scholarly journals Impaired Capital Reallocation and Productivity

2014 ◽  
Vol 228 ◽  
pp. R35-R48 ◽  
Author(s):  
Alina Barnett ◽  
Ben Broadbent ◽  
Adrian Chiu ◽  
Jeremy Franklin ◽  
Helen Miller
Keyword(s):  
Labour Productivity ◽  
Productivity Loss ◽  
Capital Allocation ◽  
Rates Of Return ◽  
Firm Level ◽  
Capital Movements ◽  
Level Data ◽  
Capital Reallocation ◽  
The Uk ◽  
The Relationship

The level of private sector labour productivity has been particularly weak since the start of the crisis. In this paper we explore whether impairment to capital reallocation has been contributing to this weakness. The recent increase in the dispersion of output, prices and rates of return across firms and sectors is stark, and suggests that resources have had incentives to move. Efficient allocation requires that capital moves to firms and sectors where rates of return are relatively high. And the change in capital levels across sectors has been particularly low, suggesting there has been an unusually slow process of capital reallocation since 2008 compared to previous UK recessions and other banking crises. This result is also apparent within sectors. We use a simple and general model to show that increased price dispersion can be a consequence of frictions to efficient capital allocation. And the size of this dispersion can usefully inform us about the size of the associated output and productivity loss. We then find that – using firm level data – the relationship between rates of return and subsequent capital movements has changed since the financial crisis. Overall, our results suggest that impaired capital reallocation across the UK economy is likely to have been one factor contributing to the recent weakness in productivity growth.

Does Social Media Increase Labour Productivity?

2017 ◽  
Vol 237 (2) ◽  
pp. 81-113 ◽  
Author(s):  
Miruna Sarbu
Keyword(s):  
Social Media ◽  
Customer Relationship Management ◽  
Labour Productivity ◽  
Customer Relationship ◽  
Service Firms ◽  
Firm Level ◽  
Level Data ◽  
Use Of Social Media ◽  
Media Applications ◽  
The Relationship

Abstract: Social media applications such as wikis, blogs or social networks are being increasingly applied in firms. These applications can be used for external communication and internal knowledge management. Firms can potentially increase their productivity by optimising customer relationship management, marketing, market research and project management. On the other hand, the use of social media might lead to shirking among employees and might be, in general, very time-consuming preventing employees from managing their normal workload. This might lead to a decrease of labour productivity. This paper analyses the relationship between social media applications and labour productivity using firm-level data of 907 German manufacturing and service firms. The analysis is based on a Cobb-Douglas production function. The results reveal that social media might be related to labour productivity in an negative way which points towards a suboptimal use of social media.

scholarly journals The formation of Coasean institutions to provide university knowledge for innovation: a case study and econometric evidence for Switzerland

2020 ◽  
Author(s):  
Dominique Foray ◽  
Martin Woerter
Keyword(s):  
Innovation Performance ◽  
Institutional Setting ◽  
Firm Level ◽  
General Validity ◽  
Level Data ◽  
Econometric Evidence ◽  
Innovative Products ◽  
Type Of Institution ◽  
The Relationship

Abstract “Coasean” institutions are an alternative institutional form that provides a solution to some market and coordination failures. As such they can weaken considerably the case for public subsidies in a vast range of context. They are “market-based” and an inexpensive way to address the public good issues of R&D. They are, however, a largely overlooked institutional option. Early theoretical notions emphasize the advantages of such an institutional setting, however, broader empirical evidence about their effectiveness is lacking. We apply two different empirical approaches to assess the relationship between “Coasean” institutions and the innovation performance of SMEs. In a case study, we investigate Inspire AG, a successful bottom-up, institutional invention in the spirit of a “Coasean” institution. To assess the general validity of this model, we use representative firm-level data to econometrically investigate the relationship between “Coasean” institutions and the sales share of innovative products. “Coasean” institutions are positively related with innovative sales only if the company has a sufficiently large absorptive capacity for external knowledge. This positive moderating effect of “Coasean” institutions for the innovation performance is larger for SMEs. Our empirical findings provide a strong case for policies aimed at encouraging the operation of this type of institution.

Is disposition related to momentum in Chinese market?

