Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test
This paper applied a symbolic transfer entropy panel causality test, to investigate the non-parametric Granger-type causality between total factor productivity (TFP) and firm size. This test overcomes the limitations of previous panel causality tests generated by the presence of outliers and structu...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Journal of Applied Economics |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2025.2453253 |
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| author | Claudiu Tiberiu Albulescu Ahdi Noomen Ajmi Serban Miclea Lavinia- Maria Cernescu |
| author_facet | Claudiu Tiberiu Albulescu Ahdi Noomen Ajmi Serban Miclea Lavinia- Maria Cernescu |
| author_sort | Claudiu Tiberiu Albulescu |
| collection | DOAJ |
| description | This paper applied a symbolic transfer entropy panel causality test, to investigate the non-parametric Granger-type causality between total factor productivity (TFP) and firm size. This test overcomes the limitations of previous panel causality tests generated by the presence of outliers and structural breaks. We drew on a dataset of 535 German electricity and gas firms, analysing the period 2007–2015, and used different approaches to compute the TFP. The symbolic transfer entropy test indicated, in general, a bidirectional causality between TFP to firm size, when the first and the second lags in the causal relationship were used. However, the causality was not significant at the level of the third lag. Moreover, the way TFP was computed categorically influenced the results. Further, the non-parametric symbolic transfer entropy test brought clarifications to the opposite results reported by classic panel causality tests. Our findings show that increasing firm’s productivity represents a precondition for firm’s growth. At the same time, large firms in the energy industry are more efficient compared with small firms. |
| format | Article |
| id | doaj-art-99c6a96f1e904231b5eacb1236876476 |
| institution | Kabale University |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-99c6a96f1e904231b5eacb12368764762025-01-27T12:50:37ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2453253Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality testClaudiu Tiberiu Albulescu0Ahdi Noomen Ajmi1Serban Miclea2Lavinia- Maria Cernescu3Management Department, Politehnica University of Timisoara, Timisoara, RomaniaDepartment of Business Administration, College of Science and Humanities in Slayel, Prince Sattam bin Abdulaziz University, Al Dawair, Layla, KSAManagement Department, Politehnica University of Timisoara, Timisoara, RomaniaManagement Department, Politehnica University of Timisoara, Timisoara, RomaniaThis paper applied a symbolic transfer entropy panel causality test, to investigate the non-parametric Granger-type causality between total factor productivity (TFP) and firm size. This test overcomes the limitations of previous panel causality tests generated by the presence of outliers and structural breaks. We drew on a dataset of 535 German electricity and gas firms, analysing the period 2007–2015, and used different approaches to compute the TFP. The symbolic transfer entropy test indicated, in general, a bidirectional causality between TFP to firm size, when the first and the second lags in the causal relationship were used. However, the causality was not significant at the level of the third lag. Moreover, the way TFP was computed categorically influenced the results. Further, the non-parametric symbolic transfer entropy test brought clarifications to the opposite results reported by classic panel causality tests. Our findings show that increasing firm’s productivity represents a precondition for firm’s growth. At the same time, large firms in the energy industry are more efficient compared with small firms.https://www.tandfonline.com/doi/10.1080/15140326.2025.2453253Total factor productivityfirm sizecausal relationshipsymbolic transfer entropy test |
| spellingShingle | Claudiu Tiberiu Albulescu Ahdi Noomen Ajmi Serban Miclea Lavinia- Maria Cernescu Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test Journal of Applied Economics Total factor productivity firm size causal relationship symbolic transfer entropy test |
| title | Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test |
| title_full | Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test |
| title_fullStr | Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test |
| title_full_unstemmed | Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test |
| title_short | Total factor productivity and firm size in the German energy industry: evidence from a symbolic transfer entropy panel causality test |
| title_sort | total factor productivity and firm size in the german energy industry evidence from a symbolic transfer entropy panel causality test |
| topic | Total factor productivity firm size causal relationship symbolic transfer entropy test |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2025.2453253 |
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