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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Experiments and Entrepreneurship in Developing Countries
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Political Connectedness, Corporate Governance, and Firm Performance
TL;DR: In this article, the authors present and test a theory of how political connectedness affects corporate governance and productive efficiency of Slovenian joint-stock companies and show that a higher share of politically connected supervisory board members leads to lower productivity.
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The importance of reallocation for productivity growth: Evidence from European and US banking
TL;DR: In this paper, the authors quantified the effect of reallocation dynamics on aggregate productivity developments in the banking sectors of Europe and the United States over the period 1995-2009, on the order of 11% in the US and 19% in Europe.
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Spillover Effects of Foreign Direct Investment: How do Region-Specific Institutions Matter?
TL;DR: In this paper, the role of region-specific institutions in explaining foreign direct investment spillovers was examined, showing that firms that operate in regions with higher levels of intellectual property right protection, market development and international openness are better able to absorb spillovers and improve their productivity.
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Impact of Intangible Capital on Productivity and Growth: Lessons from the Indian Information Technology Software Industry*
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TL;DR: The authors examined the impact of intangible capital, including human capital and organisational capabilities on productivity, using India as an illustrative example and found that intangible assets have a major impact on software sector output.
References
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