|
on Efficiency and Productivity |
|
Issue of 2022‒12‒19
eight papers chosen by |
| By: | Bao Hoang Nguyen (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Shawna Grosskopf (Economics, School of Public Policy, Oregon State University, Corvallis, OR 97331, USA); Jongsay Yong (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Parkville, Australia); Valentin Zelenyuk (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia) |
| Abstract: | This study investigates the impact of activity-based funding (ABF) on the performance of hospitals by exploiting a natural experiment that happened in the state of Queensland, Australia. To examine the outcome of the reform, we use both a simple measure of performance (the weighted average length of stay) and more sophisticated ones (the technical efficiency estimated from data envelopment analysis (DEA) models). We try to identify the causal effect of ABF on the technical efficiency of hospitals by incorporating difference-in-differences approach in the popular two-stage DEA framework. We find empirical evidence that ABF improves the technical efficiency of hospitals. |
| Keywords: | Hospital effciency, Activity based funding, Healthcare reform, DEA, Differencein- Differences, Truncated regression. |
| JEL: | C24 C61 I11 I18 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:180&r=eff |
| By: | Patricia Laurens (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Pierluigi Toma (University of Salento [Lecce]); Antoine Schoen (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Cinzia Daraio (Sapienza University of Rome - Department of Informatics and System Sciences - UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]); Philippe Larédo (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel, University of Manchester [Manchester]) |
| Abstract: | This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm's degree of R&D internationalisation, and (2) the firm's geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation. |
| Keywords: | R&D productivity,Multinationality,Conditional efficiency,Patents,DEA modelling,multinationality,conditional efficiency,patents,DEA modelling JEL classification O32,F23,L25,C44 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03840316&r=eff |
| By: | Clara Kögel (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the effect of air pollution on labour productivity in French establishments in both manufacturing and non-financial market services sectors from 2001 to 2018. An instrumental variable approach based on planetary boundary layer height and wind speed allows identifying the causal effect of air pollution on labour productivity. The finding shows that a 10% increase in fine particulate matter leads, on average, to a 1.5% decrease in labour productivity, controlling for firm-specific characteristics and other confounding factors. The analysis also considers different dimensions of heterogeneity driving this adverse effect. The negative effect of pollution is mainly driven by service-intensive firms and sectors with a high share of highly skilled workers. This finding is in line with the expectation that air pollution affects cognitive skills, concentration, headache, and fatigue in non-routine cognitive tasks. Compared to an estimation of the marginal abatement cost of PM 2.5 reductions by the Air Quality Directive 2008/50/EC, gains only from the labour productivity channel are equivalent to one-third of the abatement cost over the implementation period. All in all, these estimates suggest that the negative impact of air pollution is much larger than previously documented in the literature. |
| Keywords: | air pollution,labour productivity,planetary boundary layer height |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03837884&r=eff |
| By: | Pyun, Ju Hyun (Asian Development Bank Institute); Sun, Jong-in (Asian Development Bank Institute) |
| Abstract: | We examine the effect of foreign direct investment (FDI) on local firms’ productivity via human capital transfer from multinational enterprises (MNEs) to local firms. Using the firm-level data for 2010–2015 from the Republic of Korea, we identify human capital spillovers using local firms’ hired permanent foreign employees in an industry and region where MNEs and local firms operate. This identification is valid because permanent foreign workers hired by local firms tend to be visa holders from MNEs due to the Republic of Korea’s visa regulations. We find that the industry and regional FDI positively affect local firms’ productivity, particularly firms with higher growth in hiring skilled foreign employees. This human capital spillover from FDI is also more pronounced in high R&D-intensive industries. Our results are robust with various measures of skilled foreign employees hired by local firms, variations of specifications, and controlling for endogeneity issues. Our findings on positive FDI spillovers via human capital transfer to a local firm suggest that policy makers may relax unnecessary regulations for highly skilled foreign workers and provide a platform where a local firm’s manager and skilled foreign employees find each other. |
