Marketisation as a channel of international technology diffusion and green total factor productivity: research on the spillover effect from China’s first-tier cities

2020 ◽  
pp. 1-14 ◽  
Author(s):  
Xueli Wang ◽  
Lei Wang ◽  
Song Wang ◽  
Fei Fan ◽  
Xiaohua Ye
Keyword(s):  
Total Factor Productivity ◽  
Technology Diffusion ◽  
Spillover Effect ◽  
Factor Productivity ◽  
International Technology Diffusion

Does foreign direct investment spillover total factor productivity growth? A study of Indian drugs and pharmaceutical industry

2017 ◽  
Vol 24 (7) ◽  
pp. 1937-1955 ◽  
Author(s):  
Nitin Arora ◽  
Preeti Lohani
Keyword(s):  
Foreign Direct Investment ◽  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Spillover Effect ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Content Type ◽  
Domestic Firms ◽  
Tfp Growth

Purpose Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry. Design/methodology/approach This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function. Findings The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry. Research limitations/implications The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework. Practical implications Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy. Social implications In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws. Originality/value The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

ANALYSIS OF COMPETITIVENESS OF THE TOURISM SECTOR EAST JAVA PROVINCE (A TECHNICAL EFFICIENCY & CONVERGENCE APPROACH)

2020 ◽  
Vol 8 (6) ◽  
pp. 294-304
Author(s):  
Suparno Suparno
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
High Efficiency ◽  
Government Expenditure ◽  
Spillover Effect ◽  
Productive Efficiency ◽  
Factor Productivity ◽  
Significance Level ◽  
Tourism Sector ◽  
Low Efficiency

This research analysis of tourism competitiveness is based on the very high disparity problem in the condition of the tourism sector in East Java Province. With a sample of 10 districts / cities and using investment data, tourist visits, population, government spending and tourism sector PDRB, it is produced that investment and tourist visits have a positive but not significant effect on tourism sector PDRB because due to the probability > 0.05. While the population and government expenditure have a positive and significant effect on the tourism sector PDRB due to the probability < 0.05. Fixed effect models that are formed are:PSP = 39485712 + 0.018 INV + 0.389 TOURIST + 22.304 POP + 0.065 GEX + e               To measure tourism competitiveness, it is used with technical efficiency and total factor productivity where it is produced: Sidoarjo Regency, Malang City and Surabaya City are regencies / cities that have the highest level of technical efficiency with a value of 100% technical efficiency. Whereas with the calculation of total factor productivity in Gresik Regency (21,350), Jember Regency (16,543) and Kediri Regency (15,650) are regencies / cities that have the highest productivity. Based on the calculation of technical efficiency and total factor productivity results are obtainedL1) High efficiency and productive, Jember Regency; (2) High efficiency and less productive, Sidoarjo Regency, Malang City and Surabaya City; (3) Low and productive efficiency, Kediri Regency, Lamongan Regency and Gresik Regency; and (4) Low efficiency and less productive, Banyuwangi Regency, Pasuruan Regency and Pasuruan City.               The spillover effect occurs in Pasuruan City, where the economy of Pasuruan City is affected by investments from Sidoarjo Regency and Surabaya City as indicated by the significance level of 0.051 Surabaya City investment and 0.048 for Sidoarjo Regency investment which means smaller and equal to 0.05.               The calculation of convergence shows that the average convergence of regencies / cities in East Java to leader regions over 15 years and 5 months means that districts / cities need an average of 15 years and 5 months to match the conditions of tourism in the city of Surabaya.

scholarly journals Industrial Agglomeration, Foreign Direct Investment and Green Total Factor Productivity―Evidence from Manufacturing Industries in Chongqing, China

2018 ◽  
Author(s):  
Guohua Yu ◽  
Shuqin Xu
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Spillover Effect ◽  
Inhibitory Effect ◽  
Industrial Agglomeration ◽  
Factor Productivity ◽  
Development Mode ◽  
Conduction Path

This paper studies the influence mechanism of industrial agglomeration and foreign direct investment (FDI) on green total factor productivity (GTFP). We use the SBM Directional Distance Function to measure the GTFP of Chongqing's manufacturing industry from 1999 to 2015. The results show that the level of GTFP in Chongqing's manufacturing industry is relatively low, which is contrary to the current green development mode. By clarifying the conduction path of industrial agglomeration and FDI on GTFP, we use the panel Tobit model to study the effect of industrial agglomeration and FDI on GTFP. The main findings are: the higher the level of industrial agglomeration, the more beneficial it is to increase GTFP. FDI has an inhibitory effect on GTFP. The spillover effect of FDI on GTFP is not significant. At the same time, FDI counteracts the role of industrial agglomeration in promoting GTFP. The findings in a present study indicate that, according to Chongqing's experience, the &quot;pollution haven&quot; is established. Therefore, relying solely on foreign technology to promote the development of the manufacturing industry has many drawbacks clearly. Only by improving the ability of independent innovation is the reliable way to enhance GTFP effectively.

