Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Which institutions encourage high-growth entrepreneurship to emerge and to be sustained' Building on institutional theory, this study exploits a sample of 239,911 observations for micro, small, and medium–sized firms from Bulgaria during the period 2001–2010 and finds three types of effects: first, informal institutional constraints such as corruption significantly reduce both the probability to become a high growth firm and the sustainability of growth. Second and unexpected from most of the literature, formal institutional constraints do not discourage firms from pursuing their growth ambitions and even enhance further growth. Third, constraints related to institutional governance, notably limited access to finance, have a negative effect before high-growth, but become less relevant after the high-growth spurt. Results imply that institutional reforms represent a policy tool for supporting high-growth entrepreneurship in an emerging economy context. They also suggest, however, that steadiness in reform efforts is necessary, as informal institutions, which matter most, are particularly slow to change. PubDate: 2022-05-16
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract In this paper, we analyze the collaboration between an environmental group (EG) and polluting firms when they are asymmetric in their abatement costs. We find that, as firms become more asymmetric, the EG collaborates more with the firm suffering from an abatement cost disadvantage, but this additional collaboration does not overcome firms’ cost asymmetry, producing an overall decrease in total abatement and an increase in total emissions. We also evaluate the welfare effects of introducing an EG and/or a regulator, finding that the latter generally yields larger welfare gains than the former when neither are present. Unlike previous studies, we show that the welfare benefit from a second agent is, under most settings, largest when firms are more asymmetric in their abatement costs. PubDate: 2022-04-25
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This paper studies the persistence of innovation efforts by Indian manufacturing firms and how the innovation effort gets affected by the extent of industry-wide competition and the import of technology. The study is based on a panel of listed firms observed continuously over 10 years from 2006 to 2015. Using a dynamic panel structure with Heckman correction, we find evidence of the persistence of innovation effort among the firms; however, the persistence diminishes as the industry-level competition increases. The marginal effect of the competition is lower, and it changes sign if external sources of R&D, such as technology and raw material import, are controlled. Hence, evidence indicates the ‘path dependency’ of R&D expenditures and persistence of innovation effort, but it is sensitive to the extent of competition in the firm’s principal market and import. The findings also suggest that despite opening up the economy since the early 1990s, technology import is still complementing the domestic R&D in India and the persistence of innovation efforts. PubDate: 2022-04-18
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract The paper explores the role of absorptive capacity in understanding the association between international knowledge spillovers and total factor productivity (TFP) growth in Indian manufacturing. Imports and FDI provide two major channels of knowledge spillovers while private research and development (R&D) and education-weighted human capital are used as proxies for domestic absorptive capacity. Applying pooled linear regression on 2-digit manufacturing sectors based on NIC 2008 (ISIC Rev. 4) for 2000–2016 in India, positive spillover effects of FDI and imports on TFP growth are confirmed. However, when looking at moderation effects, absorptive capacity is found to moderate the relationship between knowledge spillovers and domestic productivity negatively. When the manufacturing sectors are sub-grouped based on their technological intensities, interesting differences emerge. For the low-tech and medium–low-tech sectors, spillovers from FDI negatively affect TFP. In contrast, in the high-tech and medium–high-tech sectors, spillovers from imports as well as FDI have a dampening effect on productivity. With respect to interaction effects, absorptive capacity negatively moderates the relationship between FDI spillovers and TFP growth in the low-tech sectors. In the high-tech sectors, interestingly, human capital positively moderates import spillovers for productivity growth while no such moderation effect is found for R&D. Overall, results indicate that industries witnessing considerable FDI inflows and imports in recent years have not experienced direct productivity gains in the same proportion. This highlights the importance of absorptive capacity for productivity growth and the need for policy intervention at disaggregated sectoral level in India. PubDate: 2022-04-07
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Conventional wisdom is that higher competition, implying more active firms, benefits consumers but hurts producer surplus. Under unit taxation/subsidy, we find that the entry of efficient firms improves consumer welfare, while the entry of inefficient firms hurts consumer surplus with network externalities. The entry of efficient firm raises industry profit if the degree of network externalities is relatively high. The latter result is at odds with the conventional wisdom and showed another channel for the possibility of a profit-raising entry. Our results suggest that the strength of network effects should be considered for designing taxation/subsidy and competition policies concurrently. PubDate: 2022-03-10 DOI: 10.1007/s10842-022-00381-z
