scholarly journals Does International Competition Enhance Capacity Utilisation? Evidence from Indonesia, Philippine and Vietnam

2016 ◽  
Vol 6 (5) ◽  
pp. 117-130
Author(s):  
Rita R Pidani ◽  
Amir Mahmood
Keyword(s):  
Market Competition ◽  
Foreign Market ◽  
Quadratic Model ◽  
Curvilinear Relationship ◽  
Capacity Utilisation ◽  
Firm Level ◽  
Manufacturing Firm ◽  
Exporting Firms ◽  
Learning By Exporting ◽  
The Impact

This paper uses firm-level data of small and medium manufacturing firm in Indonesia, Philippine and Vietnam and studies the relationship between capacity utilisation and foreign market competition for the possibility of efficient firms self-selecting themselves instead of learning-by-exporting to enter the foreign markets. Estimating both linear and quadratic model on an unbalanced variance of exporting and non-exporting firms shows that the impact of foreign market competition on capacity utilisation is following a curvilinear relationship with a diminishing marginal point of as a constraint for further expansion. Capacity utilisation rate higher in non-exporting group is not only emphasizing a strong domestic market orientation of firms at large but also indicating the selection of learning-by-exporting entry mode by exporter SMEs in these countries. The paper further explores the impact of firm and industry physiognomies on a firm’s capacity utilisation and finds that the effects of wage productivity, competition, firm size, and legal structure are linearly positive and capacity dependent. The results throughout maintain the importance of capacities, competitiveness, and institutional performance as priorities to promote SMEs growth.

scholarly journals Export activity, R&D investment, and foreign ownership: does it matter for productivity?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos M.P. Sousa ◽  
Ji Yan ◽  
Emanuel Gomes ◽  
Jorge Lengler
Keyword(s):  
Emerging Market ◽  
Time Lag ◽  
Foreign Ownership ◽  
National Bureau ◽  
Firm Level ◽  
Content Type ◽  
Export Activity ◽  
Learning By Exporting ◽  
The Impact ◽  
D Investment

PurposeThe paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.Design/methodology/approachA time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses.FindingsThe results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role.Originality/valueScholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study.

scholarly journals Where has the rum gone? The impact of maritime piracy on trade and transport

2021 ◽  
Author(s):  
Alexander Sandkamp ◽  
Vincent Stamer ◽  
Shuyao Yang
Keyword(s):  
Empirical Evidence ◽  
Economic Consequences ◽  
Firm Level ◽  
Maritime Piracy ◽  
Exporting Firms ◽  
Maritime Shipping ◽  
Position Data ◽  
The Impact

AbstractDespite a general agreement that piracy poses a significant threat to maritime shipping, empirical evidence regarding its economic consequences remains scarce. This paper combines firm-level Chinese customs data and ship position data with information on pirate attacks to investigate how exporting firms and cargo ships respond to maritime piracy. It finds that overall exports along affected shipping routes fall following an increase in pirate activity. In addition, piracy induces firms to switch from ocean to air shipping, while remaining ocean shipments become larger. At the ship-level, the paper provides evidence for re-routing, as container ships avoid regions prone to pirate attacks.

Outward FDI and productivity promotion of exporting firms: firm-level evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Song Zhang ◽  
Haoze Li ◽  
Chunlai Chen
Keyword(s):  
Learning Effect ◽  
Positive Impact ◽  
Difference In Difference ◽  
Outward Fdi ◽  
Export Intensity ◽  
Firm Level ◽  
Content Type ◽  
Exporting Firms ◽  
Chinese Firm ◽  
The Impact

PurposeThe purpose of this paper is to estimate the impact of China's outward foreign direct investment (OFDI) conducted by exporting firms on their productivity.Design/methodology/approachThis study uses two Chinese firm-level datasets. To reduce the bias when merging the two datasets, this study uses a comprehensive link approach to obtain more observations. The propensity score matching method is employed together with the difference-in-difference and difference-in-difference-in-difference approaches to identify the casual effects.FindingsThe study finds that exporting firms become more productive through learning effect via OFDI, and the positive impact of OFDI on total factor productivity materializes very quickly but subject to diminishing return. The study also finds that state-owned enterprises gain less learning effect via OFDI than private-owned enterprises, and firms with higher export intensity or larger size tend to gain less improvement in productivity via OFDI.Originality/valueThis is one of the first studies to investigate empirically the impact of OFDI conducted by exporting firms on their productivity. In particular, the study analyzes three types of firm heterogeneous factors, namely, ownership, export intensity and size, in affecting exporting firms' learning effect via OFDI.

