Selection and Market Reallocation: Productivity Gains from Multinational Production

2018 ◽  
Vol 10 (2) ◽  
pp. 1-38 ◽  
Author(s):  
Laura Alfaro ◽  
Maggie X. Chen
Keyword(s):  
Economic Research ◽  
Policy Debate ◽  
Aggregate Productivity ◽  
Productivity Improvement ◽  
Firm Level ◽  
Domestic Firms ◽  
Multinational Production ◽  
Substantial Bias ◽  
Productivity Gains ◽  
Research And Policy

Assessing productivity gains from multinational production has been a vital topic of economic research and policy debate. Positive productivity gains are often attributed to productivity spillovers; however, an alternative, much less emphasized channel is selection and market reallocation, whereby competition leads to factor and revenue reallocation within and between domestic firms and exits of the least productive firms. We investigate the roles of these different mechanisms in determining aggregate-productivity gains using a unifying framework that explores the mechanisms' distinct predictions on the distributions of domestic firms: within-firm productivity improvement shifts rightward or reshapes the productivity distribution, while selection and market reallocation move the revenue and employment distributions leftward and raise left truncations. Using a rich cross-country firm-level panel dataset, we find significant evidence of both mechanisms and effects of competition in product, technology, and labor space. However, selection and market reallocation account for the majority of aggregate-productivity gains, suggesting ignoring this channel could lead to substantial bias in understanding the nature of productivity gains from multinational production. (JEL D22, D24, F14, F23, G32, O47)

Creating Productive Jobs in East European Transition Economies: a Synthesis of Firm-Level Studies

2008 ◽  
Vol 204 ◽  
pp. 108-125 ◽  
Author(s):  
J. David Brown ◽  
John S. Earle
Keyword(s):  
Labour Market ◽  
Transition Economies ◽  
Market Reform ◽  
Aggregate Productivity ◽  
Firm Level ◽  
East European ◽  
Job Reallocation ◽  
Firm Turnover ◽  
Market Liberalisation ◽  
Productivity Gains

The challenge for labour market policy in the new member states and other transition economies of Eastern Europe has been to redress the sharp drops in employment and rises in unemployment in a way that fosters the creation of productive jobs. This paper first documents the magnitude and productivity of job and worker reallocation. It then investigates the effects of privatisation, product and labour market liberalisation, and obstacles to growth in the new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. We find that market reform has resulted in a large increase in the pace of job reallocation, particularly that occurring between sectors and via firm turnover. Unlike under central planning, the job reallocation during the transition has contributed significantly to aggregate productivity growth. Privatisation has not only stimulated intrasectoral job reallocation, but the reallocation is more productive than that among remaining state firms. The estimated effect of privatisation on firm productivity is usually positive, but it varies considerably across countries. The productivity gains from privatisation have generally not come at the expense of workers, but are associated rather with increased wages and employment.

scholarly journals Foreign direct investment and productivity spillovers: a firm-level analysis of Bangladesh in comparison with Vietnam

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Md Arif-Ur-Rahman ◽  
Kazuo Inaba
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effects ◽  
External Effects ◽  
Productivity Improvement ◽  
Firm Level ◽  
Domestic Firms ◽  
Fdi Spillovers ◽  
Backward Linkages ◽  
Level Analysis

AbstractForeign direct investment (FDI) is expected to generate external effects—usually termed FDI spillovers—for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are still indecisive. This study examines firm-level panel data to determine the effects of FDI spillover on firms’ productivity in Bangladesh in comparison to Vietnam. We consider both the horizontal and vertical (backward and forward) spillover effects of FDI. We find evidence that Bangladeshi firms gain productivity improvement through intra-industry or horizontal linkages, whereas Vietnamese firms gain through backward linkages. Our findings suggest that increases in foreign presence in the same industry for Bangladesh and in downstream industries for Vietnam are related with increase in output of domestic firms.

scholarly journals Editorial: Education in Europe and the COVID-19 Pandemic

2021 ◽  
Vol 20 (4) ◽  
pp. 393-402
Author(s):  
Sotiria Grek ◽  
Paolo Landri
Keyword(s):  
Global Health ◽  
Liberal Education ◽  
Education For All ◽  
Policy Debate ◽  
Special Issue ◽  
Current Crisis ◽  
New Era ◽  
European Education ◽  
The Impact ◽  
Research And Policy

