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on Efficiency and Productivity |
| By: | Wang, Sun Ling; Nehring, Richard; Mosheim, Roberto; Njuki, Eric |
| Abstract: | The U.S. Department of Agriculture (USDA) has been monitoring the U.S. farm sector’s productivity performance since the 1960s. Today, USDA, Economic Research Service (ERS) bases its U.S. agricultural productivity statistics on a sophisticated system of production accounts, drawing data from numerous sources. A notable feature of the U.S. productivity accounts is the input quality adjustment, as some inputs have undergone significant changes in their quality over time. According to USDA, ERS estimates, between 1948 and 2021, total farm output grew by 1.46 percent annually. With total input declining by -0.03 percent per year on average, total factor productivity has become the primary driver in promoting output growth, increasing by 1.49 percent per year. Over time, the input composition has changed, shifting from labor and land use to more use of intermediate inputs (e.g., fertilizer, pesticides, and purchased services) and durable capital assets (e.g., tractors, combines, and other machinery). Input quality changes in labor, capital (including land), and intermediate inputs have contributed positively to annual output growth by 0.11, 0.04, and 0.04 percentage points, respectively. |
| Keywords: | Labor and Human Capital, Land Economics/Use, Production Economics, Productivity Analysis, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ags:uerstb:344773 |
| By: | Ubi-Abai, Itoro |
| Abstract: | This study assessed the technical efficiency and total productivity of the Akwa Ibom Water Company Limited, Akwa Ibom state, Nigeria using the ex post facto research design. The study described critical input and output variables of the water company; and utilized the Data Envelopment Analysis (DEA) to carry out technical efficiency and productivity analysis on 20 locations of the Akwa Ibom Water Company Limited. The data comprise the inputs: Staff Strength, the Capacity of the Production System and the Actual Collected Revenue; and the output, Volume of Water Distributed. The data are sourced from the Monitoring and Evaluation Unit Monthly Analysis Report of the Akwa Ibom Water Company Limited spanning 2020 to 2023. The constant return to scale (crs) model revealed that the 20 water facilities were inefficient and the malmquist summary revealed that their total productivities were not optimal. It was recommended among others that the Akwa Ibom Water Company Limited needs to improve its output by 48.5% for 2020, 28.9% for 2021, 14.8% for 2022 and 15.1% for 2023. The study recommends that the State government should make adequate water management laws and give the Akwa Ibom Water Company Limited the mandate to enforce such laws. Adequate funding should be provided to aid the water company replace damaged water pipelines. Adequate power supply should be provided to ensure the water company operates efficiently. |
| Keywords: | Efficiency, Productivity, Water, Akwa Ibom |
| JEL: | D24 H44 O33 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121691 |
| By: | Kuosmanen, Natalia; Kiema, Ilkka; Maczulskij, Terhi |
| Abstract: | Abstract This report discusses the shortcomings of conventional productivity measures that overlook the environmental efforts of firms aiming to reduce greenhouse gas emissions. It highlights the importance of utilizing green productivity metrics, such as carbon productivity and green total factor productivity, for a more comprehensive assessment of productivity within the context of sustainable development. Key findings from recent empirical research conducted in Finland reveal a positive correlation between carbon and labor productivity, demonstrating that environmentally friendly practices can enhance both sustainability and efficiency in energy-intensive sectors. Energy efficiency also positively affects firm productivity, emphasizing the potential advantages of environmental regulations in driving economic growth, while simultaneously maintaining ecological well-being. Furthermore, carbon productivity exhibits a procyclical pattern, with financially stronger firms seeking more environmentally conscious workers (i.e., offering green jobs) during periods of economic growth. The report also recognizes the challenge of overcoming technological path dependence and suggests strategies such as public funding for clean technology R&D and leveraging EU-level green investment programs, particularly for smaller nations like Finland. |
| Keywords: | Carbon productivity, Green jobs, Green total factor productivity, Green transition, Energy efficiency |
| JEL: | D24 O44 Q55 Q56 |
| Date: | 2024–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:151 |
| By: | Touray, Alfusainey |
| Abstract: | The purpose of this paper is to measure and analyze the total factor productivity (TFP) trend for fourteen countries in the Economic Community of West African states from 2016 to 2022. The Data Envelopment Analysis (DEA) method is used to measure TFP using the CCR model. Among all the countries surveyed, Nigeria has the highest TFP and is the only country within the bloc that is optimally using factors of production while Niger has the lowest total factor productivity in the ECOWAS region within the study period. The study shows that the ECOWAS as a bloc is not efficiently using its factors of production to produce output, a reason why the region's growth has been low and volatile for decades since independence. The inefficiency is coming from the slack use of land as a factor of production. The study also shows that the COVID-19 pandemic and the Russia-Ukraine war had a profound impact on the total factor productivity in the ECOWAS bloc. Thus, there is a need for a land reform policy to get optimal returns from land usage in the region. |
