Template-Type: ReDIF-Article 1.0
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Author-Name: A. P. Thirlwall
Author-X-Name-First: A. P.
Author-X-Name-Last: Thirlwall
Title: The Dynamic Harrod Foreign Trade Multiplier and the Demand-orientated Approach to Economic Growth: an Evaluation
Abstract:
This paper puts forward a demand-orientated model of economic growth, as
an alternative to the supply-orientated approach of neoclassical theory,
and evaluates the extensive research testing the dynamic Harrod trade
multiplier model developed by Thirlwall and extended by McCombie. It is
critical of the continued dismissal of demand constraints as an
explanation of inter-country growth rate differences in the models of
McGregor & Swales, Crafts, Krugman, etc., and in the 'new' growth theory
literature, although it is sympathetic to the rehabilitation of the role
increasing returns for an understanding of cumulative processes which make
for divisions in the world economy.
Journal: International Review of Applied Economics
Pages: 5-26
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000001
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:5-26
Template-Type: ReDIF-Article 1.0
Author-Name: Don Goldstein
Author-X-Name-First: Don
Author-X-Name-Last: Goldstein
Title: Financial Structure and Corporate Behavior in Japan and the US: insulation versus integration with speculative pressures
Abstract:
This paper examines the impact of speculative financial markets on
corporate behavior under the Japanese and US financial systems. While both
countries experienced speculative financial booms during the 1980s, real
sector corporate decision making was relatively insulated from such
activity in Japan by its bifurcated capital markets: high-turnover trading
of much equity coexists with another segment in which large blocks of
firms equity and debt are held long term, by capital suppliers who are
strategic business allies. In the American system, in contrast, fluid and
impersonal stock trading leaves firms vulnerable to the impact of short
term price movements. This avenue for speculative financial market
pressures has militated toward reduced time horizons and financial
ratio-based decision criteria in the US corporate sector. The main
implication is that mechanisms must be found for insulating American
corporate decision making from speculative pressures. Rather than
attempting to mimic the undemocratic role played by banks and other
buysiness insiders in Japan, US policy makers should achieve a similar
insulating effect by vesting more power in corporate constituences other
than shareholders—especially employees. An approach built around
'democratic stakeholder governance' is proposed.
Journal: International Review of Applied Economics
Pages: 27-48
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000002
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:27-48
Template-Type: ReDIF-Article 1.0
Author-Name: Behzad Yaghmaian
Author-X-Name-First: Behzad
Author-X-Name-Last: Yaghmaian
Title: Industrialization and Developing Countries' Indebtedness: A Theoretical and Empirical analysis
Abstract:
The following paper is a theoretical and empirical study of the
determinants of international indebtedness of developing countries. I will
argue that indebtedness is a divelopment determined phenomenon and an
intrinsic tendency of capitalist development during the stage of the
internationalization of productive capital. Different levels of
indebtedness by developing countries can be explained by their stage of
development and their position in the international division of labor.
Developing country indebtedness universally increases during the phase of
import substutution industrialization (corresponding to the early phase in
the internationalization of production). Indebtedness continues to grow in
countries exteriencing export-led industrialization, while the rate of
grewth declines in countries at a higher stage of this phase.
Journal: International Review of Applied Economics
Pages: 49-64
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000003
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000003
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:49-64
Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Fajarnes
Author-X-Name-First: Pilar
Author-X-Name-Last: Fajarnes
Author-Name: M. Thea Sinclair
Author-X-Name-First: M. Thea
Author-X-Name-Last: Sinclair
Title: Trade Effects of European Union Enlargement: an ex post model of trade between Spain and Latin America
Abstract:
Past research on European Union (EU) Enlargement has tended to neglect
the effects on trade with non-preferred trading partners. This paper
examines the consequences of EU enlargement on trade between Spain and the
Latin American countries with which it has traditional economic and
cultural ties. An import demand functions model was estimated for the
period 1964-93. The country-level results showed that Spanish accession to
the EU only had large adverse effects on its imports from Argentina. The
results for non-agricultural products indicated a general absence of
negative effects on Spanish imports. The aggregate results from the ex
post model provide support for some, but not all, of the ex ante
predictions of previous studies.
Journal: International Review of Applied Economics
Pages: 65-89
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000004
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:65-89
Template-Type: ReDIF-Article 1.0
Author-Name: Subrata Ghatak
Author-X-Name-First: Subrata
Author-X-Name-Last: Ghatak
Author-Name: Barbara Roberts
Author-X-Name-First: Barbara
Author-X-Name-Last: Roberts
Title: Linkages and Industrial Policy for Eastern Europe
Abstract:
It is argued that insustrial policy for Eastern Europe is needed in order
to reduce the social cost of transition. The industrial policy suggestes
is based on unbalanced growth focused on key sectors that, according to
linkage analysis, influence the economy more than other sector. An attempt
should be made to increase efficency in key sectors, either by new
investment or by closing down inefficient enterprises. This strategy could
be adopted temporarily, gradually to move away from the existing structure
of the economy rather than to reinforce it. In order to illustrate the
potential of such an industrial policy, a sector-specific approach has
been simulated for Poland using a compuable general equilibuium (CGE)
model. The simulation results have shown that macroenonomic performance,
measured by output, employment and funds available for invesment, is much
better when industrial policy has been concentrated on a key sector.
Journal: International Review of Applied Economics
Pages: 91-104
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000005
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:91-104
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Schettkat
Author-X-Name-First: Ronald
Author-X-Name-Last: Schettkat
Title: Employment Protection and Labour Mobility in Europe: an empirical analysis using the EU's labour force survey
Abstract:
Does dismissal protection stabilise employment contracts? This study
analyses whether the different dismissal laws in the EU countries have an
impact on employment stablitiy or, to put it the other way around, whether
worker mobility is higher in less regulated labour markets. The paper
first discusses the national dismissal laws and some methodological issues
and then presents an econometric anaylsis of data from the EU's labour
force survey. The study concludes that national regulations have an impact
on employment stability but that industry-specific variables and the
macroeconomic situaion are also important.
Journal: International Review of Applied Economics
Pages: 105-118
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000006
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:105-118
Template-Type: ReDIF-Article 1.0
Author-Name: A. P. Dickerson
Author-X-Name-First: A. P.
Author-X-Name-Last: Dickerson
Author-Name: P. A. Geroski
Author-X-Name-First: P. A.
Author-X-Name-Last: Geroski
Author-Name: K. G. Knight
Author-X-Name-First: K. G.
Author-X-Name-Last: Knight
Title: Productivity, Efficiency and Strike Activity
Abstract:
The economic impact of unions has received increasing attention in the
literature. However, the channels through which unions impinge on
performance are seldom identified. This paper examines the impact of
industrial conflict on output and factor productivity in a panel of
British manufacturing industries for the 1970s. Production frontiers
augmented by various dimensions of strike activity are estimated and
strikes are found to have a negligible net impact on output. Furthermore,
while there is some weak evidence to suggest that union presence adversely
affects (relative) efficiency, this effect is not derived from higher
levels of strike activity.
Journal: International Review of Applied Economics
Pages: 119-134
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000007
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000007
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:119-134
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Szymanski
Author-X-Name-First: Stefan
Author-X-Name-Last: Szymanski
Author-Name: Ron Smith
Author-X-Name-First: Ron
Author-X-Name-Last: Smith
Title: The English Football Industry: profit, performance and industrial structure
Abstract:
The English (Association) Football League is a long established
industrial cartel selling a highly popular product with only imperfect
substitutes. Despite that, the majority of its member clubs lose money and
the industry has faced successive financial crises over the last decade.
This paper develops an empirical model of the financial performance of
English League clubs using a high quality dataset of 48 clubs over the
period 1974-89. The underlying model explains how rents are competed away
through the maximising behaviour of club owners subject to production
constraints. This model is parameterised by a system of equations which
describe the behaviour of a maximising owner subject to demand and
production constraints. The model is then used to examine the coordination
failure which lies at the heart of the English Football League's decline
and to assess the prospects for the Premier League.
Journal: International Review of Applied Economics
Pages: 135-153
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000008
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000008
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:135-153
Template-Type: ReDIF-Article 1.0
Author-Name: Maura Sheehan
Author-X-Name-First: Maura
Author-X-Name-Last: Sheehan
Title: Costly Inequalities
Abstract:
Journal: International Review of Applied Economics
Pages: 155-158
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000009
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:155-158
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Gilbert
Author-X-Name-First: Evan
Author-X-Name-Last: Gilbert
Title: Uncertainty and Economics
Abstract:
Journal: International Review of Applied Economics
Pages: 159-163
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000010
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:159-163
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Full Employment Abandoned
Abstract:
Journal: International Review of Applied Economics
Pages: 165-168
Issue: 1
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000011
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Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:165-168
Template-Type: ReDIF-Article 1.0
Author-Name: Bart Verspagen
Author-X-Name-First: Bart
Author-X-Name-Last: Verspagen
Author-Name: Katharine Wakelin
Author-X-Name-First: Katharine
Author-X-Name-Last: Wakelin
Title: Trade and Technology from a Schumpeterian Perspective
Abstract:
This paper attempts to implement empirically a Schumpeterian model of
international trade. After briefly discussing the literature on trade and
technology, we formulate a model in which 'real' factors such as R&D
expenditures, investment and wage costs have an impact on bilateral trade
flows between advanced economies. We also take into account the effect of
exchange rate differences. The model is empirically estimated on sectoral
data for nine OECD countries. We find that what determines competitiveness
differs by sector. In many sectors, either R&D expenditures or wage costs
are important. The results for investment indicate a weaker role.
Consistent with the Marshall-Lerner logic, we find that the sign of
exchange rate changes varies by sector. We conclude the paper by a
discussion of the relevance of the results for 'technology-based' theories
of international trade.
Journal: International Review of Applied Economics
Pages: 181-194
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000012
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:181-194
Template-Type: ReDIF-Article 1.0
Author-Name: Janis Kapler
Author-X-Name-First: Janis
Author-X-Name-Last: Kapler
Title: The Theory of Transnational Firms: an empirical reassessment
Abstract:
Theories of the transnational firm that stress the profit advantages of
international operations in high-technology industries with high entry
barriers are not supported for a sample of US-based transnational and
domestic firms from Standard & Poor's Compustat database. Replacing the
accounting-based profit rate with a measure of economic rate of return,
designed to better assess enterprise performance, yields no significant
difference in returns to transnational and domestic firms in
high-technology manufacturing. Transnational firms do experience profit
advantages over domestic firms in the less innovative industries, but this
pattern does not fit the theories stressing advantages accuring from
intangible assets, entry barriers, and technological accumulation.
Journal: International Review of Applied Economics
Pages: 195-211
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000013
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:195-211
Template-Type: ReDIF-Article 1.0
Author-Name: David Cobham
Author-X-Name-First: David
Author-X-Name-Last: Cobham
Title: Inevitable Disappointment? The ERM as the framework for UK monetary policy 1990-92
Abstract:
The UK entered the ERM in October 1990 in search of an alternative policy
framework and nominal discipline to monetary targets, but entry was
dominated by short term considerations and the constraints implied by
membership were not properly understood. The UK left the ERM in September
1992 after the failure of a high-risk strategy resulting from the
authorities' refusal to accept the constraints imposed by the ERM in that
period. Thus, the crisis of Black Wednesday should be seen as the almost
inevitable result of the failure of the UK monetary authorities to
understand either the full benefits and costs involved in membership of
the ERM, or how their own behaviour needed to be modified for membership
to be sustained.
Journal: International Review of Applied Economics
Pages: 213-228
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000014
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:213-228
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Orr
Author-X-Name-First: Douglas
Author-X-Name-Last: Orr
Title: An Index of Segmentation in Local Labour Markets
Abstract:
This study tests for the existence of labour market segmentation by
exploiting the variation in industrial structure across 59 labour market
areas, as defined by MSAs. By creating an index of the relative
explanatory power of standard and segmented earnings function models for
each area, empirical evidence supports the hypothesis that segmentation
exists and that the index reflects the degree of segmentation in local
labour market areas.
Journal: International Review of Applied Economics
Pages: 229-247
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000015
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:229-247
Template-Type: ReDIF-Article 1.0
Author-Name: Trish Kelly
Author-X-Name-First: Trish
Author-X-Name-Last: Kelly
Title: Public Investment and Growth: testing the non-linearity hypothesis
Abstract:
This article explores the relationship between public investment and
growth among 56 low and middle income nations during the 1980s. The
theoretical grwoth iterature emphasizes that initial increments of public
capital raise growth but, at some point, additional increments of public
capital inevitably reduce growth by creating distortions in the private
sector. Despite the provalence of the non-linearity hypothesis, the
article undertakes the first econometric test of the hypothesized
non-linear relationship between public investment and growth. The
article's econometric analysis does not support the public investment
non-linearity hypothesis. The article concludes that crowding out concerns
may have been overstated in the literature.
Journal: International Review of Applied Economics
Pages: 249-262
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000016
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000016
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:249-262
Template-Type: ReDIF-Article 1.0
Author-Name: Norma Heaton
Author-X-Name-First: Norma
Author-X-Name-Last: Heaton
Author-Name: Paul Teague
Author-X-Name-First: Paul
Author-X-Name-Last: Teague
Title: Towards Fair Employment in Northern Ireland?
Abstract:
Claims of labour market discrimination against Catholics run to the heart
of the Northern Ireland conflict. This paper assesses British Government
led moves to promote fair employment in the region. It argues that initial
policies to promote labour market balance were weak and ineffectual but
that since 1989 a meaningful antidiscrimination institutional regime has
been put in place. However, underlying economic and social conditions are
not favourable to a big institutional push toward fair employment. Thus
the quest to end Catholic disadvantage in the labour market is caught
between a positive institutional regime and negative ground level
circumstances. The paper concludes that the unpredictable outcome of this
tension will be better managed in conditions of peace.