2015 ◽  
Vol 41 (6) ◽  
pp. 600-614 ◽  
Author(s):  
Liu Liu Kong ◽  
Min Bai ◽  
Peiming Wang
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Disposition Effect ◽  
Chinese Stock Market ◽  
Momentum Effect ◽  
Chinese Market ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
The Relationship

Purpose – The purpose of this paper is to examine whether the framework of Prospect Theory and Mental Accounting proposed by Grinblatt and Han (2005) can be applied to analyzing the relationship between the disposition effect and momentum in the Chinese stock market. Design/methodology/approach – The paper applies the methodology proposed by Grinblatt and Han (2005). Findings – Using firm-level data, with a sample period from January 1998 to June 2013, the authors find evidence that the momentum effect in the Chinese stock market is not driven by the disposition effect, contradicting the findings of Grinblatt and Han (2005) concerning the US stock market. The discrepancies in the findings between the Chinese and US stock markets are robust and independent of sample periods. Research limitations/implications – The findings suggest that Grinblatt and Han’s model may not be applicable to the Chinese stock market. This is possibly because of the regulatory differences between the two stock markets and cross-national variation in investor behavior; in particular, the short-selling prohibition in the Chinese stock market and greater reference point adaptation to unrealized gains/losses among Chinese compared to Americans. Originality/value – This study provides evidence of the inapplicability of Grinblatt and Han’s model for the Chinese stock market, and shows the differences in the relationship between disposition effect and momentum between the Chinese and US stock markets.

Firm Heterogeneity in the Choice of Offshoring: Evidence from Korean Manufacturing Firms

2010 ◽  
Vol 9 (1) ◽  
pp. 157-178 ◽  
Author(s):  
Hea-Jung Hyun
Keyword(s):  
Information And Communication Technology ◽  
Communication Technology ◽  
Firm Heterogeneity ◽  
Global Sourcing ◽  
Foreign Markets ◽  
Firm Level ◽  
Intensity Information ◽  
Level Data ◽  
Information And Communication ◽  
The Relationship

Using firm-level data on offshoring of Korean manufacturers, this paper examines the relationship between firm heterogeneity and the probability of adopting offshoring. The results of the paper suggest that firm productivity may not be an important determinant for Korean firms' offshoring decision. A firm's global sourcing decision may rather depend on other characteristics such as factor intensity, research and development (R&D) intensity, information and communication technology (ICT) level, and affiliation with foreign markets when industry specificity is controlled for.

scholarly journals Globally Trading Firms in Canada: Productivity and Global Value Chains

2021 ◽  
Vol 22 (1) ◽  
pp. 1-24
Author(s):  
Ram C. Acharya
Keyword(s):  
Economic Performance ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Global Value Chains ◽  
Value Chains ◽  
Business Sector ◽  
Firm Level ◽  
Labour Productivity Growth ◽  
Level Data ◽  
Capital Intensive

Using firm-level data in Canada from 2002 to 2008, I compare the economic performance of three types of firms: those that both export and import (called globally trading firms—GTFs), exporters-only, and importers-only. The results show that GTFs are more productive, larger, more capital intensive, pay higher wages, trade more goods, and trade with more countries than both types of one-way traders. These premia for GTFs were found even before they turned into GTFs (self-selection). Moreover, even after turning into GTFs, the productivity growth of a subset of them was faster than that of one-way traders. The higher the involvement in global value chains (GVCs), the higher was the performance of the “learning-by-turning GTFs”. The GTFs with higher productivity growth were the ones that imported from multiple countries, not those that imported only from China. By another measure, they were both-in-both GTFs—those that traded both final and intermediate goods, and in both directions (exports and imports). Even though they employed only 10% of Canada’s business sector workforce, they contributed 60% of its labour productivity growth.

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.

