Size-Competition-Productivity Nexus: Evidence from Indian Manufacturing Firms

South Asia Economic Journal Pub Date : 2019-09-01 DOI:10.1177/1391561419859185

L. Satpathy, B. R. Mishra

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引用次数: 2

Abstract

Over the years, researches have witnessed incongruence nature and direction of relationship among product market competition and firm size with the growth of firms’ productivity across the globe. Considering these gaps, this study aims to establish both short- and long-run relationships among these three characteristics of Indian manufacturing firms and intends to find their directions of causalities. This study uses firm-level data over a period of 1998–1999 to 2012–2013. Using Panel ARDL-PMG method, the results reveal the existence of a long-run association among product market competition, firm size and productivity growth for the full sample and for subsamples, categorizing relatively efficient and inefficient firms, and innovative and non-innovative firms. From the panel VECM Granger causality test, it has been observed that there is the long-run feedback relationship among these three variables. The empirical evidence suggests that as the intensity of competition becomes stronger and the firm-specific capabilities expand, they impart improved productivity via within and between firm effects. This draws some major implications for policymakers to embrace more competitive prone policies along with encouragement to firm specificities to realise value-added productivity. JEL: C33, D24, L11, L60

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规模-竞争-生产力关系:来自印度制造企业的证据

多年来的研究发现，全球范围内，产品市场竞争和企业规模与企业生产率增长之间的关系具有不一致的性质和方向。考虑到这些差距，本研究旨在建立印度制造业企业这三个特征之间的短期和长期关系，并试图找到它们的因果关系方向。本研究使用1998-1999年至2012-2013年期间的公司层面数据。采用面板ARDL-PMG方法，结果表明，在全样本和子样本中，产品市场竞争、企业规模和生产率增长之间存在长期关联，并对相对高效和低效的企业、创新和非创新企业进行了分类。从面板VECM格兰杰因果检验可以看出，这三个变量之间存在长期的反馈关系。实证证据表明，随着竞争强度的增强和企业特定能力的扩大，它们通过企业内部和企业之间的效应来提高生产率。这给政策制定者带来了一些重要的启示，即在鼓励企业实现增值生产力的同时，采取更具竞争力的政策。耶利米书:33,24,11,16

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来源期刊

South Asia Economic Journal Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The South Asian nations have progressively liberalized their economies in recent years in an effort to integrate with the world economy. They have also taken steps to enhance multilateral and regional economic integration. Even though the South Asian economies have grown at an average rate of more than 5 per cent over the last few years, roughly 40 per cent of their people still live below the poverty line. Hence, the South Asian region continues to face many challenges of economic and social development. The South Asia Economic Journal (SAEJ) is designed as a forum for informed debate on these issues, which are of vital importance to the people of the region who comprise one-sixth of the world’s population. The peer-reviewed journal is devoted to economic analysis and policy options aimed at promoting cooperation among the countries comprising South Asia. It also discusses South Asia’s position on global economic issues, its relations with other regional groupings and its response to global developments. We also welcome contributions to inter-disciplinary analysis on South Asia. As a refereed journal, SAEJ carries articles by scholars, economic commentators,policy-makers and officials, from both the private and public sectors. Our aim is to create a vibrant research space to explore the multidimensional economic issues of concern to scholars working on South Asia. Among the issues debated in relation to South Asia are: - the implications of global economic trends; - the issues and challenges by WTO; - approaches to industrialization and development; - the role of regional institutions such as the SAARC; - the relationship between SAARC and other regional economic groupings such as ASEAN; - the implications of economic liberalization for trade and investment in the region; - new initiatives that can be launched to enhance economic cooperation among the South Asian countries both on a bilateral and a regional basis.