Impact of Trade Liberalisation on Technical Efficiency of Vietnamese Manufacturing Firms

2011 ◽  
Vol 16 (3) ◽  
pp. 265-284 ◽  
Author(s):  
Son Ngoc Chu ◽  
Kaliappa Kalirajan
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Technical Efficiency ◽  
Policy Implication ◽  
Manufacturing Firms ◽  
Trade Liberalisation ◽  
Firm Level ◽  
Potential Output ◽  
Long Run ◽  
Unskilled Labour

This study has examined whether trade liberalisation facilitated manufacturing firms in Vietnam to realise their production potentials fully using firm-level balanced panel data over the period 2000ȓ03. The fi ndings support the theoretical implications of the positive and robust impact of trade liberalisation on firm performance. The study reveals that while more trade liberalisation is conducive to better firm performance, increasing the share of skilled labour is the key for firms to achieve higher potential output in the long-run rather than using more unskilled labour, which is relatively more abundant in Vietnam. The policy implication is that more attention should be paid by policymakers to provide incentives and support for firms to facilitate upgrading the skills of their workers through different means such as on-the-job training.

scholarly journals Effect of Work–Life Balance Practices on Firm Productivity: Evidence from Japanese Firm-Level Panel Data

2014 ◽  
Vol 14 (4) ◽  
pp. 1677-1708 ◽  
Author(s):  
Isamu Yamamoto ◽  
Toshiyuki Matsuura
Keyword(s):  
Panel Data ◽  
Firm Heterogeneity ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Life Balance ◽  
Firing Costs ◽  
Japanese Firms ◽  
Long Run ◽  
Human Skills ◽  
Labor Hoarding

Abstract This article examines how firm practices that could contribute to worker attainment of work–life balance (WLB) affect the total factor productivity (TFP) of a firm, by using panel data of Japanese firms from the 1990s. We observed a positive correlation between the WLB practices and TFP among sampled firms. However that correlation vanished when we controlled for the unobserved firm heterogeneity, and we found no general causal relationship in which WLB practices increase firm TFP in the medium or long run. For firms with the following characteristics, however, we found positive and sizable effects: large firms, manufacturing firms, and firms that have exhibited labor hoarding during recessions. Since these firms are likely to incur large fixed employment costs, we infer that firms investing in firm-specific human skills or having large hiring/firing costs can benefit from WLB practices through a decrease in turnover or increase in recruiting effectiveness.

scholarly journals Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 1689 ◽  
Author(s):  
Vanja Grozdić ◽  
Branislav Marić ◽  
Mladen Radišić ◽  
Jarmila Šebestová ◽  
Marcin Lis
Keyword(s):  
Data Analysis ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Manufacturing Firms ◽  
Capital Investments ◽  
Short Term ◽  
Term Performance

The main goal of this study was to examine the effects of capital investments on firm performance, using panel-data analysis. For this purpose, financial data were gathered for 60 manufacturing firms based in Serbia, in the period from 2004 to 2016. The main research hypotheses were developed in accordance with the definition, nature, and time aspect of capital investments. Therefore, empirical expectation of this study was that the relationship between capital investments and firm performance should be positive—they probably bring losses to the firm in the short term, but they should increase firm performance in the long term. Finally, the results have indeed shown that capital investments have statistically significant negative effect on the short-term performance, but positive effect on the long-term performance of the analyzed firms, while controlling for time-fixed effects and certain internal factors.

Size-Competition-Productivity Nexus: Evidence from Indian Manufacturing Firms

2019 ◽  
Vol 20 (2) ◽  
pp. 303-321
Author(s):  
Lopamudra D. Satpathy ◽  
Bikash Ranjan Mishra
Keyword(s):  
Firm Size ◽  
Market Competition ◽  
Value Added ◽  
Product Market ◽  
Manufacturing Firms ◽  
Product Market Competition ◽  
Causality Test ◽  
Firm Level ◽  
Panel Ardl ◽  
Long Run

Over the years, researches have witnessed incongruence nature and direction of relationship among product market competition and firm size with the growth of firms’ productivity across the globe. Considering these gaps, this study aims to establish both short- and long-run relationships among these three characteristics of Indian manufacturing firms and intends to find their directions of causalities. This study uses firm-level data over a period of 1998–1999 to 2012–2013. Using Panel ARDL-PMG method, the results reveal the existence of a long-run association among product market competition, firm size and productivity growth for the full sample and for subsamples, categorizing relatively efficient and inefficient firms, and innovative and non-innovative firms. From the panel VECM Granger causality test, it has been observed that there is the long-run feedback relationship among these three variables. The empirical evidence suggests that as the intensity of competition becomes stronger and the firm-specific capabilities expand, they impart improved productivity via within and between firm effects. This draws some major implications for policymakers to embrace more competitive prone policies along with encouragement to firm specificities to realise value-added productivity. JEL: C33, D24, L11, L60

Innovation inputs and efficiency: manufacturing firms in Sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
pp. 59-83 ◽  
Author(s):  
Laura Barasa ◽  
Patrick Vermeulen ◽  
Joris Knoben ◽  
Bethuel Kinyanjui ◽  
Peter Kimuyu
Keyword(s):  
Technical Efficiency ◽  
Absorptive Capacity ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Foreign Technology ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Efficiency Effects

Purpose Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa. Design/methodology/approach This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms. Findings This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency. Practical implications This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa. Originality/value This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

scholarly journals Exploring the Relationship between Financial Distress, Financial Flexibility, and Firm Performance: Empirical Evidence from Pakistan Stock Exchange

