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  • 1
    Language: English
    Pages: Online-Ressource (30 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: Iootty, Mariana Will the Crisis Affect the Economic Recovery in Eastern European Countries ?
    Abstract: Two sources of growth are firm learning and innovation. Using a unique panel data for 1,686 firms in six countries (Bulgaria, Hungary, Latvia, Lithuania, Romania, and Turkey), this paper applies panel data estimators and Juhn-Murphy Pierce decomposition in order to identify the effects of the global economic crisis on sales growth of innovative and young enterprises in Eastern European countries. The results show that innovative and young firms were significantly more affected by the crisis than non innovative and older enterprises. The authors interpret these results as an indication that the achievement of pre-crisis growth rates in those countries may be difficult
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 2
    Language: English
    Pages: Online-Ressource (43 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Iootty, Mariana Stylized Facts on Productivity Growth
    Abstract: Drawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of results are highlighted. First, there is a persistent (and increasing) heterogeneity in the performance of Croatian firms along outcome measures. Second, Croatia lags behind regional peers in entrepreneurship measures, which suggests a comparatively lower economic dynamism. Third, the lack of dynamism displayed by the Croatian economy is confirmed when looking at the firm entry and exit process: the analytical results point to reduced firm dynamism compared with Croatia's peers in Europe and Central Asia. Fourth, the contribution of net entry to overall productivity growth in Croatia is surprisingly negative. This is contrary to what would be expected based on the literature and suggests that the process of "destructive creation" in Croatia has not been efficient, as the market might be eliminating firms that are potentially productive. Policies that foster market contestability should be pursued, especially policies aiming at better product market regulation (such as liberalization of entry into the service sector, particularly retail and infrastructure). Measures to help finance entrepreneurship (in promising sectors) should be used to support enhancements in firm productivity. In addition, appropriate bankruptcy rules play a key role by easing the exit process and allowing low-productive units to leave the market and free resources that can be better used by other, more efficient, firms
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 3
    Language: English
    Pages: Online-Ressource (43 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Dall'Olio, Andrea Productivity Growth in Europe
    Abstract: This paper tests whether structural or firm-specific characteristics contributed more to (labor) productivity growth in the European Union between 2003 and 2008. It combines the Amadeus firm-level data on productivity and firm characteristics with country-level data describing regulatory environments from the World Bank's Doing Business surveys, foreign direct investment data from Eurostat, infrastructure quality assessments from the Global Competitiveness Report, and credit availability from the World Development Indicators. It finds that among the 12 newest members of the European Union, country characteristics are most important for firm productivity growth, particularly the stock of inward foreign direct investment and the availability of credit. By contrast, among the more developed 15 elder European Union member countries, firm-level characteristics, such as industry, size, and international affiliation, are most important for growth. The quality of the regulatory environment, measured by Doing Business indicators, is importantly correlated with productivity growth in all cases. This finding suggests that European Union nations can realize significant benefits from improving regulations and encouraging inward and outward foreign direct investment
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 4
    Language: English
    Pages: Online-Ressource (30 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: De Rosa, Donato Regulation, Trade and Productivity in Romania
    Abstract: Inappropriate regulation can influence productivity performance by affecting incentives to invest and adopt new technologies, as well as by directly curbing competitive pressures. Results of a labor productivity growth model for European Union countries suggest that improving the regulatory environment-proxied by the Worldwide Governance Indicators regulatory quality indicator-and boosting effective exposure to competition through increasing trade integration-expressed as the ratio of exports plus imports to gross domestic product-have positive effects on productivity growth. In Romania a 10 percent increase in openness to global trade over 1995-2010 would have boosted productivity growth by 9.7 percent per year. A 10 percent increase in openness to European Union trade, in particular, would have led to an annual increase in productivity of 7 percent. Realizing the benefits from trade integration depends to some extent on regulation. In this regard, the effects of regulation on productivity growth are found to be positive, regardless of the indicator used to measure regulation, and both through direct and indirect channels (by increasing the speed at which a country catches up with productivity leaders). Simulation results also show how countries with different levels of regulatory quality would benefit from a regulatory improvement: had Romania improved its regulatory environment to the same level as Denmark in 2010, its annual productivity growth would have been 14 percent higher over 1995-2010