| Keywords: | Total factor productivity, Data Envelopment Analysis, and CRR Model |
| JEL: | O47 |
| Date: | 2024–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121592 |
| By: | Plamen Nikolov; Wouter Simons; Alessandro Turrini; Peter Voigt |
| Abstract: | This paper uncovers patterns of TFP growth in the EU compared with the US using the latest vintage of the EU-KLEMS database which accounts better for intangible capital in production. Both in the EU and the US the growth contribution of TFP has been declining over the past two decades, while that of intangible capital and labour composition has been growing since the Global Financial Crisis (GFC) recovery. Most TFP growth can be attributed to a relatively few industries. The TFP growth advantage of the US over the EU is linked both to higher TFP growth rates in the sectors generating large TFP gains and to larger shares in value added for these sectors. Over the 2013-2019 period, in both the EU and the US, TFP growth is mostly due to TFP growth in services. While in the EU several so-called mid-tech manufacturing sectors, provided a positive contribution to overall TFP growth, in the US the only manufacturing sector that did so is not mid-tech: manufacturing of computers and electronics. Despite an acceleration of intangible capital investment in the EU, dynamics remain slower as compared with those observed in the US. Econometric estimations show that the elasticity of TFP to intangible capital has dropped considerably since the post GFC recovery, suggesting a possible slowdown of technological diffusion. Overall, even though sectors which are expanding their share in value added in the EU are generally those exhibiting higher and accelerating TFP growth, it appears that in the EU the transition towards the services sectors, where TFP is growing the fastest, is slower compared with the US. |
| JEL: | D24 E22 O40 O52 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:208 |
| By: | Laurens Cherchye; Bram De Rock |
| Abstract: | We introduce a nonparametric methodology for analyzing production technologies characterized by weakly separable structures involving intermediate inputs. Weakly separable production functions allow for modeling production stages where raw inputs aggregate into intermediate inputs before interacting with other factors of production. We establish nonparametric testable conditions for cost minimizing behavior that accommodate production with intermediate inputs. These conditions offer practical tools for empirical analysis of separable production processes. We show that they provide a useful basis for measuring productive efficiency and for identifying shadow prices of intermediate inputs. Additionally, we discuss potential extensions to handle jointly used raw inputs, multiple final outputs, and scenarios with limited price and quantity information. |
| Keywords: | Nonparametric Analysis, Production Technologies, Intermediate Inputs |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/377052 |
| By: | Neifar, Malika |
| Abstract: | Purpose: The scope of this paper is to see if the aggregate information and communications technology index (ICT) drives firm performance (profitability and efficiency) for BRICS countries from a des-aggregate panel data of the firm-yearly level (by country) during 2014-2022, from an aggregate monthly time series data and a panel data of country-monthly level during 2014-01-2014-12, all covering the Covid outbreak event. Design/methodology/approach: Through static and dynamic long-run (LR) panel models, the Bayesian VAR-X short-run (SR) approach, and the time series and the panel (LR and SR) ARDL models, we investigate the stability of the linkage between firm performance and the aggregate ICT vis à vis the Covid outbreak. Findings: Using an international sample of 316 FinTech firms from BRICS countries, we find that ICT mechanisms on their own are in general negatively associated with firm performance (profitability and efficiency) with some exceptions. We also find that the ICT and the firm-performance relationship is more significant among countries with respect to the considered pre ou post Covid 19 outbreak period. Originality: The novelty of this research is based on the idea of studying the effect of the aggregate ICT on firm performance by using several dynamic approaches so that we can estimate the SR adjustments that arise from the impact of ICT to the LR relationship. |
| Keywords: | FinTech Firm performance and ICT; BRICS area; Dynamic Panel Regressions and GMM for firm level panel data; Bayesian VAR-X and ARDL models for TS data; PARDL for macro panel data; Covid 19 outbreak |
| JEL: | C11 C22 C23 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121772 |
| By: | Oulton, Nicholas |
| Abstract: | National Statistical Institutes (NSIs) in advanced countries have generally adopted chain-linking in their national accounts. The United States uses a chained Fisher, an example of a superlative index number, in its national accounts. However the Fisher is only one of an infinite number of superlative index numbers. So an important issue is how sensitive are the estimates of output growth to the choice of index number. This issue is analysed by examining data from the BEA/BLS industry-level integrated production account, 1987–2020. Estimates of superlative and other index numbers are presented for this dataset. The sensitivity of real GDP growth to the value of the crucial parameter in a superlative index number is tested. The extent to which the desirable characteristics of value consistency and aggregation consistency are satisfied for different superlative index numbers is also analysed. The desirability of chain-linking does not follow automatically just from the use of superlative indices. So I also compare chained and unchained versions of these same index numbers. Finally, Europe uses a different approach to output measurement to the US, chained Laspeyres versus chained Fisher. I look at how different US estimates would be if they employed European methodology. |
