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1 – 10 of 43Cristian Barra and Pasquale Marcello Falcone
The paper aims at addressing the following research questions: does institutional quality improve countries' environmental efficiency? And which pillars of institutional quality…
Abstract
Purpose
The paper aims at addressing the following research questions: does institutional quality improve countries' environmental efficiency? And which pillars of institutional quality improve countries' environmental efficiency?
Design/methodology/approach
By specifying a directional distance function in the context of stochastic frontier method where GHG emissions are considered as the bad output and the GDP is referred as the desirable one, the work computes the environmental efficiency into the appraisal of a production function for the European countries over three decades.
Findings
According to the countries' performance, the findings confirm that high and upper middle-income countries have higher environmental efficiency compared to low middle-income countries. In this environmental context, the role of institutional quality turns out to be really important in improving the environmental efficiency for high income countries.
Originality/value
This article attempts to analyze the role of different dimensions of institutional quality in different European countries' performance – in terms of mitigating GHGs (undesirable output) – while trying to raise their economic performance through their GDP (desirable output).
Highlights
The paper aims at addressing the following research question: does institutional quality improve countries' environmental efficiency?
We adopt a directional distance function in the context of stochastic frontier method, considering 40 European economies over a 30-year time interval.
The findings confirm that high and upper middle-income countries have higher environmental efficiency compared to low middle-income countries.
The role of institutional quality turns out to be really important in improving the environmental efficiency for high income countries, while the performance decreases for the low middle-income countries.
The paper aims at addressing the following research question: does institutional quality improve countries' environmental efficiency?
We adopt a directional distance function in the context of stochastic frontier method, considering 40 European economies over a 30-year time interval.
The findings confirm that high and upper middle-income countries have higher environmental efficiency compared to low middle-income countries.
The role of institutional quality turns out to be really important in improving the environmental efficiency for high income countries, while the performance decreases for the low middle-income countries.
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Bhavya Srivastava, Shveta Singh and Sonali Jain
The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019…
Abstract
Purpose
The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019 using stochastic frontier analysis (SFA).
Design/methodology/approach
Lerner indices, conventional and efficiency-adjusted, quantify competition. Two SFA models are employed to calculate alternative profit efficiency (inefficiency) scores: the two-step time-decay approach proposed by Battese and Coelli (1992) and the recently developed single-step pairwise difference estimator (PDE) by Belotti and Ilardi (2018). In the first step of the BC92 framework, profit inefficiency is calculated, and in the second step, Tobit and Fractional Regression Model (FRM) are utilized to evaluate profit inefficiency correlates. PDE concurrently solves the frontier and inefficiency equations using the maximum likelihood process.
Findings
The results suggest that foreign banks are less profit efficient than domestic equivalents, supporting the “home-field advantage” hypothesis in India. Further, increasing competition drives bank managers to make riskier lending and investment choices, decreasing bank profit efficiency. However, this effect varies depending on bank ownership and size.
Originality/value
Literature on the competition bank efficiency link is conspicuously scant, with a focus on technical and cost efficiency. Less is known regarding the influence of competition on bank profit efficiency. The article is one of the first to examine commercial bank profit efficiency and its relationship to banking sector competition. Additionally, the study work represents one of the first applications of the FRM presented by Papke and Wooldridge (1996) and the PDE provided by Belotti and Ilardi (2018).
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Ambrose R. Aheisibwe, Razack B. Lokina and Aloyce S. Hepelwa
This paper aims to examine the level of economic efficiency and factors that influence economic efficiency among seed potato producers in South-western Uganda.
Abstract
Purpose
This paper aims to examine the level of economic efficiency and factors that influence economic efficiency among seed potato producers in South-western Uganda.
Design/methodology/approach
The paper analyses the economic efficiency of 499 informal and 137 formal seed producers using primary data collected through a structured questionnaire. A multi-stage sampling technique was used to select the study sites and specific farmers. A one-step estimation procedure of normalized translog cost frontier and inefficiency model was employed to determine the level of economic efficiency and the influencing factors.
Findings
The results showed that mean economic efficiencies were 91.7 and 95.2% for informal and formal seed potato producers, respectively. Furthermore, results show significant differences between formal and informal seed potato producers in economic efficiency at a one percent level. Market information access, credit access, producers' capacity and experience increase the efficiency of informal while number of potato varieties, market information access and producers' experience increase economic efficiency for formal counterparts.
Research limitations/implications
Most seed potato producers, especially the informal ones do not keep comprehensive records of their production and marketing activities. This required more probing as answers depended on memory recall.
Practical implications
Future research could explore panel data approach involving more cropping seasons with time variant economic efficiency and individual unobservable characteristics that may influence farmers' efficiency to validate the current findings.
Social implications
The paper shows that there is more potential for seed potato producers to increase their economic efficiency given the available technology. This has a direct implication on the economy through increased investment in the production and promotion of high yielding seed potato varieties to meet the growing national demand for potatoes.
