Trade Openness, Social Capital and Total Factor Productivity in Tobacco Industry

2021 ◽  
Vol 7 (4) ◽  
pp. 522-529
Author(s):  
Pengzhen Cai ◽  
Panpan Yang ◽  
Qijie Jiang
Keyword(s):  
Social Capital ◽  
Total Factor Productivity ◽  
Economic Performance ◽  
Local Governments ◽  
Tobacco Industry ◽  
Trade Openness ◽  
Factor Productivity ◽  
Estimation Model ◽  
Analysis Methodology ◽  
Fiscal Revenue

Objectives: The tobacco industry makes crucial contributions to local fiscal revenue and thus how to improve the productivity of tobacco industry has gain great attention by scholars, entrepreneurs, and governments. The present study attempts to explore the role of trade openness and social capital in the improvement of total factor productivity (TFP) focusing on tobacco industry. Methods: The present study firstly proposed an estimation model under the framework of new growth theory, and then taking tobacco industries in the top fifty cities in China’s GDP list as examples, the present study conducted an empirical study using regression analysis methodology. Results: The results demonstrated that social capital contributes to enhancing the utilization effectiveness of material capital in tobacco industry, and it has a more direct influence on total factor productivity relative to tobacco industry economic performance. The influence of trade openness and social capital on TFP in tobacco industry is moderated by the present industry economic performance. Conclusion: Both trade openness and social capital play critical roles in promoting the productivity of tobacco industry and the entire industrial economic development. This study thus has practical implications for both tobacco enterprise managers and local governments, and enriches the theory relating to social capital.

scholarly journals Trade Openness and Green Total Factor Productivity in China: The Role of ICT-Based Digital Trade

2021 ◽  
Vol 9 ◽  
Author(s):  
Huan Zhang
Keyword(s):  
Total Factor Productivity ◽  
Scale Effect ◽  
Trade Openness ◽  
Estimation Method ◽  
Policy Implications ◽  
Structure Effect ◽  
Factor Productivity ◽  
Estimation Model ◽  
Promoting Effect ◽  
The Impact

The vigorous development of modern information and communication technology (ICT) has driven the digital trade featured by the ICT technique and industry as the carrier. This study empirically tests the impact of ICT-based digital trade openness on green total factor productivity (GTFP) by selecting ICT as the representative digital trade data of 30 provinces in China over the timespan 2002–2018. We employ the slack-based model and global Malmquist–Luenberger (SBM-GML) estimation method to calculate the provincial GTFP and explore the heterogeneous impact of digital trade openness on GTFP through the scale effect, technology effect, and structure effect. In terms of empirical results, the panel fixed model and panel quantile estimation model both suggest the same findings. With the continuous expansion of the scale of digital trade, its scale effect has a significant inhibitory effect on GTFP, whereas the structure effect combined with human capital and the technology effect correlated with technological research and development (R&D) have a significant promoting effect on GTFP. The panel quantile regression model reveals that the interaction intensity increases gradually from a low quantile to high quantile. Further robustness tests also verify the consistency and stability of the results. Finally, the study puts forward corresponding practical suggestions for the construction of a high-quality open pattern of digital trade and the coordinated development of GTFP. The specific policy implications include the following: (1) Emphasize on the penetration and connection effect of the new generation of ICT, and strengthen the construction of enterprise informatization. (2) Expand digital trade openness and broaden the field of industrial cooperation. (3) Optimize the industrial structure of digital trade, and accelerate the development of core industries of digital trade. (4) Gradually promote the transformation of digital trade from relying on quantity and scale to product quality.

Total Factor Productivity Growth: Evidence from West African Economies

2019 ◽  
pp. 097215091985619 ◽  
Author(s):  
Isaac Abekah-Koomson ◽  
Pang Wei Loon ◽  
Gamini Premaratne ◽  
Teo Siew Yean
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Trade Openness ◽  
Stochastic Frontier ◽  
Spillover Effect ◽  
Political Stability ◽  
Optimal Level ◽  
West African ◽  
Factor Productivity ◽  
African Region

Since the 1990s, the economic growth of the West African region has been remarkable, with average GDP growth of 5 per cent annually. In view of that, this article investigates the Total Factor Productivity (TFP) performance for the Economic Community of West African States (ECOWAS) region, which takes into account the recent development on political stability and trade openness. There were also periods when TFP fell sharply, the most significant happened in the late 1990s and 2000s where TFP dropped significantly which might be attributed to the spillover effect of the Asian and global financial crises. Our results showed that TFP was performing well for the region as well as for each member countries for the period of the study. We acknowledged that the estimated TFP in our model captures other factors such as human capital, health and other institutional factors that could affect economic growth. We also estimated the Technical Efficiency (TE) for the ECOWAS region using the Stochastic Frontier Modelling and the result indicates that the TE performance is well below the optimal level of production.

