Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms

Tang, Jianmin; Wang, Weimin

doi:10.1007/s11123-005-2213-y

Cited by 51 publications

(33 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Prior literature documents that firms improve productivity with the experience they accumulate as they age (see, for example, Haltiwanger et al 1999;Bulan et al 2010). Further, extant literature documents industry structure and competition (Tang and Wang 2005;Bulan et al 2010) and research and development expenditure (Griliches 1986;Bulan et al 2010) to have significant impact on productivity. We also include Leverage to control for risk (Ashbaugh-Skaife et al 2009) and PE Ratio as a proxy for future growth opportunities (Cragg and Malkiel 1982;Chung and Charenwong 1991).…”

Section: Empirical Analysismentioning

confidence: 99%

A Re-Examination of Diversification and Firm Productivity

Chang

Fernando

Srinivasan

et al. 2013

Journal of Management Accounting Research

View full text Add to dashboard Cite

The advantages and disadvantages of diversification have been widely debated by academics, as well as business professionals, and the majority of studies suggest that diversification destroys firm value. The effect of overall diversification (without categorizing whether such diversification is related or unrelated to the business) on productivity has been investigated as well, but with similar conflicting results. In this paper, we investigate the effects of the two types of diversification on productivity. We find that related diversification enhances firm productivity, whereas unrelated diversification reduces firm productivity. We also find that the previously recorded link between diversification and firm value is partially mediated by productivity. Our paper offers further empirical evidence toward resolving the conflicting findings of prior research, and provides practitioners with additional points for consideration when engaging in firm diversification.

show abstract

Section: Empirical Analysismentioning

confidence: 99%

A Re-Examination of Diversification and Firm Productivity

Chang

Fernando

Srinivasan

et al. 2013

Journal of Management Accounting Research

View full text Add to dashboard Cite

show abstract

“…Lucifora and Origo () estimate these costs in the short‐run and long‐run, as well as the direct and indirect costs of skill shortages in a set of European countries in the late 1990s, and conclude that costs generated by skill gaps average around 7% of GDP. A number of other studies have found that skill shortages negatively affect labor productivity, for example when firms fill jobs with over‐ or under‐skilled workers, or do not fill them at all (Tang and Wang ; Bennet and McGuinness 2009; Quintini ). The shortage of high‐skilled workers might decrease the innovation potential in the economy.…”

Section: Introductionmentioning

confidence: 99%

How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets

Guzi¹,

Kahanec²,

Kureková³

2018

Kyklos

View full text Add to dashboard Cite

Theoretical arguments and previous country-level evidence indicate that immigrants are more fluid than natives in responding to changing labor shortages across countries, skill-groups or industries. The diversity across EU member states enables us to test this hypothesis across various institutional, economic and policy contexts. Drawing on the EU LFS and EU SILC datasets we study the relationship between residual wage premia as a measure of labor shortages in different skill-industry-country cells and the shares of migrants and natives working in these cells. We find that immigrants' responsiveness to labor market shortages exceeds that of natives in the EU15, in particular in member states with higher unemployment rates, higher levels of (recent) immigration, and more open immigration and integration policies; but also those with barriers to citizenship acquisition or family reunification. Whereas higher welfare expenditures seem to exert a lock-in effect, a comparison across different types of welfare states indicates that institutional complementarities neutralize that effect. JEL Classification:J15, J24, J61, J68

show abstract

“…Disney et al (2003b), using the ARD, find that competition, measured as industry concentration and rents, raises the level and growth rate of TFP. Tang and Wang (2005) found that a firm's perception of the level of competition it 29 Martin (1993) develops a model that shows the opposite; greater competition results in a smaller payoff from increasing marginal efficiency and therefore the less it is in the interest of the owner to put in place an incentive structure that induces the manager to reduce marginal cost. Spence (1984) similarly shows that as the number of firms in the market increases (and the expected sales of each firm decreases) then the incentive to invest in cost reduction falls.…”

mentioning

confidence: 99%

Plant-level determinants of total factor productivity in Great Britain, 1997–2008

Harris

Moffat

2015

J Prod Anal

View full text Add to dashboard Cite

AcknowledgementsThis work contains statistical data from ONS which is Crown copyright and reproduced with the permission of the controller of HMSO and Queen's Printer for Scotland. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. Abstract This paper examines the determinants of total factor productivity (TFP) using a GB plantlevel dataset. Using a systems-GMM approach, it considers the role of the following four plant characteristics: internal and external knowledge; foreign ownership, multi-plant economies of scale and competition; and spatial spillovers and 'place' effects. The sample is disaggregated into manufacturing and services and by technology to show any differences across sectors. In terms of knowledge, undertaking R&D is positively associated with TFP in most sectors. Plant age is generally negatively related to TFP suggesting that the older vintages of technology embodied in the capital of older plants is outweighing any learningby-doing effect. Foreign ownership is positively related to TFP although there is no obvious TFP ranking in terms of which investing country does better, or in terms of the method by which FDI is undertaken. Manufacturing industries are generally found to operate under conditions of increasing returns-to-scale while service industries generally have decreasing returns. Across most sectors, single plant enterprises have higher TFP than plants belonging to multi-plant enterprises operating in only one region, but lower TFP than plants belonging to multi-plant enterprises with plants in more than one region. Industry concentration (proxying competition) has both positive and negative impacts on TFP across sectors. The agglomeration variable is generally positive and significant for services but less so in manufacturing. A measure of diversification is negatively related to TFP for most sectors although this association is only statistically significant for four out of eight sectors. This may suggest that congestion diseconomies are important. Plants located in cities generally perform better than plants in the same region outside of these cities; but with the exception of London, plants in the South-East have higher TFP levels. This suggests that spatial externalities associated with city location are not as important as the benefits of being situated in the South East region.

show abstract

Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms

Cited by 51 publications

References 17 publications

A Re-Examination of Diversification and Firm Productivity

A Re-Examination of Diversification and Firm Productivity

How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets

Plant-level determinants of total factor productivity in Great Britain, 1997–2008

Contact Info

Product

Resources

About