 ◽  
pp. 469-491
Author(s):  
Fatma Nur Karaman Kabadurmus ◽  
Sajal Lahiri
Keyword(s):  
Research And Development ◽  
Linear Relationship ◽  
Product Innovation ◽  
Strong Support ◽  
Business Environment ◽  
Process Innovation ◽  
Enterprise Performance ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data

This chapter examines empirically the determinants of research and development (R&D) activities by Turkish firms. It focuses on the question of how competition affects product innovation, and not process innovation, in Turkey. In particular, we test if there is a non-linear relationship between R&D activities of a firm and the degree of competition in that industry. We use Turkish firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) and find strong support for an inverted-U relationship between the two variables.

Industry Innovations: Development versus Adaptation

2009 ◽  
pp. 125-141 ◽  
Author(s):  
K. Gonchar
Keyword(s):  
Product Innovation ◽  
International Market ◽  
Innovation Activity ◽  
Manufacturing Companies ◽  
Firm Level ◽  
Level Data ◽  
Minor Portion ◽  
Technological Standard ◽  
A Minor

The paper addresses the problem of the technological standard and innovations in Russian manufacturing companies. It is based on the most recent firm level data. The analysis shows that the industry is seriously segmented in this respect. Empirical analysis proves that the technological standard and innovations are closely linked to productivity growth and competitive stand of enterprises. In turn they depend on company size, quality of management, finances of the firm. The innovation activity is higher than expected, though only a minor portion of firms targets international market, few innovate nation-wide. We discuss that opposing technological upgrade to product innovation and adapted products to originally designed ones is misleading. In real business these processes are interrelated, happen consistently, almost always require in house development. In the end some policy advice based on the results of the study are provided.

Identifying the Peri-Urbanized Rural Areas in China: Estimation Based on Firm-level Data of the First and Second National Economic Censuses

2016 ◽  
Vol 04 (03) ◽  
pp. 1650023
Author(s):  
Yuhong LI
Keyword(s):  
Rural Areas ◽  
Firm Level ◽  
Grass Roots ◽  
Industrial Enterprises ◽  
Level Data ◽  
National Economic ◽  
Firm Level Data ◽  
Urbanization Rate ◽  
The Village

Peri-urbanized rural areas are villages in which the non-agricultural population and industries are concentrated to a certain extent but rural administration is still practiced. It is an important factor affecting the quality of China's urbanization. On the basis of clarifying the characteristics and formation mechanism of peri-urbanized areas, the paper develops a method of identifying the peri-urbanized rural areas in China that is, the number of industrial employees in the village is not less than 900 and the grass-roots organization is the village committee. It makes an estimation of the peri-urbanization rate with the firm-level data of the first and second National Economic Censuses, and finds that the distribution of industrial employment at village level in China is “scattered” and “fat tailed”. While most of the industrial enterprises in rural areas are scattered, peri-urbanized rural areas centralize more than half of the industrial employees; China's peri-urbanization level is relatively high with a growing and deepening tendency, and it is closely related to the economic development.

Sign in / Sign up

Export Citation Format

Share Document