Originality/value
The paper bridges the gap in literature on economic efficiency among seed potato producers, specifically in applying the normalized translog cost frontier approach in estimating economic efficiency in the context of potato sub-sector in Uganda.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0641
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Oluwaremilekun Ayobami Adebisi, Abdulazeez Muhammad-Lawal and Luke Oloruntoba Adebisi
The purpose of this paper is to ascertain if practising healthy lifestyles improves the technical efficiency of farms in Kwara state, Nigeria. In theory, all deviations from the…
Abstract
Purpose
The purpose of this paper is to ascertain if practising healthy lifestyles improves the technical efficiency of farms in Kwara state, Nigeria. In theory, all deviations from the optimum level of output are due to random effects and inefficiency of producers in which their health plays a key part and is dependent on the kind of lifestyle practiced whether healthy or unhealthy.
Design/methodology/approach
Cross-sectional data were employed through a three-staged sampling technique to pick 320 arable crop farmers across the state using a well-defined questionnaire. Data analysis was carried out using descriptive statistics, healthy lifestyles index (HLI), stochastic production frontier (SPF) and propensity score matching (PSM).
Findings
First, the analysis showed that about one-third of the sampled arable crop farmers practised healthy lifestyles. Second, the average technical efficiency of arable crop production for farmers who practised a healthy lifestyle was 0.893, and the level of technical inefficiency of the farms was determined by health-related lifestyle status, number of day's illness and educational level. Third, technical efficiency was improved by 0.00431067 for farms whose farmers practised a healthy lifestyle.
Originality/value
Rather than seeing that technical efficiencies of farms are attributed to farm characteristics, inputs used and socioeconomic characteristics alone, the findings suggest that technical inefficiencies of arable crop farmers were also due to the kind of lifestyle practised, which was evidenced in the increased efficiency for farmers who practised healthy lifestyle.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0353
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Peter Wanke, Jorge Junio Moreira Antunes, Antônio L. L. Filgueira, Flavia Michelotto, Isadora G. E. Tardin and Yong Tan
This paper aims to investigate the performance of OECD countries' long-term productivity during the period of 1975–2018.
Abstract
Purpose
This paper aims to investigate the performance of OECD countries' long-term productivity during the period of 1975–2018.
Design/methodology/approach
This study employed different approaches to evaluate how efficiency scores vary with changes in inputs and outputs: Data Envelopment Analysis (CRS, VRS and FDH), TOPSIS and TOPSIS of these scores.
Findings
The findings suggest that, during the period of this study, countries with higher freedom of religion and with Presidential democracy regimes are positively associated with higher productivity.
Originality/value
To the best of the authors’ knowledge, this is the first study that uses efficiency models to assess the productivity levels of OECD countries based on several contextual variables that can potentially affect it.
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Usama Alqalawi, Ahmad Alwaked and Anas Al Qudah
This paper aims to determine the tax potential of G20 countries and estimate the tax revenue they could generate. The study evaluates the effectiveness of tax revenue collection…
Abstract
Purpose
This paper aims to determine the tax potential of G20 countries and estimate the tax revenue they could generate. The study evaluates the effectiveness of tax revenue collection for G20 nations from 2008 to 2020 and investigates the relationship between tax collection efficiency and tax evasion. The study also examines the link between tax collection efficiency and a proxy for tax evasion through anti-corruption efforts.
Design/methodology/approach
The study assumes that tax collection is a function of gross domestic product (GDP), population, imports and price level. The study uses a stochastic frontier analysis to calculate the efficiency of tax collection. It estimates the loss in total tax collection due to inefficiency by comparing actual and best-practice tax collection.
Findings
The findings indicate that anti-corruption measures and technological advancements positively impact tax collection efficiency. Great Britain is identified as the most efficient country in tax collection, whereas Saudi Arabia is the least efficient. Germany has the highest losses in tax collection due to inefficiency, while Australia experiences the lowest losses in tax collection.
Originality/value
This study suggests several practical implications. For example, legislators and policymakers should pay more attention to anti-corruption policies. Also, tax agenesis should focus on better understanding variations in tax collection efficiency between countries and how they relate to tax evasion.
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Shaobo Wei, Chengnan Deng, Hua Liu and Xiayu Chen
Based on resource dependence theory (RDT) and transaction cost theory (TCT), we aim to investigate the relationship between supply chain concentration and firm performance. Based…
Abstract
Purpose
Based on resource dependence theory (RDT) and transaction cost theory (TCT), we aim to investigate the relationship between supply chain concentration and firm performance. Based on the resource-based perspective, we further investigate the moderating effect of marketing and operational capabilities on the relationship between supply chain concentration and firm performance.
Design/methodology/approach
Based on data from 2,082 firms with 8,371 observations from 2008 to 2020 in China, we use stochastic frontier analysis to calculate marketing capability and operational capability and use multinational regressions to test our research model.