Journal: International Review of Applied Economics
Pages: 263-285
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000017
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:263-285
Template-Type: ReDIF-Article 1.0
Author-Name: ErtuGrul Tokdemir
Author-X-Name-First: ErtuGrul
Author-X-Name-Last: Tokdemir
Author-Name: Gulay Gunluk-Senesen
Author-X-Name-First: Gulay
Author-X-Name-Last: Gunluk-Senesen
Title: Does Liberalization Reduce Foreign Trade Data Discrepancies? Counterevidence from Turkey, 1970-91
Abstract:
This paper questions the impact of protectionist and liberal trade
policies on foreign trade data discrepancies. Official records of Turkish
exports and imports data are compared with data of the major partner
countries (OECD, Germany, USA, Italy, Switzerland, France, UK, Benelux)
for the period 1970-91. An analysis of detailed data reveals that the
patterns of discrepancies are not common to all countries in the pre- and
post-liberal years (i.e. before and after 1980). Hence, the Turkish case
does not provide full support for the expectation that faked invoicing
disappears with the liberalization of the trade regime. In addition,
Switzerland emerges as a very exceptional trade partner, as compared with
other partners, for both imports and exports. Turkey's exports to
Switzerland are overinvoiced up to 700% until 1985, the rate of
overinvoicing decreases to 200% after then. On the other hand, imports
from Switzerland are overinvoiced up to 250% until again 1985.
Overinvoicing of imports disappears in the wake of 1983 December measures.
A comparison of imports and exports data of Switzerland with data of the
above stated countries reveals that Turkey is also an exceptional partner
for Switzerland. The patterns of discrepancies in foreign trade data might
be closely related to capital transactions, noting that Switzerland offers
the world favourable conditions for financial transactions. We also note
that general patterns can be related to those of some specific commodities
which might act as a means of transferring capital because the details of
the trade regime regulations concerning them can be easily identified.
Yet, generally speaking, the consequences of policy implementations do not
straightforwardly match with expectations.
Journal: International Review of Applied Economics
Pages: 287-302
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000018
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:287-302
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Archibugi
Author-X-Name-First: Daniele
Author-X-Name-Last: Archibugi
Title: The Economics of Innovation and Technological Change: two handbooks and two masters
Abstract:
Journal: International Review of Applied Economics
Pages: 303-309
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000019
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:303-309
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: Seeking the Causes of Slow Productivity Growth and Rising Inequality in the US
Abstract:
Journal: International Review of Applied Economics
Pages: 311-314
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000020
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:311-314
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Global Free Trade: is there an alternative?
Abstract:
Journal: International Review of Applied Economics
Pages: 315-319
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000021
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:315-319
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dalziel
Author-X-Name-First: Paul
Author-X-Name-Last: Dalziel
Title: The Other Side of New Zealand's Economic Reforms
Abstract:
Journal: International Review of Applied Economics
Pages: 321-325
Issue: 2
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000022
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Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:321-325
Template-Type: ReDIF-Article 1.0
Author-Name: Rossana Galli
Author-X-Name-First: Rossana
Author-X-Name-Last: Galli
Title: Is There Long Run Industrial Convergence in Europe?
Abstract:
This paper examines whether convergence is occurring at the industry
level in 11 EU countries from 1960 to 1993. Both time series and
non-parametric (σ-convergence) methods are applied. Using time
series analysis we test whether there is within sector convergence towards
a common steady state. Although we adopt a very flexible definition of
steady state, allowing for two stochastic trends, given by the
sector-specific technology and by the country-specific characteristics, as
well as a time trend, we find very little evidence for convergence.
Results indicate that the deviation of the national trends from the
European average trend are persistent, and that EU countries do not
respond to the same long run driving processes, but only to the same short
run shocks. From σ-convergence analysis we find that convergence in
aggregate productivity does not hold uniformly at the industry level: some
sectors, such as communications, distribution and non-market services,
present strong evidence of convergence, and some others, mainly
manufactures, show substantial divergence. However, interestingly, we find
that productivity was strongly converging within all sectors in 1960-73,
whereas it shows a general tendency to diverge after 1985. We interpret
the switch from convergence to divergence as the effect of a process of
radical change, driven by information technologies, affecting all
industries in the last two decades. We arrive at the general conclusion
that convergence is not an inevitable process, but rather a cyclical
phenomenon alternating with divergence.
Journal: International Review of Applied Economics
Pages: 333-368
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000023
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000023
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:333-368
Template-Type: ReDIF-Article 1.0
Author-Name: Lars Lundberg
Author-X-Name-First: Lars
Author-X-Name-Last: Lundberg
Author-Name: Par Wiker
Author-X-Name-First: Par
Author-X-Name-Last: Wiker
Title: Skilled Labour and International Specialisation in OECD Countries
Abstract:
Human capital and skilled labour are likely to become increasingly
important determinants of industrial localisation. This paper calculates
the factor content—the services of skilled labour, classified by
level of education, embodied in trade in manufactures—for a sample
of OECD countries in 1970-85. USA and Japan show a strong 'revealed
comparative advantage' in human capital intensive production. In general,
OECD countries where highly educated labour is abundant tend to specialise
in and export skill intensive goods. Changes in the ranking with respect
to specialisation in skill intensive goods, in particular the strong
improvement of Japans' position, seem to be linked to different rates of
accumulation of human capital.
Journal: International Review of Applied Economics
Pages: 369-385
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000024
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:369-385
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Does Inflation Grease the Wheels of Adjustment? New evidence from the US economy
Abstract:
This paper presents a new interpretation of the Phillips curve that rests
on the process of nominal wage adjustment in a multi-sector economy.
Nominal demand growth causes inflation in sectors with full employment,
but it speeds up the process of employment creation in sectors with
unemployment. As a result, demand-pull inflation is associated with both a
reduction in the duration of unemployment and the economy wide average
rate of unemployment. The paper provides empirical evidence from the US
economy consistent with this claim.
Journal: International Review of Applied Economics
Pages: 387-398
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000025
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000025
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:387-398
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Scott
Author-X-Name-First: Robert
Author-X-Name-Last: Scott
Author-Name: Robert Blecker
Author-X-Name-First: Robert
Author-X-Name-Last: Blecker
Title: Labour Rents, Adjustment Costs and the Cost of US Steel Trade Restraints in the 1980s
Abstract:
Recent studies have compared labour gains from protection in
import-competing industries with the costs of protection and found that
those gains are not large enough to justify trade restraints. This study
utilizes a new empirical technique for estimating the costs and benefits
of protection in a partial equilibrium framework, and provides a complete
and consistent accounting of labour benefits including both labour rents
and adjustment costs saved. We find that a small steel tariff could have
generated net welfare gains for the US in the 1980s, even though actual
protection through Voluntary Restraint Agreements generated net welfare
losses.
Journal: International Review of Applied Economics
Pages: 399-419
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000026
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:399-419
Template-Type: ReDIF-Article 1.0
Author-Name: Valerie Jarvis
Author-X-Name-First: Valerie
Author-X-Name-Last: Jarvis
Author-Name: S. J. Prais
Author-X-Name-First: S. J.
Author-X-Name-Last: Prais
Title: The Quality of Manufactured Products in Britain and Germany
Abstract:
This paper is concerned with the relation between workforce skills and
high-quality production. Detailed investigations of specific products
sampled from three industries indicate that the average British-made
product embodied fewer quality-features than its German-made counterpart,
and that Britain produces little of top-quality grades—in contrast
to a strong German presence at that end of the market. These findings were
based on factory visits and discussions with trade experts in both
countries. Two broad aspects of workforce skills which contribute to
higher-quality production were identified: (1) the skills relevant at the
design-interface between consumer demand and production realities, and (2)
the skills relevant to small and medium-sized batch-production of
specialised varieties. Existing comparisons based on official statistics
of production and prices do not take adequate account of differences in
product-quality. Based on a close matching of quality-grades of ten
sampled products, proper adjustment for quality differences across
countries would substantially increase estimates of the German real
productivity advantage in manufacturing (to around 50% over Britain), and
raise estimates of real income per head for Germany to some 40% over
Britain.
Journal: International Review of Applied Economics
Pages: 421-438
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000027
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:421-438
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Lianos
Author-X-Name-First: Theodore
Author-X-Name-Last: Lianos
Author-Name: Stilianos Fountas
Author-X-Name-First: Stilianos
Author-X-Name-Last: Fountas
Title: Cointegration Tests of the Profit-maximising Equilibrium in Greek Manufacturing: 1958-91
Abstract:
This paper applies the recently developed cointegration techniques to
test for a long-run equilibrium among real wages and the average
productivity of labour as implied by profit maximisation in the Greek
manufacturing sector. We find evidence for a profit-maximising equilibrium
and for adjustment towards this long-run equilibrium through nominal wages
and labour productivity. We have also provided an estimate of the
elasticity of substitution of 0.23 which is consistent with that of other
studies using alternative approaches.
Journal: International Review of Applied Economics
Pages: 439-449
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000028
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000028
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:439-449
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph De Juan
Author-X-Name-First: Joseph
Author-X-Name-Last: De Juan
Author-Name: John Seater
Author-X-Name-First: John
Author-X-Name-Last: Seater
Title: A Cross-country Test of the Permanent Income Hypothesis
Abstract:
The Permanent Income Hypothesis (PIH) predicts an income innovation has
the same size effect on consumption as on permanent income, an implication
we examine with a cross-country test proposed by Kormendi & LaHaye (1984).
The data from industrial countries support PIH but data from developing
countries do not. Also, however, data from countries with high quality
national income accounts support PIH whereas data from countries with low
quality accounts do not. The stage of economic development and data
quality are highly correlated. The evidence suggests that the results may
be driven primarily by data quality differences rather than systematically
different behaviour between industrial and developing countries.
Journal: International Review of Applied Economics
Pages: 451-468
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000029
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:451-468
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Campbell
Author-X-Name-First: Duncan
Author-X-Name-Last: Campbell
Title: Employment Law and Equality
Abstract:
Journal: International Review of Applied Economics
Pages: 469-473
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000030
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:469-473
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Howells
Author-X-Name-First: Jeremy
Author-X-Name-Last: Howells
Title: Europe, Forthcoming …
Abstract:
Journal: International Review of Applied Economics
Pages: 475-477
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000031
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:475-477
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: The State and Economic Transformation
Abstract:
Journal: International Review of Applied Economics
Pages: 479-484
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000032
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000032
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:479-484
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Pitelis
Author-X-Name-First: Christos
Author-X-Name-Last: Pitelis
Title: Making Markets Work
Abstract:
Journal: International Review of Applied Economics
Pages: 485-490
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000033
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000033
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:485-490
Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Hodgson
Author-X-Name-First: Geoff
Author-X-Name-Last: Hodgson
Title: What Lies beyond Capitalism?
Abstract:
Journal: International Review of Applied Economics
Pages: 491-495
Issue: 3
Volume: 11
Year: 1997
X-DOI: 10.1080/02692179700000034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000034
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Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:491-495
Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Juzhong Zhuang
Author-X-Name-First: Juzhong
Author-X-Name-Last: Zhuang
Title: Empirical Studies of the Chinese Economy in Transition
Abstract:
Journal: International Review of Applied Economics
Pages: 5-7
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000021
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:5-7
Template-Type: ReDIF-Article 1.0
Author-Name: Zinan Liu
Author-X-Name-First: Zinan
Author-X-Name-Last: Liu
Author-Name: Juzhong Zhuang
Author-X-Name-First: Juzhong
Author-X-Name-Last: Zhuang
Title: Evaluating Partial Reforms in the Chinese State Industrial Sector: a stochastic frontier cost function approach
Abstract:
China's phenomenal economic growth since 1979 is seen by many as a
challenge to the belief that the clarification of property rights is a
necessary step of successful transition from a planned economy to a market
economy. Instead of mass and rapid privatization, reforms in the Chinese
state industrial sector in the 1980s were attempted to reconstruct the
incentive structure of enterprises by linking rewards to performance,
expanding managerial freedom and exposing enterprises to market
influences. This paper investigates the extent to which the partial
reforms have transformed the behaviour and performance of state-owned
enterprises (SOEs). Using a panel of observations on 769 SOEs from ten
manufacturing industries during 1980 and 1989, a stochastic cost frontier
function is estimated to measure the effect of various reform measures on
both technical and allocative efficiency. We found that the average cost
efficiency level increased by 1.18% per annum during the decade. The
efficiency effects of the industrial reform programme are mixed. While
performance-related bonuses and market competition appear to have had the
intended impact, there is evidence that devolution of decision-making
power to the firm level has led to deterioration in efficiency. Therefore,
although the partial reforms have met with some success, the issue of an
adequate structure of incentives for SOEs remains unresolved.
Journal: International Review of Applied Economics
Pages: 9-24
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000022
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:9-24
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Hay
Author-X-Name-First: Donald
Author-X-Name-Last: Hay
Author-Name: Guy Liu
Author-X-Name-First: Guy
Author-X-Name-Last: Liu
Title: Cost Behaviour of Chinese State-owned Manufacturing Enterprises in the 1980s
Abstract:
This paper aims to model the cost behaviour of Chinese state-owned
enterprises in the 1980s. Given production autonomy and profit-related
bonus incentives, state firms are expected to increase profits and
therefore bonuses by changing their cost behaviours more rationally.
However, since institutional constraints remain and distort the rational
demand of the firm for input factors, the changes cannot go as far as
expected by the standard neoclassical cost minimisation theory. Based on
this, we derived a total cost function for Chinese state firms restricted
by the government control over their total wage bills. We then test it
using a panel data of 386 state manufacturing enterprises in the period
1983-87. It is found that the model predicted well. Despite the
constraints, the reform did lead the firms to respond to both changes in
factor prices in the directions expected by cost minimising behaviour and
to bonus incentives to produce more efficiently.
Journal: International Review of Applied Economics
Pages: 25-37
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000023
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000023
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:25-37
Template-Type: ReDIF-Article 1.0
Author-Name: Guo Biao Yang
Author-X-Name-First: Guo Biao
Author-X-Name-Last: Yang
Title: Barriers to Entry and Industrial Performance in China
Abstract:
This paper estimates an index of barriers to entry for each of the 40
Chinese industries by modelling entry as a function of various incentives
to enter, relative to the level of barriers to entry. The estimated index
was employed to analyse the relationship between barriers to entry and
profitability and total factor productivity. The major finding is that an
appropriate degree of barriers to entry,1but not free entry or high
barriers to entry, is beneficial to Chinese industrial performance. This
is in contrast to the conventional argument in mainstream industrial
economics and the findings of most empirical research.
