Export variety and country productivity: Estimating the monopolistic competition model with endogenous productivity

This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity.     

Warmth during non-productive retail encounters: the hidden side of productivity

Productivity in retailing usually has been narrowly defined in short term economic performance. Although this is important, underlying salespersons' decisions are at work. As the core encounter of the entire value adding process from beginning to end, the interaction between salespeople and customers in the final step before consumption must be vital to understand the underlying human factors at work. We argue that this `soft' side (human factor) determines the `hard' productivity outcomes and that the dynamics of the service delivery process must be understood. Therefore, in this paper the point of sale has been studied second-by-second from the customer perspective to simulate how evaluations and perceptions vary during the encounter. By mapping the dynamic aspects we attempt to unravel the hidden side of how productivity is generated. The results obtained in two different `non-productive' retail encounters show that there is a substantial correlation between perceived warmth during the service encounter as a measure of perceived relationship and likeability, perceived service quality and loyalty.     

Assessing productivity in the presence of negative data and undesirable outputs

Few studies address the presence of negative data and undesirable outputs in productivity assessment. This study proposes a range-adjusted measure model that uses a non-radial Malmquist productivity index to estimate dynamic productivity in the presence of negative data and undesirable outputs. Banking-industry data are used to demonstrate the proposed model. The results show that during the 2007–2009 global financial crises, bank productivity deteriorated, mainly because of technical changes, and smaller banks suffered smaller financial losses. Finally, a decision making matrix based on the analysis results is presented to show the implications of the proposed method.     

Foreign direct investment and productivity spillovers in Irish manufacturing industry: evidence from plant level panel data

It is often argued that foreign firms may enhance the productivity of indigenous firms in an economy, through forward or backward linkages. Such externality effects typically are called “productivity spillovers”. In terms of foreign direct investment (FDI), Ireland is one of the most globalized economies in the world, having pursued a strategy of promoting investment by foreign companies for over 40 years. This article examines possible productivity spillovers from foreign‐owned firms to indigenous firms in the Irish manufacturing sector, using plant‐level data on all manufacturing firms for the period 1991–1998. Despite Irish policy commitment to building linkages between foreign and domestic firms, we find only weak evidence of spillovers and this evidence is sensitive to the definition and measurement of foreign presence.     

Competition,agency and productivity

This article tests a set of hypotheses relating to agency and Schumpeterian views on how competition affects performance. A survey data set of Australian workplaces is used, with the change in labour productivity as the dependent variable. The results show strong support for the idea that intense competition raises productivity growth in managerial workplaces, but not in non‐managerial workplaces (i.e. where the principal owner also works). Testing the agency theories in more detail, we find no evidence that the number of competitors, the price elasticity of demand or a proxy for bankruptcy (pre‐tax losses) are the mechanisms behind the process. For non‐managerial workplaces the results indicate support for the idea that greater demand uncertainty reduces productivity growth. In contrast, for managerial workplaces, greater demand uncertainty tends to raise productivity growth.     

Measuring retail productivity: monetary vs physical input measures

The issue of productivity measurement has been extensively debated in the literature. However, no consensus on the proper measures of retail inputs has emerged. The purpose of this research was to examine the use of monetary versus physical measures of productivity inputs using Cobb-Douglas production functions. The results indicate that the elasticity estimates of monetary measures are empirically equal to physical measures of retail input. The findings further suggest that monetary measures are appropriate when market imperfections are controlled. In addition, it is suggested that physical measures of retail inputs fail to capture the heterogeneity of units when used at aggregated levels. This paper concludes by providing a platform for further discussion on retail productivity measurements.     

A model of demand,productivity and foreign location decision among Taiwanese firms

We develop a theoretical framework to examine the relative importance of firm demand and productivity in firm decisions to export and where to locate foreign direct investments. The model shows that the equilibrium firm decision depends on product technology, consumer preference for product quality, fixed investment costs of establishing a foreign subsidiary, transportation costs and relative wages. Our empirical results confirm the predictions of the theoretical model. Firm-level demand and productivity components are important in explaining the decision to participate in foreign markets with their relative importance depending on the firm's organizational form (exports versus FDI) and the destination of the investments. In general, FDI firms are more productive than exporting firms regardless of FDI destinations. FDI firms also have a higher demand component than exporters and this demand component is stronger than productivity. Finally, among FDI firms, while those with a high demand index and productivity have a significantly higher propensity to invest in high-income countries, firm productivity is the sole determinant of firms undertaking FDI in low-income countries.     

