scholarly journals Foreign firm entry and the productivity of Japanese listed manufacturing firms: an analysis of horizontal spillover effects based on the location of foreign establishments

2021 ◽  
Author(s):  
Sho Watanabe
Keyword(s):  
Foreign Firm ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Firm Entry

scholarly journals Firm’S Absorptive Capacity: The Case of Vietnamese Manufacturing Firms

2018 ◽  
Vol 18 (3) ◽  
pp. 301-325 ◽  
Author(s):  
Hoang Duong Vu
Keyword(s):  
Maximum Likelihood ◽  
Absorptive Capacity ◽  
Maximum Likelihood Method ◽  
Foreign Firm ◽  
Manufacturing Firms ◽  
Likelihood Method ◽  
Essential Factor ◽  
Tobacco Products ◽  
Definition Of ◽  
Technology Level

Abstract Absorptive capacity is an essential factor for the development of any firm. Hence, numerous researchers use it when proposing different approaches and measurements. However, due to the ambiguity of definition of absorptive capacity, some studies focused on the within-firm aspects of absorptive capacity while some looked at the inter-firm aspects. Consequently, there are several proxies for absorptive capacity, which are unlikely to reach an agreement. Therefore, this study aims for the simplified measurement by defining the absorptive capacity of a firm as the gap in persistent efficiency between the firm and the best foreign firm in the same industry. The persistent efficiency of a firm is estimated by using single stage maximum likelihood method. This measurement is applied to the case of Vietnamese manufacturing firms from 2007 to 2015 to estimate the domestic absorptive capacity. The results show that domestic firms in the manufacture of tobacco products sub-sector have the best absorptive capacity and the manufacture of beverages sub-sector have the worst one. Finally, the validity of the proxy is confirmed when the study finds the positive correlation between absorptive capacity and a firm’s age, size, technology level and skills of its workers.

Public Infrastructure and Economic Productivity

2005 ◽  
Vol 1932 (1) ◽  
pp. 54-60 ◽  
Author(s):  
Brian A. Baird
Keyword(s):  
Economic Impact ◽  
Public Capital ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Public Infrastructure ◽  
Economic Activities ◽  
Economic Productivity ◽  
Cumulative Evidence ◽  
Over Time ◽  
Do So

Economists’ interest in the question of public infrastructure productivity has grown steadily since the 1980s. This paper reviews the literature on this topic with a particular focus on transportation's economic impact. Cumulative evidence reveals that, first, estimates of the elasticity of output with respect to public capital have declined over time and are currently in-distinguishable from zero. Second, highways have local negative spillover effects that arise from economic activities being drawn to infrastructure-rich locations at the expense of adjacent areas. Third, transportation infrastructure is subject to congestion, which reduces the productivity of such infrastructure even when stocks remain constant. Finally, highways consistently enhance the productivity of manufacturing firms even when they do not do so for firms in other sectors.

Spillover Effects of Research and Development, Exports and Foreign Investment on Productivity

2017 ◽  
Vol 12 (1) ◽  
pp. 18-41 ◽  
Author(s):  
V. Pradeep ◽  
Mita Bhattacharya ◽  
Jong-Rong Chen
Keyword(s):  
Research And Development ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Method Of Moment ◽  
Technological Advances ◽  
Positive Spillover ◽  
Foreign Presence ◽  
Generalized Method Of Moment ◽  
Productivity And Competitiveness

The economic reforms in India since the early 1990s have aimed to improve the productivity and competitiveness of major industries. This article examines direct and indirect (spillover) effects from research and development (R&D), exporting activities and foreign direct investment (FDI) on the productivity of foreign and domestic manufacturing firms. Our empirical model employs data from over 1,000 Indian manufacturing firms between 1994 and 2008. With a balanced panel, robust estimation techniques including generalized method of moment (GMM) and system-GMM (sys-GMM) are employed for our empirical analysis. In most cases, our findings indicate that foreign presence has a significant positive spillover effect on the productivity of Indian manufacturing firms when compared to alternative spillovers from R&D and export initiatives. The spillover effects may vary due to R&D efforts and exporting activities. We also find that spillovers may vary between FDI and non-FDI firms and with the technological advances of industries.

scholarly journals Location, Ownership, Origin and the Spillover-Productivity Nexus. Evidence from Uganda Manufacturing Firms

2016 ◽  
Vol 9 (4) ◽  
pp. 198
Author(s):  
John Mayanja Bbale ◽  
John Bosco Nnyanzi
Keyword(s):  
Labor Productivity ◽  
Skill Acquisition ◽  
Firm Size ◽  
Fixed Effects ◽  
Capital Intensity ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Foreign Firms ◽  
Domestic Firms ◽  
Labor Quality

