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on Economics of Strategic Management |
| By: | Fabian Unterlass |
| Abstract: | This paper discusses the interplay between exports and innovation and both their effects on economic performance. The European Union makes major efforts to improve the innovation performance of its companies with the aim to improve the global competitive position of the Union and create jobs and wealth. Firms that are involved in international activities through exports or foreign direct investment are typically top performers in terms of their capability to generate value added as well as employment and productivity (see e.g. Mayer and Ottaviano 2007). From the policy point of view this implies that more of Europe's innovative companies should compete and be competitive on global markets and create revenue and jobs at home. However, the relationship between innovation, exporting and economic performance is by no means unidirectional. It is difficult to show whether superior export performance is determined by a superior innovation performance, or whether internationalisation supports innovation. The major issue here is to control for endogeneity between these two dimensions. Exporting might positively affect innovation via learning effects, resource effects and / or incentive effects. On the other hand, innovation improves productivity and therefore increases a company's competitiveness such that it selects itself into the export market. Alternatively, product innovations might also create (temporary) monopolies in niche markets. Testing these issues emerging from the literature we use firm level data from the 3rd European Community Innovation Survey (CIS3) for 21 countries for the years 1998-2000 accessed at the Eurostat Safe Centre in Luxemburg. In order to overcome problems referring to endogeneity, we empirically investigate the effects of exporting in the first year of the observed time frame on innovation input, while we explain in a second model exports in the final observed year by innovation output indicators. We find strong evidence that innovation improves the export performance of companies, whereas this pattern varies with the stage of economic development. While firms in highly innovative sectors in the more advanced member states need high degrees of appropriability, i.e. the possibility to protect their innovations, and have to continuously improve their knowledge base to participate in export markets, it is productivity and price-based competitiveness for low innovation-intensive sectors. This reflects the alternative patterns of niche markets on one hand, and self-selection on the other, that allow firms to export. While the nature of the data does not allow us to draw satisfactory conclusions on the causal link between exports and innovation, we could find positive effects of exporting on innovation activities only for small companies, while large companies are not more likely to innovate when they are exporting. We therefore conclude that the positive impact of exports results from additional financial resources available for exporting SMEs, while learning effects are comparably small. However, we only investigated exports but did not consider different kinds of internationalisation due to data constraints. The picture might change in this case. Finally, we argue that both innovation and exports have positive effects on a firm's economic performance. We find strong evidence that innovation is an important driver for productivity growth, whereas the positive effect increases when a company (and the country the firm is located in) approaches the technology frontier. Furthermore, our results indicate that in the medium to low innovation intensive sectors productivity growth is mainly driven by process innovations, while in high-technology sectors in the more advanced member states productivity growth is strongly driven by product innovations. This is in line with the idea that in high-tech niche markets it is product quality which leads to higher prices. Competition in these markets is not based on prices but on product quality. In the low-technology sectors, competition is mainly based on prices and therefore process innovation plays a decisive role. In addition, we also find evidence that the effects of innovation and exporting on employment and turnover growth follow patterns that are dependent of the stage of technological development. The impact of exports on employment growth increases with an increasing distance of the company's home country from the technological frontier. Companies in these countries have a comparative advantage in wage levels. Interestingly, exporting has positive effects on labour productivity mainly in highly innovation-intensive sectors in the more advanced countries on the one hand, and in less innovation-intensive sectors in countries that are further away from the technological frontier. Probably, this result reflects comparative advantages and volume effects (economies of scale) of exporting. The prior companies increase their export share by increased competitiveness based on high-quality products, the latter based on wage levels. Finally, the joint effects of exporting and innovation on turnover growth and therefore also productivity growth are positive for high-tech sectors in technologically advanced countries. This indicates that companies that are active in these sectors have to internationalise their economic activities to reap the benefits from their innovation efforts. Domestic markets tend to be too small and niche. This result claims for supporting innovative companies in these sectors to start exporting. See above See above |
| Keywords: | EU, Impact and scenario analysis, Impact and scenario analysis |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5655&r=cse |
| By: | Chanyoung Hong; Jung In Yeon; Jeong-Dong Lee |
| Abstract: | Research and development (R&D) is regarded as a core factor which decides the productivity of a firm in the analysis of modern industrial economics. But the R&D behavior and the consequent effect are observed to be different depending on the firm size and industry belonging. Despite the tendency to show less amount in its expenditure, R&D of small and medium enterprises (SMEs) is important because SMEs occupy major part in the number of firms and employees of a nation. This research analyzes the effect of R&D subsidy for SMEs across industry and national economy. In order to achieve the purpose, macroeconomic model of computable general equilibrium (CGE) is used. The typical form of CGE model is modified into knowledge-based one which has additional accounts and equations to incorporate R&D-related factors. Furthermore, social accounting matrix (SAM) in the model differentiates between SMEs and large firms in each industry. The simulation results are expected to show us that R&D in SMEs causes different effects and implications on various sides such as employment, knowledge stock and GDP growth. For example, subsidy for SMEs may not be relatively effective for GDP growth, but it may cause more increase in employment. |