Journal: International Review of Applied Economics
Pages: 39-51
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000024
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:39-51
Template-Type: ReDIF-Article 1.0
Author-Name: Liming Wang
Author-X-Name-First: Liming
Author-X-Name-Last: Wang
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Can China Feed its People into the Next Millennium? Projections for China's grain supply and demand to 2010
Abstract:
Econometric models of grain supply and demand which incorporate the
effects of policy interventions and institutional changes are used as the
basis for projecting grain balances in China to 2010. The paper outlines
key assumptions about future changes in grain policies and other important
explanatory variables in the models. On the supply side, projections are
made for grain sown area, grain yield and total grain output. Future grain
demand is disaggregated into four categories, human food, animal feed,
industrial uses and seed grain, each incorporating high, medium and low
demand growth scenarios. A grain balance sheet is constructed for 2010
which shows a 'most probable' import requirement of about 32 million
tones—a 10 million tones increase over the actual 1995 level. Thus,
net grain imports will increase substantially but China is unlikely to
become an importer on a massive scale.
Journal: International Review of Applied Economics
Pages: 53-67
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000025
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000025
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:53-67
Template-Type: ReDIF-Article 1.0
Author-Name: Minquan Liu
Author-X-Name-First: Minquan
Author-X-Name-Last: Liu
Title: Reforming the Collective Farm: a model
Abstract:
Collective members on China's communes actively participated in
collective production, working even more so than a self-cultivating farmer
would, but while engaged in collective work they shirked. The cause of
shirking was the work accounting system which credited workpoints
according to individual tasks a member performed. A reformed collective
farm system (RS) is analysed, which relates workpoints directly to the
output a farmer produces. It is shown that the RS can both eliminate the
shirking problem as was extensive on communes, and maintain the potential
for infrastructural investment through labour accumulation, a practice
also widespread on communes.
Journal: International Review of Applied Economics
Pages: 69-88
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000026
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:69-88
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Ki Tsang
Author-X-Name-First: Shu-Ki
Author-X-Name-Last: Tsang
Author-Name: Shu-Hung Tang
Author-X-Name-First: Shu-Hung
Author-X-Name-Last: Tang
Title: The Impact of the China Factor on the pre-1997 Hong Kong Economy: a macroeconometric analysis
Abstract:
After the reunification of Hong Kong and China in 1997, Hong Kong is
assured of a high degree of autonomy by the Basic Law. However, there
remains some worry about the territory's economic viability and financial
stability. Whether Chinese policies and China's remarkable growth momentum
could continue to boost Hong Kong's prosperity has become an issue of
concern. As the Chinese economic reform proceeds, the 'China factor' has
been generating an increasing influence on the performance of the Hong
Kong economy. Unfortunately, there have been very few rigorous
quantitative analyses of this rapidly evolving development. To fill the
gap, we have constructed a macroeconometric model of Hong Kong which takes
into detailed account the linkages of the two economies including trade
and capital flows. Estimation of the model incorporates error correction
techniques to establish short-run dynamics and long-run equilibria. Our
findings have identified crucial channels through which the 'China factor'
has exerted impact on the Hong Kong economy. It is shown that the factor
was not overwhelming up to the recent past, in terms of its stabilizing
effects in the financial market and its stimulation on growth, although
its influence may rise in the post-1997 era.
Journal: International Review of Applied Economics
Pages: 89-106
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000027
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:89-106
Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Dong Huang
Author-X-Name-First: Chao-Dong
Author-X-Name-Last: Huang
Author-Name: Simon Broadbent
Author-X-Name-First: Simon
Author-X-Name-Last: Broadbent
Title: Trade with China: do the figures add up?
Abstract:
There are wide discrepancies in bilateral trade data compiled by China
and by its trading partners, particularly the United States. This paper
investigates the main reasons, notably the role of Hong Kong as an
entrepot, and develops a methodology to provide more accurate estimates
for these trade flows. It extends the Sung—Lardy method in recent
literature and achieves a reconciliation of the two data sets by China and
by its major partners. The method recognizes that both the Chinese and the
partners' data are likely to be distorted and demonstrates that a complete
picture can he constructed by using data recorded from Hong Kong. A new
estimate of the re-export margins in Hong Kong on Chinese exports is
presented and used in the data reconciliation exercises, and problems of
valuation and transit lag when comparing an export series with its
counterpart import series are taken into account by the new method. The
effects of using proved data are demonstrated in an application to examine
fair market access in China—US bilateral trade undertaken by Tower
(1993).
Journal: International Review of Applied Economics
Pages: 107-127
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000028
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000028
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:107-127
Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Author-Name: Peter Romilly
Author-X-Name-First: Peter
Author-X-Name-Last: Romilly
Title: Stock Returns and Volatility: an empirical study of Chinese stock markets
Abstract:
This paper uses GARCH models to analyse the relationship between returns
and volatility on the Shanghai and Shenzhen Stock Exchanges in China.
Empirical estimates using the sample data from 21 May 1992 to 2 February
1996 suggest that the variances of the returns in the two markets are best
modeled by the GARCH-M (1,1) specification. Volatility transmission
between the two markets (the volatility spill-over effect) is also found
to exist. The results of one month ahead ex ante forecasts show that the
conditional variances of the returns of the two stock markets exhibit a
similar pattern.
Journal: International Review of Applied Economics
Pages: 129-139
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000029
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:129-139
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Girardin
Author-X-Name-First: Eric
Author-X-Name-Last: Girardin
Author-Name: Stephen Bazen
Author-X-Name-First: Stephen
Author-X-Name-Last: Bazen
Title: An Empirical Study of Urban Credit Cooperatives in China
Abstract:
The overall objective of this study is to try and uncover to what extent
the borrowing and lending pattern of Chinese urban credit cooperatives
(UCCs) leads them to conform to the theoretical view of credit
cooperatives and to what degree they are mainly characterized by elements
which result from their regulatory environment and the status of China as
an economy in transition. We provide evidence from a
specially-commissioned survey on the characteristics and functioning of
UCCs. Our statistical and econometric analysis points to the tentative
conclusion that there are major regional differences in the performance of
UCCs both in terms of the quality of loans granted and overall
profitability. The latter is also influenced by the quality of the loans
made, and this in turn is affected by the number of directors in the UCC
and the extent to which the UCC grants loans to state-owned enterprises.
Journal: International Review of Applied Economics
Pages: 141-155
Issue: 1
Volume: 12
Year: 1998
X-DOI: 10.1080/026921719800000030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921719800000030
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Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:141-155
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob Madsen
Author-X-Name-First: Jakob
Author-X-Name-Last: Madsen
Title: The NAIRU and Classical Unemployment in the OECD Countries
Abstract:
Using panel data for the OECD countries over the period 1960-93 this
paper estimates the NAIRU, tests the restrictions implied by the NAIRU and
estimates the extent to which the NAIRU is able to explain the low
frequency movements in unemployment. The results indicate that the
long-run restrictions imposed on the NAIRU are not satisfied for many
countries and that the NAIRU is unable to account for the low frequency
movements in unemployment.
Journal: International Review of Applied Economics
Pages: 165-185
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000001
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:165-185
Template-Type: ReDIF-Article 1.0
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Title: Alternative Theories of Competition: evidence from Greek manufacturing
Abstract:
The objective of this paper is to evaluate empirically the relevance of
the neoclassical, post-Keynesian, and classical theories of competition in
the light of the available empirical evidence from Greek large-scale
manufacturing industries. The econometric analysis shows that the
classical and post-Keynesian models provide a fairly good account of
profit differentials, whereas the neoclassical performed the worst of the
three. Between the classical and post-Keynesian models, we find that the
classical is more consistent with the phenomena that it is designed to
explain. Finally, a hybrid model combining variables from the three
alternative theories displays the highest explanatory power.
Journal: International Review of Applied Economics
Pages: 187-204
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000002
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:187-204
Template-Type: ReDIF-Article 1.0
Author-Name: Stanley Sedo
Author-X-Name-First: Stanley
Author-X-Name-Last: Sedo
Author-Name: Bruce Elmslie
Author-X-Name-First: Bruce
Author-X-Name-Last: Elmslie
Title: Discrimination and Job Quality: the youth labour market in the 1980s
Abstract:
The purpose of this paper is to investigate the extent to which
discrimination early in one's career can have lasting effects on job
quality even after the discrimination itself disappears. The results show
that for young workers in the 1980s, discrimination is a short run
phenomenon, and furthermore, the effects disappear relatively quickly.
This research makes two contributions to the existing empirical literature
on labour market discrimination. First, we broaden the measure of
discrimination beyond wages by utilizing the Duncan Index of job quality
to measure differences in labour market outcomes. Second, most empirical
work has been concentrated on the effects of discrimination at a point in
time using cross-sectional data. We develop a dynamic model to measure
changes in job quality over time as workers gain experience over their
first three years in the permanent labour market. From the results found
in our empirical work, we are able to analyze the long run impact of
initial discrimination. In other words, our methodology allows us to
examine time dependent effects that are not observed in cross-sectional
studies.
Journal: International Review of Applied Economics
Pages: 205-219
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000003
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000003
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:205-219
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: Bank Influence and the Failure of US Monetary Policy during the 1953-54 Recession
Abstract:
This paper presents archival and econometric evidence that challenges the
conventional belief that independent central banks are necessary to
stabilise economies on non-inflationary growth paths. The evidence
suggests that, when the US central bank—the Federal
Reserve—became independent of democratic control in March 1951, it
became dependent on the large banks. It is shown that excessive banker
influence caused the Federal Reserve to miss its first opportunity to
stabilise the economy, during the 1953-54 recession.
Journal: International Review of Applied Economics
Pages: 221-240
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000004
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:221-240
Template-Type: ReDIF-Article 1.0
Author-Name: Nick Adnett
Author-X-Name-First: Nick
Author-X-Name-Last: Adnett
Author-Name: Alistair Dawson
Author-X-Name-First: Alistair
Author-X-Name-Last: Dawson
Title: The Economic Analysis of Industrial Accidents: a re-assessment
Abstract:
Conventional economic approaches to the analysis of industrial accidents
utilise the hedonic pricing approach. This approach usually excludes
potentially important institutional, sociological and macroeconomic
determinants of occupational safety. Initially we identify some of the
theoretical and empirical problems with orthodox economic analysis in this
area. An alternative model is then formulated which explicitly encompasses
a broader range of determinants. Finally, the model is tested using UK
industry accident data, the results being inconsistent with the
compensating differentials' emphasis of orthodox analysis but supportive
of the augmented model.
Journal: International Review of Applied Economics
Pages: 241-255
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000005
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:241-255
Template-Type: ReDIF-Article 1.0
Author-Name: Julio Lopez
Author-X-Name-First: Julio
Author-X-Name-Last: Lopez
Title: External Financial Fragility and Capital Flight in Mexico
Abstract:
Mexico suffered capital flight from 1973 up to 1988 practically without
interruption. This paper attempts to evaluate the real cost to Mexico of
capital flight. A simple macro-economic model is specified on whose basis
an estimate of this cost is attempted. It is found that the cost of this
capital flight has been enormous. It gave rise to over-indebtedness when
financing was still available from external sources, and it entailed
short- and long-term losses of output which the country might have
generated. The loss of output was estimated at between 1.5% and 2.5% of
the total GDP for the period 1973-1991, between 0.9% and 2% for the
1982-1991 period, and between 3.1% and 5.7% for the 1982-1988 adjustment
period.
Journal: International Review of Applied Economics
Pages: 257-270
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000006
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:257-270
Template-Type: ReDIF-Article 1.0
Author-Name: Bienvenido Cortes
Author-X-Name-First: Bienvenido
Author-X-Name-Last: Cortes
Title: Trends in Industrial Concentration in Japan, 1983-92
Abstract:
Based on weighted and unweighted averages of concentration ratios and the
Herfindahl index for 436 sectors, the number of concentrated industries,
and time trends, the structure of the Japanese economy proves highly
oligopolistic over the 1983-92 period. Regression results show that
concentration is related to growth, market size, scale economies, and the
degree of 'openness' of the Japanese market. Moreover, increased
concentration does not necessarily imply an import-bias. Japanese
industries with higher concentration levels are likely to import more than
less concentrated industries.
Journal: International Review of Applied Economics
Pages: 271-281
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000007
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000007
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:271-281
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Guell
Author-X-Name-First: Robert
Author-X-Name-Last: Guell
Author-Name: Donald Richards
Author-X-Name-First: Donald
Author-X-Name-Last: Richards
Title: Regional Integration and Intra-industry Trade in Latin America, 1980-90
Abstract:
The decade of the 1980s saw profound changes in the political economy of
Latin America. The stabilisation and debt crises forced many countries in
the region to re-examine their economic policies individually as well as
collectively. The consequence was both a movement in the direction of
neoliberal reform that included an emphasis on export promotion as well as
a revival of interest in regional integration. The specific purpose of the
present paper is to examine the consequences of these changes for the
structure of intra-regional trade among and between Latin American
countries. More specifically, we are interested in assessing the region's
performance in terms of intra-regional, intra-industry trade over the
period 1980-90.
Journal: International Review of Applied Economics
Pages: 283-300
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000008
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000008
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:283-300
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Gilbert
Author-X-Name-First: Evan
Author-X-Name-Last: Gilbert
Title: Uncertainty in Orthodox Economic Theory
Abstract:
Journal: International Review of Applied Economics
Pages: 301-310
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000009
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:301-310
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Roberts
Author-X-Name-First: Simon
Author-X-Name-Last: Roberts
Title: Economic Globalization: a break from the past?
Abstract:
Journal: International Review of Applied Economics
Pages: 311-315
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000010
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:311-315
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Roberts
Author-X-Name-First: Simon
Author-X-Name-Last: Roberts
Title: Economic Policy and Industrial Restructuring in South Africa—political economy approaches
Abstract:
Journal: International Review of Applied Economics
Pages: 317-324
Issue: 2
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000011
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Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:317-324
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Macphail
Author-X-Name-First: Fiona
Author-X-Name-Last: Macphail
Title: Increased Earnings Inequality and Macroeconomic Performance: the case of Canada in the 1980s
Abstract:
This paper provides an empirical analysis of the increase in earnings
inequality and the relationship to macroeconomic conditions, in Canada,
during the 1980s. Regression results presented here indicate that a
positive and uniform relationship between the unemployment rate and
earnings inequality existed through the period 1981 to 1989. These results
contrast with recent findings that the unemployment-inequality
relationship weakened in the late 1980s in other liberal economies, such
as the US and UK. The main policy implication is that stimulative
macroeconomic policy remains a relevant policy instrument in Canada and,
more generally, that institutions, such as the degree of unionization, and
policies, such as minimum wages, may partially explain differences in the
pattern of inequality among countries.
