scholarly journals Finance and Misallocation: Evidence from Plant-Level Data

2014 ◽  
Vol 104 (2) ◽  
pp. 422-458 ◽  
Author(s):  
Virgiliu Midrigan ◽  
Daniel Yi Xu
Keyword(s):  
Technology Adoption ◽  
Total Factor Productivity ◽  
Financial Frictions ◽  
Factor Productivity ◽  
Productivity Losses ◽  
Level Data ◽  
Adoption Decisions ◽  
Low Levels ◽  
Plant Level

We use producer-level data to evaluate the role of financial frictions in determining total factor productivity (TFP). We study a model of establishment dynamics in which financial frictions reduce TFP through two channels. First, finance frictions distort entry and technology adoption decisions. Second, finance frictions generate dispersion in the returns to capital across existing producers and thus productivity losses from misallocation. Parameterizations of our model consistent with the data imply fairly small losses from misallocation, but potentially sizable losses from inefficiently low levels of entry and technology adoption. (JEL E32, E44, F41, G32, L60, O33, O47)

scholarly journals The Decline of British Manufacturing, 1973–2012: The Role of Total Factor Productivity

2019 ◽  
Vol 247 ◽  
pp. R19-R31 ◽  
Author(s):  
Richard Harris ◽  
John Moffat
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Intangible Assets ◽  
Factor Productivity ◽  
Tfp Growth ◽  
Manufacturing Productivity ◽  
Plant Level

This paper uses plant-level estimates of total factor productivity covering 40 years to examine what role, if any, productivity has played in the decline of output share and employment in British manufacturing. The results show that TFP growth in British manufacturing was negative between 1973 and 1982, marginally positive between 1982 and 1994 and strongly positive between 1994 and 2012. Poor TFP performance therefore does not appear to be the main cause of the decline of UK manufacturing. Productivity growth decompositions show that, in the latter period, the largest contributions to TFP growth come from foreign-owned plants, industries that are heavily involved in trade, and industries with high levels of intangible assets.

scholarly journals Proximity and Investment: Evidence from Plant-Level Data *

2013 ◽  
Vol 128 (2) ◽  
pp. 861-915 ◽  
Author(s):  
Xavier Giroud
Keyword(s):  
Travel Time ◽  
Total Factor Productivity ◽  
Extensive Margin ◽  
Sample Period ◽  
Factor Productivity ◽  
Firm Level ◽  
Level Data ◽  
Plant Level

Abstract Proximity to plants makes it easier for headquarters to monitor and acquire information about plants. In this article, I estimate the effects of headquarters’ proximity to plants on plant-level investment and productivity. Using the introduction of new airline routes as a source of exogenous variation in proximity, I find that new airline routes that reduce the travel time between headquarters and plants lead to an increase in plant-level investment of 8% to 9% and an increase in plants’ total factor productivity of 1.3% to 1.4%. The results are robust when I control for local and firm-level shocks that could potentially drive the introduction of new airline routes, when I consider only new airline routes that are the outcome of a merger between two airlines or the opening of a new hub, and when I consider only indirect flights where either the last leg of the flight (involving the plant’s home airport) or the first leg of the flight (involving headquarters’ home airport) remains unchanged. Moreover, the results are stronger in the earlier years of the sample period and for firms whose headquarters is more time-constrained. In addition, they also hold at the extensive margin, that is, when I consider plant openings and closures.

scholarly journals Agglomeration and Productivity: Evidence from Indian Manufactuaring

2020 ◽  
Vol 8 (1) ◽  
pp. 75-94
Author(s):  
Renjith Ramachandran ◽  
Ketan Reddy ◽  
Subash Sasidharan
Keyword(s):  
Total Factor Productivity ◽  
Positive Impact ◽  
Econometric Analysis ◽  
Industrial Agglomeration ◽  
Factor Productivity ◽  
Annual Survey ◽  
Level Data ◽  
Plant Level ◽  
The Impact ◽  
Productivity Gains

This study analyses the impact of industrial agglomeration on the total factor productivity (TFP) of Indian manufacturing. We employ plant-level data from the Annual Survey of Industries (ASI) to measure TFP and industrial agglomeration. Our econometric analysis discerns a positive impact of industrial agglomeration on plant productivity. In addition, we find that the larger plants are the beneficiaries of productivity gains associated with agglomeration. Further, our findings are robust to alternate measures of TFP.

