scholarly journals On the Estimation of Cross-Firm Productivity Spillovers with an Application to FDI

2021 ◽  
pp. 1-46
Author(s):  
Emir Malikov ◽  
Shunan Zhao
Keyword(s):  
Spillover Effects ◽  
Empirical Approach ◽  
Firm Productivity ◽  
Productivity Spillovers ◽  
Proxy Variable ◽  
Electric Machinery ◽  
Machinery Manufacturing

Abstract We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover effects between firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firmproductivity across the estimation steps. Instead, we explicitly accommodate crosssectional dependence in productivity induced by spillovers which facilitates identification of both the productivity and spillover effects therein simultaneously. We apply our model to study cross-firm spillovers in China's electric machinery manufacturing, with a particular focus on productivity effects of inbound FDI.

scholarly journals Clustering and firm productivity spillovers in Indonesian manufacturing

Heliyon ◽  
2021 ◽  
Vol 7 (3) ◽  
pp. e06504
Author(s):  
Suyanto Suyanto ◽  
Yenny Sugiarti ◽  
Idfi Setyaningrum
Keyword(s):  
Firm Productivity ◽  
Productivity Spillovers

scholarly journals Effect of regional skill gaps and skill shortages on firm productivity

2019 ◽  
Vol 52 (5) ◽  
pp. 933-952 ◽  
Author(s):  
David Morris ◽  
Enrico Vanino ◽  
Carlo Corradini
Keyword(s):  
Spillover Effects ◽  
Firm Productivity ◽  
Negative Effects ◽  
Firm Level ◽  
Regional Productivity ◽  
Data Set ◽  
Industrial Sectors ◽  
Skill Gaps ◽  
The Impact ◽  
Skill Shortages

This paper contributes to the literature on regional productivity, complementing previous education and skill-level perspectives with a novel approach analysing the impact of regional skill gaps and skill shortages. This allows us to reflect the idiosyncratic needs of the regional economic structure better, considering both the demand and supply side of the skills equation in localised labour markets. Controlling for unobserved time-invariant firm-level heterogeneity and other region–industry effects across a longitudinal data set for the period 2008–2014, our analysis reveals a negative direct effect of skill shortages on firm productivity. We further find negative spillover effects for both skill gaps and skill shortages in related industries and proximate regions. Results are also shown to be heterogeneous with respect to agglomeration levels and industrial sectors. Stronger negative effects are found in industries defined by a knowledge-intensive skill base, pointing to the loss of learning effects in the presence of skill deficiencies. Conversely, agglomeration effects appear to moderate the impact of skill deficiencies through more efficient matching in the local labour market. The findings presented thus suggest that policies aimed at improving productivity and addressing the increasing regional productivity divide cannot be reduced to a simple space-neutral support for higher education and skill levels but need to recognise explicitly the presence and characteristics of place-specific skills gaps and shortages.

Technological spillovers in space and firm productivity: Evidence from China’s electric apparatus industry

Urban Studies ◽  
2017 ◽  
Vol 55 (11) ◽  
pp. 2522-2541 ◽  
Author(s):  
Ming He ◽  
Yang Chen ◽  
Ron Schramm
Keyword(s):  
Service Sector ◽  
Market Competition ◽  
Spillover Effects ◽  
Spatial Distance ◽  
Firm Productivity ◽  
Border Effect ◽  
Long Distance ◽  
Technological Spillovers ◽  
Spatial Spillovers ◽  
Spatial Autoregressive

Using a spatial econometric model this article studies the determinants and spatial spillovers of firm productivity in China’s electric apparatus industry over the period of 1999–2007. We apply Kelejian’s FE-2SLS procedure to a higher-order spatial autoregressive model and estimate the spatial dependence of firm-level TFP within and across regional borders. The model demonstrates positive and significant intra-regional technological spillovers among firms. It also provides direct evidence that technological spillovers attenuate rapidly in spatial distance. We find that firm productivity benefits from own R&D and export activities, employment density, market competition and public expenditure. Further analyses show that the strength of spillover effects is affected by a broad range of factors, including the surface area of the region, administration type, border effect, transport and ICT infrastructure, FDI intensity, the financial sector, the utility service sector, and human capital. Factors that facilitate long-distance economic connections in general make inter-regional spillovers stronger but intra-regional spillovers weaker.