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  • 5
    Language: English
    Pages: 1 Online-Ressource (29 pages)
    Parallel Title: Erscheint auch als Dalvit, Nicolo Russia's Invasion of Ukraine and Firm Performance in Central Asia: The Role of Export Links and Digital Gains
    Keywords: Access to Markets ; Armed Conflict ; Conflict and Development ; Digital Divide ; Digitalization ; Employment ; Firm Performance ; Information and Communication Technologies ; International Economics and Trade ; Private Firm Data ; Private Sector Economics ; Sales ; Trade Link with Russia ; Ukraine Invasion
    Abstract: This paper studies the effect of Russia's invasion of Ukraine on the performance of firms in Central Asia. It uses unique data from the Business Pulse Survey run by the World Bank in the Kyrgyz Republic, Tajikistan, and Uzbekistan, which tracks the sales and employment-along with other main characteristics-of about 1,200 to 1,800 firms in a panel structure. The survey contains two waves before and one wave after Russia's invasion of Ukraine. Using the difference-in-differences methodology in a regression setup, the analysis finds that Central Asian firms with pre-invasion trade links to Russia suffered greater drops in sales and employment after the invasion-even though exporters to Russia may have experienced, on average, higher sales during the studied period. Considering the pre-invasion digitization of firms, the findings show that digitization helped firms increase their average employment during the studied period. However, the analysis does not find any significant mitigating effect of digitalization associated with the impact of the invasion
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  • 6
    Language: English
    Pages: 1 Online-Ressource (66 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als van der Marel, Erik Services in the European Union: What Kinds of Regulatory Policies Enhance Productivity?
    Abstract: This paper is the first one to show the effects of services regulations on downstream firms in the goods and services sectors in a multiple-country setting using firm-level data. The study selected a group of countries that are economically relatively services-oriented and show varying degrees of services regulations over time, namely the European Union. The paper employs four alternative firm-level measures of total factor productivity that have recently been developed in the economics literature and provide robust conclusions. Overall, the results suggest that regulatory barriers in services have diverse effects on downstream manufacturing performance, depending on the type of regulatory measure in question. The policy variables are split into pure entry barriers and those that relate to the anti-competitive policies on the operations of the firm, which the paper calls conduct regulations. The latter appear to play the most important role in explaining downstream performance across services and goods firms. Furthermore, the results show that regulations matter significantly more in the cases when a country is institutionally weak, an industry is considered as relatively close to the technology frontier, or a firm is foreign owned
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  • 7
    Online Resource
    Online Resource
    [Washington, DC, USA] : World Bank Group, Finance, Competitiveness and Innovation Global Practice
    Language: English
    Pages: 1 Online-Ressource (circa 46 Seiten) , Illustrationen
    Series Statement: Policy research working paper 9487
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Iootty, Mariana Corporate Market Power in Romania: Assessing Recent Trends, Drivers, and Implications for Competition
    Keywords: market power ; competition ; productivity ; resource allocation ; Graue Literatur
    Abstract: This paper explores firm-level heterogeneity to identify the underlying drivers of market power trends in Romania and the implications for competition and economic growth. The results show that the (sales-weighted) average markup in Romania increased by around 15 percent between 2008 and 2017. A key driving force behind this aggregate trend was the ability of a small fraction of firms - the top decile firms in the markup distribution - to increase their markups. These firms do not seem to follow the typical superstar firms' profile: they are smaller, less efficient, and less likely to invest in intangible assets than other firms in the markup distribution and overrepresented in less knowledge-intensive service sectors (for example, the retail and trade sector). This suggests that the increase in markups in Romania might be associated with an environment that is less conducive to competition. A decomposition exercise shows that the increase in aggregate markups has been driven mostly by incumbents rather than new entrants and exiting firms, which could be interpreted as a sign of consolidation of market power among existing firms. The paper also finds that certain firm characteristics matter to explain differences in markup performance: size, age, research and development profile, export propensity, location, and especially ownership. Further, the paper shows that additional productivity dividends are associated with increased competition in Romania. Overall, these findings illustrate potential policy angles that need to be tackled to enhance market contestability and boost productivity growth, such as addressing regulations that restrict entry and rivalry in the retail trade sector, which concentrates a substantial proportion of high-markup firms, as well as promoting competitive neutrality across markets where public and private actors compete