Financial integration, productivity and capital accumulation

Understanding the mechanism through which financial globalization affects economic performance is crucial for evaluating the costs and benefits of opening financial markets. This paper is a first attempt at disentangling the effects of financial integration on the two main determinants of economic performance: productivity (TFP) and investment. I provide empirical evidence from a sample of 70 countries observed between 1975 and 1999. The results for both de jure and de facto indicators suggest that financial integration has a positive direct effect on productivity, while it does not directly affect capital accumulation. I also control for indirect effects of financial globalization through financial development and banking and currency crises. While financial integration does not systematically increase domestic financial depth, it may raise the likelihood of banking crises, though only to a minor extent. Yet, the overall effect of financial liberalization remains positive for productivity and negligible for investment.     

Do exports generate higher productivity? Evidence from Slovenia

I use matched sampling techniques to analyze whether firms that start exporting become more productive, controlling for the self-selection into export markets. To this end, I use micro data of Slovenian manufacturing firms operating in the period 1994-2000. Overall I find that export entrants become more productive once they start exporting. The productivity gap between exporters and their domestic counterparts increases further over time. These results also hold at the industry level and are robust to other controls that may be associated with increased productivity, such as private ownership. Using information on the (firm-level) destination of exports, I find that the productivity gains are higher for firms exporting towards high income regions.     

Firm size and productivity in Spain: a stochastic frontier analysis

This paper analyses the performance of the small and medium-sized manufacturing firms during the period 1995–2001, focusing on the degree of technical inefficiency and its determinants. We use a micro panel data set to simultaneously estimate a stochastic frontier production function and the inefficiency determinants using an unbalanced panel of manufacturing firms. Our empirical results suggest that small and medium-sized firms tend to be less inefficient than the large firms are. Also, we centre our analysis in the effect on efficiency of some organisational factors related to the managerial ability to use and adjust capital and labour properly.

Exporting and productivity in business services: Evidence from the United States

Does exporting make firms more productive, or do more productive firms choose to become exporters? This paper considers the link between exporting and productivity for a sample of firms in US business services. We find that larger, more productive firms are more likely to become exporters, but that these factors do not necessarily influence the extent of exporting. This conforms with previous literature that there is a self-selection effect into exporting. We then test for the effect of exporting on productivity levels after allowing for this selection effect. We model both the relationship between exporting and productivity, and a simultaneous relationship between export intensity and productivity after allowing for selection bias. In both cases we find an association, indicating that productivity is positively linked both to exporting and to increased exposure to international markets.     

连续波相干应答机的测速定位误差

在高精度的连续波跟踪测量系统中,应答机是其测速定位信号传输通道的重要部分。本文分析了系统本振及应答机中采用的非相干本振的相位噪声所引起的测量误差,推导了测速定位误差的数学表达式。分析表明,非相干本振会使测量产生较大的误差。     

Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries

This paper explores a period of substantial variation in trade policy across industries in Colombia (1977-1991) to examine whether increased exposure to foreign competition generates productivity gains for manufacturing plants. Using an estimation methodology that addresses the shortcomings of previous studies, we find a strong positive impact of tariff liberalization on plant productivity, even after controlling for plant and industry heterogeneity, real exchange rates, and cyclical effects. The impact of liberalization is stronger for larger plants and plants in less competitive industries. Our findings are not driven by the endogeneity of protection. Similar results are obtained when using effective rates of protection and import penetration ratios as measures of protection. Productivity gains under trade liberalization are linked to increases in intermediate inputs' imports, skill intensity, and machinery investments, and to output reallocations from less to more productive plants.     

Utilizing and teaching data tools in Excel for exploratory analysis

In this article we offer Excel as an introductory tool to high end business intelligence (BI) and decision support system (DSS) applications. Because it is ubiquitous, Excel can be used by all managers and business students for exploratory data analysis. We provide three key points in this utilization of Microsoft^® Excel 2003: (1) manipulating records using Excel as a database, (2) creating PivotTables^® and PivotCharts^® using Excel for analysis, and (3) importing data using Excel as an automation container. The basic skill set defined by the above three items allows users to begin to use Excel to its full potential in finding information in business data, and it offers a key tool for future research in improving the utilization of information across organizations.     