Journal: International Review of Applied Economics
Pages: 333-359
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000012
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:333-359
Template-Type: ReDIF-Article 1.0
Author-Name: Bjorn Gustafsson
Author-X-Name-First: Bjorn
Author-X-Name-Last: Gustafsson
Author-Name: Ludmila Nivorozhkina
Author-X-Name-First: Ludmila
Author-X-Name-Last: Nivorozhkina
Title: The Distribution of Economic Well-being in Urban Russia at the End of the Soviet Era
Abstract:
Assessing the extent of inequality and how various groups in the
population were faring in the former Soviet Union is difficult. There are
conceptual problems and severe data limitations. Here we analyse the
distribution at the household level using unique microdata. The sample was
collected for the Russian city Taganrog in 1989. We portray inequality in
equivalent income terms, investigate income packaging, decompose
inequality by population subgroups and relate equivalent income to
household characteristics. The results indicate that inequality in living
standards for urban Russia was small, but not extremely small. Public
sector transfers and income taxes played a smaller role than in several
advanced Western countries. The income situation of a household in the
former Soviet Union was very strongly linked to its work efforts and
dependency burden. Thus, aged persons and families with a newborn child
were much worse off than people of active ages. Persons in households with
a female head had considerably lower income than those with male head of
households. The results also shows a clear positive relation between
length of education and living-standard.
Journal: International Review of Applied Economics
Pages: 361-380
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000013
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:361-380
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Atkins
Author-X-Name-First: Fiona
Author-X-Name-Last: Atkins
Author-Name: Derick Boyd
Author-X-Name-First: Derick
Author-X-Name-Last: Boyd
Title: Convergence and the Caribbean
Abstract:
This paper examines the convergence experience of selected Caribbean
countries. It examines evidence of reduced dispersion in real per capita
income—Sigma convergence—and 'catch up' growth across the
group—Beta convergence. Estimation of the Solow—Swan
cross-section model for the Caribbean shows weak evidence of β and
σ convergence. However, structural instability and evidence of
divergence over the sample period, suggest this convergence to be
spurious. Further tests on individual country data showed an absense of
steady state convergence for any country over time. Institutional
structures and adjustments to economic shocks appear to have been
important for the determination of per capita income in the long run.
Journal: International Review of Applied Economics
Pages: 381-396
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000014
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:381-396
Template-Type: ReDIF-Article 1.0
Author-Name: A. Erinc Yeldan
Author-X-Name-First: A. Erinc
Author-X-Name-Last: Yeldan
Title: On Structural Sources of the 1994 Turkish Crisis: a CGE modelling analysis
Abstract:
This paper investigates the impact of the Turkish public sector
imbalances on the evolution of the economic crisis during 1990-93. A
computable general equilibrium model is used. The theoretical basis of the
model rests upon the structuralist/Keynesian macro foundations. Its
distinguishing features entail accommodation of oligopolistic mark-up
pricing rules in the industrial sectors, and endogenous solution of
capacity utilisation and unemployment levels through Keynesian mechanisms
of effective final demand. The results of the model underscore the
importance of intra-class relations of income distribution and conflict in
the evolution of price movements in the Turkish economy. It is further
argued that the sources of the capitalist in the administrative
interventions of the state towards protection of the capitalist and rural
incomes, which would otherwise be squeezed out in favour of wage-labour in
the early 1990s.
Journal: International Review of Applied Economics
Pages: 397-414
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000015
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000015
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:397-414
Template-Type: ReDIF-Article 1.0
Author-Name: Neil Rankin
Author-X-Name-First: Neil
Author-X-Name-Last: Rankin
Title: Is Delegating Half of Demand Management Sensible?
Abstract:
One objection to delegating monetary policy to an independent central
bank is that it causes lack of coordination with fiscal policy. Nordhaus
has recently shown, in a simple game-theoretic model, how this generates
too-contractionary monetary policy and too-expansionary fiscal policy,
with interest rates becoming excessively high. In this note we incorporate
the time-consistency, inflation-bias problem into the analysis, since it
is this that has motivated most proposals for granting independence. We
show that when the inflation-suppressing benefits are modelled alongside
the high-interests rate costs, delegation may still be, on balance,
against society's interests.
Journal: International Review of Applied Economics
Pages: 415-422
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000016
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000016
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:415-422
Template-Type: ReDIF-Article 1.0
Author-Name: Bent Dalum
Author-X-Name-First: Bent
Author-X-Name-Last: Dalum
Author-Name: Keld Laursen
Author-X-Name-First: Keld
Author-X-Name-Last: Laursen
Author-Name: Gert Villumsen
Author-X-Name-First: Gert
Author-X-Name-Last: Villumsen
Title: Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'
Abstract:
This paper examines whether the OECD countries are characterised by a
high degree of stability of their export specialisation patterns at the
country level or not. Furthermore, we test whether the countries have
become more or less specialised. In this context we distinguish between
specialisation (or de-specialisation) in trade patterns on the one hand,
and divergence (or, on the contrary, convergence) on the other. A
specialisation process refers to a process in which specialisation
intra-country becomes more dispersed (and counter-wise for
de-specialisation). In contrast, a divergence process refers to a process
in which countries become more different in terms of specialisation in a
particular sector, across countries (and counter-wise for convergence). We
examine the sensitivity for the level of aggregation, and we apply a
period of nearly three decades from 1965 to 1992. Twenty OECD countries
are considered. The intra-country results show that the national
specialisation patterns are rather sticky, although there is a tendency
for countries to de-specialise in the medium to long term. The sector-wise
results display convergence both in terms of β-and
σ-convergence. In conclusion, we discuss the results
(de-specialisation in particular) in the context of economic integration,
and furthermore we contrast the findings with similar exercises conducted
on structural change in technological specialisation.
Journal: International Review of Applied Economics
Pages: 423-443
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000017
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:423-443
Template-Type: ReDIF-Article 1.0
Author-Name: Bob Beachill
Author-X-Name-First: Bob
Author-X-Name-Last: Beachill
Author-Name: Geoff Pugh
Author-X-Name-First: Geoff
Author-X-Name-Last: Pugh
Title: Monetary Cooperation in Europe and the Problem of Differential Productivity Growth: an argument for a 'two-speed' Europe
Abstract:
Cointegration analysis of a productivity-modified purchasing power parity
relation supports the hypothesis that—in the long run—the
nominal exchange rate adjusts to accommodate different national rates of
productivity growth in the traded goods sector. Accordingly, in the long
run, an absence of exchange rate flexibility combined with productivity
growth differentials is likely to generate an intractable adjustment
problem. Because Germany and France display a similar evolution of
productivity, this analysis supports their participation in monetary
union, whereas a markedly different pattern of productivity growth in the
UK constitutes an argument against membership. In passing, we find
empirical support for Michael Porter's hypothesis that continuous
devaluation can reduce the rate of productivity growth. This also has
implications for UK membership.
Journal: International Review of Applied Economics
Pages: 445-457
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000018
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:445-457
Template-Type: ReDIF-Article 1.0
Author-Name: Roland Muri
Author-X-Name-First: Roland
Author-X-Name-Last: Muri
Title: Selective Globalisation
Abstract:
Journal: International Review of Applied Economics
Pages: 459-464
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000019
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:459-464
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Towards a New Bretton Woods
Abstract:
Journal: International Review of Applied Economics
Pages: 465-469
Issue: 3
Volume: 12
Year: 1998
X-DOI: 10.1080/02692179800000020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000020
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Handle: RePEc:taf:irapec:v:12:y:1998:i:3:p:465-469
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Bougrine
Author-X-Name-First: Hassan
Author-X-Name-Last: Bougrine
Author-Name: Mario Seccareccia
Author-X-Name-First: Mario
Author-X-Name-Last: Seccareccia
Title: Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada
Abstract:
Most of the theoretical and empirical literature on the effects of
unemployment insurance (UI) during the last 25 years has focused on the
supply-side implications. The object of this article is to argue that much
of those discussions over the disincentive effects of UI is misdirected.
Our intention is to bring back to the forefront a discussion of the
positive macroeconomic role played by UI net injections in stabilizing
aggregate demand. Our empirical results using Canadian data for the
postwar period support this Keynesian view of the stabilizing effect of UI
in contemporary economies.
Journal: International Review of Applied Economics
Pages: 5-21
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101706
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101706
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:5-21
Template-Type: ReDIF-Article 1.0
Author-Name: Adriana Marshall
Author-X-Name-First: Adriana
Author-X-Name-Last: Marshall
Title: Wage Determination Regimes and Pay Inequality: A comparative study of Latin American countries
Abstract:
The relationship between the degree of centralization of wage setting and
labour market outcomes, generally discussed with reference to advanced
OECD countries, is explored in this paper through the comparative analysis
of eight Latin American countries, focusing on the effects of
centralization on wage inequality. It is argued that the greater the
decentralization of wage setting, the larger will be wage dispersion. The
article starts with the presentation of the analytical model, and
continues with the empirical study. This is divided into two parts. In the
first, a number of institutional factors that contribute to define 'wage
determination regimes' (collective bargaining structures; state
intervention in wage setting; and union rights that determine union
strength) are discussed, stressing the specific traits of centralization
within Latin America, and the selected countries are scored in terms of
those factors. In the second, the magnitude of wage dispersion across
manufacturing industries is examined, and the resulting ranking of
countries is contrasted with their ranking in terms of the institutional
factors. It is concluded that, with some caveats, the degrees of
centralization of bargaining structures and of wage inequality appear to
be inversely associated, reproducing in the Latin American region the
pattern found in OECD countries.
Journal: International Review of Applied Economics
Pages: 23-39
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101715
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101715
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:23-39
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: The Balance of Payments Constraint and the Post 1973 Slowdown of Economic Growth in the G7 Economies
Abstract:
This paper presents estimates of export and import demand functions for
the G7 economies over the period 1956 to 1995 and over two sub-periods
1956-73 and 1974-95. These estimates are used to construct predictions of
the equilibrium growth rates for these economies by use of the
'Thirlwall's Law' relationship. The estimates are consistent with observed
cross country growth patterns over the whole sample and the post 1973
period but are less convincing in the pre 1973 sub-period. It is argued
that the slowdown in economic growth after 1973 can be partly explained by
the growing internationalisation of the world economy coupled with a
slowdown in the overall growth of world trade.
Journal: International Review of Applied Economics
Pages: 41-53
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101724
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101724
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:41-53
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Ibarra
Author-X-Name-First: Carlos
Author-X-Name-Last: Ibarra
Title: Disinflation and the December 1994 Devaluation in Mexico
Abstract:
This paper discusses the determinants of the Mexican peso devaluation of
December 1994. An examination of basic economic data reveals the
shortcomings of existing explanations based on either inconsistent
macroeconomic policies or self-fulfilling prophecies. We argue in contrast
that the devaluation was related to the exhaustion of the disinflationary
programme launched in the late 1980s, and that the timing of policy change
was critically influenced by a conflict between the inherited
disinflationary stance and the economic goals of the administration taking
office in December 1994. The analysis suggests that a prolonged period of
real currency appreciation before the devaluation was made possible not
only by the strong inflationary aversion of the authorities but by a
series of positive shocks that reduced the appreciation's negative
effects.
Journal: International Review of Applied Economics
Pages: 55-69
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101733
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101733
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:55-69
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Title: The Stabilisation of LDCs' Export Earnings. The impact of the EU STABEX programme
Abstract:
As part of the Lome Convention the STABEX programme is one of the
instruments of the European Union's development policy. Its objective is
to reduce the instability of the agricultural export earnings of the
developing countries which signed the agreement. By working on a
commodity-by-commodity basis, this paper provides an empirical evaluation
of the effects of the financial transfers disbursed by the EU. The results
obtained are substantially different from those by other authors because
it is shown that STABEX does have a positive impact on the sectors in
which the drop of export earnings occurred. Furthermore, it is argued that
the delay concerning the payments in favour of the African Caribbean and
Pacific countries (henceforth ACPs) influences the effectiveness of
STABEX, even if no conclusive evidence has been found to support the
widely shared opinion that the relationship between these two variables
(impact of the transfers and their delays) is negative.
Journal: International Review of Applied Economics
Pages: 71-85
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101742
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101742
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:71-85
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Buzaglo
Author-X-Name-First: Jorge
Author-X-Name-Last: Buzaglo
Title: A Model of Structural Change and Openness: Applications to the Argentine economy
Abstract:
This paper describes a dynamic, multisectoral model of a less developed
economy in which investment and income distribution policies influence
structural change and the pattern of trade. That is, the model considers a
Keynesian 'socialised investment' function and distributional policies
that, by their effect on demand, could be also described as Keynesian. The
model is used to analyse the effects of different policy regimes in the
Argentine economy. In an environment characterised by enduring stagnation,
investment policies aimed at increasing the degree of economic autonomy
and self-sufficiency do not succeed in significantly changing output and
trade patterns, and in reducing the degree of openness of the economy.
From a long term perspective, however, stagnation is not necessarily a
permanent condition. A new environment of higher growth could evolve from
the consolidation of a new technological paradigm and the emergence of new
socioeconomic norms and mechanisms. In an environment of lower uncertainty
and higher efficacy of the investment, model simulation shows that
investment policy is quite successful in augmenting the degree of autonomy
and self-sufficiency of the economy. Also, income redistribution has a
positive impact on income and welfare growth.
Journal: International Review of Applied Economics
Pages: 87-109
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101751
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101751
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:87-109
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Diaz Fuentes
Author-X-Name-First: Daniel Diaz
Author-X-Name-Last: Fuentes
Title: On the Limits of the Post-Industrial Society Structural Change and Service Sector Employment in Spain
Abstract:
The purpose of this paper is to examine the growth and the structure of
employment in the service sector in the Spanish Economy from 1958 to 1989
and to draw comparisons with the trends exhibited by other European
countries. In contrast to the explanation offered by the theory of stages,
which assumes that growth in services is associated with the pattern of
final demand, this research argues that, since the middle of the 1970s,
the growth of market service employment is due to an increase in
intermediate demand of services. In order to demonstrate this, an
intersectoral analysis is applied to input output data which was
homogenised for this research. This methodological approach enables
employment in the service sector to be connected to the other sectors.