scholarly journals Global Value Chains and Productivity

2020 ◽  
Vol 20 (117) ◽  
Author(s):  
Hang Banh ◽  
Philippe Wingender ◽  
Cheikh Gueye
Keyword(s):  
Small Firms ◽  
Global Value Chains ◽  
Value Chains ◽  
Aggregate Productivity ◽  
Large Firms ◽  
Potential Growth ◽  
Firm Level ◽  
Exporting Firms ◽  
Level Data ◽  
The Impact

The COVID-19 pandemic has led to an unprecedented collapse in global economic activity and trade. The crisis has also highlighted the role played by global value chains (GVC), with countries facing shortages of components vital to everything from health systems to everyday household goods. Despite the vulnerabilities associated with increased interconnectedness, GVCs have also contributed to increasing productivity and long-term growth. We explore empirically the impact of GVC participation on productivity in Estonia using firm-level data from 2000 to 2016. We find that higher GVC participation at the industry level significantly boosts productivity at both the industry and the firm level. Frontier firms, large firms, and exporting firms also benefit more from GVC participation than non-frontier firms, small firms, and non-exporting firms. We also find that GVC participation of downstream industries has a negative correlation with productivity. Frontier firms and large firms benefit more from GVC participation of upstream industries, while non-frontier firms and small firms benefit more from GVC participation of downstream industries. Our results suggest that policies designed to promote participation in GVCs are important to raise aggregate productivity and potential growth in Estonia.

scholarly journals International Standards For Exporting Firms: Evidence From China

2014 ◽  
Vol 30 (6) ◽  
pp. 1753 ◽  
Author(s):  
Ying Sun ◽  
Wenjing Ouyang
Keyword(s):  
Iso 9000 ◽  
Export Growth ◽  
International Standards ◽  
Assortative Matching ◽  
Firm Level ◽  
Exporting Firms ◽  
Country Level ◽  
Firm Exports ◽  
The Impact ◽  
Number Of Firms

The existing literature provides mixed evidence of the impact of ISO 9000 international standards on country level export growth. Since it is costly to adopt the international standards, it is important to understand how these standards increase exports at the firm level. This paper examines the effect of ISO 9000 standards on firm-level export growth in China, which of all countries has the highest number of firms adopting ISO 9000 standards. With the assortative matching methodology, we first examine the factors related to the choice of applying for the certification. After controlling for this endogeneity issue, our results show that obtaining ISO 9000 standards significantly increases firm exports. Furthermore, we find low-tech firms and non-state-owned enterprises are more likely to benefit from adopting the standards. Overall, our study provides important guidelines for firms applying for the international quality standards.

scholarly journals Competition Policy and Exit Rates: Evidence from Switzerland

2005 ◽  
Vol 4 (1) ◽  
Author(s):  
Stefan Buehler ◽  
Christian Kaiser ◽  
Franz Jaeger
Keyword(s):  
Competition Policy ◽  
Natural Experiment ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Exporting Firms ◽  
Antitrust Legislation ◽  
Exit Probability ◽  
Exit Probabilities ◽  
The Impact

Abstract This paper provides evidence on the relation between the intensity of product-market competition and the probability of exit. We adopt a natural experiment approach to analyze the impact of a tightening of Swiss antitrust legislation on exit probabilities. Based on a sample of more than 68,000 firms from all major sectors of the Swiss economy, we find that the exit probability of non-exporting firms increased significantly, whereas the exit probability of exporting firms remained largely unaffected. Our results support the notion that there is a positive relationship between the intensity of product-market competition and the probability of exit.

Does the pursuit of more complex products contribute to the productivity of exporting firms?