| Keywords: | chain-linking; GDP; index numbers; Springer deal |
| JEL: | E01 C43 O47 O51 |
| Date: | 2024–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124315 |
| By: | Mitchell Hoffman; Christopher T. Stanton |
| Abstract: | This chapter surveys recent advances in personnel economics. We begin by presenting evidence showing substantial and persistent productivity variation among workers in the same roles. We discuss new research on incentives and compensation; hiring practices; the influence of managers and peers; and time use, technology, and training. We emphasize two main themes. First, we seek to illustrate the interplay between these topics and productivity differences between people and work units. Second, we argue that personnel economics has benefited from exploration, which we think of as the willingness to use new data and methods to shed light on existing questions and to raise new ones. As many personnel studies use data from individual firms, we discuss external validity and provide concrete guidance on how to improve discussions of the generalizability of findings from specific contexts. |
| JEL: | J01 M5 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32849 |
| By: | Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo |
| Abstract: | What are the consequences of green industrialization on the labour market and industry dynamics? This paper tackles and quantifies this question by employing observable and reliable data on green manufacturing production for an extensive set of EU countries and 4-digit manufacturing industries for over a decade. First, at a descriptive level, this paper documents that potentially green industries outperform the others in terms of employment, average wages, value added and productivity, net of controlling for other drivers of the labour market and industry dynamics. Second, employing a shiftshare instrument to purge the analysis from possible endogeneity within green potential industries, this paper finds that an expansion of green production implies an increase in employment and value added. In contrast, average wages and labour productivity remain unchanged. These results hold in the short and long term, are heterogeneous depending on the countries considered, and are amplified by existing industry specialization and by accounting for input-output linkages. |
| Keywords: | Climate Change, Environmental Economics and Policy, Political Economy, Sustainability |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:344791 |
| By: | Natália Barbosa (School of Economics and Management, University of Minho) |
| Abstract: | The adoption of new digital technologies offers new opportunities and has the scope to engender positive effects on firms’ expansion and success in international markets. This paper examines the main factors driving the adoption of Artificial Intelligence (AI) and AI-related digital technologies that enable the Industry 4.0 transformation and whether these new generation of digital technologies affect exporting performance at firm level. Using a rich and representative sample of Portuguese firms over the period 2014-2020, the estimated results suggest that firm’s ex-ante performance, digital infrastructures and in-house ICT skills are the main drivers of digitalisation. However, conditional to ex-ante firm’s performance, there are heterogenous effects on exporting performance across digital technologies and across industries. Moreover, there is evidence of positive selection towards large firms, casting doubts on the inclusiveness of the adoption process and the performance effects of AI and AI-related technologies. |
| Keywords: | Artificial Intelligence, Industry 4.0 enabling digital technologies, firms’ exporting performance |
| JEL: | L20 H81 L25 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mde:wpaper:183 |
| By: | Ruiting Wang; Xue Wang; Gang Xu; Tao Zha |
| Abstract: | We estimate the effects of privatization on zombie versus healthy state-owned enterprises (SOEs) in China, extending our analysis beyond TFP to a broad array of financial and economic indicators. Privatizing zombie SOEs enhances labor productivity and TFP, reduces bank and government subsidies, alleviates leverage and administrative expenses, improves liquidity, boosts profits, and accelerates sales growth. These benefits are more pronounced than for healthy SOEs and are robust across regions and industries. Our findings offer policy implications for emerging markets, suggesting that prioritizing the privatization of underperforming, zombie-like entities can lead to substantial economic improvements and greater efficiency. |
| JEL: | D22 L21 L33 P31 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32795 |
| By: | Ackah, Charles; Görg, Holger; Hanley, Aoife; Hornok, Cecilia |
| Abstract: | While the recent success of Africa’s ‘Lionesses’ – successful female entrepreneurs – is internationally celebrated, less is known about how liquidity can fuel the success of the ‘Lionesses’ and other businesswomen. Using information from a panel of over 800 male- and female-owned businesses in Ghana (ISSER-IGC survey), we capture a measure of underfunding, in addition to data on supplier credit, equity and other finance sources. Our regressions reveal a female-to-male productivity gap of between − 11 and − 19 per cent, values similar to estimates for other African countries. However, when financial constraints are taken into account, the gender performance gap disappears. Accordingly, female business owners who indicate that funding is not a problem are associated with higher productivity than males, all things equal. In a finding new to the literature, our regressions reveal the importance of supplier credit for Africa’s businesswomen. |
