Digitalization, Industry Concentration, and Productivity in Germany

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Benjamin Ferschli ◽  
Miriam Rehm ◽  
Matthias Schnetzer ◽  
Stella Zilian
Keyword(s):  
Labor Productivity ◽  
Fixed Effects ◽  
Scale Effects ◽  
Manufacturing Sector ◽  
German Economy ◽  
Capital Intensity ◽  
Industry Concentration ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Combining Data

Abstract This paper investigates the links of digitalization and industry concentration with labor productivity at the sectoral level in Germany. Combining data for digitalization and labor productivity from the EU KLEMS database with firm-level data from the CompNet and Orbis Bureau Van Dijk databases to construct industry concentration measures between 2000 and 2015, we show that (1) the German economy appears to have digitized since 2000, and (2) there is no clear-cut relationship between digitalization and market concentration at the industry level. Using a time and sector fixed effects model and controlling for capital intensity, however, we find evidence for (3) a positive effect of both lagged industry concentration and lagged digitalization on productivity at the sectoral level in Germany. This finding is robust to alternative measures of digitalization and industry concentration as well as to their interaction but sensitive to the sector sample and to scale effects from the capital intensity. We, therefore, cautiously conclude that recent technological change appears to have been labor-saving and that productivity-enhancing aspect of a partial “superstar firm” effect may be identified in the German economy, in particular in its manufacturing sector.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals Trade Openness: New Evidence for Labor-Demand Elasticity in Pakistan’s Manufacturing Sector

2011 ◽  
Vol 16 (2) ◽  
pp. 55-85 ◽  
Author(s):  
Bushra Yasmin ◽  
Aliya H. Khan
Keyword(s):  
Labor Market ◽  
Trade Liberalization ◽  
Fixed Effects ◽  
Manufacturing Sector ◽  
Labor Demand ◽  
Ordinary Least Squares ◽  
Demand Elasticity ◽  
Fixed Effects Model ◽  
Trade Theory ◽  
Employment Conditions

This study is an attempt to investigate trade–labor market linkages in Pakistan. Our main hypothesis that trade liberalization leads to an increase in labor-demand elasticity is empirically verified using a panel data approach for the period 1970/71–2000/01 for 22 selected manufacturing industries in Pakistan. We use ordinary least squares to estimate models in levels and first-differences, in addition to a fixed effects model. Overall, our findings suggest weak evidence of increased labor-demand elasticity as a result of trade liberalization in Pakistan’s manufacturing sector. Nor does the study find support for a positive labor market and trade linkage from an employment point of view—as otherwise suggested by standard trade theory. This may be due to increased capital intensity in the manufacturing sector by time, and the infusion of new technology. It could also be attributed to labor market imperfections preventing trade liberalization from favorably influencing employment conditions in Pakistan. Our policy recommendations based on the study’s results stress the need for skill enhancement measures to increase labor productivity, helping it become competitive according to the demands of globalization.

scholarly journals Measuring the Productivity of the Foods and Beverages Industries in Indonesia: What Factors Matter?

2021 ◽  
Vol 67 (1) ◽  
pp. 132
Author(s):  
Mohammad Zeqi Yasin
Keyword(s):  
Absorptive Capacity ◽  
Firm Size ◽  
Fixed Effects ◽  
Raw Materials ◽  
Market Concentration ◽  
National Standard ◽  
Fixed Effects Model ◽  
Component Level ◽  
Firm Level ◽  
Tfp Growth

The foods and beverages industries have shown the largest share of output in the manufacturing sector of Indonesia for more than a decade. This study aims to investigate its performance indicators through the  growth of total factor productivity (TFP) and its determinants, such as imported raw materials, exports, absorptive capacity, firm size, market concentration, and capital ownership. This study employed firm-level panel data from 2008–2015 and the Growth Accounting method of Solow residual in addition to the fixed effects model to estimate TFP growth and its determinants. The results show that the foods and beverages industries in Indonesia showed positive TFP growth from 2008–2015. Moreover, variables of absorptive capacity, firm size, and market concentration promote the TFP growth of firms. Meanwhile, import intensity discourages TFP growth. However, within a certain threshold, firms with import activities perform better than non-importer firms. However, imports and exports may entail transfer of technology and knowledge and will be the bridge between the firms and the advanced market. This study recommends that policy makers increase the managerial capabilities of firms through a more massive training program as well as provide incentives to workers in the form of rewards or relief of income tax, while also improve product competitiveness through more intensive programs on the Indonesian National Standard (SNI) and the Domestic Component Level (TKDN).