Rejecting the idea that services are replacing manufacturing as the new
engine of growth, the results show an increased dependence on market
services by industrial production. The final part of the paper presents
explanations for this trend.
Journal: International Review of Applied Economics
Pages: 111-123
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101760
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101760
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:111-123
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Richards
Author-X-Name-First: Donald
Author-X-Name-Last: Richards
Title: What Do Progressives Need to Know About Trade? Some observations on the competitiveness debate
Abstract:
In a recent book entitled Pop Internationalism Paul Krugman takes to task
several prominent commentators who in recent years have published works
decrying the loss of competitive position of the United States in an
increasingly global economy. In particular, Krugman critically considers
and rejects several arguments that he considers both wrong and dangerous.
Among these are (1) the United States has lost, or is in the process of
losing, its position of global technological leadership; (2) material
standards of living in the US are threatened by the country's excessively
liberal trade policies as compared with its trade partners; (3) stagnant
or declining wages in the US are the result of trade with low wage Third
World countries; (4) the US is in need of a new model and a corresponding
policy approach that recognizes the changing structure of new global
economic forces. The debate over the validity of the above assertions has
been largely conducted between adherents of mainstream interpretations of
international economic theory and policy. For Krugman the controversies
are mostly a matter of a proper understanding of that theory along with an
appreciation of the relevant data. The purpose of this paper is to offer
an interpretation of the debate from a progressive left perspective. My
position is that Krugman's critique of his imagined opponents on most
issues is largely overdone and that there is actually substantive
agreement among and between these mainstream views on most matters of
trade and trade policy. More importantly, however, these same views,
including Krugman's, are bounded by assumptions that are not supportable
from a progressive left perspective. The title of the paper is an ironic
twist on a title of one of Krugman's chapters, 'What do undergrads need to
know about trade?'
Journal: International Review of Applied Economics
Pages: 125-141
Issue: 1
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101779
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Handle: RePEc:taf:irapec:v:13:y:1999:i:1:p:125-141
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Moreno-Brid
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Moreno-Brid
Title: Mexico's Economic Growth and the Balance of Payments Constraint: A cointegration analysis
Abstract:
This paper applies the basic balance-of-payments constraint model
(BPCmodel), developed by A.P. Thirlwall, to the analysis of Mexico's
economic growth in 1950-96.With the use of unit-root tests and
cointegration analysis it estimates the long-run association between the
growth of Mexico's real exports and real output in 1950-96, and selected
subperiods. The results tend to show significant and positive
cointegration between these two variables, thus giving support to the
BPC-model as a relevant hypothesis to explain Mexico's long-term economic
growth. Moreover, the findings of cointegration tests for selected
subperiods suggest that the slowdown in its economic growth since 1982 is
associated with an increase in the long-term income elasticity of imports
that made more binding the balance-of-payments constraint on the expansion
of domestic output.
Journal: International Review of Applied Economics
Pages: 149-159
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101634
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:149-159
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Albala-Bertrand
Author-X-Name-First: J. M.
Author-X-Name-Last: Albala-Bertrand
Title: Industrial Interdependence Change in Chile: 1960-90 a comparison with Taiwan and South Korea
Abstract:
There appears to be two main market-oriented policy-models of
development: the Japanese Model (JM) and theWashington Consensus Model
(WCM). Both stress the importance of, and are based on, macroeconomic
stability, export-led development, and private sector initiative. There
are, however, fundamental differences as regards the role of the market
and the role of the government in development, and thereby the range of
economic policies. The star performers, and therefore the main
representatives of the Japanese Model are Taiwan and South Korea, while
the star performer of theWashington Consensus is surely Chile. The
question is whether the Chilean economy has developed a strong overall
sectoral interdependence, and a sound manufacturing interdependence, as a
basis for endogenous sustainability, as was already the case for both
Taiwan and South Korea as early as the mid-1970s. This paper attempts to
tackle this issue via sectoral linkage analysis, based on an input-output
approach. The conclusion is that, whatever other successes from this
wholesale experiment, the result in terms of both industrial
interdependence and manufacturing industrialisation is weak and so far
unpromising.
Journal: International Review of Applied Economics
Pages: 161-191
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101643
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:161-191
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Michl
Author-X-Name-First: Thomas
Author-X-Name-Last: Michl
Title: Biased Technical Change and the Aggregate Production Function
Abstract:
This paper offers a classical model of biased technical change in the
MarxRicardo tradition as a framework for theoretical and applied studies
of growth. The observable data it generates would appear to an
unsuspecting economist to be well-described by a neoclassical model with a
static Cobb-Douglas production function, when in fact this production
function describes only the technological history of the economy. The
CobbDouglas form results from the capital-using, labour-saving bias of
technical change. The model's trajectory in wage-profit space will lie
along the displaced image of the neoclassical factor price frontier, in
contradiction to marginal productivity theory. The Solow residual can be
reinterpreted by the classical theory as a measure of the size of this
displacement.
Journal: International Review of Applied Economics
Pages: 193-206
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101652
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101652
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:193-206
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Rothschild
Author-X-Name-First: Kurt
Author-X-Name-Last: Rothschild
Title: Maximising, Satisficing, Weights and the Evaluation of Macroeconomic Comparisons
Abstract:
The success or failure of macroeconomic policy over time and in
comparison to other countries is an important item in political
discussions. The present paper discusses the relative advantages and
disadvantages of different forms of indices which aim at an aggregated
picture for macroeconomic evaluations. Maximising, satisficing, and
weights in multi-item indices are discussed on a principal level. In the
final section a simple numerical example comparing different countries
serves as an illustration of some of the main aspects. It is shown that
alternative forms can yield important differences in ranking and offer
alternative insights.
Journal: International Review of Applied Economics
Pages: 207-217
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101661
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:207-217
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dietrich
Author-X-Name-First: Michael
Author-X-Name-Last: Dietrich
Title: Explaining Economic Restructuring: An input-output analysis of organisational change in the European Union
Abstract:
This article investigates the extent to which the European economy (as a
whole) has entered a period of restructuring from 1970 to the present, and
assesses whether different theories of restructuring can explain the
processes involved.Three political economy perspectives on restructuring
are presented: flexible specialisation, neo-Schumpeterian/long wave, and
Regulation. The extent of organisational restructuring is identified using
an input-output methodology that separates supply-side and demand-side
change. Supplyside output change indicates the importance of vertical
externalisation, which all restructuring theories identify as important.
This empirical methodology is applied using EU wide input-output tables
for 1970, 1975, 1980, 1985 and 1991. Considerable restructuring is
indicated as having occurred, particularly in European manufacturing
industry. But this restructuring seems not to be consistent with any
single perspective; rather all three are relevant in different
circumstances. Finally, an attempt is made to sketch a theory of the firm
consistent with the evidence presented.
Journal: International Review of Applied Economics
Pages: 219-240
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101670
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101670
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:219-240
Template-Type: ReDIF-Article 1.0
Author-Name: Rosella Levaggi
Author-X-Name-First: Rosella
Author-X-Name-Last: Levaggi
Title: Does Government Expenditure Crowd Out Private Consumption in Italy? Evidence from a Microeconomic Model
Abstract:
An abnormal expansion of the public sector may create serious problems to
the market economy, as the literature suggests. This issue is quite
important in countries such as Italy where the size of the public sector
and of its debt are quite relevant. In this paper a model, in the
microeconomic tradition, is developed and applied to the italian economy
using a quite general utility function to represent consumer's behaviour.
The aim of the article is to set up a methological framework in which to
test for the hypothesis that the provision of public and impure public
goods crowds out private consumption. The main result of the analysis is
that, in Italy, traditional public goods play a neutral role in
expenditure decisions while impure public goods crowd out private
consumption. This crowding out is created by over-production of these
services; merit goods are direct complements to a wide range of private
goods, but this beneficial effect is more than offset by the negative
income effect related to their financing.
Journal: International Review of Applied Economics
Pages: 241-251
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101689
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101689
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:241-251
Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan
Author-X-Name-First: Jordan
Author-X-Name-Last: Shan
Title: Immigration and Unemployment: New evidence from Australia and New Zealand
Abstract:
This study uses a new Granger no-causality testing procedure developed by
Toda &Yamamoto (1995) to contribute to the debate on immigration and
unemployment in Australia and New Zealand. It investigates a possible
causal linkage between these variables in a six-variable vector
autoregression (VAR) model. The research finds no Granger causality
between immigration and unemployment. Instead, it finds evidence of
Granger causality running from industrial structural changes, measured by
the Stoikov and HDB indices, to unemployment, and from several other
economic variables to unemployment.
Journal: International Review of Applied Economics
Pages: 253-260
Issue: 2
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101698
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Handle: RePEc:taf:irapec:v:13:y:1999:i:2:p:253-260
Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Bettio
Author-X-Name-First: Francesca
Author-X-Name-Last: Bettio
Author-Name: Samuel Rosenberg
Author-X-Name-First: Samuel
Author-X-Name-Last: Rosenberg
Title: Labour Markets and Flexibility in the 1990s: The Europe-USA opposition revisited
Abstract:
Economists' contest on labour market flexibility has quickly pivoted
around the stylised trade off between more flexibility and growth on the
one hand and increased inequality of income on the other, the welfare
implications of this trade off being too often assumed rather than
verified. This article uses the essays collected in the Special Issue on
Labour Markets and Flexibility in the 1990s of the International Review of
Applied Economics to challenge the terms of this trade off as well as the
related welfare assumptions. Some of the most popular tenets in the
literature are assessed in the light of the evidence and the arguments put
forward by the authors contributing to the Special Issue, in particular,
the notion that the European labour market is rigid, the contention that
more flexibility is imposed by international competition, or that labour
market regulation weakens both employment and output growth, the belief
that the main welfare cost of flexibility is increased inequality of
earnings or the fear that flexibility may be primarily 'female'.
Journal: International Review of Applied Economics
Pages: 269-279
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101553
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101553
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:269-279
Template-Type: ReDIF-Article 1.0
Author-Name: Annamaria Simonazzi
Author-X-Name-First: Annamaria
Author-X-Name-Last: Simonazzi
Author-Name: Paola Villa
Author-X-Name-First: Paola
Author-X-Name-Last: Villa
Title: Flexibility and Growth
Abstract:
After two decades of theoretical discussion and application of labour
policies aimed at flexibility, ever-spreading unemployment in Europe has
compelled some official institutions to admit that the 'rigidity' of the
labour market does not suffice to account for the different trends in
employment displayed by Europe and the United States. In this paper, we
focus on the role played by differentials in income growth. After briefly
reviewing the explanations of European unemployment based on labour market
rigidity and their respective weaknesses, we look at the relationship
between growth and employment, concluding that there are grounds for
maintaining that the causes of Europe's higher unemployment reside mainly
in its lower rate of growth.We therefore investigate the reasons that may
be responsible for a more stringent macroeconomic constraint on European
growth.We conclude that if a lack of growth is at the root of European
unemployment, then merely dismantling labour market institutions, and
replacing them with a more flexible system of industrial relations, will
not only fail to produce the expected results but may also have negative
effects, in both the social and productive structure.
Journal: International Review of Applied Economics
Pages: 281-311
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101562
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101562
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:281-311
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Buchele
Author-X-Name-First: Robert
Author-X-Name-Last: Buchele
Author-Name: Jens Christiansen
Author-X-Name-First: Jens
Author-X-Name-Last: Christiansen
Title: Employment and Productivity Growth in Europe and North America: The Impact of Labor Market Institutions
Abstract:
In this paper, we examine long-run employment and productivity growth in
the major economies of North America and Europe from 1960 to the early
1990s. We develop a model in which output growth is determined by the
growth of aggregate demand, and the relative contributions of employment
and productivity growth to the growth of output depend on country specific
labor market institutions. We find that institutions that promote
collective bargaining, employment security and social protection have
roughly equal and opposite effects on employment growth (negative) and
productivity growth (positive), giving rise to an inverse relationship
between these variables. The welfare implications of this finding are that
labor market deregulation could result in more work and greater inequality
and insecurity for workers, without significantly increasing the rate of
economic growth.
Journal: International Review of Applied Economics
Pages: 313-332
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101571
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101571
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:313-332
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Petit
Author-X-Name-First: Pascal
Author-X-Name-Last: Petit
Title: Sectoral Patterns of Distribution in Slowly Growing Economies: The case of nine OECD countries in the 1980s and 1990s
Abstract:
Slow productivity growth has put pressure on the distribution of income
between wages and profits in ways that are not amenable to a US versus
Europe dichotomy but vary between sectors (especially between
manufacturing and service activities) as well as among countries. Over the
1980s and the 1990s, wage flexibility and profit margin flexibility in
service sectors-characterised, respectively, by high shares of total
employment and high shares of total profits-outlined three growth
patterns: countries adjusting to slow productivity growth by means of
considerable flexibility in relative wages in services (as in the US, the
UK and Germany); adjustment through flexibility in relative profit margins
(as in France, Canada and Sweden); and finally, an absence of change in
the sectoral structure of distribution (as in Japan, Italy and Belgium).
These patterns may be associated with either changes in wage and profit
rates or structural adjustments (such as changes in the share of part time
jobs, or changes in the composition of the capital stock). They are shown
to be an important influence on the prospect of a resumption of high
productivity growth.
Journal: International Review of Applied Economics
Pages: 333-351
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101580
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:333-351
Template-Type: ReDIF-Article 1.0
Author-Name: Iain Campbell
Author-X-Name-First: Iain
Author-X-Name-Last: Campbell
Author-Name: Peter Brosnan
Author-X-Name-First: Peter
Author-X-Name-Last: Brosnan
Title: Labour Market Deregulation in Australia: The slow combustion approach to workplace change
Abstract:
Since the beginning of the 1990s Australia has experienced a gradual but
far-reaching process of labour market deregulation. Labour market
deregulation has proceeded primarily through the dismantling of the
distinctive system of awards-the main avenue of external, protective
regulation in Australia for much of the 20th century. This paper examines
labour market deregulation and its implications for the Australian
workforce. It situates the changes in terms of their institutional
starting point in the award system and the growing pressures in the 1980s
for increased labour market flexibility. It argues that labour market
deregulation is amplifying existing trends to growth in precarious
employment, wage dispersion and the development of a low-pay sector
amongst full-time employees. In addition, it is sponsoring a significant
fragmentation of working-time arrangements.
