The Effect of Export Promotion on Firm-Level Performance

2018 ◽  
Vol 10 (1) ◽  
pp. 357-387 ◽  
Author(s):  
Jakob Munch ◽  
Georg Schaur
Keyword(s):  
Small Firms ◽  
Value Added ◽  
Direct Costs ◽  
Export Promotion ◽  
Firm Characteristics ◽  
Firm Level ◽  
Selection Problems ◽  
Self Selection ◽  
Tax Distortions ◽  
Level Performance

Most countries promote exports. This paper answers two questions: Does export promotion improve firm performance, and do any benefits outweigh costs? We solve self-selection problems by accounting for an extensive set of firm characteristics. In addition, we distinguish firms that self-selected into promotion services from firms the Danish Trade Council approached based on observed information. We find that export promotion increases sales, value added, employment, and value added per worker. For small firms, summing expenditures on export promotion, subsidies, and tax distortions, the gain in value added is roughly three times higher than the direct costs of export promotion. (JEL D22, F13, F14, L25, L53)

Evaluation criteria versus firm characteristics as determinants of public R&D funding

2020 ◽  
Author(s):  
Martin Thomas Falk ◽  
Roger Svensson
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Evaluation Criteria ◽  
Knowledge Gain ◽  
Firm Characteristics ◽  
Firm Level ◽  
Acceptance Probability ◽  
Percentage Points ◽  
Evaluation Scores ◽  
To Receive

Abstract This study provides new empirical evidence regarding the relevance of evaluation criteria and firm characteristics for public R&D funding decisions. The database used contains both accepted and rejected R&D project proposals, project evaluation scores, and several firm characteristics. The probit estimations show that proposals with high scores on innovative content, spillover, and knowledge gain are significantly more likely to be approved and that most firm-level characteristics are not significant, except for firm size. For example, good or very good assessments of innovative content raise the acceptance probability by between 18 and 37 percentage points, respectively. Small firms are more likely to receive a grant.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals Firm characteristics, consumption risk, and firm-level risk exposures

2017 ◽  
Vol 125 (2) ◽  
pp. 326-343 ◽  
Author(s):  
Robert F. Dittmar ◽  
Christian T. Lundblad
Keyword(s):  
Firm Characteristics ◽  
Firm Level ◽  
Consumption Risk

PROBLEMS FACED BY SINGAPORE ENTREPRENEURS IN THE FIELD OF BIOTECHNOLOGY

1993 ◽  
Vol 01 (01) ◽  
pp. 133-144 ◽  
Author(s):  
Erin Goh ◽  
Wee-Liang Tan
Keyword(s):  
Food Processing ◽  
Small Firms ◽  
Value Added ◽  
Lag Time ◽  
Government Funding ◽  
Market Place ◽  
Interesting Phenomenon ◽  
Trained Staff ◽  
Short Product ◽  
Local Firms

Biotechnology is one of the fields highlighted by the Economic Committee as an area of high value-added technology which could be developed in Singapore. The recommendation of the Economic Committee was that the venture capital industry be developed to aid in attracting young foreign technological firms to Singapore. Biotechnology includes the areas of pharmaceuticals, chemicals, food processing and agro-technology. A number of local biotechnology businesses have sprung up. This is an interesting phenomenon since biotechnology is difficult ground for small firms to be engaged in. It is usually associated with a long lag time between the development and the actual introduction of the product into the market-place, a need for large sums to be invested in research, and a short product life span, amongst other disadvantages. In an environment where enterprise is only currently being encouraged and entrepreneurship being nurtured, one would not have expected local entrepreneurs to venture into biotechnology. It would therefore be of interest to examine these businesses to see if there are any unique problems that they face by operating in Singapore. This paper proposes to examine the problems encountered by these local firms. Some of the problems ascertained through interviews with local firms concern financing and government funding, and availability of trained staff.

THE EFFECTS OF FIRM CHARACTERISTICS AND RECOGNITION POLICY ON EMPLOYEE STOCK OPTIONS PRICES AFTER CONTROLLING FOR SELF-SELECTION

2014 ◽  
Vol 09 (02) ◽  
pp. 1440003
Author(s):  
CHII-SHYAN KUO ◽  
SHIH-TI YU
Keyword(s):  
Firm Value ◽  
Threshold Model ◽  
Stock Option ◽  
Share Price ◽  
Employee Stock Options ◽  
Firm Characteristics ◽  
Employee Stock Option ◽  
Large Size ◽  
Self Selection ◽  
Recognition Rule

We examine whether and how firm characteristics, including firm size and liquidity, affect the relation between employee stock option (ESO) grants (as proxied by disclosed ESO expenses) and firm value. We also investigate how the implementation of a new share-based compensation recognition rule affects the pricing effect of ESOs. Prior studies have provided mixed results concerning how ESOs affect firm value. We argue that their findings could be attributable to self-selection and a non-uniform ESO-share price relation. We use the threshold model to address our research questions after controlling for self-selection bias. We find that markets tend to positively price ESOs in the case of firms characterized by large size and low liquidity. In addition, we find that after the new rule came into effect, ESOs became positively associated with firm value. These results are congruent with ownership and symbolic value theories, the lifecycle stages hypothesis and the contention that an ESO expensing policy enhances the quality of financial statements.

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