Trade, Foreign Networks and Performance: a Firm-Level Analysis for India

Using Indian firm-level data, this paper examines the combined role of import and export intensity in a context of foreign networks. The more Indian firms are involved in trade networks the more they have a productivity advantage. Finally, information on the origin of import and on the destination of output are used to shed some light on the kind of networks in which firms are involved. We show that the upstream or downstream contact with more developed countries is not correlated with an higher productivity while there it seems to be an advantage for those firms that import and export to the same area.

Foreign Market Conditions and Export Performance: Evidence from Italian Firm-Level Data

A large body of literature in International Economics has analysed the impact of increased import competition on domestic firms. The link between firm-level exports and changes in the competitive environment on foreign markets is less well understood, however. This is despite the fact that exports make up a significant and growing share of total manufacturing production in most countries. We derive a theory-based econometric specification linking destination-specific exports to foreign demand and the degree of competitiveness or “crowdedness” of a foreign market. The latter is a summary measure of the number and productive efficiency of firms competing in a given market and the barriers impeding their access, such as tariffs or physical distance. We estimate this specification on a large sample of Italian manufacturing firms in 1992-2003 and use the results for a series of counterfactual experiments. Our findings indicate that increased numbers and efficiency of foreign firms and improvements in their access to destination markets have reduced Italian exports by around 0.2-0.4% per year. This is similar to the effects of tariff reductions for Italian firms (+0.3%/year) but smaller than the impact of higher unit labour costs (-1.4%/year) and less favourable exchange rates (-2.0%/year). By far the most important determinant of export performance was foreign demand growth, however, raising Italian exports by up to 5.3% per year or almost 60% over the sample period. Our results also indicate that China’s impact on Italian export performance is small and if anything positive. Much more important in explaining the loss of export market shares in recent years has been the relatively slow demand growth in Italy’s main export market, the EU15.International Trade, Competition, Exporters, Foreign Markets

Foreign Market Conditions and Export Performance: Evidence from Italian Firm-Level Data

A large body of literature in International Economics has analysed the impact of increased import competition on domestic firms. The link between firm-level exports and changes in the competitive environment on foreign markets is less well understood, however. This is despite the fact that exports make up a significant and growing share of total manufacturing production in most countries. We derive a theory-based econometric specification linking destination-specific exports to foreign demand and the degree of competitiveness or "crowdedness" of a foreign market. The latter is a summary measure of the number and productive efficiency of firms competing in a given market and the barriers impeding their access, such as tariffs or physical distance. We estimate this specification on a large sample of Italian manufacturing firms in 1992-2003 and use the results for a series of counterfactual experiments. Our findings indicate that increased numbers and efficiency of foreign firms and improvements in their access to destination markets have reduced Italian exports by around 0.2-0.4% per year. This is similar to the effects of tariff reductions for Italian firms (+0.3%/year) but smaller than the impact of higher unit labour costs (-1.4%/year) and less favourable exchange rates (-2.0%/year). By far the most important determinant of export performance was foreign demand growth, however, raising Italian exports by up to 5.3% per year or almost 60% over the sample period. Our results also indicate that China's impact on Italian export performance is small and if anything positive. Much more important in explaining the loss of export market shares in recent years has been the relatively slow demand growth in Italy's main export market, the EU15.

Does Family Control Affect Trade Performance? Evidence for Italian Firms

This paper examines whether the export decision of firms is affected by their ownership structure, specifically it looks at whether family control is an obstacle to entering foreign markets. The underlying assumption is that family firms are risk averse. Risk aversion may be an obstacle to entering foreign markets, as far as these are perceived as more volatile and risky than the domestic one, particularly when such choice entices bearing relatively high sunk costs. We develop an illustrative theoretical model that shows how the combination between high risk aversion and low initial productivity may hinder family firms' decision to enter foreign markets, particularly distant ones. The empirical analysis, based on a detailed panel data set of Italian firms covering the years from 1995 to 2003, confirms such predictions by showing that family controlled firms do indeed export less than other type of companies even after controlling for firm heterogeneity in productivity, size, technology and access to credit.firm structure, foreign markets, family firms, exports