| Keywords: | South Korea, General equilibrium modeling, Public finance |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6846&r=cse |
| By: | Rosario Sanchez; Angeles Díaz |
| Abstract: | The main purpose of this work is to analyse the effect of exports intensity and R & D activities in technical efficiency using data of Spanish manufacturing firms during the period 2004-2009. In a previous work, Diaz and Sanchez (2008) found that size was an important determinant of technical efficiency. Also, in Sánchez and Díaz (2013) innovation was an important determinant of efficiency for large firms but not for small and medium sized firms. Perhaps because large firms are more easily able to obtain external financing and thus finance their R & D activities and obtain product and process innovation that allows them to gain competitiveness in foreign markets. Size is also related to the ability of firms to compete in foreign markets. So we will focus on exporting companies to investigate the relationship between exports, and efficiency. As it is well known the exporting firms are more competitive than those that are not focused on foreign markets. To obtain empirical evidence we estimate a value added production function following the methodology of the Stochastic Frontier Approach, first developed by Farrell (1957) and widely used in empirical works. Using this methodology several works have analysed technical inefficiency: Caves and Barton (1990) analyse technical efficiency for manufacturing firms in United States; Green and Mayes (1991) analyse technical inefficiency for United Kingdom; and Patibandla (1998) proves the relevance of capital market imperfections on the structure of an industry; Dilling-Hansen et al. (2003), and Kumbhakar et al., (2011) analyse the effect of R&D investment on relative efficiency; Diaz and Sánchez (2008) analyse the impact of size on efficiency; and Sánchez and Diaz (2013) focus in the effect of product and process innovation over technical efficiency, obtaining that large firms’ innovation are more efficient than the small one. The inefficiency determinants can be due to environmental or firm specific factors. Here we focus on these firms specific factors to provide an explanation to the differences in technical inefficiency across Spanish manufacturing firms. Inefficiency tends to be smaller for firms with a higher ratio of gross investment over capital. Firms that account for this kind of investment become more competitive as a consequence of having a higher efficiency in their production process. Also, we found that exporting firms are closer to the stochastic frontier. They have to be more competitive to sell in international markets. Only the most efficient firms survive in the highly competitive international market. Size is another determinant of technical efficiency. Even though the impact of size in technical efficiency is not clearly determined in empirical and theoretical frameworks, here we obtain a positive and significant effect over efficiency. What it means that large firms are closer to the efficient frontier. In addition, efficiency tends to be smaller for those firms with a higher proportion of external funds over value added. |
| Keywords: | Spain, Trade issues, Sectoral issues |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6783&r=cse |
| By: | Sylvie Charlot (GAEL UMR 1215, INRA; University of Grenoble, France.); Riccardo Crescenzi (London School of Economics, Spatial Economics Research Centre, UK.); Antonio Musolesi (Dept. of Economics and Management. University of Ferrara, Italy.) |
| Abstract: | By adopting a semiparametric approach, the 'traditional' regional knowledge production function is developed in three complementary directions. First, the model is augmented with region-specic time trends in order to account for endogeneity due to selection on unobservables. Second, the nonparametric part of the model relaxes the standard assumptions of linearity and additivity regarding the effect of R&D and human capital. Finally, the assumption of homogeneity in the effects of R&D and human capital is also relaxed by explicitly accounting for the differences between developed and lagging regions. The analysis of the genesis of innovation in the regions of the European Union unveils nonlinearities and threshold effects, complex interactions, and shadows effects that cannot be uncovered by standard parametric formulations. |
| Keywords: | Innovation, Europe, R&D, Regional knowledge production function, Semiparametric models |
| JEL: | O32 R11 C14 C23 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:2414&r=cse |
| By: | Yahya özdemir |
| Abstract: | Azerbaijan, Turkey, Afghanistan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan and Uzbekistan in addition to research, technology development and production partner countries ' Innovation structures sharing with R&D Center in technoparks, thanks to the advanced technology and the production of these technoparks produced this advanced technology, technology to provide application process so that it can be imported, and the country's socio-economic and technical ways by its proponents, to serve together in the development of the total synergies "of the economic cooperation organization" will have an important place in the world economy and will create a strategic vision in this geography perception is of great importance.Advanced technologies in the world, especially in the last quarter century of rapid change, radical innovation were required to compete in important decisions, triggered by the national network of cooperation structures is a very significant changes in participates in the regional country or new technology generation and transfer systems to be released; starting from the most basic research on the effect of knowledge production, commercialization, distribution of the total well-being of society is an important dating "shining knowledge value chain". This important change, has become the main formative element of the economies. Recent advances in the knowledge economy and the resulting new strategic theories, knowledge, technology transfer and increased mobility at the long distances, the concept of regional development is a brand new technological cooperation aims and information focusing on the transformation processes of growth of the economies of developed nations are experiencing today, which is the most important technological innovation in the vision of the economic development advanced plays an important role, evolving processes trigger in all aspects of the right to readmost threats and opportunities that might be the best analysis, by passing the appropriate policies for countries in their visions, and entrusted a vital importance. |