Journal: International Review of Applied Economics
Pages: 353-394
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101599
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101599
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:353-394
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Contini
Author-X-Name-First: Bruno
Author-X-Name-Last: Contini
Author-Name: Fabio Rapiti
Author-X-Name-First: Fabio
Author-X-Name-Last: Rapiti
Title: 'Young In, Old Out' Revisited: New Patterns of Employment Replacement in the Italian Economy
Abstract:
This paper, based largely on data from the Italian social security (INPS)
records, shows that recent employment trends in Italy have been marked by
large job and worker turnover and a new and strong process of renewal and
substitution of labour in industry. Entries of young workers have shown a
remarkable increase, mainly through the application of work and training
contracts ('contratti di formazione e lavoro') that provide firms with a
means to cut labour costs. Meanwhile many workers in their 40s with
considerable seniority, but still perfectly fit to go on working, found
themselves squeezed out. The exit of this generation of mature workers was
eased through subsidised early retirement, golden handshakes and a wide
application of the 'cassa integrazione guadagni' (wage supplementation
fund). This pattern of labour force replacement in industrial production,
described as 'young in, old out', is at odds with the frequent ranking of
Italy among the industrial countries hampered by rigid labour markets and
questions theories of unemployment based on 'insider-outsider' hypotheses.
Journal: International Review of Applied Economics
Pages: 395-415
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101607
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:395-415
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Rose
Author-X-Name-First: Stephen
Author-X-Name-Last: Rose
Title: Is Mobility in the United States Still Alive? Tracking career opportunities and income growth
Abstract:
Longitudinal data are used to compute income and earnings mobility in the
1970s and 1980s. The various strengths and weakness of different
perspectives on mobility are assessed, with the change in real income or
earnings being chosen as the one that most closely resembles the
common-sense meaning of progress or decline. Care is taken to choose the
proper age ranges and to define quantiles on the basis of 10-year income
or earnings. Based on the Panel Study on Income Dynamics, this paper finds
the share of family income losers among prime-age adults rose from 21% in
the 1970s to 33% in the 1980s. This jump is reflected in a corresponding
jump in the share of male earners with declining earnings over the same
time period. Female earners, however, worked 44% more in the 1980s than
the 1970s and fewer were on declining earnings paths. In terms of
sub-populations, lower income and less educated groups had larger
increases of income and earnings losses.
Journal: International Review of Applied Economics
Pages: 417-436
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101616
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:417-436
Template-Type: ReDIF-Article 1.0
Author-Name: Brendan Burchell
Author-X-Name-First: Brendan
Author-X-Name-Last: Burchell
Title: The Unequal Distribution of Job Insecurity, 1966-86
Abstract:
In the first half of this paper the evidence concerning the costs of job
insecurity is presented. There is now sufficient good research data to
conclude that job insecurity is damaging to psychological health,
marriages and employee motivation, and contributes to 'cycles of
disadvantage'. In the second half of this paper, flows out of secure and
insecure jobs are analysed using a work-histories dataset. Not only is it
the case that flows from secure to insecure jobs were more common in the
1980s than in the 1970s and 1960s, but it is also apparent that the risk
of a transition from a secure job into an insecure job is much greater for
those in less advantaged jobs. The negative consequences of this further
polarisation of the UK labour market are discussed.
Journal: International Review of Applied Economics
Pages: 437-458
Issue: 3
Volume: 13
Year: 1999
X-DOI: 10.1080/026921799101625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101625
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Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:437-458
Template-Type: ReDIF-Article 1.0
Author-Name: Oguz Esen
Author-X-Name-First: Oguz
Author-X-Name-Last: Esen
Title: Financial Openness in Turkey
Abstract:
The purpose of this paper is to analyse the effects of financial
liberalization on the financial and real sectors of the Turkish economy.
The process of liberalization began over 15 years ago simultaneously with
a stabilization programme that had been designed according to neoclassical
model. The implementation addressed first foreign trade, then the domestic
financial market and finally foreign capital movements. Contrary to
theoretical expectations, the opening of the capital account induced
adverse effects on financial intermediation, savings, investment, growth
and foreign debt.
Journal: International Review of Applied Economics
Pages: 5-23
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101452
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:5-23
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Sarantis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Sarantis
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Title: The ERM Effect, Conflict and Inflation in the European Union
Abstract:
This paper investigates price inflation expectations and wage
determination in the ERM member countries with the aim of assessing the
importance of the ERM effect and distributional conflict. We have found
strong evidence of an ERM effect in the inflationary process of
participating countries, but this effect manifests itself primarily
through structural changes in labour markets rather than through importing
Bundesbank's reputation. This evidence questions the tendency to model the
ERM as a credibility-reputation game. Inflation expectations for all ERM
countries are strongly influenced by movements in unit labour costs and
demand, and secondarily by world commodity and oil prices. The empirical
results provide strong support for the conflict approach to wage
inflation.
Journal: International Review of Applied Economics
Pages: 25-43
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101461
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:25-43
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Author-Name: Fahmi Mohd Yusof
Author-X-Name-First: Fahmi Mohd
Author-X-Name-Last: Yusof
Author-Name: Guy Vernon
Author-X-Name-First: Guy
Author-X-Name-Last: Vernon
Title: Declining Concentration in UK Manufacturing? A problem of measurement
Abstract:
It has become conventional wisdom that market concentration in the UK has
fallen over recent history. However, the typical assumption has been that
all imports are competitive so that any increase in import penetration
implies a decline in market concentration. In a world of transnationally
organized production and trade this would seem an inappropriate working
assumption. Our analysis of the UK market for cars, vans, trucks and
buses, where the necessary detailed firm data is available, supports this
contention: an accurate assessment of who controls imports is crucial in
the measurement of market concentration.
Journal: International Review of Applied Economics
Pages: 45-54
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101470
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:45-54
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Leon-Ledesma
Author-X-Name-First: Miguel
Author-X-Name-Last: Leon-Ledesma
Title: Economic Growth and Verdoorn's Law in the Spanish Regions, 1962-91
Abstract:
The aim of this paper is to test for the presence of dynamic increasing
returns to scale in the Spanish regions between 1962 and 1991.The
framework in which this paper is based is the so-called Verdoorn's Law.
Tests are carried out for the manufacturing sector, agriculture,
construction, services and total value added. The results show substantial
increasing returns for manufacturing, services sector and for total value
added. The staticdynamic paradox found by McCombie (1982) is also
discussed and tested. We find no support for the hypothesis of a
Cobb-Douglas function as the underlying technical relationship of the law.
Journal: International Review of Applied Economics
Pages: 55-69
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101489
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:55-69
Template-Type: ReDIF-Article 1.0
Author-Name: F. Carmichael
Author-X-Name-First: F.
Author-X-Name-Last: Carmichael
Author-Name: R. Woods
Author-X-Name-First: R.
Author-X-Name-Last: Woods
Title: Ethnic Penalties in Unemployment and Occupational Attainment: Evidence for Britain
Abstract:
In spite of progress made since the 1950s and 1960s, black, Indian,
Pakistani and Bangladeshi workers remain disadvantaged relative to whites
in terms of their labour market opportunities. In general, they experience
higher rates of unemployment and tend to be under-represented in higher
paid, non-manual occupations. They can therefore be said to pay an ethnic
penalty in the competition for jobs although the penalties paid vary
considerably between the minority groups. In this paper we examine the
different employment experiences of black, Indian, Pakistani and
Bangladeshi men and women in terms of their unemployment propensities and
occupational attainment.We use maximum likelihood methods to show that the
ethnic penalties experienced by minority workers are not fully explained
by differences in human capital endowments and personal characteristics.
We conclude that at least some of the disadvantage experienced by ethnic
minorities in the British labour market can be attributed to
discriminatory selection practices by employers.
Journal: International Review of Applied Economics
Pages: 71-98
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101498
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101498
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:71-98
Template-Type: ReDIF-Article 1.0
Author-Name: John Preston
Author-X-Name-First: John
Author-X-Name-Last: Preston
Author-Name: Gerard Whelan
Author-X-Name-First: Gerard
Author-X-Name-Last: Whelan
Author-Name: Chris Nash
Author-X-Name-First: Chris
Author-X-Name-Last: Nash
Author-Name: Mark Wardman
Author-X-Name-First: Mark
Author-X-Name-Last: Wardman
Title: The Franchising of Passenger Rail Services in Britain
Abstract:
Following the 1993 Railways Act, British Rail's passenger business was
spilt into 25 train operating units, which have been privatised by a
process of franchising. This paper will review the franchising experience
to date. First, the results of 38 in-depth interviews with potential
bidders for the passenger businesses will be described. Secondly, a
hypothetical bidding game, based on a series of Stated Preference
experiments undertaken by our sample of potential bidders, will be
described. A model has been established which determines managers'
preferences with respect to contract size and length, exclusivity, and the
degree of regulatory control. Given assumptions concerning the degree of
competition for rail franchises and bidding behaviour, some predictions
are made about the likely magnitude of winning bids and these predictions
are validated against actual bids.
Journal: International Review of Applied Economics
Pages: 99-112
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101506
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101506
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:99-112
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Title: Durability and Asymmetry in UK Consumers' Expenditure
Abstract:
Cook et al. (1998) have recently proposed the hypothesis of a positive
relationship between the durability of consumers' expenditure and the
asymmetric behaviour it exhibits. Some support was found for this
hypothesis via the application of Sichel's (1993) univariate tests of
business cycle asymmetry to quarterly data on the components of UK
consumers' expenditure. In this paper this hypothesis is revisited, with
the original analysis extended in a number of ways. First, the hypothesis
is examined using annual data over a longer span than the original study,
potentially allowing more business cycles to be captured. Secondly the
effects of alternative means of detrending, a prerequisite for the
analysis, are considered. Using durable, non-durable and total consumption
data for the UK, the 'durability-asymmetry' hypothesis is found to hold.
It is also found that a previously noted aggregation paradox disappears,
but a new temporal aggregation paradox is uncovered. Significantly, the
manner in which the data are detrended is also seen to influence results.
Journal: International Review of Applied Economics
Pages: 113-121
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101515
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101515
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:113-121
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Regulating Global Capital Flows
Abstract:
Journal: International Review of Applied Economics
Pages: 123-126
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101524
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101524
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:123-126
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Canada's Two Economies
Abstract:
Journal: International Review of Applied Economics
Pages: 127-133
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101533
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101533
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:127-133
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Roberts
Author-X-Name-First: Simon
Author-X-Name-Last: Roberts
Title: Large, International Business and Economic Development
Abstract:
Journal: International Review of Applied Economics
Pages: 135-143
Issue: 1
Volume: 14
Year: 2000
X-DOI: 10.1080/026921700101542
File-URL: http://www.tandfonline.com/doi/abs/10.1080/026921700101542
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Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:135-143
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Gibson
Author-X-Name-First: Bill
Author-X-Name-Last: Gibson
Author-Name: Dirk Ernst Van Seventer
Author-X-Name-First: Dirk Ernst
Author-X-Name-Last: Van Seventer
Title: A Tale of Two Models: Comparing structuralist and neoclassical computable general equilibrium models for South Africa
Abstract:
This paper compares two working models of the South African economy, an
orthodox, neoclassical computable general equilibrium model in which
savings drive investment, and a more structuralist, eclectic, model for
which there is an independent investment function. Both models are
calibrated to the same social accounting matrix. Comparative statics of
simplified prototype models are presented and identical simulations with
the corresponding applied versions are compared. It is seen that the
neoclassical model fully supports the principles of the 'Washington
Consensus' while the structuralist model requires a far more heterodox set
of policies to avoid slow growth or high inflation.
Journal: International Review of Applied Economics
Pages: 149-171
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024723
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024723
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:149-171
Template-Type: ReDIF-Article 1.0
Author-Name: David Greasley
Author-X-Name-First: David
Author-X-Name-Last: Greasley
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Outside the Club: New Zealand's economic growth, 1870-1993
Abstract:
Recent tests of the Convergence Hypothesis, or the tendency for per
capita income levels to narrow over time, have included a time-series
testing approach (see Bernard & Durlauf, 1995, 1996; Oxley & Greasley,
1995, Greasley & Oxley, 1997, 1998a). Results have been mixed, with
Bernard & Durlauf finding no evidence of convergence whereas Oxley &
Greasley find evidence of two small convergence clubs. This paper adds to
the debate by considering a newly created annual per capita income series
for New Zealand, 1870-1993. The results show that the series is integrated
of order 1, I(1), and neither a single break nor joint breaks overturn the
null of a unit root. Combined with results from Greasley & Oxley (1998a,
1998b), this property of New Zealand data is incompatible with her
belonging to a UK/Australia convergence club, or converging towards either
of the North American economies. New Zealand per capita income growth is
idiosyncratic, diverging below the growth rates of traditional trading
partners. A conjunction of small size and insular economic policies
distinguishes New Zealand's economic development.
Journal: International Review of Applied Economics
Pages: 173-192
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024732
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:173-192
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weller
Author-X-Name-First: Christian
Author-X-Name-Last: Weller
Title: Financial Liberalization, Multinational Banks and Credit Supply: The case of Poland
Abstract:
Part of the Polish transformation process has been an opening of the
domestic financial market to foreign entrants. While the number of
multinational banks (MNBs) has risen from zero to 15 within six years, the
ratio of bank credit to private and public enterprises relative to GDP
decreased continuously after 1991. In this paper, I develop an argument as
to why these two trends may be connected. Further, using monthly data
provided by the weekly Polish publication Gazeta Bankowa, the National
Bank of Poland, the Central Statistical Office, the BIS and the IMF, I
test the hypothesis that more MNB entry may lead to a declining credit
supply during the early stages of the transition process. Multivariate
regression results indicate that more MNB entry results in a lower credit
supply by Polish banks during the early transition phase. This result
holds regardless of the measurement of international financial
competition, and regardless of a bank's history, and it is only partially
affected by a bank's location. More importantly, the overall impact of
increased international financial competition on the credit supply of
Polish banks is strong enough to lower the total credit supply in the
Polish economy. Since an earlier study has found that Polish industries
operate under hard budget constraints and are finance constrained during
the early stages of the transition process, a reduction in the credit
supply has adverse effects on business investments (Cornelli et al.,
1996;Weller, 1999).