Does Family Control Affect Trade Performance? Evidence for Italian Firms

This paper examines whether the export decision of firms is affected by their ownership structure, specifically it looks at whether family control is an obstacle to entering foreign markets. The underlying assumption is that family firms are risk averse. Risk aversion may be an obstacle to entering foreign markets, as far as these are perceived as more volatile and risky than the domestic one, particularly when such choice entices bearing relatively high sunk costs. We develop an illustrative theoretical model that shows how the combination between high risk aversion and low initial productivity may hinder family firms’ decision to enter foreign markets, particularly distant ones. The empirical analysis, based on a detailed panel data set of Italian firms covering the years from 1995 to 2003, confirms such predictions by showing that family controlled firms do indeed export less than other type of companies even after controlling for firm heterogeneity in productivity, size, technology and access to credit.

Do Not Get Trapped into Crossing: Indian Firms and Foreign Markets

This paper examines the relationship between the exposure to foreign trade and productivity growth for a sample of Indian manufacturing firms. By testing a catching up model of productivity growth, it sheds some light on the nature of the relationship between the exposure to foreign competition and productivity growth. It finds a non linear relationship between firms’ export share and productivity gains. Productivity growth declines with the share of exports on total sales, up to a threshold ranging between 40 and 50 per cent and it increases thereafter. This result appears to be dominated by the behaviour of firms in traditional sectors like textile and clothing. In more technology intensive sectors, like pharmaceuticals, productivity gains also arise for smaller export shares. One likely explanation of this finding is that being successful in the export market for exporters of traditional products also requires investments in technological upgrading. These investments are less likely to be viable for marginal exporters. In fact, firms with a larger than 50 percent share of exports are also found to be more capital intensive and to use newer machinery than non exporters or marginal exporters. In contrast we find that human capital is not significantly different for different categories of firms.India, productivity, exports, firm level performance

Eco-efficient and sustainable settlement experimentation in Mediterranean housing

Eco-efficient and sustainable settlement experimentation in Mediterranean housing Settlement experimentation in Europe is currently characterised by the attempt to promote energy efficient and environmentally sustainable housing in an evolutionary, organic and integrated sense; this approach could become a guiding tool for the transformation of the built environment, the latter consisting in the development and construction of a urban environment that shows sensibility towards ecological-environmental issues and social ones. The focal points of such research experiences are housing projects built in Northern and Central European countries; the latter being very interesting projects that have become models for the rest of EU countries, showing what can be obtained in the contemporary experimentation field. In respect to these study cases, now all we need is to find ways to transfer the acquired knowhow in Mediterranean countries and therefore to adapt the new sustainable strategies to the Mediterranean climate. In this framework the paper wishes to offer an exploration on a research case study, carried out in central Italy, about the development of Mediterranean sustainable development

Towards Forklift Safety in a Warehouse: An Approach Based on the Automatic Analysis of Resource Flows

Warehouse management is a discipline that has gained importance in recent decades. In the era of the Digital Revolution and Industry 5.0, to enable a company to attain a competitive advantage, it is necessary to identify smart improvement tools that help search for warehouse problems and solutions. A good tool to highlight issues related to layout and resource flows is the spaghetti chart which, besides being used to minimize waste according to lean philosophy, can also be used to assess warehouse safety and reliability and improve the plant sustainability. This article shows how to exploit “smart spaghetti” (spaghetti chart automatically generated by smart tracking devices) to conceive improvements in the layout and work organization of a warehouse, reducing the risk of collision between forklifts and improving the operators’ safety. The methodology involves automatically mapping the spaghetti charts (searching for critical areas where the risk of collision is high) and identifying interventions to be carried out to avoid near misses. “Smart spaghetti” constitutes a valuable decision support tool to identify potential improvements in the system through changes in the layout or in the way activities are performed. This work shows an application of the proposed technique in a pharmaceutical warehouse