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  • 8
    Online Resource
    Online Resource
    Washington, DC, USA : World Bank Group, Macroeconomics, Trade and Investment Global Practice
    Language: English
    Pages: 1 Online-Ressource (circa 32 Seiten) , Illustrationen
    Series Statement: Policy research working paper 8706
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Iootty, Mariana Assessing Innovation Patterns and Constraints in Developing East Asia: An Introductory Analysis
    Keywords: Graue Literatur
    Abstract: This paper sheds light on key innovation patterns and constraints within a selected set of developing East Asian countries (Cambodia, China, Indonesia, the Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam). It follows a comprehensive approach about national innovation systems while highlighting the supply and demand dimensions of innovation as well as the markets where firms make accumulation decisions for different forms of capital (knowledge capital, human capital. and physical capital). The paper presents a set of empirical exercises drawing from various data sets. The results corroborate the idea of the importance of adopting a broad view of innovation policy and investing in missing complementary factors. Although investment in research and development is key to boost innovation, it is also crucial to have business and regulatory environments that are conducive to overall firm performance and capital accumulation (not only knowledge capital), as they are expected to improve innovation returns. In addition, the results suggest that other innovation inputs aside from research and development matter for innovation activities, such as training for innovative activities, acquisition/licensing of technology, and managerial practices
    URL: Volltext  (lizenzpflichtig)
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  • 9
    Language: English
    Pages: 1 Online-Ressource (82 pages)
    Series Statement: International Development in Focus
    Parallel Title: Erscheint auch als
    Keywords: Decomposition Analysis ; Factor Allocation ; Firm Capabilities ; Government Interventions ; Manufacturing ; Micro, Small and Medium Enterprises ; MSME ; Productivity Drivers
    Abstract: Like many other countries, Kazakhstan's economic growth has slowed since the 2007-09 global financial crisis. Although the slowdown reflected weaknesses in expanding labor and capital, the most striking reduction has been in productivity growth. In more recent years, total factor productivity growth has started to bounce back, albeit at a modest pace, possibly driven by the recovery in commodity prices. Although slower expansion in productivity has been a global phenomenon, Kazakhstan's subdued productivity performance for a decade reflects more structural problems. Against this backdrop, Boosting Productivity in Kazakhstan with Micro-Level Tools: Analysis and Policy Lessons examines barriers and policy gaps that hinder productivity growth in Kazakhstan. The detailed analysis is uniquely based on first-time access to administrative firm-level data; the data for the period of 2009-18 covered 70,000 business establishments annually, corresponding to total employment of 1.6 million people. The unprecedented access to firm-level data deepened the understanding of the microeconomic dynamics and drivers of aggregate productivity growth and enabled identification of a wide-ranging set of policy recommendations to boost aggregate productivity growth
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  • 10
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (21 pages)
    Parallel Title: Erscheint auch als De Nicola, Francesca Bank Ownership and Firm Innovation
    Keywords: Bank Ownership Impact on Innovation ; DEBT Markets ; Finance and Financial Sector Development ; Firm Innovation ; Foreign Banks ; International Finance Corporation ; Legal Origins and Bank Stability ; New Products and Services ; Radical Innovation ; State Owned Banks
    Abstract: This paper studies the effect of bank ownership on product innovation by borrowing firms, highlighting the role of the state, foreign, and combined foreign-state bank ownership. It uses Enterprise Survey data for more than 22,000 firms in 49 countries from 2016 to 2020, linked to Fitchconnect data on banks: their ownership, soundness indicators, and legal origins. The paper confirms that a firm's access to bank credit is associated with a greater probability of product innovation, even when adjusting for possible reverse causality. If the credit is provided by a state-owned bank, the probability that the borrowing firm will innovate increases. The analysis does not find a similarly positive effect for foreign bank ownership. But when considering the combined effect of foreign state ownership, the results are most statistically and economically significant. Although the results may not be extendable to research and development spending (a key input to innovation), the findings show that foreign state banks can serve as an additional financing vehicle to stimulate radical innovation alongside equity financiers
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