Downsizing in German chemical manufacturing industry during the 1990's. Why small is beautiful?
نویسنده
چکیده
This version of January 26, 2007. German chemical manufacturing industry experienced a major downsizing during 1992–2004. On the average, size of the firm almost halved. Using modern frontier efficiency analysis, this paper investigates technical and scale efficiency of firms. Based on reliable census data, analysis suggests that firms were not primarily concerned with improving technical efficiency, but rather establishing of an optimal scale of production. The share of scale efficiency firms has been persistently increasing, and downsizing was found to be a rational behavior because all scale inefficient firms have continually operated on decreasing returns to scale portion of technology. (JEL: D21, L23, L25, L65
منابع مشابه
Structural change in German chemical manufacturing industry during the 1990's. An analysis at the micro-level
This version of September 3, 2006. German chemical manufacturing industry is marked by two major structural changes during 1992–2004. Firstly, number of firms was ranging extensively: from 676 to 901, while only 96 firms represented balanced panel. Secondly, size of the firm dropped considerably—by 88%. This paper is intended to shed light on both phenomena. Based on reliable census data analys...
متن کاملA Nonlinear Model of Economic Data Related to the German Automobile Industry
Prediction of economic variables is a basic component not only for economic models, but also for many business decisions. But it is difficult to produce accurate predictions in times of economic crises, which cause nonlinear effects in the data. Such evidence appeared in the German automobile industry as a consequence of the financial crisis in 2008/09, which influenced exchange rates and a...
متن کاملDumb and Dumber: The Impact of Downsizing on Firm Performance as Moderated by Industry Conditions
Workforce downsizing through employee layoffs has become commonplace in American businesses over the last 20 years. While these initiatives are typically undertaken in the quest for improved firm performance and competitiveness, empirical research to date has been equivocal in supporting the efficacy of these initiatives. In addition, extant research has not thoroughly examined factors or condi...
متن کاملNatural radioactivity concentration in raw materials used for manufacturing refractory products
Background: Some Particular areas contain natural radionuclide at levels much higher than those usually present in earth's crust. The radiological impact of the use of zirconium ore in zirconium industry is due to internal exposure of the lung by alpha particles and external exposure of the body by the gamma rays. The result of gamma spectrometry measurement of the concentrations of th...
متن کاملNet Job Creation and Its Effective Factors in Iranian Manufacturing Industries
According to the Islamic Republic of Iranchr('39')s 20-years plan in the outlook 1404, achieving to the "full employment" has been considered as one of the most important economic features of Iran. However, the existing evidences suggest that the employment problem is still a critical topic in Iranchr('39')s economic issues. A part of it is because of Iranchr('39')s economy hasnchr('39')t creat...
متن کامل