| Keywords: | FDI; firm productivity; human capital; foreign employees; technology spillover; knowledge spillover; visa status |
| JEL: | D24 F21 F23 J24 J63 O33 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1324&r=eff |
| By: | Guccio, C.;; Pignataro, G.;; Romeo, D.;; Vidoli, F.; |
| Abstract: | In recent decades, austerity measures have been widely adopted in public healthcare systems, so as to cope with financial constraints. This paper assesses the impact of a specific policy implemented in some Italian regions since 2007 with the purpose of reducing their healthcare spending deficit, the so called Recovery Plans (Piani di rientro), on the technical efficiency of their hospitals. Using a unique sample of administrative data relative to a large panel of hospitals in the period 2003-2010, and employing, as identification strategy, the exogenous introduction of the austerity policy in some regions, we find that the policy had a detrimental effect on the efficiency of the hospitals operating in the regions subjected to the policy. The results show that the efficiency loss grows over time, suggesting the existence of negative cumulative effects of the austerity policy. |
| Keywords: | hospitals; recovery plans; technical efficiency; austerity; spending cuts; |
| JEL: | I10 I18 D24 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:22/28&r=eff |
| By: | Putra, Chandra (Asian Development Bank Institute); Narjoko, Dionisius (Asian Development Bank Institute) |
| Abstract: | We examine the impact of imported intermediates on plant productivity and the role of plant capability in explaining the heterogeneity of the impact. We use a survey database of medium-sized and large Indonesian manufacturing establishments from 2000 to 2015. Imported intermediates are presented as a proportion of total intermediates, while capability factors are represented by the plant’s age, foreign direct investment (FDI) status, exporting status, and capital intensity. We find that import intensity does not significantly affect productivity. However, the impact of import intensity on productivity is positive and significant for exporters and for plants with higher capital intensity. Meanwhile, older and FDI plants do not seem to differ in terms of productivity gain from higher import intensity compared with either younger or non-FDI plants. The result underlines the importance of plant capability in determining productivity gain from imported intermediates. Our study improves policy makers’ understanding for better outcomes in the industry, such as the purpose of trade negotiation. Our study also recommends that policy makers carefully consider implementing a restriction or ban on imported intermediates, as doing so will penalize capable firms and reduce the competitiveness of exporters in the global market. |
| Keywords: | imported intermediates; productivity; capability; technology transfer |
| JEL: | D22 D24 F14 F61 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1319&r=eff |
| By: | Teruel, Mercedes; Amaral-Garcia, Sofia; Bauer, Péter; Coad, Alexander; Domnick, Clemens; Harasztosi, Péter; Pál, Rozália |
| Abstract: | We analyse how the COVID-19 crisis impacted firms' employment levels and digitalisation efforts differently depending on their pre-crisis productivity, digitalisation and growth performance. We match the EIB Investment Survey with firm-level financial statements from the ORBIS database for 27 EU Member States and the United Kingdom. Following the sales decline during the crisis, we show that: (1) Higher productivity firms are less prone to reduce the number of employees both in the short and in the long term; (2) High-growth enterprises are also less prone to reduce the number of employees in the long term; (3) Firms in highly digitalised sectors are less likely to reduce the number of employees; (4) Firms are more likely to increase their use of digital technologies, especially those that were already more digitalised before the crisis. |
| Keywords: | HGE,labour productivity,digitalisation,COVID-19,Mercedes Teruel,Sofia Amaral-Garcia,Peter Bauer,Alex Coad,Clemens Domnick,Péter Harasztosi,Rozália Pál |
| JEL: | L22 O47 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eibwps:202213&r=eff |
| By: | D.S. Prasada Rao (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Alicia N. Rambald (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Gholamreza Hajargasht (Swinburne Business School, Swinburne University of Technology) |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:181&r=eff |