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
More filters
Journal ArticleDOI
Regional Integration, Growth and Convergence
te Velde,Dirk Willem +1 more
TL;DR: In this article, the authors examined empirically whether and how regional integration leads to convergence and growth among developing countries, using standard growth models for nearly 100 developing countries over 1970-2004 and found that regional integration still has a positive impact on growth in its members through the effects of increased trade and investment on growth.
Journal ArticleDOI
The importance of being a capable supplier: Italian industrial firms in global value chains:
TL;DR: In this article, an investigation conducted on a sample of Italian manufacturing firms, drawn from a database spanning 1998-2006 that compares labour productivity and total factor productivity between supplier and final firms at the same level of demonstrated ability (measured in terms of exporting and innovating).
Journal ArticleDOI
Reconsidering learning by exporting
TL;DR: In this paper, the authors found evidence of learning by exporting in a representative sample of Spanish manufacturing firms and showed that the yearly average gains in productivity are around 3% for at least 4 years.
Journal ArticleDOI
What Determines Entrepreneurial Clusters
Luigi Guiso,Fabiano Schivardi +1 more
TL;DR: In this paper, the authors compare two potential explanations of the substantial differences in entrepreneurial activity observed across geographical areas: entry costs and external effects, and unambiguously reject the entry costs explanation in favor of the externalities explanation.
Journal ArticleDOI
Multinational enterprises and innovation: firm level evidence on spillover via R&D collaboration
TL;DR: In this article, the knowledge spillovers via R&D collaboration typically take place as a network phenomenon rather than a process between the local firm and a single innovation partner, and successful collaboration is conditional on the presence of foreign innovation partners in the network.
References
More filters
Journal ArticleDOI
The central role of the propensity score in observational studies for causal effects
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Journal ArticleDOI
Transcendental logarithmic production frontiers
TL;DR: Ebsco as mentioned in this paper focuses on additive and homogeneous production possibility frontiers that have played an important role in formulating statistical tests of the theory of production and characterizes the class of production possibility frontier that are homogeneous and additive.
Journal ArticleDOI
Markov-Perfect Industry Dynamics: A Framework for Empirical Work
Richard E. Ericson,Ariel Pakes +1 more
TL;DR: In this paper, the authors provide a model of firm and industry dynamics that allows for entry, exit, and firm-specific uncertainty generating variability in the fortunes of firms, focusing on the impact of uncertainty arising from investment in research and exploration.
Journal ArticleDOI
Root-n-consistent semiparametric regression
TL;DR: In this article, a variable aleatoire (X,Z) dans #7B-R P ×#7b-R q is considered, and an estimateur generalisant l'estimateur des moindres carres ordinaires en inserant des estimateurs non parametriques de la regression dans la projection orthogonale non lineaire sur Z is constructed.
Related Papers (5)
Estimating production functions using inputs to control for unobservables
James Levinsohn,Amil Petrin +1 more
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more