2019 ◽  
Vol 40 (6) ◽  
pp. 1131-1150
Author(s):  
Uku Varblane ◽  
Sven-Kristjan Bormann
Keyword(s):  
Estimation Methods ◽  
Function Estimation ◽  
Product Complexity ◽  
Firm Level ◽  
Firm Capabilities ◽  
Content Type ◽  
Exporting Firms ◽  
Complex Products ◽  
Learning By Exporting ◽  
Production Function Estimation

Purpose The purpose of this paper is to contribute to the literature on learning by exporting by investigating whether an increase in the complexity of exported products contributes to higher productivity at the firm level. Design/methodology/approach The study implements an empirical analysis for Estonian manufacturing firms involved in exporting for the period 2008–2014, adding product complexity as an explanatory variable in the production function estimation. An increase in product complexity is interpreted as an indirect proxy for an increase in firm capabilities, capturing both tangible and intangible elements of competitiveness and reflecting the learning effects. Findings A relatively weak correlation between product complexity and productivity was found using a simple OLS estimation – exporters with higher product complexity have generally higher productivity levels. Somewhat surprisingly, no evidence for the learning by exporting was found among exporters, meaning that the increased complexity does not seem to be a channel for productivity upgrading. This result seems to be robust, irrespective of estimation methods and sampling preferences. Research limitations/implications The sample is representative of exporting firms. Practical implications The results show that the pursuit to more complex product does not necessarily contribute to productivity for exporting firms. The findings suggest that the firm-level upgrading due to increased export orientation is likely to take place through the other channels like moving up in global value chains and differentiating by product quality. Originality/value This is one of the first papers to investigate the effect of product complexity on productivity at a firm level. The results provide new insights into the learning-by-exporting hypothesis, with focus on potential learning among the existing exporters.

scholarly journals Corporate Default Risk and Environmental Deterioration (International Evidence)

2021 ◽  
Author(s):  
Obaid Ur Rehman ◽  
Xiaoxing Liu
Keyword(s):  
Low Income ◽  
Default Risk ◽  
Negative Impact ◽  
Market Competition ◽  
Preliminary Evidence ◽  
Firm Level ◽  
Corporate Default ◽  
Environmental Deterioration ◽  
Variable Approach ◽  
The Impact

Abstract This study explores the impact of corporate default risk on environmental deterioration in the international context. We find that corporate bankruptcy is positively associated with CO2 emissions and its decomposed components. These findings are reliable in low-income and highly uncertain countries but weak in countries having more market competition. We also find that the negative impact of corporate default risk on environment is more robust in countries with more population density and less forest area thresholds. Using instrumental variable approach, we provide preliminary evidence that firm-level political risk (for U.S. and Canadian firms only) tend to increase corporate default risk leading to degrading environment. Our research will help environmental authorities to consider corporate-default risk as a determinant when formulating environmental-related strategies.

scholarly journals Are digital technologies killing future innovation? The curvilinear relationship between digital technologies and firm's intellectual property

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Beatrice Orlando ◽  
Alice Mazzucchelli ◽  
Antonio Usai ◽  
Melita Nicotra ◽  
Francesco Paoletti
Keyword(s):  
Intellectual Property ◽  
Intellectual Capital ◽  
Large Scale ◽  
Digital Technologies ◽  
Quadratic Model ◽  
Curvilinear Relationship ◽  
The European Union ◽  
Content Type ◽  
Digital Skills ◽  
The Impact

PurposeThe study aims to investigate the interplay among digital technologies, intellectual capital and innovation. Thus far, there have been scant research on such intricate bundle of interactions. Also, the findings of previous studies were rather inconclusive, because conflicting results emerged over time. Building on the existence of heterogeneous evidences, this study solved the detected criticism by suggesting a curvilinear relationship among digital technologies, digital skills of human capital and intellectual property. Specifically, we argue that the relationship between digital technologies and intellectual property is inverted u-shaped.Design/methodology/approachHypotheses are tested by applying a generalized linear model (GLM) regression analysis and a quadratic model for non-linear regression. The study analysed a large-scale sample of micro-data drawn from Eurostat. Such sample embraces the population of firms operating in all European member states.FindingsOverall, the results of the study confirm that digital technologies are curvilinearly related to intellectual property. Precisely, the curve is inverted u-shaped. Notably, results show that digital skills only matter when employees have very demanding duties to accomplish. In all other cases, digital skills do not affect intellectual property significantly.Research limitations/implicationsThe research is solely focused on firms' operating in the European Union. Future studies should extend the analysis to other geographies.Practical implicationsAt a real impact level, the study suggests that intellectual property is only partially fostered by digital skills and digital technologies. In this sense, digital skills might be overrated.Originality/valueDifferently from prior research, this study originally detangles the impact of digital technologies on firm's intellectual capital by suggesting the existence of an inverse u-shaped relationship between variables.

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