scholarly journals Economic Policy Uncertainty, Outward Foreign Direct Investments, and Green Total Factor Productivity: Evidence from Firm-Level Data in China

2021 ◽  
Vol 13 (4) ◽  
pp. 2339
Author(s):  
Yuegang Song ◽  
Feng Hao ◽  
Xiazhen Hao ◽  
Giray Gozgor
Keyword(s):  
Economic Policy ◽  
Total Factor Productivity ◽  
Industrial Development ◽  
Positive Impact ◽  
Western China ◽  
Factor Productivity ◽  
Firm Level ◽  
Chinese Firm ◽  
Level Data ◽  
Firm Level Data

This paper uses Chinese firm-level data to investigate the effect of China’s outward foreign direct investment (OFDI) on green total factor productivity (GTFP) under economic policy uncertainties (EPU). We found a significant positive impact of OFDI on GTFP. Moreover, an increase in EPU was shown to decrease GTFP. We also found that OFDI positively contributes to GTFP for private firms and foreign-invested firms in China. Technology-seeking OFDI contributes greater to GTFP than resource-seeking OFDI and market-seeking OFDI. These results remain robust when considering OFDI from firms in Central and East China as well as Western China. The findings are also robust with green labor productivity (GLP) substituting for GTFP using different econometric techniques. We also discuss potential implications in enhancing green innovation performance and sustainable industrial development in China.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

Industrial policy, energy and environment efficiency: Evidence from Chinese firm-level data

2020 ◽  
Vol 260 ◽  
pp. 110123 ◽  
Author(s):  
Yijun Zhang ◽  
Xiaoping Li ◽  
Feitao Jiang ◽  
Yi Song ◽  
Ming Xu
Keyword(s):  
Industrial Policy ◽  
Firm Level ◽  
Energy And Environment ◽  
Chinese Firm ◽  
Level Data ◽  
Firm Level Data

Location Proximity and Productivity Spillovers: The Case of Korean Manufacturing Plants

2015 ◽  
Vol 14 (1) ◽  
pp. 104-118 ◽  
Author(s):  
Backhoon Song
Keyword(s):  
Knowledge Spillovers ◽  
Factor Productivity ◽  
Firm Level ◽  
Manufacturing Plants ◽  
High Productivity ◽  
External Knowledge ◽  
Sources Of Knowledge ◽  
Level Data ◽  
Firm Level Data ◽  
New Ideas

Knowledge spillovers have been recognized as an important source of innovation and economic growth in both industry and firm-level data. A firm may reap benefits by locating near other firms in the same geographical region. In this paper, we examine how physical proximity influences a firm's future productivity and its survival possibility. Our results indicate that a firm located in a region with a higher median total factor productivity (TFP) gains higher productivity from other firms in the same region. One possible explanation is that such a firm has more opportunity to access superior external knowledge and to produce more new ideas. Our results also indicate these productivity-enhancing characteristics do not seem to be industry-specific. Finally, we find that high productivity firms are the only significant sources of knowledge spillovers, suggesting that firms benefit most from combining their internal knowledge with the external knowledge of neighboring firms with high TFP on average.

scholarly journals Proximity and Investment: Evidence from Plant-Level Data *

2013 ◽  
Vol 128 (2) ◽  
pp. 861-915 ◽  
Author(s):  
Xavier Giroud
Keyword(s):  
Travel Time ◽  
Total Factor Productivity ◽  
Extensive Margin ◽  
Sample Period ◽  
Factor Productivity ◽  
Firm Level ◽  
Level Data ◽  
Plant Level

Abstract Proximity to plants makes it easier for headquarters to monitor and acquire information about plants. In this article, I estimate the effects of headquarters’ proximity to plants on plant-level investment and productivity. Using the introduction of new airline routes as a source of exogenous variation in proximity, I find that new airline routes that reduce the travel time between headquarters and plants lead to an increase in plant-level investment of 8% to 9% and an increase in plants’ total factor productivity of 1.3% to 1.4%. The results are robust when I control for local and firm-level shocks that could potentially drive the introduction of new airline routes, when I consider only new airline routes that are the outcome of a merger between two airlines or the opening of a new hub, and when I consider only indirect flights where either the last leg of the flight (involving the plant’s home airport) or the first leg of the flight (involving headquarters’ home airport) remains unchanged. Moreover, the results are stronger in the earlier years of the sample period and for firms whose headquarters is more time-constrained. In addition, they also hold at the extensive margin, that is, when I consider plant openings and closures.

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