Download or read book Multi product Firms Import Competition and the Evolution of Firm product Technical Efficiencies written by Emmanuel Dhyne and published by . This book was released on 2017 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how increased import competition affects the evolution of firm-product technical efficiencies in the small open economy of Belgium. We observe quarterly firm-product data at the 8-digit level on quantities sold and firm-level labor, capital, and intermediate inputs from 1997 to 2007, a period marked by stark declines in tariffs applied to Chinese goods. Using Diewert (1973) and Lau (1976) we show how to estimate firm-product quarterly technical efficiencies using a multi-product production (MPP) function that avoids using single-product (SP) production function approximations to it. We find that a 0.01 increase in the import share leads to a 1.05% gain in technical efficiency. This elasticity translates into gains from competition over the sample period exceeding 1.2 billion euros, which is over 2.5% of the average annual value of manufacturing output in Belgium. Firms appear to be less technically efficient at producing goods the further they get from their "core" good and firms respond to competition by focusing more on their core products. Instrumenting import share -- while not important for the signs of the coefficients -- is very important for the magnitudes as the effect of competition increases tenfold when one moves from OLS to IV. We close by testing the SP approximation to MPP and reject in eight of twelve industries

Download or read book Import Competition Productivity and Multi product Firms written by Emmanuel Dhyne and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Import Competition and Firm Refocusing written by Runjuan Liu and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent theoretical work predicts a new margin of firm adjustment to trade liberalization; that is, multi-product firms alter their product mix to focus on their core competencies in response to trade liberalization. Using detailed product data from U.S. public firms, I find strong empirical support for this prediction. Specifically, import competition leads multi-product firms to drop peripheral products to refocus on core production. The weaker the linkages that a peripheral product shares with the core (as measured by the extent of joint sales, joint procurement, joint production, and joint sectorship), the more likely the peripheral product is to be divested in response to import competition. (Certains travaux théoriques récents prédisent une nouvelle marge d'ajustement de la firme à la libéralisation du commerce : les firmes multi-produits changent leur mix de produits pour se concentrer sur leurs compétences de base en réponse à la libéralisation du commerce. A partir de données détaillées sur les produits de firmes américaines, on découvre que cette prédiction a un fort support empirique. Spécifiquement, la concurrence de l'importation amène la firme multi-produits à laisser tomber des produits périphériques pour recentrer sa production sur son noyau dur de compétences. Plus faibles sont les liens que partage un produit périphérique avec le noyau dur (mesuré par l'étendue des ventes communes, des approvisionnements conjoints, de la production liée, de la participation au même secteur) plus est grande la probabilité qu'on va désinvestir dans ce produit en réponse à la concurrence de l'importation.).

Download or read book The Age of Em written by Robin Hanson and published by Oxford University Press. This book was released on 2016 with total page 522 pages. Available in PDF, EPUB and Kindle. Book excerpt: Robots may one day rule the world, but what is a robot-ruled Earth like? Many think that the first truly smart robots will be brain emulations or "ems." Robin Hanson draws on decades of expertise in economics, physics, and computer science to paint a detailed picture of this next great era in human (and machine) evolution - the age of em.

Download or read book Place Productivity and Prosperity written by Arti Grover and published by World Bank Publications. This book was released on 2022-02-08 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: Place matters for productivity and prosperity. Myriad factors support a successful place, including not only the hard infrastructure such as roads, but also the softer elements such as worker skills, entrepreneurial ability, and well-functioning institutions. History suggests that prosperous places tend to persist, while “left behind†? regions, or those hurt by climatic, technological, or commercial shocks, struggle to catch up. This division gives rise to demands to “do something†? about the subsequent spatial inequality. Such pressures often result in costly spatially targeted policies whose outcomes disappoint because of a lack of analysis of the underlying barriers to growth and structural transformation and a fair appraisal of the possibility of overcoming them. The latest volume of the World Bank Productivity Project series, Place, Productivity, and Prosperity: Revisiting Spatially Targeted Policies for Regional Development makes three broad contributions. First, it provides new analytical and empirical insights into the three drivers of economic geography—agglomeration economies, migration, and distance—and the way in which they interact. Second, it argues that these forces are playing out differently in developing countries than they have in advanced countries: urbanization is not accompanied by structural transformation, leaving cities simply crowded and accruing all the negative aspects of urbanization without being productively concentrated. Long-term amelioration of poverty in lagging regions requires advancing the overall national agenda of structural change and productivity growth. Third, the volume provides a heuristic framework with which to inform policy makers’ assessments of place-based policy proposals, enabling them to identify the regions in which policy is likely to have an impact and those that are nonviable; to clarify the implications of various policy options; to think critically about policy design priorities, including necessary complementary policies to, for instance, infrastructure investment; and to navigate implementation challenges.