scholarly journals Creditor Rights, Technology Adoption, and Productivity: Plant-Level Evidence

2020 ◽  
Vol 33 (12) ◽  
pp. 5784-5820 ◽  
Author(s):  
Nuri Ersahin
Keyword(s):  
Technology Adoption ◽  
Total Factor Productivity ◽  
Financial Distress ◽  
Underlying Mechanism ◽  
Borrowing Constraints ◽  
Efficient Production ◽  
Factor Productivity ◽  
Creditor Rights ◽  
Production Technologies ◽  
Plant Level

Abstract I use U.S. Census microdata to analyze the effect of stronger creditor rights on productivity. Following the adoption of antirecharacterization laws that give lenders greater access to the collateral of firms in financial distress, treated plants’ total factor productivity increases by 2.6%. This effect is concentrated among plants belonging to financially constrained firms. I explore the underlying mechanism and find that treated plants change the composition of their investments and their workforce toward newer capital and skilled labor. My results suggest that stronger creditor rights relax borrowing constraints and help firms adopt more efficient production technologies.

Silk Road Economic Belt strategy and industrial total-factor productivity

2019 ◽  
Vol 30 (1) ◽  
pp. 260-282 ◽  
Author(s):  
Jian Feng ◽  
Lingdi Zhao ◽  
Huanyu Jia ◽  
Shuangyu Shao
Keyword(s):  
Sustainable Development ◽  
Total Factor Productivity ◽  
Causal Effect ◽  
Silk Road ◽  
Factor Productivity ◽  
Positive Role ◽  
Content Type ◽  
Silk Road Economic Belt ◽  
The Difference

Purpose The purpose of this paper is to assess the effectiveness of the Silk Road Economic Belt (SREB) strategy and its role of industrial productivity in China. Design/methodology/approach To identify the causal effect of this strategy on industrial sustainable development, the authors first use the slacks-based measure model to calculate industries’ total-factor productivity (TFP) considered with CO2 emissions as undesirable output on the provincial level. Then, the authors use the PSM-DID method to identify the difference of TFPs between provinces and industries before and after the implementation of SREB strategy. Findings However, the authors find that there is no difference or even a relative decrease in TFPs of industries in target provinces after the implementation of the strategy, which reveals that the SREB strategy does not play a positive role of the industries’ sustainable development in years of 2014 and 2015. Originality/value The value of this result is to identify the short-term impact of SREB strategy and to seek for probable causes and appropriate solutions.

Legal Capacity

2011 ◽  
Author(s):  
Timothy Besley ◽  
Torsten Persson
Keyword(s):  
Total Factor Productivity ◽  
Legal Capacity ◽  
Factor Productivity ◽  
Empirical Observation ◽  
Role Of Government ◽  
Doing Business ◽  
The Right ◽  
Productive Role

This chapter focuses on the productive role of government in improving the environment for doing business. Improvements in the performance of government are measured as total factor productivity and differences in income across countries can be explained by differences in the quality of their economic institutions. This makes it essential to understand why some countries make the right investments in legal institutions and deploy such legal capacity effectively. A running theme of the chapter is the possibility of a complementarity between the extractive (taxation) and the productive (supporting markets) roles of government. This is at the heart of the empirical observation that market development and state development move hand in hand. But the key insight from this is that we have to understand the incentives of a government to make investments to improve the workings of the economy.

Technical Progress in Indian Agriculture: Temporal Analysis

1992 ◽  
Vol 17 (2) ◽  
pp. 25-34
Author(s):  
Bakul H Dholakia ◽  
Ravindra H Dholakia
Keyword(s):  
Total Factor Productivity ◽  
Technical Progress ◽  
Temporal Analysis ◽  
Factor Productivity ◽  
Indian Economy ◽  
Indian Agriculture

The role of technical progress in determining the performance of Indian agriculture is the issue addressed by Bakul H Dholakia and Ravindra H Dholakia in this paper. An attempt has also been made to estimate the extent of technical progress in Indian agriculture during the period 1950-51 to 1988-89. According to the authors, the contribution of technical progress to the growth of agriculture has been steadily rising and acceleration in total factor productivity has contributed significantly to acceleration in the overall growth of the Indian economy during the eighties.

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