The name is absent



The simultaneity bias consistent estimates of the production function’s parameters,
obtained for each macro sector, have then been used to calculate each firm’s Hicks-
neutral TFP as residual between actual and predicted output values. In order to make the
TFP estimates comparable across industries, the exponential values of TFP were divided
by the corresponding year and industry average29.

Table 5 reports descriptive statistics on the performance variables calculated dividing the
sample according to their trade practices. Both the TFP Index and the natural logarithm
of TFP show that exporters, importers and firms engaged in international networks are
on average more productive than firms that rely on the domestic market as source of
inputs and/or destination of output.

Table 5 Relationship with performance

Variable__________

Obs

Mean

Std. Dev

Obs

Mean

Std. Dev

______________Importers______________

___________Non Importers___________

TFPJndex

147

1,1736

0,5638

412

1,0384

0,5024

InTFP

147

1,7392

1,4901

412

0,6662

1,3036

Exporters

Non Exporters

TFPJndex

291

1,1389

0,583

284

1,0047

0,4289

lnTFP

291

1,1807

1,3891

284

0,7174

1,4438

IE>0

IE=0

TFPJndex

119

1,2274

0,5795

440

1,0329

0,4982

lnTFP

119

1,7968

1,3708

440

0,7188

1,3641

5.1.1 Profitability

Before proceeding with the analysis it must be observed that theoretical production
functions explain quantities of output trough quantities of inputs. However, in empirical

29 To mitigate the problem of misreporting and outliers we used as industry-year TFP average the Huber
mean truncating the one percent tails of the distributions.

15



More intriguing information

1. The name is absent
2. ENERGY-RELATED INPUT DEMAND BY CROP PRODUCERS
3. Wettbewerbs- und Industriepolitik - EU-Integration als Dritter Weg?
4. Migration and employment status during the turbulent nineties in Sweden
5. Internationalization of Universities as Internationalization of Bildung
6. Better policy analysis with better data. Constructing a Social Accounting Matrix from the European System of National Accounts.
7. A COMPARATIVE STUDY OF ALTERNATIVE ECONOMETRIC PACKAGES: AN APPLICATION TO ITALIAN DEPOSIT INTEREST RATES
8. Ex post analysis of the regional impacts of major infrastructure: the Channel Tunnel 10 years on.
9. Manufacturing Earnings and Cycles: New Evidence
10. The changing face of Chicago: demographic trends in the 1990s