Although the global Covid-19 pandemic is still affecting our lives enormously, we know that a new era of deep reflection about ‘normality’, our planet and our existence on it has also begun. The ‘Education in Europe and the Covid-19 Pandemic’ double Special Issue intends to be part of this reflexive discussion about the post-pandemic European education policy and research space. This is a space shaped continuously by crises and opportunities, by utopias of a shared progressive and liberal education for all, but also the dystopias of nationalism, populism, climate destruction and now a global health emergency. This editorial offers an overview of the current crisis context and of the articles; further, it positions the journal within the post-pandemic research and policy debate about how to understand the impact of the pandemic on the changing forms of education and its enduring inequalities.

CASE AND ITS CHALLENGE FOR CHANGE

1991 ◽  
Vol 01 (02) ◽  
pp. 151-163 ◽  
Author(s):  
GREG BOONE
Keyword(s):  
Systems Engineering ◽  
Software Industry ◽  
Software Systems ◽  
Work Practices ◽  
Software Developers ◽  
Productivity Improvement ◽  
Computer Aided ◽  
Difficult Challenge ◽  
Ideological Change ◽  
Productivity Gains

Although the majority of professional trade press and academic attention regarding CASE (Computer Aided Software/Systems Engineering) has focused on technology, software developers have not been deluded by overinflated productivity gains attributed to those technologies. Truly profound technologies require a concomitant change in methods, practices, and techniques. Unfortunately, the majority of the software industry has had the expectation that CASE will automate their current work without rethinking work practices. Changing work practices, particularly among highly independent-minded software developers, who prize independent creativity more than team engineering, is the most difficult challenge facing the advance of the software development profession. Equally difficult is the ideological change from a productivity improvement expectation to a quality improvement expectation. This paper examines the current rate of CASE adoption and the changes necessary to accelerate its successful adoption.

scholarly journals Beyond Computation: Information Technology, Organizational Transformation and Business Performance

2000 ◽  
Vol 14 (4) ◽  
pp. 23-48 ◽  
Author(s):  
Erik Brynjolfsson ◽  
Lorin M Hitt
Keyword(s):  
Business Performance ◽  
Organizational Transformation ◽  
Economic Value ◽  
Intangible Capital ◽  
Aggregate Productivity ◽  
Firm Level ◽  
The Past ◽  
Econometric Evidence ◽  
Definition Of ◽  
Value Of It

To understand the economic value of computers, one must broaden the traditional definition of both the technology and its effects. Case studies and firm-level econometric evidence suggest that: 1) organizational “investments” have a large influence on the value of IT investments; and 2) the benefits of IT investment are often intangible and disproportionately difficult to measure. Our analysis suggests that the link between IT and increased productivity emerged well before the recent surge in the aggregate productivity statistics and that the current macroeconomic productivity revival may in part reflect the contributions of intangible capital accumulated in the past.

scholarly journals Priority problems of the work of Ukrainian customs authorities in the terms of European and Euro-Atlantic integration

2021 ◽  
Vol 2021 (1) ◽  
pp. 96-103
Author(s):  
Oksana Yurynets ◽  
Keyword(s):  
Economic Research ◽  
Customs Union ◽  
The European Union ◽  
Low Level ◽  
Existing Problems ◽  
Single European Market ◽  
Permanent Improvement ◽  
The Cost ◽  
Research And Policy

