Determinants of Labor Productivity in Emerging Markets: Evidence from Pre- and Post-Financial Crisis Mexico

Young-Hee  Kang; Kyunga Na

Young-Hee Kang Keimyung Univerity
Kyunga Na Keimyung Univerity

Keywords: Emerging Markets, Global Financial Crisis, Labor Productivity, Bribery, Corporate Governance

Abstract

Although the global financial crisis of 2008 had tremendous effects on global businesses, its impact on firm performance in emerging markets is unknown. To develop this knowledge, this study explores the factors that influenced labor productivity in emerging markets before and after the crisis. Using a sample of 2,061 Mexican firms that were collected by the World Bank in 2006 and 2010, this study investigates the relationships of bribery, informality, and corporate governance to labor productivity. The results show that, before the crisis, informality and foreign ownership were positively associated with labor productivity. On the other hand, after the crisis, bribery and informality are negatively related to labor productivity, while foreign ownership and external auditing make positive impacts on labor productivity. The findings imply that businesses need to improve the quality of their corporate governance and decrease bribery. Governments of emerging markets need to reduce the levels of informality.

Author Biographies

Young-Hee Kang, Keimyung Univerity

KANG, Young-Hee, is an Assistant Professor, Keimyung University, Daegu, Korea. She earned her Ph.D. (2012) in Industrial Relations and Human Resources, from Michigan State University, USA; and MBA (2005) from Seoul National University, Seoul, Korea. She has published articles at Journal of Applied Business Research, Social Sciences, Gender and Culture, Asia Pacific Journal of Small Business, SpringerPlus, The Korean Journal of Hispanic Studies, Korean Journal of Latin American and Caribbean Studies, Asian Journal of Latin American Studies, Asia Pacific Journal of Small Business, Korean Academy of Management, and International Labour Review.
Author contact detail: Keimyung University, #412 College of Business Administration 1095 Dalgubeol-daero, Daegu 42601, Republic of Korea; phone: +82-053-580-6378; e-mail: kang02@kmu.ac.kr.

Kyunga Na, Keimyung Univerity

NA, Kyunga, is an Assistant Professor, Keimyung University, Daegu, Korea. She earned her Ph.D. (2013) in Accounting, University of Alberta, Edmonton, Canada; her MBA (2004), Judge Business School, University of Cambridge, United Kingdom; and her MSc (1999) in Finance, ISMA, University of Reading, United Kingdom. Her researches interset are Earnings Management, Stock Market Response, Auditor Changes, Financial Statement, Comparability, Tax avoidance. She has articles published at Social Sciences, The Journal ofApplied Business Research, Journal of Taxation and Accounting, Gadjah Mada International Journal of Business, Asia Pacific Journal of Accounting and Economics, Asia Pacific Journal of Tourism Research, Tax and Accounting Research, Accounting Journal, Business Management Review, Korean Management Review, Korea International Accounting Review, and Business Management Review.
Author contact detail: 327, Euiyang Building, Accounting Department, School of Business, Seongseo Campus, Keimyung University, Dalgubeol Daero 1095, Dalseo-Ku, Daegu, 42601, Republic of Korea; phone: (010) 3339-3463; e-mail: kyunga.smu@gmail.com.

References

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