Efficiency and Its Determinants: Panel Data Evidence from the Indian Pharmaceutical Industry

2018 ◽  
Vol 12 (1) ◽  
pp. 19-40 ◽  
Author(s):  
Varun Mahajan ◽  
D. K. Nauriyal ◽  
S. P. Singh
Keyword(s):  
Small Firms ◽  
Negative Impact ◽  
Pharmaceutical Products ◽  
Jel Classification ◽  
Policy Implications ◽  
Technology Investment ◽  
Pharmaceutical Firms ◽  
Marketing Activities ◽  
Future Policy ◽  
Investment In Fixed Assets

The study determines the efficiency of Indian pharmaceutical firms and its determinants in the pre- and post-product patent regime. Overall inefficiency in the industry is higher due to the inefficient conversion of inputs into output rather than through scale inefficiency. The study finds that the Product Patent Act has a negative impact on efficiency. Ownership, capital imports intensity and size variables are positively related with efficiency scores whereas age, time dummy and size square variables are inversely related. The study supports the finding that with an increase in mergers and acquisitions, a movement towards diversifying operations, the use of advanced imported foreign technology, investment in fixed assets and judicious allocation of resources for marketing activities could improve firm performance. For future policy implications, the small firms may either merge into bigger entities or manufacture pharmaceutical products for other companies, so as to raise operational scale and improve capacity utilisation. JEL Classification: C02, C61, D2, L65

Using the R&D capitalisation choice to explain the scale benefits of R&D investment

2020 ◽  
Vol 45 (4) ◽  
pp. 579-606
Author(s):  
Hai Wu ◽  
Anne-Maree Thomas ◽  
Sue Wright
Keyword(s):  
Comparative Advantage ◽  
Small Firms ◽  
Tax Incentives ◽  
Jel Classification ◽  
Policy Implications ◽  
Large Firms ◽  
Accounting Choice ◽  
D Investment

This paper helps explain a ‘puzzle’ about the scale benefits of R&D investment: although larger firms are less efficient innovators, they spend more on R&D investment and earn more from R&D investment. We find evidence suggesting that large firms enjoy a comparative advantage investing in R&D projects with less chance of success, although they do not experience such scale benefits from R&D investments with more chance of success. We capture managers’ evaluation of the chance of success of an R&D investment using an accounting choice to capitalise or expense the R&D investment. Our results have policy implications for the design of efficient and equitable allocations of R&D tax incentives between large and small firms, and for the usefulness to investors of allowing discretion in the accounting treatment of R&D expenditures. JEL Classification: M41, M48

How Informal Sector Affects the Formal Economy in Pakistan? A Lesson for Developing Countries

2020 ◽  
Vol 9 (1) ◽  
pp. 7-21
Author(s):  
Khurrum S. Mughal ◽  
Friedrich G. Schneider
Keyword(s):  
Informal Sector ◽  
Policy Design ◽  
Negative Impact ◽  
Jel Classification ◽  
Policy Implications ◽  
Formal Sector ◽  
Bounds Testing ◽  
Dynamic Simulations ◽  
Distributed Lag ◽  
Formal Economy

We explore the interaction of the informal sector with the formal economy for a developing economy, that is, Pakistan. Estimation results are obtained via autoregressive distributed lag (ARDL) bounds testing approach, which show a significantly positive effect of the informal sector in the long run whereas a negative impact of informal sector is found in the short run. We also present dynamic simulations to show the effect/contribution in terms of revised GDP per capita if the informal sector is accounted for in official statistics. The novelty of results is the varying effects of the informal sector across two time horizons that can have serious policy implications for developing and transition economies with large informal sectors. Although, the findings of this article enrich our understanding on the behaviour of the informal sector, they further fuel the debate associated with eradication of the informal sector. Efforts to curb informal activities may burden the low-skilled workforce in this sector and increase corruption opportunities in bureaucracy in the absence of institutional reforms. On the contrary, it makes the formal sector policy design and implementation a challenging task. JEL Classification: E26, H26, K42, O17

scholarly journals Associations between labour market policies and work stressors

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
T Lunau ◽  
M Rigó
Keyword(s):  
Labour Market ◽  
Working Conditions ◽  
Job Strain ◽  
Negative Impact ◽  
Policy Implications ◽  
Psychosocial Work ◽  
Work Stressors ◽  
Labour Market Policies ◽  
Psychosocial Working Conditions ◽  
European Working