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Although patenting propensity has been an old topic, our understanding of it is still fragmentary due to the complexity in the decision-making and the data limitations in empirical research. This paper first provides a conceptual framework showing that firm characteristics, business opportunities, and the patent system jointly determine firms’ patenting decisions. Using a unique dataset merging patent data from multiple patent offices with firm-level data during 2000–2008 for Canadian firms, we then study patenting propensity empirically. We find that firms’ propensity to patent is associated with firm age, size, expenditure on research and development, and profitability, as well as business opportunities measured by industry-level exports. Further, Canada’s participation in the Patent Cooperation Treaty as an International Search Authority has encouraged more firms to patent. Theoretical and empirical investigations support the idea that a useful framework of studying firms’ patenting propensity should simultaneously consider firms’ internal and external factors within and outside the patent system. PubDate: 2022-01-26 DOI: 10.1007/s10842-021-00377-1
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract The paper examines whether increased bank concentration and lack of competition lead to inefficiency within the East African Community (EAC) banking sector. Bank efficiency is decomposed into technical, pure technical, scale, cost, and profit efficiency unlike previous studies which have examined bank efficiency in a more generic manner. A two-step system generalized method of moments (GMM) and a sample of 149 banks with 1805 observations over the period 2001–2018 are employed. The findings reveal that the effect of bank concentration and competition is dependent on the type of efficiency. In particular, bank concentration has a positive significant effect on technical, pure technical, and profit efficiency. However, it has a negative significant effect on cost and scale efficiency. In addition, greater competition is found to foster technical, scale, cost, and profit inefficiency. These results are robust to alternative market power measures and an array of control variables. The paper reveals important policy implications to the regulators that a trade-off between bank concentration and competition through anticompetitive policies should be ensured in the banking sector as they play a significant role on bank efficiency. PubDate: 2022-01-18 DOI: 10.1007/s10842-022-00379-7
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This study investigates pricing strategies and privatization policies by assuming an asymmetric mixed duopoly market for complementary services. In addition, this study examines how technology affects the relationship between the degree of privatization and the degree of complementarity. The main results are as follows: When discriminatory pricing is adopted, the relationship between the degree of complementarity and the optimal degree of privatization is a monotonically increasing shape for inefficiently decreasing returns to scale. For an efficient one or for a constant return to scale, its relationship is an inverse U-shape. When uniform pricing is adopted, the monotone relationship (the inverse U-shaped relationship) holds for the decreasing return to scale (constant return to scale). When the degree of complementarity is small (large), uniform pricing (discriminatory pricing) with partial privatization is socially preferable as a pricing strategy. These results suggest that industries providing complementary services need to adopt discriminatory pricing with partial privatization. PubDate: 2022-01-16 DOI: 10.1007/s10842-021-00375-3
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This paper proposes a dynamic model using a general equilibrium approach and shows that the coordination of public policies with suitable human resources training is a key factor for an economy to industrialize. We analyze three public policy domains: innovation policies; policies regarding human resources training, including wages and employment; and push policies. The omission or implementation of public policies, as well as their coordination, defines whether an economy stagnates in a poverty trap, or on the contrary, whether the economy is activated through industrialization processes. Such outcomes depend on what the initial state of the economy is like: whether it is on the left or the right of the industrialization frontier. The viability of crossing the industrialization frontier will depend on how these types of policies are coordinated. PubDate: 2022-01-11 DOI: 10.1007/s10842-021-00376-2
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Greece implemented an extensive privatization program in the past decade, which included the concession of 14 regional airports for a period of 40 years. The main goal of this paper is to assess the effects of the concession in terms of passenger traffic. For that purpose, we apply a “difference-in-differences” econometric analysis of passenger traffic before and after the concession, using traffic data from the reports of the Hellenic Civil Aviation Authority. As a control group, we use 24 regional airports that remained under state control. The econometric estimation indicates that the change in the management model of these airports has contributed significantly to the increase of passenger traffic. In particular, the coefficient of the variable used to interpret the effect of privatization on passenger traffic indicates that, controlling for heterogeneous trends and effects, passenger volume in the privatized airports was higher by 30% than what it would have been under state control. The results demonstrate that strengthening the private sector involvement in the development and operation of public infrastructure may have positive economic impact, particularly when it involves the entry of an experienced international strategic investor in asset development in a country undergoing a prolonged and deep economic crisis. PubDate: 2022-01-10 DOI: 10.1007/s10842-021-00378-0