| Keywords: | Female-owned businesses, Liquidity, Productivity, Supplier credit, Africa, Ghana |
| JEL: | D22 J16 L26 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:301879 |
| By: | Ogawa, Akinobu; Kondoh, Haruo |
| Abstract: | Many studies show that fiscal redistribution among regions carried out by a national government undermines the cost efficiency of local governments. In Japan, a unique fiscal system, the Hometown Tax Donation (HTD) system, was launched in 2008. Citizens may donate some of their inhabitant taxes to a different local government than their own. We examine the effects of the HTD using panel data of Japanese municipalities and stochastic frontier analysis. We find that revenue received by other regions leads to a misestimation of the cost of public services, even if this redistribution is based on residents’ intentions. |
| Keywords: | Cost efficiency of local governments; Intergovernmental fiscal transfer; Donation of inhabitant tax; Hometown tax donation system (HTD) |
| JEL: | H27 H71 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121688 |
| By: | Alice Kabeza; Schiman NIYONKURU; Julius SEMAKULA |
| Abstract: | The main purpose of this study was to examine the relationship between project resource management practices and project performance in Rwanda, a case of advancing citizens engagement prepared and funded by Spark Microgrants in Musanze sector. Effective resource management is a critical determinant of project success in development initiatives. In Musanze District, Rwanda, the Advancing Citizens Engagement Project, funded by Spark Microgrants, aims to promote citizen engagement in community development. However, the extent to which resource management practices impact project performance remains underexplored. This study employed a mixed-methods approach, combining surveys, interviews, and correlation analyses to assess the relationship between resource management practices and project performance. The analysis revealed a strong positive correlation between resource management practices and project performance. Resource planning, including documentation and scope assessment, showed a significant impact on project success. Efficient resource allocation practices, based on skills and availability, contributed to cost control and efficiency. Implementing robust resource utilization monitoring mechanisms to avoid overallocation or underutilization. Investing in training and capacity-building for project team members to enhance performance. Key words: resource, resource planning, resource utilization, project performance, resource management |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:vor:issues:2024-49-03 |
| By: | Giacomo Damioli; Vincent Van Roy; Daniel Vertesy; Marco Vivarelli |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be “enabling technologies”, a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| Keywords: | Artificial Intelligence, Patents, Structural Change, Technological Paradigm |
| Date: | 2024–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:746877 |
| By: | Nogueille Gakoni; Desire Nimpamo; SEMAKURA Julius |
| Abstract: | This research aims to investigate the pivotal role of project management in enhancing the performance of supply chain projects within the private sector, using Kasha Rwanda Ltd as a case study. The study focused on evaluating the impact of planning and scope management, resource allocation and optimization, as well as communication and stakeholder engagement on the overall performance of supply chain projects within the organization. A mixed-methods approach, involving both qualitative and quantitative research methods has been employed to gather comprehensive insights. The population under study consists of 53 individuals directly involved in supply chain projects at Kasha Rwanda Ltd. Census sampling was employed, ensuring that the entire population is included in the research process. The data collection methods included structured questionnaires and semi-structured interviews, enabling a comprehensive exploration of the research objectives. The findings of the two variables were indicated by correlation analysis. The Pearson Correlation coefficient between Planning and Scope Management and Performance of Project is 0. 919. This correlation is highly positive and statistically significant at the 0.01 level (2-tailed), indicating a strong and meaningful positive relationship between Planning and Scope Management and the Performance of Supply Chain Projects. Correlation coefficient between Resource Allocation and Optimization and Performance of Project is 0. 923. This correlation is highly positive and statistically significant at the 0.01 level (2-tailed), indicating a strong and meaningful positive relationship between Resource Allocation and Optimization and the Performance of Supply Chain Projects. moreover, the Pearson Correlation coefficient between Communication and Stakeholder Engagement and Performance of Project is 0.903. and correlation is highly positive and statistically significant at the 0.01 level (2-tailed), indicating a strong and meaningful positive relationship between Communication and Stakeholder Engagement and the Performance of Supply Chain Projects. In conclusion, this study has provided valuable insights into the role of project management in the performance of supply chain projects within the private sector, with a specific focus on the HIV Medication Delivery Project in Kasha Limited. The study recommends, to invest in comprehensive project management training and development programs for project teams and managers involved in supply chain projects. Key words: Project management, project performance, supply chain, private sector, project. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:vor:issues:2024-49-02 |