| Keywords: | TURKEY, Socio-economic development, Other issues |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:5842&r=cse |
| By: | Elchin Akbarov |
| Abstract: | Competitiveness is considered to be the main factor for achieving the success in market economy. Because, the main goal of any commercial organization is to expand its business in market, to make it robust and in worst case to stay in a stable condition without growth. In order to achieve this goal, profit maximizing with high level of sales must be set as the main target and competitiveness is required here. Competitiveness is always in a fashion and of use by developing and developed countries. Developing countries need it to get a market share and developed countries need competitiveness as a new source of growth. Nowadays in line with the globalization, tourism has became as one of the key sphere of development of many countries and recognized as one of the main sources of jobs, wealth, welfare and income. Understanding and measurement of competitiveness in tourism is a major consideration and bearing this in mind this paper has been prepared in order to give an overview of tourism in Azerbaijan, its potential and role in regional integration in the background of some indicators for measuring competitiveness in tourism by OECD. See above See above |
| Keywords: | Azerbaijan, Impact and scenario analysis, Impact and scenario analysis |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:6409&r=cse |
| By: | INOUE Hiroyasu; NAKAJIMA Kentaro; SAITO Yukiko |
| Abstract: | This study investigates the localization of establishment-level knowledge creation by using data from the Japanese patent database. Using distance-based methods, we obtained the following results. First, Japanese patent-creating establishments are significantly localized at the 5% level, with the range of localization at approximately 80 km. Second, localization was found for all patent technology classes, while the extent of localization differs among the classes. Third, the extent of localization is stronger in more creative establishments, in terms of both the number of patents created and the number of citations. These results suggest that geographical proximity is important for knowledge spillover regardless of the concerned technology and that creative establishments require external knowledge. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14053&r=cse |
| By: | Alovsat Aliyev; A.G.Aliyev; R.O.Shahverdiyeva |
| Abstract: | high technology parksystem analysis, decision-making, information support systems, economic and mathematical modelingDetermination and management of the impact and role of innovation structures in economic development, as well as to improvement of decision-making process |
| Keywords: | Azerbaijan, Socio-economic development, Socio-economic development |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:6082&r=cse |
| By: | Tosic, Natasa; Iordan-Constantinescu, Nicolae |
| Abstract: | The study presents the new approaches of the knowledge‐based economies and competitiveness policy using two major indexes and methodologies developed by two prestigious world institutions, the World Bank and the World Economic Forum, as well as the practical consequences of their implementation at the level of individual economies in a dynamic globalised world. The main conclusion derived from the study is that without firm and steady measures for a comprehensive implementation of the mix of policies included in the two indexes, there are fewer chances of winning a better position of a country in the global concert of people and increasing the nation's wealth and standard of living. A particular attention is given to the case of the Republic of Serbia, candidate country to the European Union, pointing out both the achievements and the need for further action at the national level. |
| Keywords: | knowledge‐based economy, competitiveness, globalisation, Global Competitiveness Index, Serbia |
| JEL: | E42 E61 F36 F43 G15 O47 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58081&r=cse |
| By: | Amavilah Voxi (Phoenix AZ/USA); Asongu Simplice (Yaoundé/Cameroun); Andrés Antonio (Madrid/Spain) |
| Abstract: | A previous analysis of the impact of formal institutions on the knowledge economy of 22 Middle-Eastern and Sub-Sahara African countries during the 1996-2010 time period concluded that formal institutions were necessary, but inadequate, determinants of the knowledge economy. To extend that study, this paper claims that globalization induces peace and stability, which affects governance and through governance the knowledge economy. The claim addresses one weakness of previous research that did not consider the effects on the knowledge economy of globalization. We model the proposition as a three-stage process in four hypotheses, and estimate each hypothesis using robust estimators that are capable of dealing with the usual statistical problems without sacrificing economic relevance and significance. The results indicate that globalization has varying effects on peace and stability, and peace and stability affect governance differently depending on what kind of globalization induces it. For instance, the effects on governance induced by globalization defined as trade are stronger than those resulting from globalization taken to be foreign direct investment. Hence, we conclude that foreign direct investment is not a powerful mechanism for stimulating and sustaining the knowledge economy in our sample of countries. However, since globalization-induced peace and stability have both positive and negative effects on governance simultaneously, we also conclude that while the prospect for knowledge economy in African countries is dim, it is still realistic and attainable as long as these countries continue to engage in the kind of globalization that does indeed induce peace and stability. We further conclude that there is a need for a sharper focus on economic and institutional governance than on general governance as one possible extension of this paper. |
