In production economics, one of the most interesting questions is that of the causal relationship between technicalefficiency and allocative efficiency. This as yet remains a…
Abstract
In production economics, one of the most interesting questions is that of the causal relationship between technical efficiency and allocative efficiency. This as yet remains a puzzle without a unique answer. There are a few theoretical analyses conceptualizing the relationship, but consensus has not yet been reached, and empirical tests are rare. Presents the empirical results of applying Granger’s (1969) and Sims’ (1972) causality tests using time series data on technical and allocative efficiencies of random samples of Indian farmers. These causality tests, with respect to technical and allocative effciences show that there is unidirectional causality from technical efficiency to allocative efficiency, and that the causative process is not bidirectional.
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Vangelis Tzouvelekas, Christos J. Pantzios and Christos Fotopoulos
Estimates the output‐oriented and input‐specific technical efficiency in two samples of Greek, durum wheat farms – organic and conventional ones – using Kalirajan and Obwona’s…
Abstract
Estimates the output‐oriented and input‐specific technical efficiency in two samples of Greek, durum wheat farms – organic and conventional ones – using Kalirajan and Obwona’s stochastic varying coefficient regression model. Findings indicate that the organic wheat farms examined are relatively more efficient. Reasons may include lower profit margins and restrictions on inputs permitted, which may force organic farmers to be more cautious with input use. However, technical efficiency scores are still relatively low for both types of wheat farming. Therefore, considerable scope for cost reducing and farm income improvement may exist in both farming modes. This realization could prove crucial for the long‐run viability and the future course of organic wheat farming.
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Economic theory suggests that the best commercial policy for a country is free trade, regardless of the measures taken by its competitors. This policy, however, has certain…
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Economic theory suggests that the best commercial policy for a country is free trade, regardless of the measures taken by its competitors. This policy, however, has certain drawbacks and consequences. Commitment to free trade subjects the economy to the dictates of events beyond its control, which at times can be detrimental. To maximize the benefits from free trade, therefore, a country must be willing and able to make internal adjustments, as changes in external circumstances require. It must be quick to capitalize on opportunities and yet flexible enough to alter direction in the face of adversity. Both Australia and India had similar trade and industry polices in the 1950s and 1960s.
Kunal Kamal Kumar, Sushanta Kumar Mishra and Pawan Budhwar
The “war for talent” is not limited to developed economies but has become a common feature in emerging economies such as India. From the sociocultural perspective, India…
Abstract
The “war for talent” is not limited to developed economies but has become a common feature in emerging economies such as India. From the sociocultural perspective, India represents one of the oldest cultural heritages with distinct cultural values. The cultural difference may contribute to explain organizational practices toward talent retention. In the present chapter, the authors focus on the institutional, legal, and cultural context and highlight their uniqueness with respect to the Indian context. Within the institutional context, the authors found that prior to liberalization (which happened in 1990s), the Indian business scene was dominated by public firms or a small enclave of private firms. For both types of organization, turnover hardly mattered, and turnover was indeed negligible. Employees saw firms as “employers for life”: in such a context, voluntary turnover was extremely rare. Further, in the early legal context, it was hard for any private firm to “fire” an employee. Therefore, involuntary turnover was close to nil as well. Things began to change post-liberalization when the Indian scene was dominated by an influx of private players. The Indian mind too accepted turnover to be a part of the corporate life. In the present chapter, the authors provide a snapshot of what, why, and how of employee turnover in the Indian context. The authors specifically focus on what motivates employees to remain with the organization or why do they leave the organization. The authors close the chapter with insights relevant to both academicians and practitioners.
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Raghuvir Kelkar and Kaliappa Kalirajan
Most economic growth is concentrated in the eastern and coastal provinces of China, while the western and central provinces have not yet experienced the expected economic growth…
Abstract
Purpose
Most economic growth is concentrated in the eastern and coastal provinces of China, while the western and central provinces have not yet experienced the expected economic growth. This study aims to address the following crucial research questions: Do the central and western provinces achieved potential efficiency in economic growth? Have China’s provinces used their resources effectively in implementing economic growth strategies?
Design/methodology/approach
The research design concerns the use of a panel dataset on province-specific economic growth in China over the years to 2000–2020. The methodology used was a stochastic frontier gross domestic product (GDP) model with time-varying technical efficiency over time. The approach uses the existing literature to identify the important variables influencing economic growth at the provincial level to model the stochastic frontier GDP model for empirical analysis.
Findings
This study concludes that the central provinces show the highest rate of efficiency in economic growth, though not 100%, followed by the Eastern and Western provinces. By increasing and improving skilled education institutes and intensifying supply chain opportunities through foreign direct investment (FDI), the central provinces achieving 100% growth efficiency may not be ruled out.
