Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level

This paper documents how productivity varies with globalization modes, based on a firm-level data set covering all manufacturing industries in Japan without any firm-size threshold. Only a small fraction of firms outsource, export, or invest abroad. Foreign outsourcers and exporters tend to be less productive than the firms active in FDI or in multiple globalization modes but more productive than domestic firms. This productivity ordering is robust even when firm size, factor intensity, and/or industry are controlled for. This paper also finds that outsourcers are on average less capital intensive than other globalized firms.     

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.     

Open trade and skilled and unskilled labor productivity in developing countries: A panel data analysis

Abstract

This paper examines the effect of trade openness on the productivity of skilled and unskilled labor in a group of 36 developing countries using panel data and fixed effect approach. We have developed and utilized an empirical model that readily lends itself to testing the hypothesis posed. Our results support the hypothesis that trade openness has a positive and significant impact on labor productivity for both skilled and unskilled labor in the sample countries. We also observe that the beneficial effect of trade openness is relatively stronger for the skilled labor than the unskilled labor. We conclude that contrary to the claim made by Mayda and Rodrik (2001 Mayda, A. M. and Rodrik, D. 2001. “Why are some people (and countries) more protectionist than others? A cross country analysis”. Mimeo: Harvard University.  [Google Scholar]), skilled workers in developing countries may oppose protectionism. When adjusting for the purchasing power parity, the impact of trade openness on labor productivity, although positive and significant, is not as pronounced as it is for other definitions of openness.     

Corporate governance,globalization and firm productivity

We examine the relationship between globalization, corporate governance and firm productivity. The results, using longitudinal data from Korea, indicate that the positive effect of liberalising equity ownership on firms’ total factor productivity (TFP) was reinforced by indirect managerial effects when a firm improved its corporate governance. Our findings also confirm that the interaction of the managerial effect with increased foreign equity ownership is more significant than interaction with exports, suggesting that liberalising foreign investment in the host market is more effective in capitalising on the potential benefits of corporate governance reform than increasing exports to overseas markets, reflected in learning by exporting.     

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.     

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.     

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.     

分布式数据链战场态势误差评估

为了衡量数据链系统提供信息的准确性和可靠性,从数据链消息发送的机理出发,提出了一种基于马尔科夫过程的误差传递分析方法,建立了态势指标与网络、传感器影响因素的关联策略,有效解决了衡量数据链消息多因素影响和战场态势的准确性问题。仿真结果表明了分布式数据链的态势误差分布与传感器误差、网络变化误差模型的有效性,证明所提误差估计方法具有可行性和可操作性。     

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.     

Innovation and productivity in SMEs: empirical evidence for Italy

Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation that incorporates information on innovation success from firm surveys along with the usual R&D expenditures and productivity measures. We then apply the model to data on Italian SMEs from the “Survey on Manufacturing Firms” conducted by Mediocredito-Capitalia covering the period 1995–2003. The model is estimated in steps, following the logic of firms’ decisions and outcomes. We find that international competition fosters R&D intensity, especially for high-tech firms. Firm size and R&D intensity, along with investment in equipment, enhances the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on firm’s productivity, especially process innovation. Among SMEs, larger and older firms seem to be less productive.

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。     

Enhancing or inhibiting: The impact of investment in political ties on the link between firm innovation and productivity

Whether investment in political ties enhances or inhibits firm innovation has not been well understood in the literature. Theoretically, proactive use of political ties could help firms gain favourable political resources, thereby enhancing the effectiveness and efficiency of firm innovation activities. However, investment in political ties might conflict with innovation in internal resource orchestration processes. Based on a sample of 9693 firms across 27 transition economies, I find that the effect of investment in political ties on the link between innovation and productivity is based on type of innovation and type of political investments. Although bribery does not show any significant influence on the link between either product or organizational innovation and firm productivity, managerial time invested in political ties weakens the positive relationship between organizational innovation and productivity.     

新疆服务业要素贡献度和全要素生产率测算——基于C-D函数分析

要实现新疆经济的跨越式发展,大力发展服务业是必经之路。今后应引导劳动力向服务业流动,发挥技术创新的作用,注重人才培养,提升质量型要素对服务业发展的贡献。