| Keywords: | Globalisation; Peace and Stability; Governance; Knowledge Economy |
| JEL: | I20 I28 K42 O10 O55 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/012&r=cse |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | Africa’s overall knowledge index fell between 2000 and 2009. South Korea’s economic miracle is largely due to a knowledge-based development strategy that holds valuable lessons for African countries in their current pursuit towards knowledge economies. Using updated data (1996-2010), this paper presents fresh South Korean lessons to Africa by assessing the knowledge economy (KE) gaps, deriving policy syndromes and providing catch-up strategies. The 53 African frontier countries are decomposed into fundamental characteristics of wealth, legal origins, regional proximity, oil-exporting, political stability and landlockedness. The World Bank’s four KE components are used: education, innovation, information & communication technology (ICT) and economic incentives & institutional regime. Absolute beta and sigma convergence techniques are employed as empirical strategies. With the exception of ICT for which catch-up is not very apparent, in increasing order it is visible in: innovation, economic incentives, education and institutional regime. The speed of catch-up varies between 8.66% and 30.00% per annum with respective time to full or 100% catch-up of 34.64 years and 10 years. Based on the trends and dynamics in the KE gaps, policy syndromes and compelling catch-up strategies are discussed. Issues standing on the way to KE in Africa are dissected with great acuteness before South Korean relevant solutions are provided. The paper is original in its provision of practical policy initiatives drawn from the Korean experience to African countries embarking on a transition to KE. |
| Keywords: | Knowledge economy; Catch-up; South Korea; Africa |
| JEL: | O10 O30 O38 O55 O57 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/014&r=cse |
| By: | Sungmoon Jung; Yeo Yeongjun; Jeong-Dong Lee |
| Abstract: | In the article, we analyze that how the innovative activity affects to income redistribution, which have been considered for prolonged period. The effect of spending on R&D usually affects to higher income level; however, the lower income group also becomes easier to approach to high-tech devices since the internet have developed. Both of groups could earn same information in the same time in spite of different income level. According to the fact, we examine how the R&D investment impact to the each income group. We employ the dynamic Computational General Equilibrium (CGE) model in order to measure the aggregate effect, reflecting the channels of the positive and negative effects and considering the reactions of individual industries and economic agents that it follows in change of public and private R&D expenditure. The result reveals that the R&D spending affect positively to economic growth, but it brings about negative effect on income distribution. In addition, we find a skill-biased technological change in South Korea. |
| Keywords: | South Korea, General equilibrium modeling, Growth |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7045&r=cse |
| By: | Klaus S. Friesenbichler (WIFO); Michael Böheim (WIFO); Daphne Channa Laster |
| Abstract: | This paper provides a survey of the effects of market competition in the transition economies of Eastern Europe and Central Asia. The pivotal element of the transition was inter-firm competition, which replaced economic planning as the method to identify demand. Pro-competitive policies that facilitated the transition are discussed, including international trade, attracting foreign direct investment and firm entry. Research topics with respect to competition changed as the transition advanced. The focus shifted from churn and macroeconomic shock-management in the initial phases toward firm entry, privatisation and restructuring of incumbents. In the later phases of transition, differentials in aggregate economic performance became obvious, pointing at institutional differences and their interplay with transitions. These are equally reflected by the degree of competition of the business environment. Also the methods changed with the evolution of the research agenda. Early case studies were displaced by large-scale, cross-country econometric studies as survey data became increasingly available. |
| Keywords: | competition, transition, survey, Eastern Europe and Central Asia |
| Date: | 2014–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2014:i:477&r=cse |
| By: | Ramiro Parrado; Enrica De Cian |
| Abstract: | International technology spillovers can be categorised in two types: disembodied and embodied. Disembodied international technology spillovers are the flow of ideas that take place without the exchange of commodities. Examples of disembodied spillovers are present through workers’ mobility, students exchange programs, international conferences and journals. Embodied international technology spillovers are linked to the exchange of goods, particularly capital goods. The use of new equipment in the manufacturing and industrial sectors is considered an important source of technological progress and thus of economic growth. The degree of embodied technological spillovers is related to the level of capital imports, absorptive capacity, education, and knowledge stocks among other determinants. These in turn may depend on country specific policies. Trade within different classes of goods leads to different degrees of knowledge spillovers because technology intensity varies across sectors, leading to different degrees of embodied technology. Technology spillovers are neither automatic nor costless but they require adoption capabilities, e.g. human capital and indigenous research capacity. The absorptive capacity of a country is related to its economic, human, and technological development. This paper analyses the relationship between trade, technology, and the environment using a multi-sector and multi-region dynamic recursive CGE model. In this context, the main objectives of the paper are: i) to include endogenous factor-biased technical change based on trade flows in a CGE model, particularly for energy and capital, ii) to analyse the implications of specific spillovers embodied in trade of capital goods (machinery and