Research limitations/implications
The modes of economic governance and policies to improve GDP growth have been rapidly changing from increasing incentives to improving competition. Thus, more unique avenues and expansion of the horizon for impending research on provincial, national and international macroeconomics would emerge that would make current methodologies of the growth analysis outdated.
Practical implications
The empirical analysis highlights the importance of improving skilled education institutes and intensifying supply chain opportunities through FDI for achieving sustained economic growth.
Social implications
The empirical analysis facilitates finding ways to reduce income inequality across provinces in China.
Originality/value
To the authors' knowledge empirical analysis examining the Chinese province-specific economic growth efficiency explicitly has not been carried out using the recent Chinese panel dataset.
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This paper aims to provide empirical evidence on technology convergence within economies of the European Union which is usable for determining the economic growth policy aimed at…
Abstract
Purpose
This paper aims to provide empirical evidence on technology convergence within economies of the European Union which is usable for determining the economic growth policy aimed at sustainable long‐run economic growth and the convergence of the development between EU‐member states.
Design/methodology/approach
Two different empirical procedures are applied by estimating the technology convergence within the European Union on Eurostat data set. The first is framework developed by Dowrick and Nguyen. The second one is the authors' original contribution to the methodology which is based on the frontier production functions.
Findings
Significant technology convergence is recognized between 15 old EU‐member states and eight new‐member states. However, the technology convergence has obviously not accelerated the convergence of gross domestic product per labor unit between exposed groups of economies. Technical inefficiency is recognized as the main source that impedes a spill‐over effect of technology convergence. Following this it is established that in the future more effort should be directed into elimination of technical inefficiency.
Originality/value
Presented findings can be used to arrange the economic policy measures aimed at accelerating technology development in case of European Union.
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Like the cross-country convergence or divergence analysis in incomes to address the global phenomenon, the same analysis is also required to be done in the case of a group of…
Abstract
Like the cross-country convergence or divergence analysis in incomes to address the global phenomenon, the same analysis is also required to be done in the case of a group of states within a national territory. Further, it is also required to see whether convergence or divergence in incomes of the states is attributable to the convergence or divergence in their allocations of bank credits. Thus, this chapter aims at examining whether the selected major states in India are converging or diverging in the allocations of bank credit, and if so, what will be the magnitudes of decreases or increases in the level of disparities and inequalities in credit allocations. This study concludes that there is a clear diverging tendency of credit allocations of the states of India during the post-reform period so far as the absolute convergence hypothesis of the neoclassical theory is concerned. Further, in terms of the framework of σ convergence, the study observes that all phases of the Indian economy have produced converging paths of the inter-state credit allocations, and the path becomes diverging during the post-reform phase. Based on the quantifications of the magnitudes of disparities and inequalities in terms of CV, C4 concentration, HHI and Gini values, this study thus reveals that there are significant increases in the levels of disparities and inequalities in the allocations of credit to the states from the pre-reform to the post-reform phases. Therefore, the persistence of divergence in income or rising income inequality during the phase of the major reform program in India may be due to the persistence of divergence and rising inequality in the allocation of bank credit.
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Nihat Doğanalp and Aytuğ Arslan
Introduction: Performance evaluations are a critical tool in evaluating tourism development of countries where the tourism industry provides a significant share of the GDP. One of…
Abstract
Introduction: Performance evaluations are a critical tool in evaluating tourism development of countries where the tourism industry provides a significant share of the GDP. One of the measures used in performance evaluation of the financial decision-making units is economic efficiency. Aim: This study aims at measuring tourism-related technical efficiency performance of six European countries: Spain, Greece, Turkey, France, Italy, and Portugal. Method: Tourism revenue and visitor numbers are referenced as output variables. Within the model, the natural and sociocultural index and substructure index were formed. Data envelopment analysis was applied for these datasets. Results: Considering tourism revenues, Spain, Italy and Greece managed to use their natural and cultural resources efficiently. In contrast to these countries, inefficiency level scores were measured for Turkey, Portugal and France. In the model based upon the number of visitors, all other countries apart from Turkey and Portugal achieved the most efficient score. As for substructure index, the score of decreasing returns to scale for the countries of Italy and Spain in terms of tourist numbers is noteworthy. Conclusion: The implementation of efficient tourism policies and strategies hold great importance in terms of tourism efficiency. Implications: Even though Portugal and Turkey are rich in both natural and cultural assets, low scores seem to stem from failure to realize their potentials. Strategies should be developed to diversify tourist products. Originality of the Paper: This study differs from other studies in the literature with regard to the composition of the wide input components.
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K.P. Kalirajan and G. Shantakumar
The effects of ageing on incomes, taxes, social protection and labour productivity will be important considerations in Singapore’s future economic policy, while posing strong…
Abstract
The effects of ageing on incomes, taxes, social protection and labour productivity will be important considerations in Singapore’s future economic policy, while posing strong challenges for the country, which has become more global in outlook. This paper briefly discusses some of these important issues concerning ageing in Singapore.