scholarly journals Inward Investment and Market Structure in an Open Developing Economy: A Case of India’s Manufacturing Sector

2011 ◽  
Vol 2 (6) ◽  
pp. 286-297 ◽  
Author(s):  
Jatinder Singh
Keyword(s):  
Market Structure ◽  
Manufacturing Sector ◽  
Market Concentration ◽  
Economic Activities ◽  
Firm Level ◽  
Long Run ◽  
Level Data ◽  
Country Market ◽  
Regression Techniques ◽  
Policy Measures

India announced series of liberalization measures since mid 1980s that inter-alia led to an unprecedented increase in the inflow of foreign direct investment (FDI). Evidence suggests that the rising inflows of FDI have influence on host country market structure though the direction is uncertain. Analytically, market structure has implications on the long run growth path of an economy through its effect on the allocation of economic resources among various economic activities including innovation. In this context, the objective of this paper is to analyze the bearing of FDI on market concentration with special reference to India’s manufacturing industries during the post-reform period. The study made use of firm level and product level data and panel regression techniques to fulfill the objective. The estimated model has shown a positive and significant influence of FDI on market concentration. If the result of the study is any indication, the increased inflow of FDI is likely to make India’s manufacturing sector more concentrated and calls for policy measures to mitigate undesirable outcomes of FDI inflows.

Efficiency and Price Effects of Mergers in European Union's Trade and Manufacturing Sectors

2019 ◽  
Vol 10 (4) ◽  
pp. 993
Author(s):  
Ozana NADOVEZA JELIĆ ◽  
Marko DRUŽIĆ
Keyword(s):  
Manufacturing Sector ◽  
National Level ◽  
Economic Activities ◽  
Firm Level ◽  
Welfare Losses ◽  
Level Data ◽  
Price Effects ◽  
Manufacturing Sectors ◽  
The Difference ◽  
Efficiency Effects

There are two basic tendencies operating simultaneously in every merger case: i) welfare gains due to efficiency related price reductions and ii) welfare losses associated with rising market power and resulting higher prices for consumers. The question of which will prevail is theoretically ambiguous, and consequently has to be settled empirically. The main objectives of this paper are to explore the effects of mergers on efficiency of consolidated firms, and to study their effects on prices in the trade and manufacturing sectors. To explore the effects of mergers on efficiency and prices we employ both a micro and macro approach by relying on firm-level data in the analysis of efficiency effects and on national-level data in the evaluation of price effects of mergers by using the Difference-in-Difference (DiD) approach on a sample of merger cases regulated by the European Commission (EC) during the 2010-2013 period. The DiD based results show that consolidated firms performed better than their competitors in the second year following the merger. Estimated efficiency gains seem to be led by efficiency growth of merged firms in the manufacturing sector. At the same time, we find evidence that compared to their unaffected counterparts, countries and economic activities in which the consolidation took place experienced a higher associated inflation in the year of the merger. Therefore, our results suggest that price effects unfold in the year when the merger is realized while efficiency effects occur with a delay of two years.  

scholarly journals Technological Trends in the Manufacturing and Service Sectors. The Case of Montenegro

2021 ◽  
Vol 16 (1) ◽  
pp. 120-133
Author(s):  
Nina Vujanović
Keyword(s):  
Service Sector ◽  
Manufacturing Sector ◽  
Service Industries ◽  
Firm Level ◽  
Level Data ◽  
Technological Efficiency ◽  
Service Sectors ◽  
Policy Measures ◽  
Technological Improvements ◽  
Further Development

Abstract Technological efficiency is one of the main factors of economic growth in modern history. Technologies have traditionally been important for manufacturing sector, but the age of digitalization has also made service sector increasingly rely on modern technologies. There are not many studies measuring the technological trends of these two sectors. This study uses the micro approach of the dynamic panel to measure productivity of the manufacturing and service sectors in Montenegro during 2010 to 2019, between the two global economic crises, using firm level data. The results indicate a clear upward technological trend in manufacturing but not in the service sector. Divergent technological trends are found amongst the manufacturing and service industries that require different level of technologies and knowledge in their production processes. The study concludes that there is a room for further technological improvements in both sectors and proposes concrete policy measures for further development.

scholarly journals Health Insurance Coverage and Firm Performance: Evidence Using Firm Level Data from Vietnam

2018 ◽  
Vol 18 (4) ◽  
Author(s):  
Hiroyuki Yamada ◽  
Tien Manh Vu
Keyword(s):  
Health Insurance ◽  
Firm Performance ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Insurance Coverage ◽  
Health Insurance Coverage ◽  
Positive Health ◽  
Firm Level ◽  
Positive Effects ◽  
Level Data

Abstract In literature, there is limited direct evidence regarding the effect of health insurance coverage on firm performance and worker productivity. We study the impacts of health insurance on medium- and large-scale domestic private firms’ performance and productivity in Vietnam, using a large firm level census dataset. We find statistically, but suggestive, positive health insurance effects on both aggregate profit and profit per worker for both complying and non-complying firms when using the full sample. We further restrict the sample to specific industries. The positive health insurance effects could exist for both complying and non-complying firms in the heavy manufacturing and construction sector, while such positive effects could be only significant for complying firms in the wholesale/retail sectors. We could not find any evidence of positive health insurance effects in the light manufacturing sector. These results imply that the impacts of health insurance could be industry specific.

Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality

2021 ◽  
pp. 048661342110121
Author(s):  
Kasturi Sadhu ◽  
Saumya Chakrabarti
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Growth Process ◽  
Jel Classification ◽  
Formal Sector ◽  
Firm Level ◽  
Macro Model ◽  
Long Run ◽  
Level Data ◽  
Firm Level Data

A dominant strand of orthodoxy argues that the problem of the informal sector could be mitigated through the capitalistic growth process. But our observations on India are different—with an expansion of the capitalistic formal sector, as the economy grows, there is a proliferation of fissured informality. Using a structuralist macro-model, we provide certain explanations for this phenomenon, which are also tested empirically using Indian subnational-state and firm-level data. Thus, we explore both the short- and long-run effects of the expansion of the formal sector on the heterogeneous informal economy. While a section of the population is pulled into the advanced informal activities, a vast segment is pushed to petty production. Accordingly, the orthodox transition narrative is questioned and alternative policy and political possibilities are introduced. JEL Classification: O11, O13, O17, P48

scholarly journals The Rise of Robots in China

2019 ◽  
Vol 33 (2) ◽  
pp. 71-88 ◽  
Author(s):  
Hong Cheng ◽  
Ruixue Jia ◽  
Dandan Li ◽  
Hongbin Li
Keyword(s):  
Manufacturing Sector ◽  
Average Rate ◽  
Supply And Demand ◽  
Global Market ◽  
Industrial Robots ◽  
Firm Level ◽  
Employee Survey ◽  
Level Data ◽  
Firm Level Data ◽  
Aggregate Industry

China is the world’s largest user of industrial robots. In 2016, sales of industrial robots in China reached 87,000 units, accounting for around 30 percent of the global market. To put this number in perspective, robot sales in all of Europe and the Americas in 2016 reached 97,300 units (according to data from the International Federation of Robotics). Between 2005 and 2016, the operational stock of industrial robots in China increased at an annual average rate of 38 percent. In this paper, we describe the adoption of robots by China’s manufacturers using both aggregate industry-level and firm-level data, and we provide possible explanations from both the supply and demand sides for why robot use has risen so quickly in China. A key contribution of this paper is that we have collected some of the world’s first data on firms’ robot adoption behaviors with our China Employer-Employee Survey (CEES), which contains the first firm-level data that is representative of the entire Chinese manufacturing sector.

Do Financial Shocks Have Negative Effects on Small Businesses? New Evidence from Japan for the Late 1990s

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Daisuke Tsuruta
Keyword(s):  
Small Businesses ◽  
Firm Growth ◽  
Banking Sector ◽  
Credit Crunch ◽  
Economic Activities ◽  
Negative Effects ◽  
Firm Level ◽  
Level Data ◽  
Internal Funds ◽  
Low Performance

Abstract The banking literature suggests that the low performance of the banking sector can spread to real economic activities, especially small businesses. Many previous studies insist that the Japanese experience of the 1990s supports this argument. However, many studies of small businesses are often insufficient since they depend on aggregate data, even though small businesses are likely to face difficult constraints in their activities when financial problems are severe. In this study, we use firm-level data on small businesses and investigate whether bank-dependent small businesses face severe constraints on their activities, which lowers performance. Our results differ from the findings of previous work in this area. First, we show that per the widely used TANKAN statistics, the focus of many existing studies, is misleading and that a majority of respondents in this survey (at least 71%) report no worsening in the lending attitude of financial institutions in the so-called credit crunch period of 1998-1999 (or even in the 2000-2001 period). Second, using detailed firm level panel data from the Credit Risk Database, we find no significant reductions in the loans for the majority of small businesses. Third, while we do find evidence that bank-dependent firms increased reliance on internal funds during the period of the credit crunch (1998-2001), we find no evidence that this negatively impacted firm performance (as reflected in firm growth and profitability measures).

scholarly journals Import Liberalization of Intermediates and Environment: Empirical Evidence from Chinese Manufacturing

2019 ◽  
Vol 11 (9) ◽  
pp. 2579 ◽  
Author(s):  
Ling-Yun He ◽  
Liang Wang
Keyword(s):  
Manufacturing Sector ◽  
Firm Level ◽  
Intermediate Inputs ◽  
Interaction Terms ◽  
Level Data ◽  
Plant Level ◽  
Pollution Emissions ◽  
The Impact ◽  
Scale Composition ◽  
Level Lowering

This paper investigates how the import liberalization of intermediates affects firm-level pollution emissions. We divide the impact of freer import of intermediates on pollution emissions into induced scale, composition and technique effects and then develop interaction terms to examine these effects. Relying on a panel of plant-level data from China manufacturing sector for the period 2001 to 2007, we find freer import of intermediate inputs is conducive to pollution reductions at the plant level, lowering pollution via induced technique and composition effects and, in turn, increasing emission through induced scale effect. In summary, import liberalization of intermediate inputs can contribute to the better environmental performance of China manufacturing sector.