Abstract Background Many studies have shown that psychosocial work stressors have a negative impact on health. It is therefore important to understand how psychosocial work stressors can be reduced. First cross-sectional studies have shown that working conditions are influenced at the political level. With this study, we want to extend the existing studies by specifically looking at the longitudinal dimension and test if changing labour market policies are related to changes in psychosocial work stressors. Methods We used comparative longitudinal survey data from the European Working Conditions Survey (27 countries; years 2005, 2010, 2015). The measure of psychosocial work stressors is based on two established work stress models: job strain and effort-reward imbalance. To measure labour market policies we used information on active (ALMP) and passive labour market policies (PLMP). 64659 participants were eligible for the ERI analysis and 67114 participants for the analyses on job strain. Estimation results are provided by three-level multilevel regressions. Results An increase in ALMP investments lead to a decrease of ERI and therefore to an improvement in psychosocial working conditions. The analyses for the subcomponents showed that these results are mainly driven by reward: an increase in ALMP investments lead to an increase in rewards. We didn't find significant associations between ALMP and job strain and between a change in PLMP measures and the observed work stressors. Discussion The study extends current knowledge with longitudinal information by showing that an increase in ALMP lead to an increase in rewards and a decrease of ERI. These longitudinal analyses are more closely related to a causal interpretation than previous cross-country analyses. The findings of this study may have important policy implications. Our main result suggests that investments into ALMP can improve certain working conditions and therefore improve workers' health. Key messages Psychosocial work stressors have a negative impact on health. Investments into active labour market policies can improve psychosocial working conditions.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

The Psychological and Financial Impact of Cybercrime Victimization: A Novel Application of the Shattered Assumptions Theory

2021 ◽  
pp. 089443932098382
Author(s):  
Jildau Borwell ◽  
Jurjen Jansen ◽  
Wouter Stol
Keyword(s):  
Negative Impact ◽  
Secondary Analysis ◽  
Well Being ◽  
Policy Implications ◽  
Financial Impact ◽  
Financial Loss ◽  
Data Set ◽  
Loss Compensation ◽  
Shattered Assumptions ◽  
The Impact

While criminality is digitizing, a theory-based understanding of the impact of cybercrime on victims is lacking. Therefore, this study addresses the psychological and financial impact of cybercrime on victims, applying the shattered assumptions theory (SAT) to predict that impact. A secondary analysis was performed on a representative data set of Dutch citizens ( N = 33,702), exploring the psychological and financial impact for different groups of cybercrime victims. The results showed a higher negative impact on emotional well-being for victims of person-centered cybercrime, victims for whom the offender was an acquaintance, and victims whose financial loss was not compensated and a lower negative impact on emotional well-being for victims with a higher income. The study led to novel scientific insights and showed the applicability of the SAT for developing hypotheses about cybercrime victimization impact. In this study, most hypotheses had to be rejected, leading to the conclusion that more work has to be done to test the applicability of the SAT in the field of cybercrime. Furthermore, policy implications were identified considering the prioritization of and approach to specific cybercrimes, treatment of victims, and financial loss compensation.

The Determinants of Poverty: Case of Indonesia

2017 ◽  
Vol 5 (3) ◽  
pp. 58-68
Author(s):  
Lilik Sugiharti ◽  
Martha Ranggi Primanthi
Keyword(s):  
Rural Area ◽  
Poverty Reduction ◽  
Jel Classification ◽  
Policy Implications ◽  
Education Attainment ◽  
Education Access ◽  
Logit Regression ◽  
Rural And Urban ◽  
Poor Households ◽  
Logit Regression Model

Objective - The objectives of the study were to analyze the general picture of poverty, and determinants of poverty in Indonesia. Understanding poverty characteristic is a main point for designing an effective poverty reduction strategy. During the last five years Indonesia has experienced a slowing down growth and the poverty rates has declined slightly. Some provinces or regions have managed to reduce the poverty well, while others have been slower, and also the distribution of the poor is uneven across both rural and urban, generally the rural is more than urban area. Methodology/Technique - Factors determining poverty of households were estimated and anayzed using a logit regression model, and it is found that such demographic factors as gender and age of households head, size of households, factors of production included accessibility to the technology and credit, working status, and education attainment, and also geographic characteristics significantly explain reasons for being poor. Moreover, increasing for accessibility of households to the technology and credit, reducing the size of households, and increasing an education attainment especially in rural area are important to do as a government priority intervention. Findings - The results of the determinants of poverty in Indonesia shows that poor households are those with large number of dependents and equipped with limited education access, and the majority of these households live in rural area. Novelty - Study suggests that increasing for accessibility of households to the technology and credit, reducing the size of households, and increasing an education attainment especially in rural area are important to do as a government priority intervention or policy implications. Type of Paper: Empirical Keywords: Logit Regression; Poverty Reduction, Indonesia. JEL Classification: I21, I22, I24.