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This study aims to show that the low bid price survey standard has lower limit price characteristics and analyzes the behavior of firms in the public procurement market where the lower price limit is set. This study uses regression analysis to investigate the effects of exogenously determined low-price survey standards and predetermined prices on the winning bid ratio, the number of participants, the participants’ bid ratio, the difference between the second-place price and the winning bid, the second bid, and the single bidder’s bid. The results show that the winning bid ratio increased with a rise in the low-price survey standard, thereby indicating that the low-price survey standard has the characteristics of a lower limit price. The results also suggest that the low-price survey standard causes oversupply, which encourages firms to carefully set prices higher than the lower price limit, and intensify competition at levels higher than the lower limit price. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00372-6
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract We model strategic interaction between a domestic firm and a foreign firm involved in a joint venture, incorporating negotiations over equity shares and its implications for stability in the context of an emerging country. The foreign firm has superior technology, whereas the domestic firm has better local market knowledge. Modelling simultaneous innovation effort and bargaining power over equity share, we provide a rationale for the stability of the joint venture. We find that a certain level of technological knowledge can empower the bargaining power under certain parameter configurations and assumptions, such that the firms will negotiate to agree over their equity shares and maintain the joint venture. In this context, the stability of the joint venture is always an expected outcome. We have also shown that the domestic firm’s bargaining power and knowledge acquisition directly affect the domestic firm’s R&D effort and threaten the stability of the JV. We try to justify a probable situation where the firms may negotiate hard over equity shares but still maintain the joint venture. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00368-2
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract While the literature is quite clear on the association between trade and innovation, there has been little explicit study of the direction of causality. This study uses all patents granted in the USA between 1987 and 1999, assigns them to probable industries of origin and sectors of use, then tests causality with trade flows in those same economic sectors. We run robustness checks on various measures of trade (imports versus exports, volume versus value of trade), and on various measures of innovation (patent counts, patent claims, citation-weighted patents, and patent counts weighted for originality or generality). Results at the aggregate level support the literature’s assumption that imports cause innovation which then leads to exports, but at the industry level, causality is more complicated, running in both directions from imports (or exports) to and from innovation. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00366-4
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract We provide a rationale for the mixed relationship between product market competition and unionized wage, and more importantly, for a generally unexplained empirical evidence of a positive relationship between product market competition and unionized wage. We show that a higher product market competition decreases (increases) unionized wage if the external scale economies are weak (strong). However, a higher product market competition may decrease or increase the unionized wage if the external scale economies are moderate. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00369-1
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This study examines important but understudied issues in the servitization of global manufacturing firms. We begin with a review of the literature that suggests that global manufacturing firms can grow by integrating services into traditional products in a rapidly changing business environment. We fill a gap in the literature by considering exogenous (i.e., country-level and industry-level) and endogenous (i.e., firm-level) antecedents of servitization. We posit that home-country institutional development has a positive effect on global manufacturing firms’ servitization. We also posit that a high level of industry competition is favorably associated with servitization and that a firm’s technological capability and geographic diversification are related to servitization. To test these arguments, we made a comprehensive data set by using the Thomson Reuters database, which provides the financial information of 301 global manufacturing firms in the 2015 Forbes Global 1,000, and by using annual reports published on the websites of the firms. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00367-3
