The Dynamics of Productivity in the Telecommunications Equipment Industry
G. Steven Olley,Ariel Pakes +1 more
TLDR
In this paper, an empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity.Abstract:
Technological change and deregulation have caused a major restructuring of the telecommunications equipment industry over the last two decades. Our empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity. The restructuring involved significant entry and exit and large changes in the sizes of incumbents. Firms' choices on whether to liquidate, and on input quantities should they continue, depended on their productivity. This generates a selection and a simultaneity problem when estimating production functions. Our theoretical focus is on providing an estimation algorithm which takes explicit account of these issues. We find that our algorithm produces markedly different and more plausible estimates of production function coefficients than do traditional estimation procedures. Using our estimates we find increases in the rate of aggregate productivity growth after deregulation. Since we have plant-level data we can introduce indices which delve deeper into how this productivity growth occurred. These indices indicate that productivity increases were primarily a result of a reallocation of capital towards more productive establishments.read more
Citations
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On the relationship between quality and productivity: Evidence from China's accession to the WTO
TL;DR: This article analyzed the effect of trade liberalization on the quality choices of Chinese exporters in terms of their outputs and their inputs and showed that the quality upgrading made possible by China's tariff reductions was concentrated in the least productive Chinese exporter.
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Identifying the effect of unobserved quality and expert reviews in the pricing of experience goods: Empirical application on Bordeaux wine
Pierre Dubois,Céline Nauges +1 more
TL;DR: In this paper, a structural empirical approach was proposed to disentangle the effect of experts' grades from the impact of unobserved quality on the pricing of experience goods, showing that failing to control for endogeneity caused by the omission of unobserv quality leads to over-estimate the influence of experts" grades on the “primeur” price.
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Spillovers from foreign direct investment and firm growth: technological, financial and market structure effects
TL;DR: In this article, the role of the technological gap between domestic and foreign firms in identifying the importance of technology diffusion from the presence of multinationals was examined, and it was estimated that a unit increase in the foreign presence in Greek industry raises output growth by 7% on average, in a five-year period, after controlling for technological differences among firms.
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Total Factor Productivity Estimation: A Practical Review
TL;DR: In this article, the authors provide empirical researchers with an overview of the methodological issues that arise when estimating total factor productivity at the establishment level, as well as of the existing (parametric and semiparametric) techniques designed to overcome them.
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Is Exporting a Source of Productivity Spillovers
Roberto Alvarez,Ricardo A. López +1 more
TL;DR: In this paper, the authors investigated whether exporting generates positive productivity spillover effects on other plants operating in the same industry and whether exporting affects productivity of plants in vertically related industries and found that exporters improve productivity of their local suppliers but not of plants that purchase intermediate inputs from them.
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