The Effect of Deregulation on Employee Earnings: Pilots, Flight Attendants, and Mechanics, 1959–1992

ILR Review ◽  
1996 ◽  
Vol 49 (2) ◽  
pp. 223-242 ◽  
Author(s):  
Pierre-Yves Crémieux
Keyword(s):  
Flight Attendants ◽  
Firm Level ◽  
Cross Sectional ◽  
Long Run ◽  
Airline Deregulation ◽  
Level Data ◽  
Negative Effect ◽  
Long Term Trends ◽  
Sectional Analysis

Previous studies of the effect of the 1978 Airline Deregulation Act on employee earnings have reported mixed results: some have found no negative long-run effect of deregulation and others have found a negative effect of up to 10%. Most of these studies relied on cross-sectional analysis of a few years' data. This paper, in contrast, examines the long-term trends in airline earnings, based on 34 years of newly collected firm-level data from the Department of Transportation's Form 41 and airline workers' unions. The author finds that although deregulation had no statistically significant effect on the earnings of mechanics, it strongly affected the earnings of flight attendants and pilots. Flight attendants' earnings were at least 12% lower by 1985 and 39% lower by 1992 than they would have been if deregulation had not occurred, and the corresponding shortfalls for pilots were 12% and 22%.

scholarly journals Kesenjangan Upah Antargender di Indonesia: Bukti Empiris di Sektor Manufaktur

2018 ◽  
pp. 1-21
Author(s):  
Martesa Husna Laili ◽  
Arie Damayanti
Keyword(s):  
Manufacturing Sector ◽  
Least Square ◽  
Seemingly Unrelated Regression ◽  
Wage Discrimination ◽  
Firm Level ◽  
Least Square Estimator ◽  
Exporting Firms ◽  
Unrelated Regression ◽  
Level Data ◽  
And Gender

Theoretically, in the labor market without discrimination, wages should be paid according to productivity. Unlike other studies that use worker level data, this study will identify gender wage discrimination using firm-level data. Using Industrial Survey Data in 1996 and 2006, the gender wage ratio and gender productivity ratio were estimated simultaneously using the nonlinear seemingly unrelated regression (NLSUR) with least square estimator. We find that there is wage discrimination against women in the manufacturing sector. After disaggregating the firms by trade orientation, we show that wage discrimination against women occurs in non-exporting firms. While in exporting firms there is no wage discrimination. ========================= Secara teori, di pasar kerja yang tidak ada diskriminasi, seharusnya upah dibayar sesuai dengan produktivitas. Berbeda dengan penelitian lain yang menggunakan data level pekerja, penelitian ini akan mengidentifikasi diskriminasi upah antargender dengan menggunakan data di level perusahaan. Dengan menggunakan data Industri Besar dan Sedang tahun 1996 dan 2006, rasio upah gender dan rasio produktivitas gender diestimasi secara simultan menggunakan metode non-linear seemingly unrelated regression (NLSUR) dengan estimator least square. Penelitian ini menemukan bukti ada diskriminasi upah terhadap perempuan di sektor manufaktur. Setelah mendisagregasi perusahaan berdasarkan status ekspor, diskriminasi upah terhadap perempuan ditemukan di perusahaan non-eksportir, sedangkan di perusahaan eksportir tidak ditemukan diskriminasi upah.

Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms

2017 ◽  
Vol 08 (02) ◽  
pp. 1750012 ◽  
Author(s):  
Bishwanath Goldar ◽  
Yashobanta Parida ◽  
Deepika Sehdev
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Manufacturing Plants ◽  
Level Data ◽  
Export Competitiveness ◽  
Firm Level Data ◽  
Major Loss ◽  
Emissions Intensity ◽  
Capital Intensive

India’s organized manufacturing sector experienced a 11% fall in its carbon di oxide (CO2) emissions intensity during 2009–2012, while a majority of the manufacturing plants achieved over a 30% fall during the corresponding period. How did such a reduction in CO2 emissions intensity affect the export competitiveness of Indian manufacturing firms? Using firm-level data for 2009–2013, this paper attempts to empirically answer that question. It is found that large firms and capital intensive firms have achieved a relatively faster decline in CO2 emissions intensity and that containment of CO2 emissions in manufacturing firms did not cause any major loss in their export competitiveness. Rather, it is found to be positively associated with increases in exports.

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