Journal: International Review of Applied Economics
Pages: 193-211
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024741
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:193-211
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Leoncini
Author-X-Name-First: Riccardo
Author-X-Name-Last: Leoncini
Author-Name: Sandro Montresor
Author-X-Name-First: Sandro
Author-X-Name-Last: Montresor
Title: Network Analysis of Eight Technological Systems
Abstract:
This paper aims to measure and compare some key relationships relative to
the technological systems of eight OECD countries along three temporal
spans (early 1980s, middle 1980s, early 1990s). For each technological
system, a matrix of intersectoral innovation flows is constructed and
network analysis is then performed to examine the density distributions of
the innovative flows, and the degree of centrality/centralisation of each
of its nodes.The first kind of analysis allows a quantitative comparison
of the intensity of the linkages among the systemic nodes considered,
while the second allows us to examine qualitatively the different internal
structures identified by cutting-off flows of a certain magnitude. The
main results of the paper are a clear distinction among technological
systems with different structural characteristics (e.g. size,
technological intensity, and institutional arrangements suggesting the
existence of different 'models of capitalism'), and a clear pattern of
'convergence' among the technological systems along time.
Journal: International Review of Applied Economics
Pages: 213-234
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024750
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:213-234
Template-Type: ReDIF-Article 1.0
Author-Name: A. Sepehri
Author-X-Name-First: A.
Author-X-Name-Last: Sepehri
Author-Name: S. Moshiri
Author-X-Name-First: S.
Author-X-Name-Last: Moshiri
Author-Name: M. Doudongee
Author-X-Name-First: M.
Author-X-Name-Last: Doudongee
Title: The Foreign Exchange Constraints to Economic Adjustment: The case of Iran
Abstract:
While a great deal of work has been devoted to the assessment of the
effects of structural adjustment programmes, little is known about the
relative importance of external financing and its contribution to the
success of these adjustment programmes. This paper examines this question,
using Iran's recent experience with an orthodox structural adjustment with
its limited access to medium- and long-term external financing. Using the
annual data for 1963-94, a three-gap model of growth is formulated and
estimated in which economic growth is constrained by domestic saving,
foreign exchange and public sector resource availability. The resulting
foreign exchange-gap equation demonstrates a sharp trade-off between
investment (capacity generation) and the capacity utilization rate. The
model is simulated over the period 1995-99 under three growth path
scenarios. The size of the foreign exchange gap under these growth path
scenarios illustrates quite vividly the centrality of the foreign exchange
constraint to the achievement of a modest growth rate in the medium-term.
Journal: International Review of Applied Economics
Pages: 235-251
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024769
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:235-251
Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Battisti
Author-X-Name-First: Giuliana
Author-X-Name-Last: Battisti
Author-Name: Carlo Pietrobelli
Author-X-Name-First: Carlo
Author-X-Name-Last: Pietrobelli
Title: Intra-Industry Gaps in Technology and Investments in Technological Capabilities: Firm-level evidence from Chile
Abstract:
This paper develops a theoretical framework to analyse intra-industry
gaps in technology, and tests it with enterprise-level data from a
developing country. Following neoclassical theory, the existence of
inter-firm technological gaps is explained by factor market segmentation
that determines different factor prices and therefore different firms'
technological choices. However, intra-industry gaps in technology may also
result from the nature of the process of technological development, and
from the different level of investments in technological capabilities.The
empirical analysis is based on a sample of 338 industrial enterprises from
Chile, and shows that it is possible to define technological thresholds,
characterised by significant shifts in technology, independently of factor
market segmentation. The analysis focuses on five major sectors: food
processing, textile and garments, woodworking, metalworking and paper.
Firms with different levels of technological complexity coexist within the
same industry, and differences in technology are discrete, with different
clusters sharing similar characteristics within the same industry. These
results also have important policy implications for industrial
development, which are drawn in a final section.
Journal: International Review of Applied Economics
Pages: 253-269
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024778
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:253-269
Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Guy
Author-X-Name-First: Frederick
Author-X-Name-Last: Guy
Title: Power in the Information Age
Abstract:
Journal: International Review of Applied Economics
Pages: 271-276
Issue: 2
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050024787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050024787
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Handle: RePEc:taf:irapec:v:14:y:2000:i:2:p:271-276
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Fingleton
Author-X-Name-First: Bernard
Author-X-Name-Last: Fingleton
Title: Convergence: International comparisons based on a simultaneous equation model with regional effects
Abstract:
A structural model incorporating regional effects is fitted to
cross-sectional data for 60 countries. The model integrates various
strands in the literature, including the dynamic Verdoorn Law linking
productivity growth to output growth, and relationships between
educational attainment, trade and innovativeness. Most notably, the
structural model supports the thesis that a country's innovativeness and,
consequently, capital stock growth, depend on the level of technology in
the 'surrounding' region.The approach adopted is set within the context of
the theoretical and empirical analysis of increasing returns and
cumulative causation. However, the resulting parameter estimates lead to a
reduced form that implies convergence to an equilibrium rather than
divergent productivity levels. The equilibrium productivity level ratios
(vis-a-vis the USA) indicate that countries are converging on different
levels, although a group does attain the USA productivity level.
Journal: International Review of Applied Economics
Pages: 285-305
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084042
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:285-305
Template-Type: ReDIF-Article 1.0
Author-Name: Bart Van Ark
Author-X-Name-First: Bart
Author-X-Name-Last: Van Ark
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: The Delta-Model Revisited: Recent trends in the structural performance of the Dutch economy
Abstract:
Since the late 1980s, the Dutch economy has outperformed neighbouring
countries in terms of employment and GDP growth. We argue that the recent
growth performance of the Netherlands has primarily been the result of a
correction of the belowaverage performance during the 1970s. This
correction was mainly brought about by a significant wage moderation since
the early 1980s, probably strengthened by the creation of a more effective
wage negotiation structure and measures to reduce the replacement rate.
Furthermore, we show that the euphoria about the 'Delta model' is dampened
by a slowdown in labour productivity performance, which appears to be
particular serious in major parts of the services sector.
Journal: International Review of Applied Economics
Pages: 307-321
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084051
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084051
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:307-321
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Graham
Author-X-Name-First: Daniel
Author-X-Name-Last: Graham
Title: Spatial Variation in Labour Productivity in British Manufacturing
Abstract:
This paper identifies factors underpinning spatial variation in
manufacturing labour productivity in Britain at the county level,
examining the relative influences of spatial external effects, the degree
of capital intensity, industrial structure, and labour force 'quality'. In
doing so, it sets out to test the hypothesis that spatial external
economies are not only derived from the immediate environment but also
exist over more dispersed areas, such that they can be enjoyed by firms in
locations outside major centres. The results show that locational
externalities continue to have a very small impact on spatial variation in
manufacturing labour productivity in Britain. The really large and
instrumental effects arise from variation in capital to labour ratios,
industrial structure, and labour force characteristics.
Journal: International Review of Applied Economics
Pages: 323-341
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084060
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084060
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:323-341
Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Tervo
Author-X-Name-First: Hannu
Author-X-Name-Last: Tervo
Title: Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90
Abstract:
This paper addresses the question of the role of migration as an
adjustment process by analysing the relationship between unemployment and
labour force mobility. The empirical analysis deals with long-distance
migration in Finland in the period 1985-90. When considered within a
multivariate setting in which personal and place characteristics are held
constant, the results show that higher origin unemployment rates increase
outmigration, but not particularly for unemployed workers. Three outcomes
are deduced from the results. First, the equilibrating process of
interregional migration is slow-although working in the right
direction-and becomes steadily slower as regional unemployment
differentials fall. Secondly, the size of high-unemployment regions, as
measured in terms of the labour force, decreases during the adjustment
process as employed persons also leave the region. Thirdly,
high-unemployment regions in particular lose their young and educated
workers. The danger of the process of cumulative causation is great in
these regions.
Journal: International Review of Applied Economics
Pages: 343-360
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084079
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084079
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:343-360
Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Linden
Author-X-Name-First: Mikael
Author-X-Name-Last: Linden
Title: Testing Growth Convergence with Time Series Data— a non-parametric approach
Abstract:
A non-parametric time series testing is suggested to analyse the
convergence of international output per-capita gaps. Non-parametric tests
are based on signs and ranks of time series properties of output
differences. The methods are applied to logs of USA percapita income
differences for 16 OECD countries from 1900-97. In contrast to the results
obtained by Bernard & Durlauf (1995) for the period 1900-87, convergence
of output gaps was evident for the majority of countries. However, the
trends in 1970-97 and 1987-97 are noticeably more complicated than the
homogeneous convergence found in the pre-1970 period. The results indicate
that widening USA gaps are now more likely to emerge than steady-state or
narrowing gaps.
Journal: International Review of Applied Economics
Pages: 361-370
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084088
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084088
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:361-370
Template-Type: ReDIF-Article 1.0
Author-Name: Efthymios Tsionas
Author-X-Name-First: Efthymios
Author-X-Name-Last: Tsionas
Author-Name: George Halkos
Author-X-Name-First: George
Author-X-Name-Last: Halkos
Title: Posterior Analysis of Environmental Damage Evaluation in Europe
Abstract:
In this paper we consider environmental damage evaluation using two types
of econometric models to analyse tree damage due to acid deposits, using
cross-country data for several European countries. First, we use a set of
univariate Poisson models and second, a multinomial probit model with the
difference that we do not observe class specific data. The damage function
is parameterized in terms of a number of economic and environmental
variables. Statistical inference is conducted using Bayesian methods
relying on Markov Chain Monte Carlo simulation. Natural by-products of our
method include an implied ranking of countries according to environmental
damage, and (exact, finite sample) posterior distributions of average
country-specific environmental damage.
Journal: International Review of Applied Economics
Pages: 371-390
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084097
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084097
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:371-390
Template-Type: ReDIF-Article 1.0
Author-Name: Paz Estrella Tolentino
Author-X-Name-First: Paz Estrella
Author-X-Name-Last: Tolentino
Title: The Conduct of Industrial Policy in an Integrated Europe
Abstract:
Journal: International Review of Applied Economics
Pages: 391-401
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084105
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084105
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:391-401
Template-Type: ReDIF-Article 1.0
Author-Name: John Grahl
Author-X-Name-First: John
Author-X-Name-Last: Grahl
Title: Among the Vultures
Abstract:
Journal: International Review of Applied Economics
Pages: 403-407
Issue: 3
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050084114
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084114
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:403-407
Template-Type: ReDIF-Article 1.0
Author-Name: Grazia Ietto-Gillies
Author-X-Name-First: Grazia
Author-X-Name-Last: Ietto-Gillies
Title: What Role for Multinationals in the New Theories of International Trade and Location?
Abstract:
The paper starts with a summary of the way the new theories of
international trade have incorporated the role of multinational companies
(MNCs) in the location of production. The main, specific assumptions used
to incorporate MNCs' activities relate to joint inputs at the company's
level combined with assumptions regarding costs at the plant level and
spatial transaction costs. It is claimed that this approach explains
multi-plant location, although it cannot discriminate between
inter-regional and the inter-national multi-plant location. It is argued
that nation-states should be distinguished by their regulatory regimes.
The MNCs' ability to plan and organize across different regulatory regimes
may give them special advantages linked to distributional issues and
spread-ofactivities strategies. These strategies may lead to a pattern of
industrial location not fully congruent with the one emerging from the new
trade and location theories.
Journal: International Review of Applied Economics
Pages: 413-426
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150101
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:413-426
Template-Type: ReDIF-Article 1.0
Author-Name: Damian Grimshaw
Author-X-Name-First: Damian
Author-X-Name-Last: Grimshaw
Title: Public Sector Employment, Wage Inequality and the Gender Pay Ratio in the UK
Abstract:
This paper assesses the relative contributions of the different systems
of pay determination in the private sector and the public sector toward
the changing level of wage inequality and the gender pay ratio in the UK.
The greater centralisation of pay arrangements in the public sector
compared with the private sector in the UK suggests that public sector
employment may have acted to offset the widening wage inequality seen in
recent years, as well as making an important contribution to the increase
in women's relative average earnings compared to men. This issue is
addressed by drawing on unpublished occupational hourly earnings data from
the New Earnings Survey and applying decomposition of the Theil index of
wage inequality to analyse both static and dynamic trends. The change in
wage inequality for the period 1986 to 1995 primarily reflected the change
in wage dispersion within the private sector, and the narrowing of the
gender pay gap among the public sector workforce was an important factor
in explaining the overall improvement in women's relative earnings. The
paper argues that the relatively centralised pay arrangements in the
public sector, compared with the private sector, played an important role
in slowing the increase in wage inequality and narrowing the gender pay
gap. As such, future policies to decentralise pay determination in the UK
public sector may exacerbate the increasing level of wage inequality and
reverse women's recent relative pay improvements.
Journal: International Review of Applied Economics
Pages: 427-448
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150110
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:427-448
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Holmes
Author-X-Name-First: Mark
Author-X-Name-Last: Holmes
Title: The Velocity of Circulation: Some new evidence on international integration
Abstract:
This study tests for the integration of money velocity movements among
the major European Union countries. For this purpose, a new test is
employed that allows one to confirm or reject integration on the basis of
whether or not the first largest principal component, based on deviations
of velocity growth rates from a base country, is stationary. Using monthly
data covering the last 25 years, this study finds that integration was
strongest during the 1970s and during 1983-92. These findings modify the
institutionalist view that common financial developments have meant that
velocities have moved together on an upward secular trend over the last 40
years. Developments with regard to currency substitution along with
exchange rate policy and capital controls can affect relative interest
rates and income movements and therefore the co-movements in money
velocities.
Journal: International Review of Applied Economics
Pages: 449-459
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150129
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:449-459
Template-Type: ReDIF-Article 1.0
Author-Name: Federico Mini
Author-X-Name-First: Federico
Author-X-Name-Last: Mini
Author-Name: Edgard Rodriguez
Author-X-Name-First: Edgard
Author-X-Name-Last: Rodriguez
Title: Technical Efficiency Indicators in a Philippine Manufacturing Sector
Abstract:
This paper uses the stochastic production frontier approach to
investigate the relationship between size and technical efficiency in the
Philippines textile industry. Results show that technical efficiency
increases with size, thus weakening the case for SME targeted policies.