scholarly journals The Influence of Enterprises’ Bargaining Power on the Green Total Factor Productivity Effect of Environmental Regulation—Evidence from China

2019 ◽  
Vol 11 (18) ◽  
pp. 4910 ◽  
Author(s):  
Pengsheng Li ◽  
Yanying Chen
Keyword(s):  
Policy Implementation ◽  
Total Factor Productivity ◽  
Local Governments ◽  
Bargaining Power ◽  
Environmental Regulations ◽  
High Energy ◽  
State Ownership ◽  
Productivity Index ◽  
Factor Productivity ◽  
Dynamic Effects

In response to the ecological and environmental problems caused by high energy consumption and pollution, Chinese governments have raised their concerns and tighten the regulations. Even though local governments have achieved certain degree of success during policy implementation, it is still far from realizing the ultimate goal. Our study fills the gap in the existing literature by exploring the dynamic effects of environmental regulations on enterprises’ green total factor productivity (GTFP) from the perspective of enterprise bargaining power. With data obtained from the industrial pollution database and the Chinese industrial enterprise database, we calculated the GTFP at enterprise level using the Luenberger productivity index. The results from balanced panel data models show that environmental regulations would have negative impacts on enterprise’s GTFP in the short run. However, in the long run, the implementation of environmental policies would achieve the win-win goal in terms of enterprises competitiveness and environmental protection. In addition, indicated by industrial output, tax revenue and number of employees, enterprise bargaining power could weaken the dynamic effects of environmental regulations. Moreover, state ownership, local official changes and weak political constraints would enhance enterprise’s bargaining power and thus reduce the dynamic effects. By focusing on the enterprise’s bargaining power and its heterogeneous factors during policy implementation, our study provides implications for mitigating distortions and improving GTFP.

scholarly journals Macroeconomic determinants of total factor productivity and its trend in Ethiopia

2019 ◽  
Vol 8 (6) ◽  
pp. 219-228
Author(s):  
Adisu Abebaw Degu ◽  
Dagim Tadesse Bekele
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Government Expenditure ◽  
Series Data ◽  
Factor Productivity ◽  
Macroeconomic Factors ◽  
Long Run

Total factor productivity (TFP) as a source of economic growth, has been recognized in economic theory for a long period of time. In this research we tried to examine the effect of some macroeconomic factors, which include trade openness, inflation, government expenditure, credit extended and foreign direct investment, and natural disaster drought on total factor productivity and its trend in Ethiopia by using Time series data spanning from 1991 to 2018.  The TFP was computed by using the growth accounting method from Cobb–Douglas production function.  ARDL was used for estimation of the short and long run econometric model.  Accordingly, the trend analysis shows the growth in TFP has been fluctuating over the study period. The result from ARDL indicated that; in long run foreign direct investment, government expenditure and drought negatively and significantly affect TFP. Credit extended is found to affect TFP positively and significantly, while inflation and trade openness are insignificant. Therefore, policies such as; subsidizing domestic firms, effective government spending and making the agriculture sector drought resistant need to be stimulated.

scholarly journals Macroeconomic Determinants of Saudi Total Factor Productivity

2017 ◽  
Vol 5 (1) ◽  
pp. 37 ◽  
Author(s):  
Wael Mousa
Keyword(s):  
Total Factor Productivity ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Growth Models ◽  
Trade Openness ◽  
Technological Advancement ◽  
Factor Productivity ◽  
Economic Stability ◽  
Private Credit ◽  
Macroeconomic Determinants

Traditionally, labor productivity has been modelled as driven by capital accumulation, and the technology issue is exogenous. However, this model has been unable to sufficiently explain growth, and recent thinking on growth has given prominence to other factors such as technological advancement, human capital, and research and development. This has led to new growth models. This study employed the conventional growth accounting framework and aimed to estimate the total factor productivity in Saudi Arabia from 1970 to 2015. Additionally, it aimed to explore the macroeconomic determinants that affect total factor productivity. The results confirmed that economic stability, trade openness, and human factor development have positive impacts on total factor productivity. Interestingly, private credit by banks has a negative impact on Saudi total factor productivity. Negative relationships were also found between total factor productivity and the variables of population growth and government consumption.

