Measurement of the productivity of firms is an important research issue in productivity literature. Over the years, various methods have been developed to measure firm productivity across the globe. But there is no unanimity on the use of methods, and research on the identification of factors which determine productivity has been neglected. In view of these gaps, this study aims to measure total factor productivity (TFP) and tries to identify firm-specific factors which determine productivity of Indian manufacturing companies. The study is based on data of 616 firms from 1998–99 to 2012–13. To measure TFP, the Levinsohn–Petrin (L-P) method has been employed, and the fully modified ordinary least squares (FMOLS) method has been used to identify factors that affect TFP. The results reveal that embodied and disembodied technology plays a crucial role in the determination of productivity overall in manufacturing and other sub-industries. Similarly, the size of firms and intensity of raw material imports are also important for the determination of productivity across the sub-industries. JEL Classification: C14, C33, D24, L60

Over the years, researches have witnessed incongruence nature and direction of relationship among product market competition and firm size with the growth of firms’ productivity across the globe. Considering these gaps, this study aims to establish both short- and long-run relationships among these three characteristics of Indian manufacturing firms and intends to find their directions of causalities. This study uses firm-level data over a period of 1998–1999 to 2012–2013. Using Panel ARDL-PMG method, the results reveal the existence of a long-run association among product market competition, firm size and productivity growth for the full sample and for subsamples, categorizing relatively efficient and inefficient firms, and innovative and non-innovative firms. From the panel VECM Granger causality test, it has been observed that there is the long-run feedback relationship among these three variables. The empirical evidence suggests that as the intensity of competition becomes stronger and the firm-specific capabilities expand, they impart improved productivity via within and between firm effects. This draws some major implications for policymakers to embrace more competitive prone policies along with encouragement to firm specificities to realise value-added productivity. JEL: C33, D24, L11, L60

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A clean natural environment is a primary concern of contemporary lives, business investments, and governments. However, there is a lack of knowledge of how countries can achieve high investment across borders and better institutional quality while protecting the environment. Thus the current paper explores the effect of bilateral FDI, institutional quality, and CO2 emission intensity on each other for 19 selected G20 countries over the 2009-2017 periods. This paper estimates the three equations that jointly address the endogeneity problem by employing both static and dynamic simultaneous econometrics techniques with a panel dataset. The empirical results confirm that bilateral FDI reduces CO2 emission intensity and strengthens the institutional quality in G20. The results also support a positive and significant effect of institutional quality on bilateral inward FDI and CO2 emission intensity. This paper confirms a positive and considerable feedback effect of CO2 emission intensity on institutional quality. Further, this study establishes a triplex relationship between these three factors and consolidates vital policy insights to achieve sustainable growth concerning the nexus among environment quality-FDI-institution quality for G20 economies.

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