In Czechoslovakia, as in other countries, the problem of the corrosion resistance of manufactured components is receiving great attention. Here it is not merely a matter of…
Abstract
In Czechoslovakia, as in other countries, the problem of the corrosion resistance of manufactured components is receiving great attention. Here it is not merely a matter of problems relating to breakdown of the material to such an extent that the functioning of the product is made impossible, but also of losses caused by the poor appearance of the product, the cause of which is corrosion. Last, but not least, one must also take into account loss of market and loss of confidence, because the product or its components corrode prematurely.
Ivana Blažková, Ondřej Dvouletý and Ondřej Machek
The paper aims to investigate factors that drive the total factor productivity (TFP) and its growth in the Czech food industry over 2003–2017. The authors’ analysis focuses on…
Abstract
Purpose
The paper aims to investigate factors that drive the total factor productivity (TFP) and its growth in the Czech food industry over 2003–2017. The authors’ analysis focuses on firm-level characteristics such as location choice, sub-sector affiliation, use of debt, liquidity, asset turnover, firm size and firm age.
Design/methodology/approach
The determinants of productivity were tested econometrically by estimation of multivariate regression models. The firm-level panel data set consisted of 14,488 observations (data of 980 firms spanning 15 years). TFP was estimated by three regression-based techniques – ordinary least squares (OLS) regression, instrumental variables (IV) approach and two-way generalized method of moments (GMM) regression. All three measures of TFP were used as outcome variables to estimate the impact of firm-level determinants on both TFP level and growth.
Findings
The results have shown statistically significant and reversed U-shaped relationship between the firm age and the TFP level (with a turning point in the age of 12.5 years). However, the dynamic models investigating the TFP growth have found that younger firms achieve higher productivity growth in comparison with older ones. Higher market share and assets turnover were positively associated with both TFP level and its growth.
Research limitations/implications
This study brings several relevant propositions for future research. First, the authors recommend future researchers to study not only differences in the levels of productivity but also determinants of its growth. Second, the authors believe that adding a non-linear component to age as a factor explaining changes in the levels of productivity might be a very relevant contribution to the literature.
Originality/value
Although it is generally accepted that successful and sustainable growth of firms, regions and economies can be achieved particularly through viable companies with high productivity, there is still a limited number of firm-level studies explaining the determinants of productivity levels and growth in agribusiness sectors in transition economies. Therefore, this study is expected to contribute to a better understanding of this important topic.