equipment), and iii) to highlight the implications of accounting for indirect effects induced by spillovers. The paper models embodied spillovers based on international trade of capital goods. The main vehicles of spillovers are machinery and equipment (M&E) commodities. In particular, we consider the endogenous relationship between M&E imports and energy-biased technical change as well as capital-biased technical change. Estimates of the factor-biased technical change due to capital goods imports are drawn from Carraro and De Cian (2012). The model has been calibrated taking into account the influence of machinery and equipment imports only in capital and energy-biased technical change. This study takes advantage of a global trade database to implement spillovers by specifying technology source and destination regions. This allows modelling trade-embodied knowledge transfers in order to analyse the net effects of climate policy both in developed (technology source) and developing (technology recipient) regions. We find that explicitly modelling trade spillovers reveals significant effects thanks to the transmission mechanisms underlying imports of capital commodities. We then assess the net contribution of modelling trade spillovers within three policy scenarios. The aggregated net effects of spillovers are rather small confirming findings from previous studies. However, we identified important international and intersectoral redistribution effects due to technology transfers represented as embodied spillovers. |
| Keywords: | Multi-region and Multi-sector model, Energy and environmental policy, General equilibrium modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5426&r=cse |
| By: | Patricia Crifo; Marc-Arthur Diaye; Sanja Pekovic |
| Abstract: | This paper analyzes how different combinations of Corporate Social Responsibility (CSR) dimensions affect corporate economic performance. We use various dimensions of CSR to examine whether firms rely on different combinations of CSR, in terms of quality versus quantity of CSR practices. Our empirical analysis based on an original database including 10,293 French firms shows that different CSR dimensions in isolation impact positively firms’ profits but their effect in term on intensity varies among CSR dimensions. Moreover, the findings on the qualitative CSR measure, based on interaction between its dimensions, show that the substitutability of these dimensions is highly significant for firm performance. However, in terms of the intensity, those interactions produce differential effects. |
| Keywords: | corporate social responsibility, firm performance, substitutability, complementarity, trade-off, simultaneous equations models, |
| Date: | 2014–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-34&r=cse |
| By: | Tiziano Distefano (IMT Institute for Advanced Studies Lucca, Italy.); Giovanni Marin (CERIS-CNR Milano, Italy; SEEDS Sustainability Environmental Economics Dynamics Studies, Ferrara, Italy.); Massimo Riccaboni (IMT Institute for Advanced Studies Lucca, Italy.) |
| Abstract: | The consideration of both the direct and the indirect effects of global production and trade is the first step in order to assess the sustainability of resource exploitation, in particular water usage. This paper applies the Global Multi-Regional Input-Output model to quantify the interdependencies of different sectors and to determine the overall water consumption of each country. This procedure allows the measurement of Virtual Water Trade, that is the volume of water embedded in traded goods. This paper introduces further extensions based on network analysis to overcome the limitations of I-O models. To the best of our knowledge, this is the first attempt to build a bridge between two different, but related, methodologies. Firstly, we assess the evolution of the structure of international trade in Virtual Water (VW). Secondly, we present the results from the Structural Decomposition Analysis. Finally, we introduce other measures from Network Theory, in order to integrate the previous results. Community Detection assessment reveals the emergence of regional VW systems composed by a limited set of countries. Thus our study confirms the need of elaborating and implementing transboundary policies for water management, especially in the European Union. |
| Keywords: | virtual water trade, multi-regional input-output model, network analysis, community detection |
| JEL: | C67 Q25 F18 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:2314&r=cse |
| By: | Dusa, Silvia |
| Abstract: | The current study presents the main models of competitiveness, developed by different organization or institutions, primarily those established by the World Economic Forum, International Institute for Management Development, European Commission and the Institute for Strategy and Competitiveness, founded by Michael at Harvard Business School. The concept of competitiveness and the whole philosophy and reasoning around this concept, started relatively recently, but developed very rapidly and currently is a topical preoccupation of all responsible governments. |
| Keywords: | competitiveness, economic growth, euro, convergence, models of competitiveness, WEF |
| JEL: | E42 E61 F36 F43 G15 O47 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58103&r=cse |
| By: | Luintel, Kul B (Cardiff Business School); Selim, Sheikh (Cardiff Business School); Bajracharya, Pushkar |
| Abstract: | We model banks as profit-cum-utility maximizing firms and study, inter alia, bankers’ incentives (optimal effort) and incentive driven productivity following deregulations. Our model puts to test a panel of Nepalese commercial banks which went through deep financial reforms in the recent past. We find that (i) bankers’ efforts and productivity have notably improved in Nepal, (ii) bankers’ efforts significantly explain the banking sector’s productivity, (iii) the proportion of non-performing loans has considerably declined, and (iv) banking services have become costly, although the bank spread has moderately declined. Our approach is different from the widely used data envelopment analysis (DEA) of bank productivity, hence complements the literature. It also informs the current policy debate in Nepal where the Central Bank is seen to be geared towards regulating the financial system and micro-managing the banking institutions. |
| Keywords: | Reforms; incentives; productivity; panel integration; cointegration; simulation |