Findings
We find a U-shaped relationship between supplier concentration and firm performance; there is also a U-shaped relationship between customer concentration and firm performance. In addition, the relationship between supplier concentration and firm financial performance is strengthened by the firm’s marketing capability, and the relationship between customer concentration and firm financial performance is weakened by the firm’s operational capability.
Originality/value
Drawing from RDT and TCT, this study extends the research on the impact of supply chain concentration on firm performance. The study finds that supply chain concentration and firm performance have a nonlinear relationship, and it is further moderated by marketing capability and operational capability, providing insights for managers.
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Zerun Fang, Wenlin Gui, Zhaozhou Han and Lan Lan
This study aims to propose a refined dynamic network slacks-based measure (DNSBM) to evaluate the efficiency of China's regional green innovation system which consists of basic…
Abstract
Purpose
This study aims to propose a refined dynamic network slacks-based measure (DNSBM) to evaluate the efficiency of China's regional green innovation system which consists of basic research, applied research and commercialization stages and explore the influencing factors of the stage efficiency.
Design/methodology/approach
A two-step procedure is employed. The first step proposes an improved DNSBM model with flexible settings of stages' input or output efficiency and uses second order cone programming (SOCP) to solve the non-linear problem. In the second step, least absolute shrinkage and selection operator (LASSO) and Tobit models are used to explore the influencing factors of the stage efficiency. Global Dynamic Malmquist Productivity Index (GDMPI) and Dagum Gini coefficient decomposition method are introduced for further discussion of the productivity change and regional differences.
Findings
On average, Chinese provincial green innovation efficiency should be improved by 24.11% to become efficient. The commercialization stage outperforms the stages of basic research and applied research. Comparisons between the proposed model and input-oriented, output-oriented and non-oriented DNSBM models show that the proposed model is more advanced because it allows some stages to have output-oriented model characteristics while the other stages have input-oriented model characteristics. The examination of the influencing factors reveals that the three stages of the green innovation system have quite diverse influencing factors. Further discussion reveals that Chinese green innovation productivity has increased by 39.85%, which is driven mainly by technology progress, and the increasing tendency of regional differences between northern and southern China should be paid attention to.
Originality/value
This study proposes an improved dynamic three-stage slacks-based measure (SBM) model that allows calculating output efficiency in some stages and input efficiency in the other stages with the application of SOCP approach. In order to capture productivity change, this study develops a GDMPI based on the DNSBM model. In practice, the efficiency of regional green innovation in China and the factors that influence each stage are examined.
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Sandra Flores-Ureba, Clara Simon de Blas, Joaquín Ignacio Sánchez Toledano and Miguel Ángel Sánchez de Lara
This paper aims to define the efficiency achieved by urban transport companies in Spain concerning the resources they use, considering the type of management used for…
Abstract
Purpose
This paper aims to define the efficiency achieved by urban transport companies in Spain concerning the resources they use, considering the type of management used for implementation, public-private, and size.
Design/methodology/approach
This study consisted of an analysis of the efficiency of 229 public-private urban transport operators during the period 2012–2021 using Data Envelopment Analysis, the Malmquist Index and inference estimators to determine productivity, efficiency change into Pure Technical Efficiency Change (PTECH), and scale efficiency change.
Findings
Based on the efficiency analysis, the authors concluded that of the 229 companies studied, more than 35 were inefficient in all analysed periods. Considering the sample used, direct management is considered significantly more efficient. It cannot be concluded that the size of these companies influences their efficiency, as the data show unequal development behaviours in the studied years.
Originality/value
This study provides arguments on whether there is a significant difference between the two types of management in the urban transport sector. It also includes firm size as a study variable, which has not been previously considered in other studies related to urban transport efficiency. Efficiency should be a crucial factor in determining funding allocation in this sector, as it encourages operators to optimize and improve their services.
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Sarah Herwald, Simone Voigt and André Uhde
Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized…
Abstract
Purpose
Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized under the concentration-stability/fragility view. We provide empirical evidence that the mixed results are due to the difficulty of identifying reliable variables to measure concentration and market power.
Design/methodology/approach
Using data from 3,943 banks operating in the European Union (EU)-15 between 2013 and 2020, we employ linear regression models on panel data. Banking market concentration is measured by the Herfindahl–Hirschman Index (HHI), and market power is estimated by the product-specific Lerner Indices for the loan and deposit market, respectively.
Findings
Our analysis reveals a significantly stability-decreasing impact of market concentration (HHI) and a significantly stability-increasing effect of market power (Lerner Indices). In addition, we provide evidence for a weak (or even absent) empirical relationship between the (non)structural measures, challenging the validity of the structure-conduct-performance (SCP) paradigm. Our baseline findings remain robust, especially when controlling for a likely reverse causality.
Originality/value
Our results suggest that the HHI may reflect other factors beyond market power that influence banking stability. Thus, banking supervisors and competition authorities should investigate market concentration and market power simultaneously while considering their joint impact on banking stability.
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