Today, more and more companies focus on problems in customs clearance of products crossing the border during the implementation of export-import activities. In the context of European and Euro- Atlantic integration, which promote the accession of Ukrainian enterprises to the single European market, one of the priority tasks is the urgent solution of existing problems in the customs sphere. After all, one of the integral stages of Ukraine’s economic integration into the European Union is the successful accession of customs authorities to the Customs Union through harmonization of customs procedures with European norms, introduction of common customs principles and permanent improvement of customs activities on the basis of progressive customs instruments. The results of the survey of domestic exporters and importers that was conducted by the Institute for Economic Research and Policy Consulting indicated the following key problems in the work of Ukrainian customs authorities: insufficient quality of customs legislation; low level of transparency and openness of customs authorities; corruption and bribery among customs officers; intentional overstatement of the customs value of goods; low level of quality of technical support of customs authorities; low level of qualification of customs officers; frequent changes in the organizational management structure of customs authorities and their management; burdensome fiscal function of customs authorities. The identified problems in the work of customs authorities of Ukraine in the context of European and Euro-Atlantic integration made it possible to identify priority directions for improving customs procedures: increasing efficiency, transparency and non-discrimination of customs procedures for export-import operations, reducing the cost of customs clearance for export-import, absolute harmonization of domestic customs legislation with European norms, unification of customs procedures with European customs practices in export-import operations, reduction of bureaucracy of customs procedures in export-import operations, optimization of customs payments in export-import operations, etc. The implementation of these directions of improvement of customs procedures in the export-import operations should take place with the use of specific urgent customs instruments, which will promptly solve the existing urgent problems in the work of customs authorities.

Foreign Direct Investment and Productivity Spillovers: A Firm-Level Analysis of Bangladesh in Comparison with Vietnam

2021 ◽  
Author(s):  
Arif-Ur-Rahman ◽  
Kazuo Inaba
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effects ◽  
External Effects ◽  
Productivity Improvement ◽  
Firm Level ◽  
Fdi Spillovers ◽  
Foreign Presence ◽  
Backward Linkages ◽  
Level Analysis

Abstract Foreign direct investment (FDI) is expected to generate external effects—usually termed FDI spillovers—for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are still indecisive. This study examines firm-level panel data to determine the effects of FDI spillover on firms’ productivity in Bangladesh in comparison to Vietnam. We consider both the horizontal and vertical (backward and forward) spillover effects of FDI. We find evidence that Bangladeshi firms gain productivity improvement through intra-industry or horizontal linkages, whereas Vietnamese firms gain through backward linkages. Our findings suggest that increases in foreign presence in the same industry for Bangladesh and in downstream industries for Vietnam are related with increase in output of domestic firms.JEL Code: F2, O1, O3

Where Women Make a Difference: Gender Quotas and Firms’ Performance in Three European Countries

ILR Review ◽  
2019 ◽  
Vol 73 (3) ◽  
pp. 768-793 ◽  
Author(s):  
Simona Comi ◽  
Mara Grasseni ◽  
Federica Origo ◽  
Laura Pagani
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Gender Quotas ◽  
Policy Debate ◽  
Corporate Board ◽  
Firm Level ◽  
Data Set ◽  
Accounting Data ◽  
Positive Effect ◽  
Identification Strategy

The authors study the effect of corporate board gender quotas on firm performance in France, Italy, and Spain. The identification strategy exploits the exogenous variation in mandated gender quotas within country and over time and uses a counterfactual methodology. Using firm-level accounting data and a difference-in-difference estimator, the authors find that gender quotas had either a negative or an insignificant effect on firm performance in the countries considered with the exception of Italy, where they find a positive impact on productivity. The authors then focus on Italy. Using a novel data set containing detailed information on board members’ characteristics, they offer possible explanations for the positive effect of gender quotas. The results provide an important contribution to the policy debate about the optimal design of legislation on corporate gender quotas.

scholarly journals Revenue Impacts of MPP Branded Funds: A Firm-Level Analysis

2003 ◽  
Vol 32 (2) ◽  
pp. 184-197 ◽  
Author(s):  
Paul M. Jakus ◽  
Kimberly L. Jensen ◽  
George C. Davis
Keyword(s):  
Firm Size ◽  
Market Access ◽  
Major Change ◽  
Export Promotion ◽  
Firm Level ◽  
Promotion Program ◽  
Domestic Firms ◽  
Market Promotion ◽  
Access Program ◽  
Level Analysis

The USDA's Market Access Program (formerly Market Promotion Program) recently underwent a major change to redirect all branded products export promotion funds to small domestic firms and cooperatives. The redirection responded to criticisms by the General Accounting Office of past allocations of branded products export promotion funds to large, experienced exporters. This study uses a firm-level analysis to examine whether firm size and export experience matter in how effectively firms use the promotion funds to increase their revenues. The results support neither the GAO criticisms nor the recent program redirection.

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