Mahmut Yasar

Outsourcing, Productivity, and Input Composition at the Plant Level

We evaluate the productivity and input composition effects of outsourcing (or subcontracting) for Turkish textile and apparel manufacturing plants. We analyze differences in performance indicators for plants that subcontract inputs or outputs, and find that plants that outsource internationally perform better than those that outsource domestically. We evaluate labour productivity gaps and find that more productive plants both initiate outsourcing and subsequently increase their productivity. We then estimate a flexible production function, controlling for simultaneity and selection bias, and find that higher productivity from input subcontracting involves greater skilled labour intensity but the reverse is true for output subcontracting.

Foreign Technology Transfer and Productivity: Evidence From a Matched Sample

We examine the causal effects of alternative foreign technology transfer channels on the productivity of Turkish manufacturing plants, using propensity score matching techniques that limit implicit assumptions about plant homogeneity and self selection imbedded in standard estimates of such effects. We find positive impacts of technology transfer through foreign direct investment (FDI), exporting, and importing on both total factor and labor productivity, with FDI dominating and importing the least significant. Further, although internationally linked plants on average exhibit better productivity and differing characteristics than domestic plants before matching, the closeness of the matching indicates that remaining productivity gaps are caused by foreign technology transfer.

The Dynamics of Exports and Productivity at the Plant Level: A Panel Data Error Correction Model (ECM) Approach

This article examines the short-run and long-run dynamics of the export-productivity relationship for Turkish manufacturing industries. We use an error correction model (ECM) estimated using a system Generalized Method of Moments (GMM) estimator to achieve this objective. Our results suggest that permanent productivity shocks generate larger long-run export level responses, as compared to long-run productivity responses from permanent export shocks. This result suggests that industrial policy should be geared toward permanent improvements in plant-productivity in order to have sustainable long-run export and economic growth.

Size and Foreign Ownership Effects on Productivity and Efficiency: An Analysis of Turkish Motor Vehicle and Parts Plants

The levels and interactions of foreign connections and size may be important determinants of plant productivity and efficiency, particularly in a developing country such as Turkey. We explore the productive contributions of foreign ownership (FDI), emphasizing its linkages with plant size and input composition, for plants in the Turkish motor vehicle and parts industry. We evaluate the implications of FDI for overall productivity, input-specific contributions, and returns to scale, using OLS, stochastic production frontier, and quantile (size-specific) regression estimates of a translog production function model. We find significantly higher productivity of plants with foreign ownership, driven by a higher marginal product of labor, particularly for smaller plants. This effect augments the productive contributions of technical progress, capital intensity, and increasing returns to scale. FDI is also associated with a greater productive contribution of imported capital investment.

Is there Evidence of Learning‐by‐Exporting in Turkish Manufacturing Industries?

Abstract Exporting has always been thought of as one tool to improve productivity and, consequently, to spur economic growth in low‐ to middle‐income economies. However, empirical evidence of this so‐called ‘learning‐by‐exporting’ effect has been limited. This article determines whether learning‐by‐exporting is evident in two Turkish manufacturing sectors—the textile and apparel (T&A) and the motor vehicle and parts (MV&P) industries. A semi‐parametric estimator that controls for problems associated with simultaneity and unobserved plant heterogeneity is used to test the learning‐by‐exporting hypothesis. After controlling for these issues, our results suggest statistically stronger learning‐by‐exporting effects in the T&A than in the MV&P industry. The highly concentrated and capital‐intensive nature of the MV&P industry is the main reason for the lower learning‐by‐exporting effect in this sector. From a policy perspective, this implies that targeting export‐enhancing policies to industries with significant learning‐by‐exporting effects may lead to more productivity gains and would better stimulate an export‐led growth.

Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth

This paper examines the Schumpeterian creative destruction process by decomposing and analysing aggregate industry-level productivity growth in three Turkish manufacturing industries. The results are somewhat supportive of the Schumpeterian hypothesis given that the productivity effects within plants contributed the most to the aggregate level productivity growth. However, the results generally contradict the insight that plants entering the market have higher productivity than plants that exit the market. This supports Caballero and Hammours (NBER Working Paper No. 7720, 2000) arguments that institutional and market constraints may interfere with the proper functioning of Schumpeters creative destruction process.

Political Influence of Firms in the Tradables and Non-Tradables Sectors: A Cross-Country Analysis

Recent theoretical studies have shown that firms lobby government agencies to influence the structure of trade policies. This article empirically examines whether firms classified as either exporting or import‐competing (i.e. firms in the tradables sector) have differential levels of political influence relative to domestic firms that only produce non‐traded goods (i.e. firms in the non‐tradables sector). We use a rich firm‐level, cross‐sectional dataset from the World Business Environment Survey to achieve this objective. Results from the analysis reveal that exporting or import‐competing firms do have more political influence relative to domestic firms that neither export nor produce import‐competing goods. Market structure, firm age, firm size, government ownership, and dependence on public infrastructure also affect the extent of political influence that firms have.

Strategic effort allocation in online innovation tournaments

Abstract Online innovation tournaments, such as those hosted by crowdsourcing platforms (e.g., Kaggle), have been widely adopted by firms to evolve creative solutions to various problems. Solvers compete in these tournaments to earn rewards. In such competitive environments, it is imperative that solvers provide creative solutions with minimum effort. This article explores the factors that influence the solvers’ effort allocation decisions in a dynamic tournament setting. Specifically, comprehensive time variant data of teams that participated in crowdsourcing competitions on Kaggle were analyzed to gain insight into how solvers continually formulate strategies in light of performance feedback obtained through interim ranking. The results suggest that solvers strategically allocate their efforts throughout the contest to dynamically optimize their payoffs through balancing the probability of winning and the cost of expending effort. In particular, solvers tend to increase their efforts toward the end of tournaments or when they get closer to winning positions. Furthermore, our findings indicate that a last-minute surge in effort is more prevalent among high-skill solvers than in those with lower skill levels. In addition to providing insights that may help solvers develop strategies to improve their performance, the study has implications for the design of online crowdsourcing platforms, particularly in terms of incentivizing solvers to put forth their best effort.