Outward FDI and productivity spillovers in China: an industrial perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usman Ali ◽  
Yanxi Li ◽  
Jian-Jun Wang ◽  
Zhen Chen
Keyword(s):  
Productivity Growth ◽  
Spillover Effects ◽  
Business Practices ◽  
Outward Fdi ◽  
Productivity Spillovers ◽  
Content Type ◽  
Industrial Sectors ◽  
Ex Post ◽  
The Government ◽  
Industrial Level

PurposePrior research demonstrated that China's Outward FDI (OFDI) is aimed at sustaining long-term economic growth by promoting industrialization and technological upgrading in the country. However, empirical evidence on the effectiveness of this strategy remains scarce. This study intends to fill this gap by exploiting endogenous changes in industrial productivity stemming from OFDI to examine if China's new strategy to spur OFDI is economically beneficial for the industries involved.Design/methodology/approachThe authors employed the two-step system-GMM and pooled mean group approaches on a panel dataset of 18 Chinese industries over the 2004–2017 period. The industrial sectors are further classified into the state dominated and non-state dominated ones to evaluate whether the productivity growth impact of OFDI varies by the level of ownership structure. Besides, the dataset is further decomposed into the ex ante and ex-post BRI era to test if this initiative has altered the underlying relationship.FindingsThe results provide robust evidence that China's OFDI through reverse spillover effects promotes productivity growth in the domestic industries, and such productivity gains are greater for the non-state dominated industries, and the OFDI in the BRI era. The findings suggest that OFDI can act as a catch-up strategy to release excess capacity and acquire technology and smart business practices.Originality/valueThis study is the first attempt to highlight the reverse productivity spillovers associated with OFDI at the industrial level. The study's findings guide the government officials and the practitioners of foreign investment to better understand the implications of their investment projects in terms of technology improvements and to optimize market opportunities.

Research on Transformation Engineering BOM into Manufacturing BOM Based on BOP

2007 ◽  
Vol 10-12 ◽  
pp. 99-103 ◽  
Author(s):  
H.C. Xu ◽  
X.F. Xu ◽  
T. He
Keyword(s):  
Production Management ◽  
Transformation Method ◽  
Planning System ◽  
Design System ◽  
Lead Times ◽  
Transformation Rules ◽  
System A ◽  
Electric Machinery ◽  
Formal Definitions ◽  
Machinery Manufacturing

In the production management as well as in the information technology that supports it, automatically transforming engineering BOM(EBOM) into manufacturing BOM(MBOM) is the key problem of integrating product design system with production planning system. A method of quickly, accurately and automatically transforming EBOM into MBOM based on the bill of process(BOP) is developed. The strict formal definitions of EBOM, MBOM, BOP and the transformation rules of product structures, lead-times and process routines are presented. Based on those, an algorithm of automatically transforming EBOM into MBOM is proposed. Finally, a case from practice of this transformation method in an electric machinery manufacturing enterprise indicates its effectiveness and feasibility.

Foreign Direct Investment (FDI), Productivity Spillovers and the Role of Small and Medium Enterprises (SMEs) Financing: An Overview

2014 ◽  
Vol 05 (03) ◽  
pp. 1403002 ◽  
Author(s):  
Khee Giap Tan ◽  
Kong Yam Tan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Spillover Effects ◽  
Productivity Spillovers ◽  
Fdi Spillovers ◽  
Medium Enterprises ◽  
The Impact

There is a large literature dealing with the spillover effects of foreign direct investment (FDI) flows to emerging and developing economies at the aggregate level. Beyond the aggregate impacts, a growing number of studies also examine the impact of FDI spillovers on firms of different sizes, especially small and medium enterprises (SMEs). This special issue of the journal of International Commerce, Economics and Policy (JICEP) features seven empirical papers dedicated to exploring issues relating to the various interactions between FDI flows, productivity spillovers and SMEs in Asia and beyond.

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