Cross-country technology gap in Latin America

2015 ◽  
Vol 22 (4) ◽  
pp. 630-648 ◽  
Author(s):  
Kaustav Misra ◽  
Esra Memili ◽  
Dianne H.B. Welsh ◽  
Surender Reddy ◽  
Gail E. Sype
Keyword(s):  
Labor Productivity ◽  
Latin American ◽  
Fixed Effects ◽  
Trade Openness ◽  
Fixed Effects Model ◽  
Technology Gap ◽  
Content Type ◽  
Constant Returns To Scale ◽  
Latin American Countries ◽  
Patent Filing

Purpose – The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the period of 1970-2000. Design/methodology/approach – The paper provides an explicit application of TFP estimation by employing a growth accounting approach (Solow Residual) in the presence of non-constant returns to scale and a non-parametric approach (DEA – Malmquist Index) while relaxing the scale-related constraint. A macro-based economic model of innovator and follower countries is employed to explore the linkage between technology gaps and innovations, labor productivity, trade openness, foreign direct investment, and adult workforce illiteracy rates. A pooled model and a fixed effects model are used to determine the factors of the technology gap between the innovator and the follower countries. Findings – The results show that the labor productivity gap, adult work force illiteracy rates, patent filing gap, and trade openness are significant determinants of the technology gap between innovator and follower country. Practical implications – Latin American countries would benefit from the technology diffusion from an innovator country; but a minimum threshold of human capital, such as adult workforce illiteracy rates and patent filing has to be met. The authors find government policies on trade openness also have large effects on technology limitations in foreign countries. Originality/value – This paper is of value to researchers, policy makers, and economic development specialists trying to improve the rate of technology adoption and innovation.

Female directors and risk-taking behavior of Indian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shreya Biswas
Keyword(s):  
Risk Taking ◽  
Fixed Effects ◽  
Critical Mass ◽  
Gender Diversity ◽  
Dynamic Panel Data ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Content Type ◽  
Female Directors ◽  
Risk Taking Behavior

PurposeThis study examines whether female directorship on board is related to firm's risk-taking behavior in India.Design/methodology/approachThe study considers the top 500 listed companies in India during the period 2013 to 2018 for the analysis. The paper employs fixed effects as well as a dynamic panel data model to address the bias in the fixed effects model when the lagged risk outcome is included as an explanatory variable.FindingsThe study finds that the presence of female directors on board is unrelated to the firm's risk-outcomes and the risk-adjusted return earned by the shareholders. The results are in line with the tokenism theory of board diversity. Having a higher share of female independent directors is also unrelated to the risk-taking behavior of firms. The findings are in contrast to the critical mass theory and the agency theory of gender diversity. The study does not rule out the possibility of female directors' risk-preferences being similar to those of male directors.Practical implicationsThe findings suggest that regulations related to having independent female directors may not add value for the shareholders in the short run. The business case for such stringent regulations in India on the gender diversity of boards remains unclear.Originality/valueThis is the first study to analyze the relationship between gender diversity of boards and firm-level risk in India. Most of the studies have focused on gender diversity and firm performance in India. However, modern portfolio theory suggests that both risk and return are important as shareholders care about risk-adjusted returns.

Productivity, ownership and firm growth: evidence from Indian banks

2016 ◽  
Vol 11 (4) ◽  
pp. 607-631 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Fixed Effects ◽  
Firm Growth ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Content Type ◽  
Passive Learning ◽  
Bank Ownership ◽  
Panel Data Econometrics ◽  
Indian Banks ◽  
The Relationship

Purpose The relation between size and growth in banking firms in emerging economies has not been adequately addressed in the literature. By employing data for 1992-2014, the purpose of this paper is to examine the relationship between growth and productivity and how it interacts with ownership. Design/methodology/approach The longitudinal nature of the data suggests that the appropriate technique for the analysis is panel data econometrics. Accordingly, consistent with prior research, the author employs a fixed effects model. Besides accounting for firm-level observables, the author controls the economic environment and bank ownership by employing real GDP growth and ownership dummies. Findings The evidence appears to suggest that growth improves through both active and passive learning, the magnitude of the former far outweighing that of the latter. These results are remarkably robust: both baseline regressions and sensitivity tests point to similar conclusions. Originality/value To the best of the author’s knowledge, the paper makes two original contributions. First and more broadly, it tests the relationship between growth and productivity for banks in a leading emerging economy. Second, it distinguishes between two kinds of learning – active and passive – and explores which of them are more relevant for growth.