| JEL: | G21 G28 O43 O53 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2014/14&r=cse |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | The goal of this paper is to assess how knowledge economy (KE) plays out in financial sector competition. It suggests a practicable way to disentangle the effects of different components of KE on various financial sectors. The variables identified under the World Bank’s four knowledge economy index (KEI) are employed. An endogeneity robust panel instrumental variable fixed-effects estimation strategy is employed on data from 53 African countries for the period 1996-2010. The following findings are established. First, education and innovation in terms of scientific and technical publications broadly bear an inverse nexus with financial development. Second, the incidence of information and communication technologies is positive on all financial sectors but increases the non-formal sectors to the detriment of the formal sector. Third, economic incentives have positive implications for all sectors though the formal financial sector benefits most. Fourth, institutional regime is positive (negative) for the semi-formal (informal) financial sector. The findings contribute at the same time to the macroeconomic literature on measuring financial development and respond to the growing fields of informal sector importance, microfinance and mobile banking by means of KE promotion. Policy implications and future research directions are discussed. |
| Keywords: | Financial development; Knowledge Economy; Africa |
| JEL: | G21 O10 O34 P00 P48 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/006&r=cse |
| By: | Cruz, Marcio |
| Abstract: | Do export promotion agencies impact the probability of non-exporting firms to export? In the last decade many countries have introduced export promotion agencies to support their firms to deal with asymmetric information problems and make feasible additional gains from trade. Some recent studies have found that the support of these agencies has been effective with respect to the intensive and extensive margins of trade. Nevertheless, because of the lack of information on non-exporting firms, few of them analyze their impact on the probability of promoting new exporters. This paper evaluates the impact of the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) on firms'export status using a unique firm-level dataset that covers the full manufacturing sector in Brazil. To identify the impact of Apex's assistance on firms'export propensity, the paper relies on a procedure of matching difference-in-difference estimators. The empirical results show evidence of the program's positive impact on the probability of promoting new exporters. The effect is heterogeneous according to firms'size categories and sectors. Furthermore, the findings suggest that the program has spillover effects. Although the evidence of positive effect is robust, the low propensity to export for both the treated and the control groups reinforces the importance of other firms'determinants (for example, productivity), which is widely emphasized by the trade literature. |
| Keywords: | Microfinance,Small Scale Enterprise,E-Business,Debt Markets,Currencies and Exchange Rates |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7004&r=cse |
| By: | Julien Hanoteau; Virginie Vial |
| Abstract: | Baumol (1990) famously argues that entrepreneurs are individuals who exploit opportunities, be they in the productive (enterprises) or the unproductive sector (lobbying, rent-seeking, corruption…), and that the prevalence of one or the other type of entrepreneurship depends on the quality of surrounding institutions: high quality institutions foster productive entrepreneurship, whereas failing institutions trigger unproductive entrepreneurship. However, recent empirical studies evidence that the effect of institutions quality on productive entrepreneurship might be more ambiguous. Dreher and Gassebner (2013) observe that if poor quality of institutions is detrimental to firms’ entry, this effect is nonetheless moderated in presence of corruption. Our central argument in this paper, is that productive entrepreneurs may be forced by their institutional environment to bribe so as to be able to start and develop their venture. As a result, a same quality of institutions has different effects on bribing and non-bribing productive entrepreneurships. This has strong implications for the literature addressing the effect of institutions on entrepreneurship. We complement Baumol’s (1990) theory, by acknowledging that productive entrepreneurs do not form a homogenous population, but have characteristics that are shaped by the institutional context in which their venture is embedded. This recognition is likely to unveil the true effects of institutions on productive entrepreneurship, whereas analyses that make a clear distinction between productive and unproductive entrepreneurship and treat the former as a homogenous population, are likely to result in misleading observations. This contribute to the embryonic literature regarding the role of entrepreneurship in the development of emerging countries (Bruton et al., 2008; Naudé, 2010; Peng and Zhou, 2005; Stenholm et al. 2013). We use panel data econometrics, with a unique dataset that merges two databases, the Statistik Industri from the Indonesian Bureau of public statistics (BPS) and the Indonesian Family Life Survey (IFLS) from the Rand Corporation. It enables us to analyze the effect of varying formal and informal institutions quality, across regional districts (190), on the 5-digit sector-level (321) entry rates of bribing and non-bribing new ventures, over the period 2001-2007. Although cross-country studies are more robust (Bruton et al., 2010), Indonesia compensates with its institutional features (administrative inefficiency, pervasive corruption, ethnic diversity…) that are common to many emerging countries (Miguel et al., 2005) while presenting large within institutional quality variations, and will therefore allow an easier generalization of our findings. Analyzing patterns across districts within a single country permits to use homogenous survey instruments of institutions and consistently available data on the bribing component of entrepreneurship, which is rarely the case for cross country regressions and reduces some of their problems of measurement and omitted variables (Miguel et al., 2005; Sobel, 2008).The results show that regulative and resource-allocative institutions are significant factors impacting the rate of entrepreneurship. Moreover, the results confirm our main conjecture that these institutions have differentiated effects on bribing and non-bribing entrepreneurship, taken at the local and 5-digit sector level. On the one hand, deficient regulative (low quality of business permits delivery and excessive indirect taxations) and resource-allocative institutions (poor quality of access to transport infrastructures and services) are detrimental to entrepreneurship. On the other hand, we find that bribing new ventures suffer less than other ventures, from a deteriorated access to high quality business permits delivery and transport infrastructures and services. Our results also show that in districts and 5-digit sectors with a poor supply of banking services, bribing entrepreneurs have a better entry rate than others, suggesting that they have a better access to financings through corruption. |
