nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2007‒06‒02
four papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Assessing Competitiveness After Conflict: The Case of the Central African Republic By Said Bakhache; Kadima D. Kalonji; Mark Lewis; Jean-Claude Nachega
  2. Depletion of Non-Renewable Resources and Endogenous Technical Change By Juergen Antony
  3. The Role of Technological Complexity and Absorptive Capacity in Internalization Decision By Arti
  4. Differentiation and dynamics of competitiveness impacts from the EU ETS By Sato, S.; Grubb, M.; Cust, J.; Chan, K.; Korppoo, A.; Ceppi, P.

  1. By: Said Bakhache; Kadima D. Kalonji; Mark Lewis; Jean-Claude Nachega
    Abstract: This paper assesses competitiveness in the case of the Central African Republic, a postconflict country. The paper presents several conventional techniques for assessing competitiveness, namely the real exchange rate and recent trade performance. Several other measures are considered, in particular transport costs and governance measures, which may be more effective in capturing the obstacles to competitiveness posed by the poor security environment and weak institutions common to many post-conflict situations. The real exchange measure and trade measures suggest some mild erosion of competitiveness in recent years, while the other measures indicate that the competitiveness challenges faced by the Central African Republic are much deeper.
    Keywords: Competition , Central African Republic , Foreign exchange , Trade , Transport , Governance ,
    Date: 2007–01–17
  2. By: Juergen Antony (University of Augsburg, Department of Economics)
    Abstract: Non-renewable resources are an obstacle for positive long run growth if they are essential for production, households solve an intertemporal Ramsey problem and population is growing. Modern growth models predict that growth is positively related to growth in production factors. Hence, there are opposing forces at work if labor as one factor is growing and the use of the non-renewable resource as another factor is shrinking. The paper develops a semi-endogenous growth model with one labor and one resource using sector and derives conditions for stable positive long run growth in per capita production and consumption.
    Keywords: non-renewable resources, semi-endogenous growth
    JEL: Q32 O31 O33
    Date: 2007–05
  3. By: Arti (Delhi School of Economics)
    Abstract: Technology transfer costs have a profound influence on the firm’s entry mode into a production sharing relationship. To explore this nexus, we associate technological complexity of the off-shored input with the organizational mode of international production sharing by extending the Antràs (2005) model. We modify the Antràs model by proposing that the low-tech input, as qualified within the model, cannot be produced in the low wage south without costly technology transfer. The cost of technology transfer in turn depends on three factors, which are the technological complexity of this input, the absorptive capacity of the host country and the wages of the host country. Our model refines the results obtained in Antràs (2005). We find that 1. For high-tech goods, intra-firm transfer is preferred vis-à-vis outsourcing only for intermediate range of technological complexity of the off-shored input 2. On the other hand, for low-tech goods, where the likelihood of outsourcing is higher in Antràs, intra-firm offshore contract is still possible for low range of technological complexity. Our model has policy suggestions for host countries which aspire to maximize their benefits from the exploding global production phenomenon. As the wage gap between the source and the host country falls, cost considerations for offshoring disappear. New sources of comparative advantage should therefore be created in the host country by subsidizing technology investment and higher education to build higher absorptive capacity.
    Keywords: Outsourcing, Foreign Direct Investment, Technology Transfer, Absorptive Capacity.
    JEL: D23 F12 F23 L22 L33
    Date: 2007–05
  4. By: Sato, S.; Grubb, M.; Cust, J.; Chan, K.; Korppoo, A.; Ceppi, P.
    Abstract: We summarises the main factors that differentiate impacts of the EU ETS on profitability and market share. By examining sampling a range of sectors, we present some simple metrics and indicators to help judge the nature of potential impacts. We also consider briefly the mitigation response to these impacts by sectors, and how they may evolve over time. The broad conclusion confirms the aggregate findings presented in the existing literature - most participating sectors are likely to profit under the current ETS structure out to 2012 at the cost of a modest loss of market share, but this may not hold for individual companies and regions. The period 2008-12 can assist participating sectors to build experience and financial reserves for longer term technology investments and diversification, providing the continuation and basic principles of the EU ETS post-2012 is quickly defined and incentives are in place for sectors to pursue this.
    Keywords: Emissions trading, industrial competitiveness, spillovers, allowance allocation, perverse incentives.
    JEL: Q52 Q58 F18
    Date: 2007–03

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