Social Capital and Total Factor Productivity: Evidence from Chinese Provinces

2017 ◽  
Vol 25 (4) ◽  
pp. 22-43 ◽  
Author(s):  
Ailun Xiong ◽  
Hans Westlund ◽  
Hongyi Li ◽  
Yongjian Pu
Keyword(s):  
Social Capital ◽  
Total Factor Productivity ◽  
Factor Productivity

scholarly journals Carbon Sequestration Total Factor Productivity Growth and Decomposition: A Case of the Yangtze River Economic Belt of China

2019 ◽  
Vol 11 (23) ◽  
pp. 6809
Author(s):  
Guangming Rao ◽  
Bin Su ◽  
Jinlian Li ◽  
Yong Wang ◽  
Yanhua Zhou ◽  
...  
Keyword(s):  
Carbon Sequestration ◽  
Total Factor Productivity ◽  
Yangtze River ◽  
Stochastic Frontier ◽  
Scale Efficiency ◽  
The Yangtze River ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Natural Ecosystems ◽  
Estimation Model

To find out whether carbon sequestration is both effective at mitigating climate change and promoting economic growth, in this paper, by adopting a stochastic frontier panel model with translog production function, carbon sequestration is incorporated into endogenous variables to establish estimation model of carbon sequestration total factor productivity (CSTFP) and examine CSTFP growth and its drivers decomposition of the Yangtze River Economic Belt (YREB) of China in three estimations. The result shows that, (1) compared to traditional TFP growth, CSTFP growth in YREB is improved by 26.74 percentages (from −26.55% to 0.20%), contributed by three positive drivers of technical efficiency change (28.59%), technological progress change (18.55%), and scale efficiency change (3.99%); (2) different CSTFP growth exists in three watershed segments of YREB, which firstly is the upper reaches (0.62%), then the lower reaches (0.11%) and the middle reaches (−0.14%). Improved CSTFP growth owes to carbon sequestration’s harmonious symbiosis where natural ecosystems and human activities are naturally blended while insufficient synergies are bottleneck for promotion of CSTFP growth in YREB. Related policy suggestions are provided in the end. The proposed analysis framework is efficient to disclose CSTFP growth in YREB, and can also be applied to similar analysis on CSTFP in regions and extended to multi-country/region analysis.

scholarly journals Does Social Capital Matter for Total Factor Productivity? Exploratory Evidence from Poland

2020 ◽  
Vol 12 (23) ◽  
pp. 9978
Author(s):  
Urszula Markowska-Przybyła
Keyword(s):  
Social Capital ◽  
Sustainable Development ◽  
Total Factor Productivity ◽  
Synergistic Effects ◽  
Empirical Studies ◽  
Physical Capital ◽  
Economic Effects ◽  
Added Value ◽  
Factor Productivity ◽  
The Impact

Two issues connected with sustainable development are analysed in this article: total factor productivity (TFP), which measures the efficiency of transforming physical capital and labour into production, and social capital, which is increasingly considered as a factor of TFP. TFP is sometimes viewed as a measure of sustainability, and its high value indicates an effective way of combining and using limited resources. Social capital, in turn, is a determining factor in the social, economic, and environmental dimensions of development. The subject of this analysis is the impact of social capital on TFP. Social capital generates synergistic effects and creates added value using the existing resources. Therefore, it is legitimate to regard it as one of the determinants of TFP. The role of social capital in sustainable development is theoretically grounded and confirmed by numerous empirical studies. Nevertheless, due to the deep dependence on the context, the mechanisms of the impact of this capital on economic effects are still not fully understood. In this paper, social capital is analysed in the context of the post-transformation economy. This context seems to be interesting for two reasons: the relative weakness of social capital in post-communist countries and extensive nature of development these countries have experienced in recent decades, which together can be a barrier to long-term growth in these economies. The purpose of the paper is to identify and assess the impact of social capital in Poland on TFP in a regional breakdown (Nomenclature of Territorial Units for Statistics II - NUTS II). The research period covers the years 2002–2016 and employs econometric modelling methods. Social capital turns out to be a factor in explaining the level of TFP in Polish regions.

scholarly journals The causes of post-2009 differences in the economic performance of EU countries

2015 ◽  
Vol 65 (4) ◽  
pp. 525-545
Author(s):  
Petr Maleček
Keyword(s):  
Labour Market ◽  
Total Factor Productivity ◽  
Elemental Analysis ◽  
Economic Performance ◽  
Capital Stock ◽  
Growth Accounting ◽  
Gdp Growth ◽  
Factor Productivity ◽  
Eu Countries ◽  
Subsequent Section

This study examines the causes of the rather dissimilar development of individual EU economies after the 2008/09 crisis. The initial elemental analysis of contributions to GDP growth is followed by a growth accounting exercise, with decomposition into the effects of movements in total factor productivity, capital stock, and several labour market indicators. The subsequent section then seeks to clarify to what extent this development was driven by changes in cyclical conditions and the potential product.

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