| Keywords: | Indonesia, Developing countries, Miscellaneous |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6689&r=cse |
| By: | Alovsat Aliyev; PhD. in Economical Sciences, A.G.Aliyev; A.S.Aliyeva |
| Abstract: | Economy and ICTsystem analysis, economic and mathematical modeling, economic and statistical methodsPerfection of assessment methods of ICT impact on the economy and determination of economic development directions basing on ICT |
| Keywords: | Azerbaijan, Socio-economic development, Socio-economic development |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:6085&r=cse |
| By: | TANAKA Kiyoyasu |
| Abstract: | Inward foreign direct investment (FDI) in Japan is expected to contribute to the Japanese economy, but an empirical analysis on its causes and consequences has not been widely conducted partly because of a lack of comprehensive panel data on foreign firms. This paper seeks to construct a panel dataset on foreign firms for the years 1995-2011 by carefully correcting and improving firm-level data published by the Ministry of Economy, Trade and Industry. Based on the dataset, we find that: (1) foreign firms' presence increased rapidly during 1995-2007; (2) the growth of foreign firms was larger in wholesale, retail, telecommunications, and other services sectors; (3) direct investment from East Asian economies such as China, Korea, and Taiwan increased recently; (4) foreign firms concentrated in Tokyo in terms of the headquarters location, but the spatial concentration in Tokyo was relatively weaker in terms of the establishment location; (5) greenfield investment has been the most frequent mode of entry to the Japanese market since 2002. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:14021&r=cse |
| By: | Yoko Uchida; Kazuhiko Oyamada |
| Abstract: | One of the key factors behind the growth of global trade in recent decades is an increase in intermediate input as a result of the development of vertical production networks (Feensta, 1998). Manufacturing goods are no longer produced in a single country. Production processes are subdivided into several stages, in which respective countries specialize in producing parts and components. Many countries are involved in vertical production networks of producing just a single final good for consumers. It is widely recognized that the production networks have formed due to the expansion of multinational enterprises’ (MNEs) activities. Multinational enterprises have been differentiated into two types according to their production structure: horizontal FDI and vertical FDI. However, a new type of FDI which diverges from the vertical one has been proposed in the context of the recent expansion of more complex multinational activities; it is called export-platform FDI. Horizontal FDI maintain affiliates in home and host countries with the headquarters located in the home country, while vertical and export-platform FDI install affiliates in host countries with the headquarters located in the home country. The difference between vertical and export-platform FDI is where their products are sold: vertical FDI seek to sell their products in both the home and host country, while export-platform FDI seek to sell in a third market through the affiliates in the host country (Ekholm et al., 2007). Theoretical research on MNEs has been conducted since the early 1960s (Hymer, 1976), but it developed dramatically from the mid 1980s as a result of the “new” trade theory. There are two important theoretical models of MNEs: one was presented by Helpman (1984) and the other by Markusen (1984). Helpman’s model treats vertical MNEs with monopolistic competition and without trade costs. On the other hand, Markusen’s model treats horizontal MNEs with one factor, assuming firm-level scale economy. Markusen (1997) combines horizontal and vertical motives in a model, so the model allows two types of MNE to exist at the same time. This is called the “knowledge capital” model. Zhang and Markusen (1999) extended the model to consider vertical MNEs that supply intermediate inputs to a final production plant in a host country. While their models were constructed in a two-region framework, Ekholm et al. (2007) extended the model into a three-region framework to include export-platform FDI. Matsuura and Hayakawa (2008) pointed out that recent explorations of FDI theories have shifted from the two-region setting to the three-region setting (for example, Yeaple, 2003 and Grossman et al., 2006). Ekholm et al. (2007) and other models in the three-regional framework assume that skilled-labor-intensive intermediates are produced only at home, and the host country imports intermediate products and assembles final goods, combining intermediates and unskilled labor. However, those models do not adequately explain observed facts where some kinds of intermediate goods are produced in the host country. Our final goal is to extend Ekholm et al. (2007) to treat the procurement of intermediates from the host country in view of the present situation. We start from the simple model in the two-region framework in preparation for further extension. In this paper, we extend Zhang and Markusen (1999) to include horizontal and vertical FDI in the model with traded intermediates. There are no studies which treat vertical and horizontal FDI with traded intermediates at once, although more evolved models which treat vertical, horizontal and export-platform FDI with traded intermediates, such as Ekholm et al. (2007), do exist. This paper serves to bridge the gap between Zhang and Markusen (1999) and Ekholm et al. (2007) in theoretical studies of FDI. we extend the model presented by Zhang and Markusen (1999) to include horizontal and vertical FDI in a model with traded intermediates, using numerical general equilibrium analysis. The simulation results revealed that horizontal MNEs are more likely to exist when countries are similar in size and in relative factor endowments. Vertical MNEs are more likely to exist when countries differ in relative factor endowments, and trade costs are positive. Based on the results of the simulation, lower trade costs of final goods and differences in factor intensity are the condition for attracting vertical MNEs. |