THE HETEROGENEOUS TAX BURDEN: EVIDENCE FROM FIRM-LEVEL DATA IN CHINA

2018 ◽  
Vol 63 (04) ◽  
pp. 1003-1035 ◽  
Author(s):  
JIANLIANG YE ◽  
XIAOHAN GUO ◽  
DEMING LUO ◽  
XIANGRONG JIN
Keyword(s):  
Opposite Effect ◽  
Value Added ◽  
Tax Burden ◽  
Eastern Region ◽  
Firm Level ◽  
Industrial Enterprises ◽  
Tax Reduction ◽  
Level Data ◽  
Policy Suggestions ◽  
The Relationship

Firms’ behaviors are not only affected by their taxation burden level, but also their differences from each other. In this paper, we use Chinese Industrial Enterprises Database (CIED) to investigate the relationship between firms’ heterogeneity of tax burden and firms’ characteristics, such as size, ownership, exportation and location. We measure a firm’s tax burden in three ways, the value-added tax (VAT) burden, the corporate income tax (CIT) burden, and the total tax burden. By using a Hausman–Taylor estimation, we find: (1) The CIT burden is positively correlated to the size, while other two tax burdens are not; (2) Both the VAT burden and the total tax burden of SOEs are significantly heavier than those of non-SOEs, while the CIT burden shows the exactly opposite effect; (3) Exporters have a remarkably lower tax burden than non-exporters for all three tax burden measures; and (4) The western region and particularly the central region have lighter tax burden than the eastern region for all three tax burden measures. We also provide empirical evidence and policy suggestions for continuing to proceed with the structural tax reduction and the structural fiscal reform in China.

scholarly journals Differential effects of ethnic density on the risk of postnatal depression and personality dysfunction

2016 ◽  
Vol 208 (1) ◽  
pp. 49-55 ◽  
Author(s):  
Andrea Du Preez ◽  
Susan Conroy ◽  
Susan Pawlby ◽  
Paul Moran ◽  
Carmine M. Pariante
Keyword(s):  
Postnatal Depression ◽  
White Women ◽  
Relationship Status ◽  
Ethnic Density ◽  
Level Data ◽  
Personality Dysfunction ◽  
Postnatal Women ◽  
Geographical Clustering ◽  
The Uk ◽  
The Relationship

BackgroundThe relationship between ethnic density and psychiatric disorder in postnatal women in the UK is unclear.AimsTo examine the effect of own and overall ethnic density on postnatal depression (PND) and personality dysfunction.MethodMultilevel analysis of ethnically mixed community-level data gathered from a sample of 2262 mothers screened at 6 weeks postpartum for PND and personality dysfunction.ResultsLiving in areas of higher own ethnic density was protective against screening positive for PND in White women (z =–3.18, P = 0.001), even after adjusting for area level deprivation, maternal age, relationship status, screening positive for personality dysfunction, parity and geographical clustering (odds ratio (OR) 0.98 (95% CI 0.96–0.99); P = 0.002), whereas the effect on personality dysfunction (z =–2.42, P = 0.016) was no longer present once the effect of PND was taken into account (OR = 0.99 (95% CI 0.90–1.0); P = 0.13). No overall ethnic density effect was found for women screening positive for PND or personality dysfunction.ConclusionsIn White women, living in areas of higher own ethnic density was protective against developing PND.

scholarly journals Exceptional performance of multinational suppliers: theory and evidence

2020 ◽  
Author(s):  
Van Pham ◽  
Alan Woodland ◽  
Mauro Caselli
Keyword(s):  
Empirical Analysis ◽  
Direct Investment ◽  
Labour Productivity ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Ex Ante ◽  
Theoretical Predictions ◽  
Set Up ◽  
The Empirical Analysis

AbstractThis paper focuses on an unexamined area of trade—the behaviour of heterogeneous intermediate suppliers facing final producers of different ability and pursuing different strategies. To inform our empirical analysis, we develop a theoretical model to analyse the choice of an intermediate supplier between selling to domestic producers, selling to multinational producers and/or exporting to foreign producers. The model’s predictions are: (i) sufficiently productive firms self-select into supplying to multinationals or exporting, while the most productive firms pursue both strategies, and (ii) the order of preferred strategies between supplying to multinationals and exporting depends on foreign direct investment inflows and export set-up costs. The paper uses firm-level data with rare information about multinational suppliers from 29 countries in Europe and Central Asia in 2002 and 2005 to test these theoretical predictions. The empirical analysis confirms both of our model’s predictions. Moreover, it suggests that multinational suppliers are more likely to have higher required levels of ex-ante labour productivity than exporters, implying that exporting is easier and a more popular choice for firms.

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