Economics Commons^™

Are Large Informal Firms More Productive Than The Small Informal Firms? Evidence From Firm-Level Surveys In Africa, Mohammad Amin, Asif Islam

Mohammad Amin

Using data for over 500 informal or unregistered firms in seven countries in Africa, this study explores how labor productivity varies between small and large informal firms. We find robust evidence that small informal firms have higher labor productivity than large informal firms. Thus, even though poor performance of informal firms is typically attributed to their small size vis-à-vis registered or formal sector firms, incremental increases in the size of informal firms does not necessarily imply a narrowing of the formal-informal firm productivity gap.

Changes In R&D Expenditure And Productivity Growth: A Causal Analysis, Mawdudur Rahman, Abdur Chowdhury

Abdur R. Chowdhury

A study was conducted to directly test the presence of causal relationship between changes in research and development (R&D) expenditure and productivity growth. Granger causality tests are performed using annual time series data for the period 1956-1983. Three measures of productivity are used -- National Income, National Income per person employed, and National Income per hour of work in the nonresidential business sector. Results show that changes in R&D expenditure affect the growth rate of the 3 productivity measures with different degrees of intensity. National Income per hour of work shows the highest growth rate, with the peak effect occurring …

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Susan N. Houseman

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

The Role Of Manufacturing In A Jobs Recovery, Susan Houseman

Susan N. Houseman

No abstract provided.

Contribution Of Education And Innovation To Productivity Among Mexican Regions: A Dynamic Panel Data Analysis, Vicente German-Soto, Luis Gutiérrez Flores

Vicente German-Soto

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Timothy J. Bartik

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

Elasticity Of Substitution And The Stagnation Of Italian Productivity, Enrico Saltari, Daniela Federici

Enrico Saltari

The aim of this paper is to investigate the roots of the stagnation in the Italian total factor productivity (TFP). The analysis focuses on the specific pattern of technical progress in determining the dynamics of the TFP. This analysis cannot be done with Cobb-Douglas technology, but requires the employment of a constant elasticity of substitution (CES) production function that allows distinguishing between the direction and the bias of technical progress. We employ a CES specification embodying both labor- and capital-augmenting technical change, with a σ less than 1. We obtain three main results. (1) There seems to have been a …