Cross sectoral FDI spillovers and their impact on manufacturing productivity

This paper explores the relationship between FDI spillovers and productivity in manufacturing firms in five European transition countries. The novelty of our approach lies in exploring different mechanisms of horizontal spillovers and disentangling the impact of backward and forward vertical spillovers from services and manufacturing sectors. We rely on firm level data obtained from the Amadeus database and annual input-output tables. The results from dynamic panel model estimations reveal that local manufacturing firms benefit from the presence of foreign firms in upstream services, especially in the knowledge intensive services, and in downstream manufacturing sector. Demonstration effect is found to be negatively associated with domestic firms’ productivity, while worker mobility and increased competition appear to be the main channels of horizontal knowledge diffusion. The firms’ productivity is also influenced positively by human capital and intangible assets. Finally, we show that the direction and intensity of both vertical and horizontal spillovers depend on the absorptive capacity of domestic firms.     

FDI与内资企业技术进步之间的关系——以江苏省为例的实证研究

江苏省是我国重要的FDI聚集地之一,然而以这一地区为研究对象的关于FDI技术外溢效应的研究并不多见。本文以江苏省为研究对象,利用2000至2006年27个制造业行业面板数据,估算了FDI对江苏内资企业生产率水平和生产率增长率的影响。实证结果表明:在密集使用外资的江苏省内,FDI对江苏省制造业内资企业的技术进步效应主要依赖于行业间的产业关联,总体而言,行业间外溢效应显著,行业内的外溢效应并不明显。但在高附加值产业,内资企业的技术进步不仅来自于行业间的关联,而且来自于行业内部外资企业的技术扩散和竞争。     

Effects of foreign acquisitions on financial constraints,productivity and investment in R&D of target firms in China

This paper examines whether foreign acquisitions lessen financial constraints, improve investment in research & development (R&D) and productivity of the target firms in China based on a sample of 914 cross-border mergers and acquisitions (CBM&A) over the period of 1994–2011. Using investment to cash-flow sensitivity to measure financial constraints, we find that foreign acquisitions in China are associated with a reduction of target firms’ financial constraints, irrespective of the ownership type of the target firm. However, the extent of financial constraint reduction is pronounced for non-SOEs compared to state-owned enterprises (SOEs). This study also provides evidence that foreign acquisitions improve Chinese target firms’ productivity and investment in R&D.     

Antecedents of patent value using exchange option models: Evidence from a panel data analysis

This paper examines the patent impact factor by an empirical study using panel data. To investigate the impact factor of patent value, this study conducts a sensitivity analysis of a patent evaluation model within the framework of a real option, while considering the uncertainties associated with both patent counts and the amount of R&D per patent, and develops an empirical analysis method for examining the impact factor of a patent using an unbalanced two-way fixed effects model. The empirical results indicate that the increase of patent value accords with the increase in the patent counts, volatility and patent lifetime. Although patent value declines with the amount of R&D per patent, the impact is not significant. However, reducing cost, raising patent counts and enhancing innovation efficiency offer a feasible method for a firm to increase patent value.     

Commentary on “Common Method Bias in Marketing: Causes,Mechanisms, and Procedural Remedies”

Common method bias is a potentially serious methodological problem in research in marketing. Several statistical remedies have been proposed in the literature, and used by academic researchers. MacKenzie and Podsakoff (2012) identify the causes of common method bias, and then provide a set of procedural remedies that might prevent the occurrence of the problem. In this commentary, we expand on their contribution by articulating the different types of measurement error that could occur in survey research, how a procedural remedy might simultaneously affect more than one type of error, and how common method bias might manifest itself in the domain of stimulus-centered measures.     

Intergenerational correlation in self employment: some further evidence from French ECHP data

Previous empirical work has shown that self-employment is correlated across generations, so that the children of the self-employed are themselves more likely to be self-employed. However, the reason for this intergenerational correlation remains unclear. This paper contributes to the existing literature in two ways. First, using French data from the European Community Household Panel Survey, we provide a further examination of this intergenerational correlation among the self-employed. In particular we investigate to what extent the intergenerational correlation in self-employment reflects occupational following. The second contribution of our paper is to investigate the differences between first- and second-generation self-employed workers and their possible explanations. Even though our results indicate that having self-employed parents increases the probability of being self-employed, irrespective of occupation, we do observe that a large majority of individuals enter the same (or very similar) occupation as their parents, which is consistent with occupational following. Our results also reveal some differences between the first- and second-generation self-employed. Formal education is more important for the first-generation self-employed (those whose parents are not self-employed) than for the second-generation self-employed. Further, the first-generation self-employed, who received less informal human capital than the second-generation self-employed, compensate for this shortcoming by acquiring more formal education.