Average Capital Productivity Research Articles

Going Bankrupt in China

Abstract Using a new case-level dataset, we document a set of stylized facts on bankruptcy in China and study how the staggered introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. For identification, we compare bankruptcy cases handled by specialized versus traditional civil courts within the same city and filed in the same year. We find that specialized courts decrease case duration by 36% relative to traditional civil courts. We provide evidence consistent with court specialization increasing efficiency via selection of better trained judges and higher judicial independence from local politicians. We document that cities introducing specialized courts experience a relative reallocation of employment out of zombie firms-intensive sectors, as well as faster firm entry and a larger increase in average capital productivity.

Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy

This article analyzes resource misallocation in the Chinese wind power industry by examining wind power development in relation to implementation of feed-in tariff (FIT), an electricity price subsidy policy. We construct a plant-level dataset to explore the extent of distortions exacerbating resource misallocation in the wind power industry from 2000 through 2013. Our results show that distortions have been exacerbated since 2009, when the Chinese government implemented FIT, and that the potential production improvement of the wind power industry was relatively high after 2009. FIT provides added incentives for low-productivity plants to enter the industry, especially in regions better endowed with resources. This suggests that the increased distortion in resource allocation of most wind power plants is largely due to government subsidies. In addition, higher FIT rates significantly lower average capital productivity of wind power plants while having no significant effect on average labor productivity. Plants with better production technologies face worse growth rates in the region most richly endowed with relevant resources and there is no significant difference in these productivity impacts between new and already existing power plants. We postulate that similar relationships between subsidies and efficiency are likely to occur in other renewable energy sectors receiving government subsidies.

Economic and environmental assessment of sugar beet production and processing in Egypt

The 2030 sustainable agricultural development strategy aimed to increase the produced amount of sugar to about 3.5 million tons by increasing the area planted with sugar beet to reach 800 thousand feddans by 2030 to cover the sugar gap, so the research aims to conduct an economic and environmental assessment of sugar production from sugar beet In Egypt. An evaluation of the financial performance of the Delta Sugar Company for the period (2014-2018) was conducted which showed an increase in the company's ability to fulfill its short-term financial obligations, Fixed assets cover long-term loans, high annual average fixed assets turnover, the company's efficiency in using current assets in the production process and generating sales from them. The company's economic evaluation also revealed that the average net return of the pound amounted to about 0.48 pounds, and the average capital productivity was about 1.55 pounds, and the average productivity of wages was about 5.59 pounds as an average for the period, and the added value of beet processing was about 356.4 million pounds. Through SWOT analysis, the weighted points for the elements of the internal and external environments showed a competitive level at 2,971 for the internal environment and about 3.048 for the external environment. The higher weighted points for the external environment over the weighted points for the internal environment confirm the possibility of expanding sugar production from sugar beet.

Going Bankrupt in China

Using new case-level data we document a set of stylized facts on bankruptcy in China and study how the staggered introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. For identification, we compare cases handled by specialized versus traditional civil courts within the same city. Specialized courts hire better-trained judges and cut case duration by 35%. State-owned firms experience larger declines in case duration relative to privately-owned firms, consistent with higher judicial independence. Cities introducing specialized courts experience faster firm entry, larger increase in average capital productivity and reallocation of employment out of zombie firms-intensive sectors.

Productivity of Indian Textile Industry in the Post Multi Fibre Agreement (MFA) Regime

The system of bilateral quotas which had governed the international trade in textiles and clothing under the Multi Fibre Agreement came to an end and has been replaced by the Agreement on Textiles and Clothing (ATC) from January 1, 2005. The ATC provided for a progressive elimination of quota in four stages during the transitional period which ended on 2005. This study is an attempt to understand the impact of trade liberalization on the productivity of Indian textile industry. Estimation of labour productivity shows an improvement in the labour productivity during the post MFA period. Analysis of capital productivity reveals that average capital productivity was higher during the pre MFA period compared to post MFA period. Capital intensity estimate reveals that there has been an increase in the capital intensity for all product groups in the post MFA period compared to pre MFA.

Going Bankrupt in China

Using new case-level data we document a set of stylized facts on bankruptcy in China and study how the staggered introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. For identification, we compare cases handled by specialized versus traditional civil courts within the same city. Specialized courts hire better-trained judges and cut case duration by 35%. State-owned firms experience larger declines in case duration relative to privately-owned firms, consistent with higher judicial independence. Cities introducing specialized courts experience faster firm entry, larger increase in average capital productivity and reallocation of employment out of zombie firms-intensive sectors. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

ANALISIS PERTANIAN STROBERI DI KECAMATAN RANCABALI KABUPATEN BANDUNG

The obectives of this research were: (1) to analyse the business feasibility of strawberry farming and (2) to determine the contribution of strawberry farming to the farmer household income. This research used description basic method. Purposive sampling was use to determine the location (the village) and simple random sampling was use to choose the respondents. The primary data were collected from 30 farmer households. The location of this research was in Alamendah village, Rancabali subdistrict, Bandung district. The result of analysis show that strawberry farming feasible to be expanded. Business feasibility were figure by average revenue cost ratio was 2,25; average income was Rp 68.731.640,88; average capital productivity was 1,25; average labour productivity was Rp 77.548,00Iman days; average BEP based on yield was 718,94 kg; average BEP based on sales was Rp 9.928.947,69; and average BEP based on output price was 6. 132, 48/kg. Average income contribution of strawberry farm to household income was 66,24 %.

