nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒02‒26
six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation Responses of Japanese Firms to Chinese Import Competition By YAMASHITA Nobuaki; YAMAUCHI Isamu
  2. The ladder of internationalization modes: Evidence from European firms By Békés, Gábor; Muraközy, Balázs
  3. The Paradox of Transfers: Distribution and the Dutch Disease By Richard Chisik; Nazanin Behzadan; ;
  4. Towards a Holistic Innovation Policy: Can the Swedish National Innovation Council Serve as a Role Model? By Edquist, Charles
  5. Why Does Emissions Trading under the EU ETS Not Affect Firms' Competitiveness? Empirical Findings from the Literature By Joltreau, Eugénie; Sommerfeld, Katrin
  6. Tourism and Economic Development: Evidence from Mexico's Coastline By Faber, Benjamin; Gaubert, Cécile

  1. By: YAMASHITA Nobuaki; YAMAUCHI Isamu
    Abstract: This paper examines innovation response of a panel of Japanese firms to the intensified import competition from China for the period 1994-2009. We build a comprehensive firm-level dataset linking innovation activities including patenting and research and development (R&D) merged to cross-industry measures of Chinese import competition. Carefully accounting for a simultaneity bias between innovation and importing and the possible heterogeneous effects across firms, it is found that firms filed for more patents in response to increased import competition from China. However, this effect is only evident for a group of globally engaged firms. At the same time, Chinese import competition has adversely affected the quality of innovation as measured by citations. Overall, firms with a more domestic market focus are the ones who have felt most of the Chinese import competition, which is also reflected in their declined R&D efforts.
    Date: 2017–12
  2. By: Békés, Gábor; Muraközy, Balázs
    Abstract: How do firms enter international markets? To answer this question, this paper uses a unique multi-country firm-level dataset which, besides direct exporting and FDI, provides explicit information on a number of internationalization modes: indirect exporting, outsourced manufacturing and service FDI. We present a theoretical framework in which modes requiring higher and higher commitment have progressively higher fixed and lower marginal costs. By estimating multinomial and ordered logit models, we present evidence in line with such a sorting framework with respect to TFP and innovativeness. We identify three 'clusters' of modes: indirect exporters are similar to non-exporters, direct exporters and outsourced manufacturers constitute a second cluster while service and manufacturing FDI are the most demanding internationalization modes.
    Keywords: export; FDI; Firm Heterogeneity; internationalization mode; ordered logit; Outsourcing; sorting
    JEL: F14 F23
    Date: 2018–01
  3. By: Richard Chisik (Department of Economics, Ryerson University, Toronto, Canada); Nazanin Behzadan (Department of Economics, Ryerson University, Toronto, Canada); ;
    Abstract: Abstract In this paper we show that an important determinant of a foreign transfer generating a Dutch disease effect is the income of the recipient. The marginal propensity to consume luxury services is larger for wealthier recipients who are more likely to receive the benefits of foreign aid than they are to receive remittances. In a three good model of international trade with production we show that foreign aid can generate a Dutch disease and remittances can foster economic growth. We empirically verify these hypotheses with data from a panel of data covering the years 1991-2009 while dealing with the issues of omitted variable bias and possible endogeneity of remittances.
    Date: 2018–02
  4. By: Edquist, Charles (CIRCLE, Lund University)
    Abstract: A holistic innovation policy is defined in this article as a policy that integrates all public actions that influence or may influence innovation processes. The Swedish National Innovation Council (NIC) was created by the Swedish Prime Minister, Stefan Löfven, in February 2015. It is personally chaired by the Prime Minister, which is unusual for similar councils in other countries. Another atypical characteristic of the Swedish NIC is that it has a dominant and wide focus on innovation policy. In other countries, such councils focus predominantly on science and/or research policy and treat innovation policy, if at all, as an “appendix” to research policy. The purpose of this article is to answer the following four questions: A. Has Swedish innovation policy recently been moving in the direction of a more holistic innovation policy? If so, how and in what respects? B. Has the Swedish National Innovation Council (NIC) had an influence on Swedish innovation policy and has it played a role in the transition towards a holistic innovation policy? Which role and how? C. Have conceptual specifications and advancements, such as innovation systems (in a broad sense), functional public procurement, additionality, and holistic innovation policy played a role in the changes in Swedish innovation policy? D. Can Sweden serve as a role model for other countries in these respects?
    Keywords: Innovation; Innovation policy; Holistic innovation policy; Research policy; Linear view; Systems of innovation
    JEL: O30 O38 O49 O52
    Date: 2018–02–01
  5. By: Joltreau, Eugénie (Université Paris-Dauphine); Sommerfeld, Katrin (ZEW Mannheim)
    Abstract: Environmental policies may have important consequences for firms' competitiveness or profit-ability. However, the empirical literature shows that hardly any statistically significant effects on firms can be detected for the European Union Emissions Trading Scheme (EU ETS). We explain why there are arguably no significant competitiveness effects on firms, at least not during the first two phases of the scheme (2005-2012). We also reason why the third phase (2013-2020) is likely to reveal similar results. We show that the main explanations for this finding are a large over-allocation of emissions allowances leading to a price drop and the ability of firms to pass costs onto consumers in some sectors. Cost pass-through combined with free allocation, in turn, partly generated windfall profits. In addition, the relatively low importance of energy costs indicated by their average share in the budgets of most manufacturing industries may limit the impact of the EU ETS. Finally, small but significant stimulating effects on innovation have been found so far.
    Keywords: employment effects, firm-level competitiveness, environmental policies, EU ETS
    JEL: Q52 Q58 D22
    Date: 2017–12
  6. By: Faber, Benjamin; Gaubert, Cécile
    Abstract: Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican microdata with a quantitative spatial equilibrium model and a new em- pirical strategy to study the long-term economic consequences of tourism both locally and in the aggregate. We find that tourism causes large and significant local economic gains relative to less touristic regions that are in part driven by significant positive spillovers on manufacturing. In the aggregate, however, these local spillovers are largely offset by reductions in agglomeration economies among less touristic regions, so that the national gains from trade in tourism are mainly driven by a classical market integration effect.
    Keywords: economic development; Gains from trade; spatial equilibrium; Tourism
    JEL: F15 O24
    Date: 2018–01

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