| Keywords: | Developing countries, General equilibrium modeling, Developing countries |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5448&r=cse |
| By: | Asian Development Bank (ADB); (Southeast Asia Department, ADB); ; |
| Abstract: | The Greater Mekong Subregion Human Resource Development Strategic Framework and Action Plan (2013–2017) reflects changing circumstances, including the development of the Greater Mekong Subregion (GMS) economic corridors as an important GMS priority. The goal of the human resource development (HRD) strategy is to foster sustainable subregional HRD, thereby contributing to increased subregional competitiveness, connectivity, and community. This document outlines the GMS HRD strategy that will be implemented through (i) developing capacity in the economic corridors, (ii) cooperating in technical and vocational education and training, (iii) cooperating in higher education and research, (iv) addressing regional health issues, (v) facilitating safe cross-border labor migration, (vi) mitigating social costs in the economic corridors, and (vii) strengthening institutions and mechanisms for GMS HRD cooperation. |
| Keywords: | greater mekong subregion, GMS, regional cooperation, human resource development, human capital, economic corridors, higher education, technical and vocational education and training, skills development, mutual recognition framework, quality assurance, credit transfer system, health, labor migration, human trafficking, social development, communicable disease control, food and drug safety, HIV/AIDS¸ capacity development, communicable diseases, social development, cross-border issues |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt135469&r=cse |
| By: | Lal Almas; Nazim Uzbey Hajiyev |
| Abstract: | The present article "Study of Current and Potential Comparative Advantage of Azerbaijan Economy", which has been prepared as a contribution to the National Employment Strategy, provides an analysis of the sectors and industries in which Azerbaijan is either currently competitive or there is a potential to become competitive in the future. It is of great significance to define the sectors of the economy which are competitive in the world market and which have comparative advantage for the creation of new jobs.This study proves the existence of the competitive non-oil sectors in Azerbaijan and there are good grounds to suppose that new and competitive industries can develop in the future. Along with the analyses of the current competitive sectors in Azerbaijan, this report recommends to undertake detailed and comprehensive analysis of those sectors which are proved to be currently competitive and to identify the key obstacles hindering their development. These further investigations should also provide a basis for linking comparative advantage with labor markets to create the conditions for competitive industries that generate employment in the sectors outside oil and gas. We hope that future research on the potential of the non-oil sector will explore more opportunities for promoting a sustainable increase in employment. See above See above |
| Keywords: | Azerbaijan , Labor market issues, Impact and scenario analysis |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5501&r=cse |
| By: | Carlos A. Cinquetti; Keith E. Maskus |
| Abstract: | We reassess, with industry-level data, the scale effect from trade protection, by means of a comprehensive fixed-cost variable, composing both technology coeficient and firms size, and a comparative (international) analysis. Evidence is based on Brazil’s manufacturing industries during its import-substitution industrialization, comparatively to the USA. The panel-data analysis clearly shows a correlation between comparative increases in the number of firms with average costs, corroborating the scale (entry) effect. See full paper See full paper |
| Keywords: | Brazil and the USA, Trade issues, Modeling: new developments |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5440&r=cse |
| By: | Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran |
| Abstract: | In this paper, we consider a knowledge accumulation problem within an organization. We depart from the human capital theory initiated by Becker (1962, 1964) and consider an organization that cannot prevent the worker from quitting and using the knowledge outside the organization. We study how the employer optimally distorts the knowledge accumulation path and chooses a wage profile in order to mitigate the commitment problem. We show that knowledge accumulation is delayed: the fraction of working time allocated to knowledge creation is highest at the early career stage, falls gradually, then rises again, before falling finally toward zero. We determine the effect of a change in the severity of the enforcement problem (or the specificity of knowledge). We also discuss the form of the optimal life-cycle wage profiles, the role of the initial knowledge level and the role of discounting Dans ce papier, nous considérons un problème d'accumulation de connaissances dans une organisation. Nous partons de la théorie du capital humain lancée par Becker (1962, 1964) et considérons une organisation qui ne peut pas empêcher un employé de quitter et d’utiliser la connaissance à l'extérieur de l'organisation. Nous montrons comment l'employeur manipule de façon optimale le sentier d'accumulation de connaissances et choisit un profil de salaire pour atténuer le problème d'engagement. Nous montrons que l'accumulation de connaissances est retardée : la fraction de temps alloué à la création de connaissances est la plus haute au premier stade de la carrière, puis elle tombe progressivement, ensuite, elle monte de nouveau, avant de tomber finalement vers le zéro. Nous déterminons l'effet de la spécificité de connaissances. Nous discutons aussi la forme des profils de salaire optimaux, le rôle du niveau de connaissance initial et du rôle du fait du taux d’actualisation. |
| Keywords: | Human capital,hold-up, contract, Capital humain, hold-up, contrat |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-32&r=cse |