STRUCTURE, EMPLOYMENT AND PRODUCTIVITY GROWTH IN THE INDIAN UNORGANIZED MANUFACTURING SECTOR: AN INDUSTRY LEVEL ANALYSIS

2011 ◽  
Vol 56 (03) ◽  
pp. 349-376 ◽  
Author(s):  
S. N. RAJESH RAJ
Keyword(s):  
Labor Productivity ◽  
Technological Progress ◽  
Manufacturing Sector ◽  
Capital Intensity ◽  
Factor Productivity ◽  
Capital Productivity ◽  
Size Growth ◽  
Partial Factor Productivity ◽  
Partial Factor ◽  
Level Analysis

The paper analyzes the size, growth and productivity performance of the unorganized manufacturing sector in India during the 1978–1979 to 2000–2001 period. The study shows evidence of an increase in the size of the sector with a slowdown in the reforms period. Evidence indicates that the rate of growth varies widely across the two-digit industries but the variation in growth rate is smaller during the 1990s. Textiles and machinery goods were the fastest growing segments of India's unorganized manufacturing sector in the reforms period. The partial factor productivity approach shows that labor productivity has improved in 2000–2001 over 1978–1979 while capital productivity reported a decline in the same period. The sector, on the other hand, registered a fall in total factor productivity (TFP) during the reforms period. It is found that technological progress has been the main contributor to the growth in TFP in the prereforms period while technical regress contributed to the decline in TFP in the reforms period. A completely different picture is noticed since the mid-1990s when the sector made significant progress in TFP primarily attributed to technological progress which outweighed the decline in technical efficiency. It is also found that capital intensity is an essential factor augmenting labor productivity levels in the sector, which is important for improving the wages paid to the workers in the sector.

scholarly journals On Estimating Conditional Conservatism

2012 ◽  
Vol 88 (3) ◽  
pp. 755-787 ◽  
Author(s):  
Ray Ball ◽  
S. P. Kothari ◽  
Valeri V. Nikolaev
Keyword(s):  
Financial Reporting ◽  
Fixed Effects ◽  
Scale Effects ◽  
Data Availability ◽  
Omitted Variables ◽  
Firm Level ◽  
Cross Sectional ◽  
Asymmetric Timeliness ◽  
Conditional Conservatism ◽  
Fixed Effects Regression

ABSTRACT The concept of conditional conservatism (asymmetric earnings timeliness) has provided new insight into financial reporting and stimulated considerable research since Basu (1997). Patatoukas and Thomas (2011) report bias in firm-level cross-sectional asymmetry estimates that they attribute to scale effects. We do not agree with their advice that researchers should avoid conditional conservatism estimates and inferences from research based on such estimates. Our theoretical and empirical analyses suggest the explanation is a correlated omitted variables problem that can be addressed in a straightforward fashion, including fixed-effects regression. Correlation between the expected components of earnings and returns biases estimates of how earnings incorporate the information contained in returns. Further, the correlation varies with returns, biasing asymmetric timeliness estimates. When firm-specific effects are taken into account, estimates do not exhibit the bias, are statistically and economically significant, are consistent with priors, and behave as a predictable function of book-to-market, size, and leverage. Data Availability: Data are publicly available from sources identified in the article.

scholarly journals The Determinants of South African Banks' Capital Buffers

2018 ◽  
Vol 10 (1(J)) ◽  
pp. 234-244
Author(s):  
Athenia Bongani Sibindi
Keyword(s):  
Capital Structure ◽  
South African ◽  
Fixed Effects ◽  
Bank Capital ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Financing Decisions ◽  
Specific Factors ◽  
Capital Regulations ◽  
The Relationship

The financing decisions of banks remain an enigma, increasingly attracting the attention of banking regulators and corporate finance scholars alike. The ‘buffer view’ of bank capital is premised on the notion that banks keep capital in excess of the regulatory requirements in line with bank specific factors. This study sought to test the ‘buffer view’ of bank capital. Utilising a sample of 16 South African banks for the period 2006-2015, panel data techniques were employed to estimate a fixed effects model to test the relationship between buffer capital and the firm level determinants of capital structure. It was established that the risk and size variables were negatively related to the buffer capital variable, whilst the dividend variable was positively related. This was consistent with the predictions of the buffer view of capital. The findings lend credence to the ‘buffer view’ school of thought about bank capital. These findings are also inconsistent with bank capital regulations solely determining the capital structures of banks but epitomises some measure of voluntary capital structure decision making by banking firms. 

scholarly journals What drives the capital structure? The case of non-life insurance companies in Serbia

Industrija ◽  
2021 ◽  
Vol 49 (1) ◽  
pp. 25-41
Author(s):  
Miloš Božović ◽  
Marija Koprivica
Keyword(s):  
Capital Structure ◽  
Fixed Effects ◽  
Order Theory ◽  
Negative Influence ◽  
Positive Influence ◽  
Insurance Companies ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Pecking Order Theory ◽  
The Capital Structure

This paper studies the factors behind the capital structure of insurance companies. We used financial reports of non-life and composite insurance companies in Serbia between 2006 and 2019. In particular, we apply a panel-data approach to examine the relationship between leverage, defined as the ratio of technical reserves to capital and various firm-level characteristics. The coefficients estimated using the individual fixed-effects model indicate a significant and negative influence of profitability, growth and liquidity measures on leverage and a significant and positive influence of company size. The results indicate that the tradeoff theory and the pecking order theory are relevant in explaining the non-life insurer capital structure in Serbia.

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