Download or read book Handbook of Production Economics written by Subhash C. Ray and published by Springer Nature. This book was released on 2022-06-02 with total page 1797 pages. Available in PDF, EPUB and Kindle. Book excerpt: This three-volume handbook includes state-of-the-art surveys in different areas of neoclassical production economics. Volumes 1 and 2 cover theoretical and methodological issues only. Volume 3 includes surveys of empirical applications in different areas like manufacturing, agriculture, banking, energy and environment, and so forth.

Download or read book Product Mix and Firm Productivity Responses to Trade Competition written by Thierry Mayer and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, those French firms skew their export sales towards their best performing products; and also extend the range of products sold to that market. We develop a theoretical model of multi-product firms and derive the specific demand and cost conditions needed to generate these product-mix reallocations. Our theoretical model highlights how the increased competition from demand shocks in export markets - and the induced product mix reallocations - induce productivity changes within the firm. We then empirically test for this connection between the demand shocks and the productivity of multi-product firms exporting to those destinations. We find that the effect of those demand shocks on productivity are substantial - and explain an important share of aggregate productivity fluctuations for French manufacturing.

Download or read book The Oxford Handbook of Productivity Analysis written by Emili Grifell-Tatjé and published by Oxford University Press. This book was released on 2018-08-07 with total page 902 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity underpins business success and national well-being and thus it is crucial to understand the factors that influence productivity growth. This volume provides a comprehensive exploration into the significance of productivity growth for business, the economy, and for social economic progress. It examines how productivity is defined, measured and implemented. It also surveys the dispersion of productivity across time and place, focusing on the productivity dynamics that either leads to a reallocation of resources that reduces dispersion and increases aggregate productivity or, conversely, allows dispersion to persist behind barriers to productivity-enhancing reallocation. A third focus is an investigation of the drivers of, or impediments to, productivity growth, some of which are organizational in nature and under management control and others of which are institutional in nature and subject to public policy intervention. The Oxford Handbook of Productivity Analysis contains contributions of distinguished productivity experts from around the world who analyze a wide range of timely issues. These issues concern purely analytical topics surrounding the measurement of productivity in various situations, beginning with the ideal situation in which all inputs and all outputs, and their prices, are observed accurately. They also include service sectors such as education in which the services provided are hard to define, much less measure, and other sectors that generate undesirable environmental externalities that are difficult to price and complicate the very definition of productivity. The issues also involve business management topics ranging from the role of business models and benchmarking to the quality of management practices, the adoption of new technologies, and possible complementarities between the two. The relationship between productivity and business performance is also explored. At a more aggregate level the issues range from the impacts of market power, incentive regulation, international trade and global value chains on productivity, to the contribution of productivity to economic development and economic welfare.

Download or read book Multi product Firms Productivity and Export Behavior written by Jangho Choi and published by . This book was released on 2014 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this dissertation is to examine multi-product firms' productivity and export behavior. More specifically, this dissertation estimates productivity of firms that produce and sell multiple products, and the role of productivity in such firms' export behavior. In doing so, this dissertation develops a firm-level gravity approach to test whether multi-product firms self select to export or learn from exporting. In the first of part of this dissertation, I examine whether intra-firm resource reallocation of a multi-product firm affects its Total Factor Productivity (TFP). By extending earlier approaches, I estimate unbiased and consistent TFP of multi-product firms using a revenue-based production function. I find that TFP is more likely to be overestimated when multi-product firms' internalized demand linkage is not taken into account. I also find that multi-product firms' TFP decreases as it expands the number of products produced, but specialization of production does not play a role in TFP. In the second part, I present a theoretical framework to derive a firm-level gravity equation. By equating the total demand and total production of multi-product firms, I derive a firm-level gravity equation where export flows from firms to consumers is proportional to the product of economic size of firms, consuming power of a representative consumer, and trade resistance between origin and destination. Using the firm-level gravity equation, I test the hypothesis that high productivity firms self select to export and that the size of export flows is determined by productivity. I find that the economic size of exporting firms and the consuming power of a representative consumer have a positive and statistically significant effect on exports, while trade resistance such as tariff and distance have the opposite effect. I also find that the estimated coefficients of the firm-level gravity equation tend to be smaller than those of the traditional country-level gravity equation. In the final part of the dissertation, I test whether or not previous export experience improves the productivity of firms. Again, the estimable equation is derived from the equilibrium condition presented in the second part. My result confirms that previous export experience indeed improves productivity of exporting firms, but tariffs have the opposite effect. The results of this dissertation reveal the economic behavior of multi-product firms, which usually account for a large of economic activity and output in many countries. Understanding such firms' productivity and export behavior can offer strategies for economic growth and development. Empirical findings of this dissertation suggest policy options including lowering tariffs, and improving infrastructure that can lower transportation costs. Further examination of product range and specialization of production can offer strategies to source exports from small and midsize firms.