Total Factor Productivity Growth: Evidence from West African Economies

2019 ◽  
pp. 097215091985619 ◽  
Author(s):  
Isaac Abekah-Koomson ◽  
Pang Wei Loon ◽  
Gamini Premaratne ◽  
Teo Siew Yean
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Trade Openness ◽  
Stochastic Frontier ◽  
Spillover Effect ◽  
Political Stability ◽  
Optimal Level ◽  
West African ◽  
Factor Productivity ◽  
African Region

Since the 1990s, the economic growth of the West African region has been remarkable, with average GDP growth of 5 per cent annually. In view of that, this article investigates the Total Factor Productivity (TFP) performance for the Economic Community of West African States (ECOWAS) region, which takes into account the recent development on political stability and trade openness. There were also periods when TFP fell sharply, the most significant happened in the late 1990s and 2000s where TFP dropped significantly which might be attributed to the spillover effect of the Asian and global financial crises. Our results showed that TFP was performing well for the region as well as for each member countries for the period of the study. We acknowledged that the estimated TFP in our model captures other factors such as human capital, health and other institutional factors that could affect economic growth. We also estimated the Technical Efficiency (TE) for the ECOWAS region using the Stochastic Frontier Modelling and the result indicates that the TE performance is well below the optimal level of production.

scholarly journals Environmental Regulation, Resource Misallocation and Industrial Total Factor Productivity: A Spatial Empirical Study Based on China’s Provincial Panel Data

2021 ◽  
Vol 13 (4) ◽  
pp. 2390
Author(s):  
Xu Dong ◽  
Yali Yang ◽  
Xiaomeng Zhao ◽  
Yingjie Feng ◽  
Chenguang Liu
Keyword(s):  
Panel Data ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Spillover Effect ◽  
Factor Productivity ◽  
Resource Reallocation ◽  
Spatial Spillover ◽  
Resource Misallocation ◽  
Capital Misallocation ◽  
Spatial Spillover Effect

A vast theoretical and empirical literature has been devoted to exploring the relationship between environmental regulation and total factor productivity (TFP), but no consensus has been reached and the reason may be attributed to the fact that the resource reallocation effect of environmental regulation is ignored. In this paper, we introduce resource misallocation in the process of discussing the impact of environmental regulation on TFP, taking China’s provincial industrial panel data from 1997 to 2017 as a sample, and the spatial econometric method is employed to investigate whether environmental regulation has a resource reallocation effect and affects TFP. The results indicate that there is a U-shaped relationship between environmental regulation and industrial TFP and a negative spatial spillover effect of environmental regulation on industrial TFP at the provincial level in China. Both capital misallocation and labor misallocation will lead to the loss of industrial TFP. Capital misallocation has a negative spatial spillover effect on industrial TFP, while labor misallocation is just the opposite. Environmental regulation can produce a positive resource reallocation effect, which in turn promotes the industrial TFP in the range of 28% to 33%, while capital misallocation and labor misallocation are only partial mediator.

scholarly journals Temporal-Spatial Evolution and Driving Factors of the Green Total Factor Productivity of China’s Central Plains Urban Agglomeration

2021 ◽  
Vol 9 ◽  
Author(s):  
Fengting Wang ◽  
Ruichao Li ◽  
Chang Yu ◽  
Lichun Xiong ◽  
Yuan Chang
Keyword(s):  
Total Factor Productivity ◽  
Industrial Structure ◽  
Spillover Effect ◽  
Measurement Model ◽  
Urban Agglomeration ◽  
Factor Productivity ◽  
Spatial Econometric ◽  
Central Plains ◽  
Productivity Level ◽  
Factors Affecting

As China’s largest urban agglomeration with rapid growth of economy and population, the development of the Central Plains Urban Agglomeration (CPUA) has been severely restricted by environmental problems. Thus, the green development performance of the CPUA is worth studying. This study used the panel data of 29 cities in the CPUA from 2003 to 2018 based on the Slacks-based Measure and Global Malmquist–Luenberger index to measure the green total factor productivity (GTFP) and its decomposition index of each city. A spatial econometric model was developed to explore the factors affecting the GTFP of the CPUA. The results show that the GTFP of the CPUA had an upward trend in 2003–2018, but the productivity level was still low. There were significant spillover effect in the GTFP among different cities of the CPUA. The results of the spatial measurement model show that technological progress, industrial structure and solid waste environmental regulationhave a significant positive spillover effect on the GTFP. The, fiscal expenditure, and informatization level also have positive impacts on the GTFP. In the future, local government should provide technical and financial support for the development of green industries in the CPUA, and accelerate the construction of environmental protection infrastructures.

scholarly journals On productivity and technology diffusion in Nigeria

2003 ◽  
Vol 6 (4) ◽  
pp. 848-867
Author(s):  
NA Ndiyo
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Technology Diffusion ◽  
Technological Development ◽  
Knowledge Diffusion ◽  
Developing Economy ◽  
Factor Productivity ◽  
Term Trend ◽  
Long Term Trend

This study analyses the long-term trend in knowledge diffusion and productivity growth in Nigeria using a translog specification. The results indicate the need for technological upgrading and imply that policies designed to promote technological development should address the complementarities between different factors of production. The article, thus, provides some support for the argument that total factor productivity (TFP) is technological knowledge and can impact significantly on productivity in a developing economy

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