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract The German petrol station market is characterized by strong intraday price cycles, which probably correspond to the well-known Edgeworth cycles. The prices go up strongly in the late evening or in the middle of the night, fall relatively heavily in the early morning, and then go up and down several times in the course of the day. Locally, the analysis is limited to the 26 petrol stations that plausibly form a common market in the Lueneburg region. This paper picks out the specific sequence in which, after generally rising prices during the day, a single supplier is the first to reverse the price trend and lower its price. For this purpose, current price reports are used to define the price reduction event down to the second, and to show only the valid prices of competitors prior to the event. All German petrol stations have to report price changes to the Bundeskartellamt's Market Transparency Department. Tankerkoenig then publishes the full reports. This results in one panel observation for each price reduction event. Out of nearly 300,000 price observations, just over 10,000 panel observations result. Fixed-effect logit estimates are used to test whether the theoretically and economically significant price differences of the Edgeworth cycles explain the behavior of the price cutters, or whether market structure factors, such as brand affiliation/independence of the petrol station, service offerings, or location characteristics predict price-cutting behavior. The novel recording of the price dynamics in the petrol station market by using the accurate petrol station price data to the second indicates promising research of extensive price data and avoids the enormous loss of information in the previously common calculation of average prices at certain times. PubDate: 2021-12-01 DOI: 10.1007/s10842-021-00362-8
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This study considers return variation across five sectors of the oil and gas industry. Between 2000 and 2020, firms in refining and marketing and exploration and production had the highest daily expected returns. Exploration and production and equipment and services had the greatest variation with equity market risk and was greater than downstream transportation and pipeline and refining and marketing. By sector, firms in refining and marketing and exploration and production had the greatest equity market risk, whereas integrated and transportation and pipeline had the lowest. Across all sectors, firm returns are positively related to size and value effects. Fracking and non-traditional recovery techniques have increased the likelihood of well completion, decreased equity risk, and decreased expected returns across the oil and gas industry. PubDate: 2021-11-01 DOI: 10.1007/s10842-021-00374-4
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Grain elevators play a central role in the movement of grain to market and to rural economies in terms of employment and investment. Over the last three decades, the grain elevator industry in Canada has experienced a major decline in the number of elevators as older and technologically obsolete elevators have been replaced by larger and more technologically advanced elevators. We develop a model of exit in the Canadian grain elevation industry using data from 1999 to 2016 collected at the individual elevator level. Our specification explains elevator exit based on traditional variables used in the industrial organization literature such as capacity, multi-plant ownership, and vintage. But, we also include a measure of vertical linkage in the industry (i.e., elevator linkage to the freight transport sector) as well as spatial measures to account for local demand, supply, and competition levels. The results provide strong evidence that exit in this key agricultural and trade industry is affected by whether an elevator is a recent entrant (vintage), its size, vertical linkages, local demand and supply conditions, and spatial competition. PubDate: 2021-10-27 DOI: 10.1007/s10842-021-00373-5
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract This article contributes to the discussion of the implications of different objectives pursued by the competition authorities (CAs) for their optimal structure in terms of whether one or more functions (or activities) should be assigned to them. Different areas of enforcement activity that can be assigned to CAs may differ in the extent to which they contribute to welfare-enhancing or reputation-enhancing objectives. In their recent paper, Avdasheva et al. (Rev Ind Organ 54:251–282, 2019) showed that when the CAs are reputation-maximizing, it may then be optimal to have activities undertaken by specialist authorities, each specializing in one activity. In this article, we generalize the utility function of the CAs, allowing also the welfare impact of the decisions made to influence their utility, and show that if the CAs are welfare maximizers, then all the activities should be undertaken by one generalist authority. PubDate: 2021-10-13 DOI: 10.1007/s10842-021-00370-8
Please help us test our new pre-print finding feature by giving the pre-print link a rating. A 5 star rating indicates the linked pre-print has the exact same content as the published article.
Abstract: Abstract Production reorganization at the firm level as an outcome of environmental mandates is rarely studied in the literature. This paper shows that when exposed to abatement policy to address environmental pollution, a large number of firms from pollution-intensive industries in India outsource production as abatement cost rises. Static and dynamic panel data estimates for firms normalized for size heterogeneity from 7 major industries in India between 2008 and 2020 show robust patterns controlled for a set of covariates. Application of difference GMM estimates avows that pollution abatement cost has a significant positive impact on outsourcing, while improvement in productivity lowers the overall rate. Moreover, when energy prices are high but post-tax profit is positive, the firms outsource less even if the abatement cost rises. PubDate: 2021-09-29 DOI: 10.1007/s10842-021-00371-7
Hybrid journal (It can contain Open Access articles)
[2469 journals]
