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This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys.

This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models.

The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations.

The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.

This paper aims to estimate the determinants of the intensity of use of financial inclusion by households in Ghana.

Due to the reality of a household using one or more financial products or services, this study uses the generalised Poisson model applied to GLSS6 and GLSS7 data collected in 2012/2013 and 2016/2017 respectively, to estimate the determinants of the intensity of use of financial inclusion. To deepen the analysis, a multinomial probit model is also applied.

Results show that infrastructural variables such as roads, public transport and banks stimulate the intensity of financial inclusion. In addition, agricultural development characteristics such as markets and cooperatives are essential for the intensity of inclusion.

There is a need to incorporate how many services or depth of services that people use as part of the conceptualisation of financial inclusion, as this can provide more policy-relevant evidence to enhance priority setting in financial inclusion policies. Also, micro-level financial inclusion studies in agrarian economies should consider exploring agricultural development and infrastructure variables in the modelling framework. As lead to further studies, count models of financial inclusion should consider exploring cross-country analysis, the use of panel data, or other methodological approaches to provide more robust evidence.

Previous studies have not modelled financial inclusion based on a count model as a means of measuring intensity though conceptualisations highlight the fact that people use varied financial products or services. Following from this angle, to the best of the authors’ knowledge, this study provides the first attempt at analysing the underlying determinants of the number of financial products or services used by households.

This paper investigates constraints to yield enhancing technology adoptions, highlighting credit using data pooled from the first three waves of the Ethiopian socio-economic surveys.

Direct elicitation methodology is used to identify household's non-price credit rationing status. The panel selection model specified to examine causal effects of credit constraint on adoption variables allows us to tackle self-selection into adoptions and potential endogeneity of credit constraint while controlling for unobserved heterogeneity in both the selection and main equations.

Results show that about 54% of sample households face credit rationing, predominantly demand-side risk rationing. There is a negative association between measures of credit constraint status and adoption variables. The effect is stronger when the demand-side credit rationing is accounted for and when within household variation in credit constraint status overtime is considered as opposed to across constrained and unconstrained households.

Expanding physical access to institutional credit alone may not necessarily spur increased uptake of credit and instant investment by farm households. For a majority of them to take advantage of available credit and improved technology, interventions should also aim at minimizing downside risks.

This paper incorporates the role of downside risk in influencing farmer's decisions to uptake credits and subsequently his/her adoption behaviors. The researcher approached the topic by state-of-the-art method which allows obtaining more reliable results and hence more specific contributions to research and practice.

This paper aims to evaluate the role of depositor-specific features in a bank resolution. As the resolution framework in the EU is rather new, there are no empirical studies referring to the efficiency of this mechanism in protecting financial stability. Thus, the authors have checked the role of societal awareness of deposit guarantee schemes and the resolution, as well as the trust in public institutions, in avoiding bank runs in the case of resolution scenarios.

The study is based on telephone interviews conducted with 1,000 Poles, including bank customers whose banks have undergone resolution in recent years, and basic statistics of the resolved banks. The authors then apply two classes of models: binary probit regression and ordered probit regression.

The findings have indicated that the trust in public institutions and the experience gained with age play a key role in overall depositor behaviour. However, for resolutions, declared trust is replaced by case-specific trust based on the obtained information.

The survey is based on a sample of Polish citizens. In the future, international surveys may help diagnose cross-country differences among depositors. Moreover, studies on communication approaches may also support finding highly effective ways to reach various cohorts of depositors.

The existing literature on depositor behaviour in bank failure scenarios has relied on an experimental approach to test various research hypotheses. The research sample is not based on an experiment but on the responses of customers whose banks have actually undergone resolution.

The COVID-19 pandemic has wrought havoc on economies around the world. The purpose of this study is to learn about the distributional impacts of the pandemic.

The authors contribute new theoretical and empirical evidence on the distributional impacts of the pandemic on different income groups in a multicountry setting. The authors analyze rich individual-level survey data covering 6,082 respondents from China, Italy, Japan, South Korea, the United Kingdom and the United States. The results are robust to various econometric models, including ordinary least squares (OLS), Tobit and ordered probit models with country-fixed effects.

The authors find that while the outbreak has no impact on household income losses, it results in a 63% reduction in the expected own labor income for the second-poorest income quintile. The pandemic impacts are most noticeable for savings, with all the four poorer income quintiles suffering reduced savings ranging between 5 and 7% compared to the richest income quintile. The poor are also less likely to change their behaviors regarding immediate prevention measures against COVID-19 and healthy activities. The authors also found countries to exhibit heterogeneous impacts.

Designing tailor-made social protection and health policies to support the poorer income groups in richer and poorer countries can generate multiple positive impacts that help minimize the negative and inequality-enhancing pandemic consequences. These findings are relevant not only for COVID-19 but also for future pandemics.

The authors theoretically and empirically investigate the impacts of the pandemic on poorer income groups, while previous studies mostly offer empirical analyses and focus on other sociodemographic factors. The authors offer a new multicountry analysis of several prevention measures against COVID-19 and specific health activities.

The purpose of this paper is to determine the impact of private and public initiatives (financial literacy, entrepreneurship, remote work and government aid) on individual job loss and decrease in income during the COVID-19 pandemic in Peru.

The authors used an unbalanced panel data analysis with the National Household Survey for 2019–2020. The hypotheses are tested with a probit panel data model since the dependent variables are binary.