2018 ◽  
pp. 1-16
Author(s):  
Yasin Mahmood ◽  
Muhammad Faisal Rizwan ◽  
Abdul Rashid
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Financial Distress ◽  
Stock Exchange ◽  
Z Score ◽  
Firm Level ◽  
Financial Flexibility ◽  
Corporate Managers ◽  
And Performance ◽  
The Impact

Purpose– This main purpose of this paper is to empirically investigate the impact of corporate financial flexibility (FF) on financial distress and performance of firms listed on the Pakistan Stock Exchange (PSX). It enables to know how financial flexibility affects the firm financial strength, financial distress, and corporate performance. Design/methodology/approach –This study focuses on a firm level data of 192 non-financial firms covering the period 1992 - 2014. The fixed effect model logistic regression is applied by using unbalanced panel data to examine the impact of financial flexibility on financial distress, and performance of sample firms. Findings – The results reveal that financially flexible firms are less likely to face financial distress. As firms have more financial flexibility, the probability of financial distress decreases as well. It is also found that financially flexible firms are more likely to perform well than counterpart firms. By using the Altman z score as a measure of financial distress it is revealed that as the Altman z score increases, the chances of financial distress reduce as well. These findings also suggest the existence of pecking order in Pakistani firms; because firms rely on internal sources first, second go to external sources of financing. Practical implications – the findings of this study enable the corporate managers to avoid financial distress by obtaining and maintaining financial flexibility by keeping the leverage level lower than industry level. By attaining and maintaining financial flexibility, corporate managers can also raise the performance of the firm as well. It can also enable to make appropriate capital structure decision to finance managers of corporate firms. The creditors may provide the loan to sound firms who have no or least chances of financial distress. The lenders may also get benefit from it by requiring the interest rate as per risk of financial distress of the firm. Investors may avoid investing in firms having very little or no financial flexibility. JEL Classification– G33, L25 Keywords: Altman z score, financial flexibility, firm performance, return on asset, panel data, financial distress, modified z score.

Complementarities between Employee Involvement and Financial Participation

ILR Review ◽  
2016 ◽  
Vol 70 (2) ◽  
pp. 395-418 ◽  
Author(s):  
Derek C. Jones ◽  
Panu Kalmi ◽  
Takao Kato ◽  
Mikko Mäkinen
Keyword(s):  
Decision Making ◽  
Firm Performance ◽  
Panel Data ◽  
Analytical Methods ◽  
Employee Involvement ◽  
Institutional Context ◽  
Manufacturing Firms ◽  
Cross Sectional ◽  
Financial Participation

The authors investigate whether productivity is greater if firms use employee involvement (EI) in decision making and financial participation (FP) as complementary practices. Based on representative panel data from Finnish manufacturing firms, the study uses diverse specifications to examine different theoretical explanations of the productivity effects of complementarities. The authors find virtually no evidence to support the theory of complementarities when EI and FP are simply measured by their incidence. They do find some evidence for complementarities using cross-sectional data (controlling for several covariates that related work has found to be important for firm performance) and also when analyses use measures of the intensity of FP. In accounting for differences in empirical findings across varying settings, the findings suggest that outcomes depend on the institutional context and are sensitive to variation in measurement and analytical methods.

Temporary Agency Work and Firm Performance: A Replication Study with Extensions

2020 ◽  
Vol 240 (4) ◽  
pp. 455-465
Author(s):  
Christian Pfeifer ◽  
John P. Weche
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Industrial Relations ◽  
Manufacturing Firms ◽  
Labor Costs ◽  
Productivity Effect ◽  
Temporary Agency Work ◽  
New Finding ◽  
Unit Labor Costs ◽  
Economic Journal

AbstractThe authors analyze the nexus between temporary agency work (TAW) and firm performance. Compared to Hirsch and Mueller (2012, The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data. Economic Journal 122 (562): F216-F235) and Nielen and Schiersch (2014, Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms. Industrial Relations 53: 365–393), the authors support a concave relationship between the TAW share and productivity, but find a convex relationship between the TAW share and unit labor costs, instead of a u-shape. Moreover, a new finding is that the correlation between the TAW share and profitability is only moderate.

scholarly journals The Effects of Power Outages on the Performance of Manufacturing Firms in the MENA Region

2020 ◽  
Vol 16 (3) ◽  
Author(s):  
Ali Fakih ◽  
Pascal Ghazalian ◽  
Nancy Ghazzawi
Keyword(s):  
Firm Performance ◽  
North Africa ◽  
Manufacturing Firms ◽  
Power Outages ◽  
Mena Region ◽  
Firm Level ◽  
Perceived Severity ◽  
The World ◽  
Enterprise Surveys ◽  
Economic Regions

AbstractPower supply in developing countries is often characterized by unreliability and inefficiency, resulting in disruption costs for operating firms. The extents of power outages in the Middle East and North Africa (MENA) region are more significant compared to other geo-economic regions. This paper examines the effects of power outages on the performance of manufacturing firms in the MENA region using a firm-level dataset derived from the World Bank’s Enterprise Surveys (WBES) database. Firm performance is represented by sales, employment, and productivity growth rates. The extents of power outages are depicted by objective measures characterizing durations and frequencies of power outages, and by perception-based measures reflecting firms’ perceived severity of power outages. The results emphasize the adverse consequences of power outages for the performance of manufacturing firms in the MENA region. They also suggest that different patterns of power outages have varying implications for firm performance, and that the effects of power outages exhibit variations with firm size.

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