Download or read book Multi product Firms and Product Quality Expansion written by Van Pham and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Multi product Firms and Product Quality written by Kalina Manova and published by . This book was released on 2017 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the global operations of multi-product firms. We present a flexible heterogeneous-firm trade model with either limited or strong scope for quality differentiation. Using customs data for China during 2002-2006, we empirically establish that firms allocate activity across products in line with a product hierarchy based on quality. Firms vary output quality across their products by using inputs of different quality levels. Their core competence is in varieties of superior quality that command higher prices but nevertheless generate higher sales. In markets where they offer fewer products, firms concentrate on their core varieties by dropping low-quality peripheral goods on the extensive margin and by shifting sales towards top-quality products on the intensive margin. The product quality ladder also governs firms' export dynamics, both in general and in response to the exogenous removal of MFA quotas on textiles and apparel. Our results inform the drivers and measurement of firm performance, the effects of trade reforms, and the design of development policies.

Download or read book Making It Big written by Andrea Ciani and published by World Bank Publications. This book was released on 2020-10-08 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.

Download or read book Comparative Advantage and Heterogeneous Firms written by Andrew B. Bernard and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.

Download or read book Economics and Consumer Behavior written by Angus Deaton and published by Cambridge University Press. This book was released on 1980-05-30 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: For advanced courses in economic analysis, this book presents the economic theory of consumer behavior, focusing on the applications of the theory to welfare economies and econometric analysis.

Download or read book Does What You Export Matter written by Daniel Lederman and published by World Bank Publications. This book was released on 2012-06-18 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does what economies export matter for development? If so, can industrial policies improve on the export basket generated by the market? This book approaches these questions from a variety of conceptual and policy viewpoints. Reviewing the theoretical arguments in favor of industrial policies, the authors first ask whether existing indicators allow policy makers to identify growth-promoting sectors with confidence. To this end, they assess, and ultimately cast doubt upon, the reliability of many popular indicators advocated by proponents of industrial policy. Second, and central to their critique, the authors document extraordinary differences in the performance of countries exporting seemingly identical products, be they natural resources or 'high-tech' goods. Further, they argue that globalization has so fragmented the production process that even talking about exported goods as opposed to tasks may be misleading. Reviewing evidence from history and from around the world, the authors conclude that policy makers should focus less on what is produced, and more on how it is produced. They analyze alternative approaches to picking winners but conclude by favoring 'horizontal-ish' policies--for instance, those that build human capital or foment innovation in existing and future products—that only incidentally favor some sectors over others.

Download or read book World Development Report 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-19 with total page 511 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Download or read book New Developments in Productivity Analysis written by Charles R. Hulten and published by University of Chicago Press. This book was released on 2007-11-01 with total page 648 pages. Available in PDF, EPUB and Kindle. Book excerpt: The productivity slowdown of the 1970s and 1980s and the resumption of productivity growth in the 1990s have provoked controversy among policymakers and researchers. Economists have been forced to reexamine fundamental questions of measurement technique. Some researchers argue that econometric approaches to productivity measurement usefully address shortcomings of the dominant index number techniques while others maintain that current productivity statistics underreport damage to the environment. In this book, the contributors propose innovative approaches to these issues. The result is a state-of-the-art exposition of contemporary productivity analysis. Charles R. Hulten is professor of economics at the University of Maryland. He has been a senior research associate at the Urban Institute and is chair of the Conference on Research in Income and Wealth of the National Bureau of Economic Research. Michael Harper is chief of the Division of Productivity Research at the Bureau of Labor Statistics. Edwin R. Dean, formerly associate commissioner for Productivity and Technology at the Bureau of Labor Statistics, is adjunct professor of economics at The George Washington University.