The dynamic efficiency of the Ramsey model with endogenous labour participation rate

AbstractThis paper incorporates the hypothesis of labour participation rate into the Ramsey model. It is shown that the economy can be dynamically inefficient if the average productivity of capital is greater than the sum of the rate of time preference, the population growth rate, the depreciation rate and the marginal rate of substitution between labour and consumption. The modified golden rule holds when the wage rate is equal to the marginal rate of substitution between labour and consumption. However, there is no guarantee that it will happen, since labour supply is driven by capital allocation decisions. Copyright © 2001 John Wiley & Sons, Ltd.

The dynamic efficiency of the Ramsey model with endogenous labour participation rate

This paper incorporates the hypothesis of labour participation rate into the Ramsey model. It is shown that the economy can be dynamically inefficient if the average productivity of capital is greater than the sum of the rate of time preference, the population growth rate, the depreciation rate and the marginal rate of substitution between labour and consumption. The modified golden rule holds when the wage rate is equal to the marginal rate of substitution between labour and consumption. However, there is no guarantee that it will happen, since labour supply is driven by capital allocation decisions. Copyright © 2001 John Wiley & Sons, Ltd.

Comparisons of Foreign Multinationals and Local Firms in Asian Manufacturing over Time

This paper first shows that shares of foreign multinational corporations (MNCs) in the manufacturing sectors of five Asian host economies (Hong Kong, Indonesia, Malaysia, Singapore and Taiwan) were generally large in terms of exports, small in terms of employment and moderate in terms of production. Correspondingly, the average product of labour and export propensities were often significantly higher in foreign MNCs than in local firms. In addition, foreign MNCs tended to be relatively large and to have relatively high average capital productivity, capital intensity, skilled‐labour intensity, R&D intensity, profit rates and import propensities, but relatively low shares of labour compensation in value added, and these differences were also statistically significant in many cases. Differences between wholly‐ or heavily‐foreign plants and foreign plants with lower foreign ownership shares were also significant in many cases and generally in the same direction as the differences between MNCs and local plants noted above. Differences among MNCs by foreign source were generally small and insignificant in Hong Kong. In Singapore, European and US firms tended to be larger and characterized by relatively high average labour productivity, capital intensity, profitability and export propensities, but relatively low shares of labour compensation in value added compared to Japanese and other Asian firms.

TESTING A PRODUCTION‐BASED ASSET‐PRICING MODEL

We develop a dynamic production‐based asset‐pricing model from the solution cf a representative firm's investment and financing problem. Nonnegative correlation between capital stocks and asset returns is accommodated, as well as equity premia arisingfrom dtfferential costs of stock versus bondfinance. Under our adjustment‐costs specfication, the returns on the firm's financial instruments become linear functions of the firm's average capital productivity, its investment‐capital ratio, and financial instrument‐specific costs. Empirical tests using U.S. T‐bill rates and common stock returns yield plausible parameter estima tes and coofrm the significance qfthesefictors.

On Endogenizing Long-Run Growth

This assessment of recent theoretical work on endogenous growth identifies three different engines of long-run growth: (i) the asymptotic average product of capital is positive; (ii) labor productivity increases as an external effect of capital accumulation; (iii) there are feedback effects on the cost of accumulating knowledge or innovating. A general model encompassing all three is considered, and then used to review different proposed determinants of long-run growth rates. The contribution of endogenous growth theory has been to create a framework in which to explain why economic institutions and policies can have long-run effects on growth rates.

The measurement of productivity in the construction industry

Productivity in the use of resource inputs is of critical importance to the construction industry. This paper is intended to discuss the relative merits of the most commonly used measures of productivity for the purpose of assessing the productive and allocative efficiency of construction in the 1980s. The paper concludes that the total factor productivity method is the ideal against which the other approaches should be judged. Both average labour productivity and average capital productivity suffer from serious problems in assessing the efficiency of contracting operations. However, under certain circumstances, either can provide an adequate alternative measure. Of the two main single-factor measures of productivity, capital productivity appears to be superior in most aspects to average labour productivity as a means of assessing the overall financial management of a construction firm. Notwithstanding the problems associated in contracting activities and also the difficulties inherent in obtaining suitable data, capital productivity is recommended for most circumstances when total-factor productivity measures cannot be applied.

Effects of Pollution Control on Industry Productivity: A Factor Demand Approach

Four major manufacturing industries are examined. The abatement effect on capital and labor productivity are determined from parameters of a system of factor demand equations which allow for disequilibrium in factor markets. The system is estimated for each industry with annual time series data from 1960 to 1980. Abatement requirements were found to retard both average capital productivity and average labor productivity in three of the four industries; paper, chemicals and primary metals. For several industries in which factor productivity was slower after 1973, environmental controls accounted for a significant proportion of that slow down.

The Economics of Milk Production in the Operation Area of the Senjeri Co-operative Buffale Improvement and Milk Society, Coimbatore District

The average annual milk yield was 1355 litres, with a not incoma of Rs. 179 per annum. The cost of production of milk per litre was Rs. 0.91 with a profit margin of 5% The residual productivities of roughages, concentrates and labour were 1.62, 1.47 and 1.46 respectively. The average capital productivity was Rs. 1.48. 1.37 and 1.35 for roughages, concentrates and labour respectively. The improvement of excisting animals by cross breeding in the exotic breeds and educational programmes to impart skill for better management of quality animals are recommended.