<p>The main purpose of this article is to investigate the drivers of labor productivity in the firms at the intra-industry level with focus on the spillover effects of FDI. Using a fixed effects approach, we estimate an expanded Cobb-Douglas production function in its intensive form to isolate the effects of increased capital intensity on labor productivity as well as the spillovers, using annual Private Sector Investment Survey data collected on the Ugandan manufacturing firms over the period 2007- 2010. Over all, there are significant negative horizontal spillovers for the domestic firms in Uganda, with OECD-originating FDI appearing to be the main source of such effects. By location, these are most adverse in the western and eastern regions and better spillovers can be traced in the central region. Additional findings point to firm size, labor quality and profit as positive contributors to labor productivity, whereas technology gap exhibits a detrimental impact just as we document no significant effect of capital intensity. Larger domestic firms appear to benefit significantly from spillovers in industries where foreign firms have a larger presence. The aforementioned findings reflect the need for well-designed policies to improve the competitiveness of local firms particularly via an incentive-equal opportunity-policy that captures both domestic and foreign investors and to improve infrastructure and other investor-friendly environment in the East and Western parts of Uganda. Similarly, our results suggest that the promotion of joint ventures (foreign) is likely to generate unequivocal benefits to the manufacturing sector in Uganda not only in terms of less negative horizontal spillovers but also from the labor quality, firm size and profit spillovers perspective. Finally, the finding of learning difficulties of domestic firms from foreign firms calls for programs in line with skill acquisition through job training and the review of the curriculum to focus on labor quality.</p>

R&D SPILLOVERS AND PRODUCTIVITY IN ITALIAN MANUFACTURING FIRMS

2017 ◽  
Vol 21 (04) ◽  
pp. 1750035 ◽  
Author(s):  
LUIGI ALDIERI ◽  
CONCETTO PAOLO VINCI
Keyword(s):  
Labour Force ◽  
Innovation Process ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Generation Model ◽  
Theoretical Idea ◽  
Skill Composition ◽  
Italian Manufacturing Firms ◽  
Medium Firms ◽  
The Relationship

In this paper, we analyse the relationship between Research and Development (R&D) spillovers and productivity. To this aim, we develop a non-overlapping generation model to evidence the theoretical idea of the spillovers between firms and then we implement an empirical investigation based on data from 9th and 10th Survey on Italian Manufacturing Firms (IMM) conducted by Capitalia to test for this idea. The results provide evidence of higher productivity in R&D and skill intensive industries and this can be interpreted as the signal of the relevance of spillover effects. Indeed, in-house R&D does not capture all aspects of innovation, which often occurs via other channels, especially in SMEs. Small and medium firms, such as Italian firms, are much more able to innovate by exploiting knowledge created outside of them. Thus, the results of our paper suggest that R&D spillovers reinforce in-house R&D in affecting SMEs productivity. Moreover, the contribution of this paper is also to stress the importance of skill composition of the labour force in the innovation process of firms.

scholarly journals The Direct Effect of Corporate Law on Entrepreneurship

2020 ◽  
Author(s):  
Jorge Guzman
Keyword(s):  
Best Practices ◽  
Direct Effect ◽  
Foreign Firm ◽  
State Level ◽  
Corporate Law ◽  
Firm Entry ◽  
New Firms ◽  
Difference In Differences ◽  
Business Corporation ◽  
The Impact

This paper estimates the impact of adopting the Model Business Corporation Act, a compendium of legal best practices, on U.S. state-level entrepreneurship. States adopted new corporate law endogenously, with legal changes being preceded by economic booms. Using foreign firm entry allows controlling for this endogeneity. Difference-in-differences estimates show better law increased the rate of new local corporations by 26% per year. Four tenths of the new corporations are substitutions from other firm types, and the rest are net new firms. Southern and Western states benefited more, and states that only partially adopted the MBCA saw no benefit.

SPILLOVER EFFECTS OF FOREIGN DIRECT INVESTMENT ON DOMESTIC MANUFACTURING FIRMS IN THAILAND

2016 ◽  
Vol 61 (02) ◽  
pp. 1640028 ◽  
Author(s):  
PAITOON WIBOONCHUTIKULA ◽  
CHAYANON PHUCHAROEN ◽  
NUCHIT PRUEKTANAKUL
Keyword(s):  
Foreign Direct Investment ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Raw Materials ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Factor Productivity ◽  
Domestic Firms ◽  
Industrial Estates

This study investigates technological spillovers of foreign direct investment (FDI) in horizontal, upstream, and downstream industries on domestic manufacturing firms in Thailand, using firm level data from the 2012 industrial census conducted by the National Statistical Office. First, we measure total factor productivity (TFP) and estimate stochastic production frontier to find technical efficiency of firms. Next, we examine impacts of the FDI and other factors on the TFP and technical efficiency of domestic firms. The results provide no evidence on spillover effects of the FDI in horizontal industries on either the TFP or technical efficiency of domestic firms. While the FDI in upstream industries shows negative spillover effects, the FDI in downstream industries reveals positive and significant spillover effects on firms in all industry groups. Firm-specific characteristics such as age, size, availability of imported raw materials, location at industrial estates, and R&D activities all had positive effects on firms’ TFP and technical efficiency in total industries. Although export capability had a positive impact on total factor productivity and technical efficiency of domestic firms in the capital and technology-intensive industries, the effect was insignificant in the labor-intensive ones. The findings imply limited spillover effects of the FDI on domestic firms but highlight favorable effects of the openness policy (affecting availability of imported raw materials and exports), infrastructural investment (available in the industrial estates), and R&D activities. Incentives should be given to the FDI with vertical linkages with domestic input suppliers in order for local firms to gain the most from FDI technology transfers.

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