The machinery industry is a very difficult sector to develop in the short term. It is also not easy to drastically shorten the developmental period. Therefore, it is necessary for developing countries to thoroughly review Korea’s policy trends when designing machinery industry policies. This...

Cyclicality is a well-known and accepted fact of life in market-driven economies. Less well known or understood, however, is the phenomenon of amplification as one looks “upstream” in the industrial supply chain. We examine the amplification phenomenon and its implications through the lens...

Using firm-level data for Belgium, we study the validity of Hicks neutrality in several sectors that cover the spectrum of knowledge intensity. We find that Hicks neutrality is clearly not supported by the data in different sectors. The results are not sensitive to altering the specification of...

Improvements in productivity are necessary to effectively increase economic growth in the long term. The literature emphasizes a positive correlation between firm-level innovation and productivity gains. It is unsurprising, then, that policy makers and researchers widely acknowledge that...

What is the relationship between foreign manufacturing multinational corporations (MNCs) and the expansion of indigenous technological and managerial technological capabilities among Chinese firms? China has been remarkably successful in designing industrial policies, joint venture requirements,...

The aim of this paper is to analyze both internal and external aspects posing a risk in the operation for the multinational Johnson Controls in its subsidiaries in United States and Mexico from the point of view based on institutions; the main challenge to initiate the investigation is do have...

We provide broad-based evidence of a firm size premium of total factor productivity (TFP) growth in Europe after the Global Financial Crisis. The TFP growth of smaller firms was more adversely affected and diverged from their larger counterparts after the crisis. The impact was progressively...

We document that 20% of Compustat firms have above-median investment rates despite having below-median marginal product of capital (MPK), seemingly "misallocating" productive resources. These firms are typically younger and significantly more likely to experience a substantial upward jump in...

We study resource misallocation by explicitly modelling R&D input and knowledge spillovers. The effects of R&D and spillovers on firm-level productivity are extensively studied in applied work, but not in the context of resource misallocation. We establish that, in the presence of spillovers,...