The study findings indicate that financial preparedness reduced the probability of having a decrease in income, but only to informal workers in metropolitan Lima. Furthermore, entrepreneurship helped mainly female informal workers to reduce their probability of becoming unemployed in metropolitan Lima. Besides, the implementation of remote work as a substitute of face-to-face work was not enough to avoid the decrease in income in the case of informal workers and it was only effective to avoid unemployment in the case of formal workers in metropolitan Lima. Finally, public aid proved to be instrumental in mitigating the decrease in income, but only to informal workers in Metropolitan Lima.

The study results only apply for the first year of the pandemic.

Policymakers should focus on increasing the financial preparedness of informal workers, especially in provinces.

Policymakers must expand unemployment benefits, and design public aid programs targeting informal workers in provinces.

This is the first study that analyses the impact of private and public initiatives on the decrease in income and unemployment situation of Peruvian individuals during the outbreak of the COVID-19 pandemic.

The authors investigate the impact of standards compliance on the participation in the global value chain and labour value-added of Vietnam’s small and medium-sized enterprises (SMEs).

The authors use a three-period panel dataset of SMEs combined with Vietnam’s Provincial Competitiveness Index. The authors also use multiple econometric models; and with each model, the authors include all independent variables that are available from the study's data and that are suggested by the literature.

The authors find that standards compliance by Vietnam’s SMEs improved their participation in the global value chain via subcontracts with FDI multinational firms. The authors also find that standards compliance improved the value-added of labour in Vietnam’s SMEs, which is robust to the choice of econometric models.

The study's results suggest that better outcomes for firms and society will be possible if standards are recognised and respected.

This paper complements scant literature on the impact of standards compliance on global value chain participation via subcontracting work and labour value-added, especially in developing countries.

This article aims to evaluate the entry and exit of companies from local productive structures, with a specific focus on the sectoral complexity of these activities and the complexity of these portfolios. The study focuses on empirically demonstrating the thesis that related economic diversification exacerbates the development gap between more and less complex regions.

The article uses indicators formulated by the economic complexity approach. They allow a relevant descriptive analysis of the economic diversification process in Brazilian micro-regions and provide the foundation for the econometric tests conducted. Through three distinct estimation strategies (OLS, logit, probit), the influence of complexity and relatedness on the entry and exit events of firms from local portfolios is tested.

In all estimated models, the stronger relationship between an activity and a portfolio significantly increases its probability of entering the productive structure and, at the same time, acts as a significant factor in preventing its exit. Furthermore, the results reveal that the complexity of a sector reduces the probability of its specialization in less complex regions while increasing it in more complex regions. On the other hand, sectoral complexity significantly increases the probability of a sector leaving less complex local structures but has no significant effect in highly complex regions.

Due to the data used, the indicators are calculated considering only formal job numbers. Additionally, the tests do not detect the influence of spatial issues. These limitations should be addressed by future research.

The article characterizes a prevailing process of uneven development among Brazilian regions and brings relevant implications, primarily for policymakers. Specifically, for less complex regions, policies should focus on creating opportunities to improve their diversification capabilities in complex sectors that are not too distant from their portfolios.

The article makes an original contribution by proposing an evaluation of regional diversification in Brazil with a focus on complexity, introducing a more detailed differentiation of regions based on their complexity levels and examining the impact of sectoral complexity on diversification patterns within each group.

This paper investigates the relationship between health and labour market participation considering the potential role played by the presence of children and elderly persons (with/without disabilities) in Italian households.

The authors use longitudinal data from the European Union Statistics on Income and Living Conditions and full-information maximum likelihood to estimate a two-equation model (one equation for labour force participation and one for health status) with instruments to address the endogeneity of the labour force participation choice. The model is estimated separately by gender.

The authors find that while the presence of children, elderly persons or both is positively associated with the health status of both genders, the presence of disabled elderly persons exerts a negative role. As for participation, interesting differences emerge. The presence of children discourages women's participation but is positively associated with men's labour force participation. Interestingly, a caring role for elderly persons without disability emerges for both genders when the presence of children is combined with that of elderly people. Gender differences are also at work for the role of childcare services and elderly and/or disabled home care/assistance.

The findings indicate a possible caring role for elderly persons without disabilities, neutralizing the effect of the presence of children on the labour force participation of both genders. The results also suggest that greater coverage of care services should increase the active participation of women in the labour market.

The article investigates whether variety of democracy affects the probability to employ public subsidies for credit support by small- and medium-sized enterprises (SMEs) led by female entrepreneurs.

Building on the literature on democracy and on gender differences, it leverages a large firm- and country-level dataset (SAFE) of 31 democracies in Europe (EU and non-EU) over the 2009–2014 period by using probit models and instrumental variable approaches.

Results from the different econometric techniques and samples suggest that variety of democracy affects female-led SMEs in using public subsidies for credit support. The evidence is robust to endogeneity concerns.

The empirical evidence presents a time frame limitation. At the same time, SAFE is the only database that supplies information about the gender of firms and public subsidies for credit support, rendering it the only resource that allows the test of the hypothesis proposed. The article therefore offers insights for scholars to revisit our results in future studies that make use of datasets with a longer time span – when they will become available.

To the best of the authors' knowledge, the article is the first to study the effect of democracy on female entrepreneurial behavior in the use of public subsidies for credit support.