scholarly journals Impact of Working Capital Management on Corporate Profitability- Empirical Evidence from Pharmaceutical Industry of Bangladesh

2018 ◽  
Vol 10 (9) ◽  
pp. 136
Author(s):  
Rakibul Islam ◽  
Mohammad Emdad Hossain ◽  
Mohammad Nazmul Hoq ◽  
Md. Morshedul Alam
Keyword(s):  
Regression Analysis ◽  
Correlation Matrix ◽  
Negative Impact ◽  
Pearson Correlation ◽  
Capital Management ◽  
Working Capital ◽  
Data Set ◽  
Working Capital Management ◽  
Pharmaceutical Firms ◽  
The Impact

Working capital management plays centric role in enhancing operational efficiency and their ultimate profitability. Globally financial managers have been searching the proper way on how to utilize working capital components which prolong profitability. The purpose of this study is to assess the impact of working capital components on profitability indicators of selected pharmaceutical firms in Bangladesh. The paper used financial data of 9 pharmaceutical firms listed in Dhaka stock exchange (DSE) covered 2011-2015. Two methods were used in this study for analysis data set. Firstly, to measure the relationship between selected variables Pearson Correlation matrix was used. Secondly, multiple regression analysis was used to investigate the impact working capital components on profitability of selected pharmaceutical firms. The study also conducted Durbin Watson test to assess autocorrelation of selected variables. In this study the correlation matrix identified a negative correlation between working capital components and profitability, whereas regression analysis found number of days account receivable (AR) had significant positive and current ratio (CR) and debt ratio (DR) had appeared a significant negative impact on profitability.

scholarly journals Policies, economic incentives and the adoption of modern irrigation technology in China

2015 ◽  
Vol 6 (2) ◽  
pp. 399-410 ◽  
Author(s):  
R. Cremades ◽  
J. Wang ◽  
J. Morris
Keyword(s):  
Agricultural Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Economic Incentives ◽  
Policy Implications ◽  
Irrigation Efficiency ◽  
Community Based ◽  
Data Set ◽  
Irrigation Technology ◽  
Governmental Support

Abstract. The challenges China faces in terms of water availability in the agricultural sector are exacerbated by the sector's low irrigation efficiency. To increase irrigation efficiency, promoting modern irrigation technology has been emphasized by policy makers in the country. The overall goal of this paper is to understand the effect of governmental support and economic incentives on the adoption of modern irrigation technology in China, with a focus on household-based irrigation technology and community-based irrigation technology. Based on a unique data set collected at household and village levels from seven provinces, the results indicated that household-based irrigation technology has become noticeable in almost every Chinese village. In contrast, only about half of Chinese villages have adopted community-based irrigation technology. Despite the relatively high adoption level of household-based irrigation technology at the village level, its actual adoption in crop sown areas was not high, even lower for community-based irrigation technology. The econometric analysis results revealed that governmental support instruments like subsidies and extension services policies have played an important role in promoting the adoption of modern irrigation technology. Strikingly, the present irrigation pricing policy has played a significant but contradictory role in promoting the adoption of different types of modern irrigation technology. Irrigation pricing showed a positive impact on household-based irrigation technology, and a negative impact on community-based irrigation technology, possibly related to the substitution effect that is, the higher rate of adoption of household-based irrigation technology leads to lower incentives for investment in community-based irrigation technology. The paper finally concludes and discusses some policy implications.

Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry

2014 ◽  
Vol 14 (03n04) ◽  
pp. 467-485 ◽  
Author(s):  
Lionel Bopage ◽  
Kishor Sharma
Keyword(s):  
Trade Liberalization ◽  
Productivity Growth ◽  
Economies Of Scale ◽  
Motor Vehicle ◽  
Negative Impact ◽  
Policy Implications ◽  
Tariff Protection ◽  
Ongoing Debate ◽  
Motor Vehicle Industry ◽  
Production Subsidies

This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

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