Moreover, both exports and government interventions are positively
associated with efficiency, although the link between government support
and technical efficiency is somewhat weaker.
Journal: International Review of Applied Economics
Pages: 461-473
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150138
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:461-473
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Aly
Author-X-Name-First: Hassan
Author-X-Name-Last: Aly
Author-Name: Mark Strazicich
Author-X-Name-First: Mark
Author-X-Name-Last: Strazicich
Title: Is Government Size Optimal in the Gulf Countries of the Middle East? An empirical investigation
Abstract:
The size of government consumption relative to national output is
examined to see if it is optimal in five Gulf countries of the Middle
East. We follow the methodology suggested in Barro (1990) and Karras
(1996, 1997). The 'Barro rule' is examined using regression tests for each
country and in panels created by pooling data. Results find that
government consumption is productive, but the size of government is larger
than optimal.
Journal: International Review of Applied Economics
Pages: 475-483
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150147
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:475-483
Template-Type: ReDIF-Article 1.0
Author-Name: Geraint Johnes
Author-X-Name-First: Geraint
Author-X-Name-Last: Johnes
Title: Up Around the Bend: Linear and nonlinear models of the UK economy compared
Abstract:
A variety of methods - including vector autoregression (Bayesian and
nonBayesian) and neural networks - are used to construct models of the UK
economy, and their forecasting performance is compared.
Journal: International Review of Applied Economics
Pages: 485-493
Issue: 4
Volume: 14
Year: 2000
X-DOI: 10.1080/02692170050150156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150156
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Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:485-493
Template-Type: ReDIF-Article 1.0
Author-Name: Natasha Miaouli
Author-X-Name-First: Natasha
Author-X-Name-Last: Miaouli
Title: Employment and Capital Accumulation in Unionised Labour Markets: Evidence from five south-European countries
Abstract:
This paper analyses the link between employment and capital accumulation
in unionised labour markets by using a dynamic monopoly union model. The
role of wage setting is also explored within the above context. The
empirical analysis is based on annual data from the manufacturing sector
of five European countries (France, Greece, Italy, Portugal and Spain). It
verifies that capital accumulation has a positive influence on employment.
Concerning wages, there is evidence that, in most countries, income
opportunities in the public sector play an important role in wage
determination. A larger public sector crowds out private investment and
employment by serving as a safety net that allows wage setters to push for
higher wage demands.
Journal: International Review of Applied Economics
Pages: 5-29
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013321
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013321
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:5-29
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Ferreiro
Author-X-Name-First: Jesus
Author-X-Name-Last: Ferreiro
Author-Name: Felipe Serrano
Author-X-Name-First: Felipe
Author-X-Name-Last: Serrano
Title: The Spanish Labour Market: Reforms and consequences
Abstract:
The institutional design of the Spanish labour market has been subjected,
during the last three decades, to permanent pressure fuelled by two
beliefs. On the one hand, by the assumption that a higher degree of
flexibility would help to reduce unemployment; on the other, by the
assumption that such increased flexibility would also help to reduce
inflation rates and, consequently, the inflation gap between Spain and the
rest of the European countries. The recent history of the Spanish labour
market is, therefore, the history of the reforms implemented to increase
the flexibility in such a market. The aim of this paper is, firstly, to
describe the main features of these reforms, showing the measures
implemented in order to increase the flexibility in the labour market and,
secondly, to show the degree of flexibility reached in the labour market.
Finally, we will briefly analyse the macroeconomic consequences of these
reforms.
Journal: International Review of Applied Economics
Pages: 31-53
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013330
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013330
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:31-53
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Pilbeam
Author-X-Name-First: Keith
Author-X-Name-Last: Pilbeam
Title: Economic Fundamentals and Exchange Rate Movements
Abstract:
This paper provides a non-parametric test of modern exchange rate models
that is an alternative to econometric methods. The economic fundamentals
from three well-known exchange rate theories are used to devise quarterly
net predictions for the movement of sterling against four major currencies
over the period 1973-98. Each model is examined under six expectations
mechanisms. Although the test can lead to very diverse predictions from
different models, it is shown that there is very little difference in the
predictive success of rival exchange rate theories. The paper shows that
the role assigned to market expectations is more crucial to the success of
the models than the particular specification of the fundamental
variables.We find some weak evidence to suggest that extrapolative and
adaptive expectations mechanisms seem to offer a better specification of
exchange rate expectations as compared to regressive and rational
expectation mechanisms. One significant advantage of the test is that it
can readily deal with hybrid models and heterogeneous expectations;
however, neither route seems to improve exchange rate forecasts.
Journal: International Review of Applied Economics
Pages: 55-64
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013349
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:55-64
Template-Type: ReDIF-Article 1.0
Author-Name: Lonnie Stevans
Author-X-Name-First: Lonnie
Author-X-Name-Last: Stevans
Author-Name: David Sessions
Author-X-Name-First: David
Author-X-Name-Last: Sessions
Title: Minimum Wage Policy and Poverty in the United States
Abstract:
Recent studies have found that increasing the minimum wage is a useful
antipoverty tool. In this analysis, we examine the influence of minimum
wages and other important variables on US family poverty rates using state
data over the years 1984-98 by estimating both a fixed effect and random
coefficients regression model. Taking into account labor market
influences, demographic factors, and differences in poverty rates across
states, we find that expanding the minimum wage coverage and increasing
labor force participation both have larger effects on poverty rates as
compared to equivalent changes in the level of the minimum wage. It is
further implied from the empirical results that the most effective means
of lifting families out of poverty are policies that are directed toward
increasing minimum wage coverage, encouraging increased labor force
participation, raising the minimum wage, and subsidizing higher education,
respectively.
Journal: International Review of Applied Economics
Pages: 65-75
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013358
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013358
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:65-75
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pombo
Author-X-Name-First: Carlos
Author-X-Name-Last: Pombo
Title: Intra-industry Trade and Innovation: An empirical study of the Colombian manufacturing industry
Abstract:
This paper analyses the theoretical and empirical relationship between
intra-industry trade (IIT) flows in manufactures and technical change for
the Colombian manufacturing industry during the 1970-95 period. A general
estimating equation for the sources of change of the equilibrium number of
varieties, in which TFP growth is one of its components, is derived from
the basic model of trade in differentiated goods with monopolistic
competition. Based on that relationship, several estimations on the
determinants of IIT flows are carried out. The econometric set up follows
a panel data and cross-section estimations of system of simultaneous
equations. TFP and IIT indices are the endogenous variables of the system
with industry characteristic, trade policy, and innovation-activity
variables as the set of exogenous variables. The paper also presents a
comparative analysis in the direction and trends of Colombia's IIT flows
in manufactures with the Group of Seven, NAFTA, and the Latin American
Free Trade area members (LAFTA) since 1974.
Journal: International Review of Applied Economics
Pages: 77-106
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013367
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013367
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:77-106
Template-Type: ReDIF-Article 1.0
Author-Name: John Baffoe-Bonnie
Author-X-Name-First: John
Author-X-Name-Last: Baffoe-Bonnie
Title: The Impact of Income Taxation on the Labor Supply of Part-time and Full-time Workers
Abstract:
This paper estimates the effect of income taxation on the labor supply of
part-time and full-time workers in the United States. Using a model that
incorporates the endogeneity of the net wage rate and the virtual income,
and correcting for self-selection into part-time and full-time jobs, the
results indicate that part-time workers are relatively more responsive to
changes in income tax than full-time workers. Estimated wage elasticities
are relatively larger for part-time than for full-time workers.The
simulation results indicate that income tax has a disincentive effect on
both part-time and full-time workers, with part-time and full-time workers
reducing their labor supply by 0.87 and 0.58 hours, respectively, if a 5%
tax is imposed. However, the percentage reduction in hours of work is very
small, and a tax policy may have little effect on the labor supply of
workers.The results seem to suggest that female and black part-time
workers are more likely to drop out of the labor force at higher levels of
income tax. It also tests the hypothesis that the labor supply behavior of
parttime and full-time workers differs.The test results indicate that the
determinants of the labor supply of part-time workers are different from
those of full-time workers. It is noted that there is a significant
difference between the labor supply of male part-time and female parttime
workers, as well as between the black part-time and white part-time
workers. In order to reduce voluntary unemployment in market activities
among married females and blacks, the government can encourage part-time
work by sponsoring legislation or instituting a scheme that will allow
part-time workers to pay relatively less in payroll taxes.
Journal: International Review of Applied Economics
Pages: 107-128
Issue: 1
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170120013376
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013376
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Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:107-128
Template-Type: ReDIF-Article 1.0
Author-Name: David Kucera
Author-X-Name-First: David
Author-X-Name-Last: Kucera
Title: Foreign Trade of Manufactures and Men and Women's Employment and Earnings in Germany and Japan
Abstract:
Using factor content analysis, this paper provides estimates of the
effects of manufacturing trade expansion on men and women's employment in
Germany and Japan, with breakdowns by world, OECD, and non-OECD trade.
Evidence is found that foreign trade expansion had a more negative effect
on women's than men's manufacturing employment in Japan and a roughly
equal effect in Germany, with the difference between the countries driven
by non-OECD trade. In spite of this, demand shifted away from women's
manufacturing employment in Germany after the early-1970s, for both the
manufacturing sector as a whole and for manufacturing industries with high
female shares of employment, while no such labor demand shifts occurred in
Japan. In the face of these differences in labor demand and of very
similar increases in female labor supply, male-female hourly wage
differences narrowed in Germany and widened in Japan, for both
manufacturing and non-agricultural employees. It is concluded that shifts
in neither labor supply nor labor demand fit with observed trends of
male-female wage differences in Germany and Japan.
Journal: International Review of Applied Economics
Pages: 129-149
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151136998
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151136998
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:129-149
Template-Type: ReDIF-Article 1.0
Author-Name: P. Ruben Mercado
Author-X-Name-First: P. Ruben
Author-X-Name-Last: Mercado
Title: Macroeconomic Volatility during Argentina's Import Substitution Stage
Abstract:
In this article, I analyze the characteristics and sources of
macroeconomic volatility for the case of Argentina during the import
substitution industrialization (ISI). This case is particularly relevant
since Argentina has been one of the most extreme examples of macroeconomic
volatility in the Latin American region. I estimated a small vector auto
regression (VAR) to approximate the main dynamic features of the Argentine
economy during the ISI: the balance of trade improving but the
'contractionary' effect of devaluation, and the short-run persistence of
'political-economic' switching regimes. Counterfactual experimentation
showed the impossibility of reaching a complete economic stabilization
during the historical period under analysis and the existence of sharp
tradeoffs among the internal balance, the external balance and policy
volatility. It also indicated that at least a half of the observed policy
volatility could be attributed to exogenous shocks. These results suggest
that the performance of the Argentine economy during the ISI could have
been better under more rational policy management but, surprisingly, that
the improvement would not be as large as one would expect.
Journal: International Review of Applied Economics
Pages: 151-161
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137014
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:151-161
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Ruiz-Napoles
Author-X-Name-First: Pablo
Author-X-Name-Last: Ruiz-Napoles
Title: Liberalisation, Exports and Growth in Mexico 1978-94: A structural analysis
Abstract:
In this paper, the results of an exports led growth strategy accompanied
by a trade liberalisation policy, implemented in Mexico, are analysed for
three periods 1978-82, 1983-87 and 1988-94. The input-output analysis is
utilised, to determine the effects of manufacturing exports on gross
output, to measure the degree of the global integration of the economy
and, in particular, to measure the integration of the leading exporting
manufacturing industries to domestic industries. The effects of
liberalisation on increasing imports and the displacement of domestic
production by imports, in manufacturing, are also measured and analysed.
The general results of this analysis allowed us to conclude that the
positive effect of increasing manufacturing exports on expanding
production is limited and offset by the increasing manufacturing imports
displacing domestic production. The increasing imports are mainly inputs
demanded by growing exports.
Journal: International Review of Applied Economics
Pages: 163-180
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137032
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137032
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:163-180
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Title: On Cross-country Comparability of Government Statistics: Public expenditure trends in OECD National Accounts
Abstract:
Government statistics in the 'Detailed Tables' of OECD yearly National
Accounts, one of the most internationally used references for comparative
economic studies, show remarkable inconsistencies. The interpretation by
economists and other users of data on total government outlays by function
and type, gross capital formation, added value of general government,
compensation of employees, and on other public sector data needs more
prudence than it is usually acknowledged. In some cases, strong policy
implications risk being drawn on shaky foundations. International
organisations should invest more in the quality of data they disseminate.
Journal: International Review of Applied Economics
Pages: 181-198
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137050
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137050
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:181-198
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao-Guang Zhang
Author-X-Name-First: Xiao-Guang
Author-X-Name-Last: Zhang
Author-Name: Siqi Zhang
Author-X-Name-First: Siqi
Author-X-Name-Last: Zhang
Title: Technical Efficiency in China's Iron and Steel Industry: Evidence from the new census data
Abstract:
A stochastic frontier production function is estimated using data from
the 1995 industrial census to measure the technical efficiency of China's
large and medium-sized iron and steel enterprises. The technical
efficiency estimates are examined and compared for different enterprise
groups distinguished by their ownership, size, capital vintage and
location. The sources of diverse performance of China's iron and steel
enterprises are identified and discussed with an emphasis on policy
implications.
Journal: International Review of Applied Economics
Pages: 199-211
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137078
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137078
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:199-211
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Garrett
Author-X-Name-First: Thomas
Author-X-Name-Last: Garrett
Title: An International Comparison and Analysis of Lotteries and the Distribution of Lottery Expenditures
Abstract:
Lotteries are found in nearly half of the world's countries, with annual
worldwide lottery ticket sales topping $115 billion. Despite the global
presence of lottery games, there has been little research conducted on any
international aspect of lotteries. This paper presents the first-ever
examination and comparison of lottery games from around the world.
Differences in both absolute and relative lottery expenditures are
presented. Estimates for the income elasticity of demand for lottery
tickets provide evidence on the distributional burden of lottery
expenditures. These estimates consider each country by continental
location and country income level. Further analysis reveals that lower
income countries could adopt Lotto games in order to increase revenues.
Recognizing that the distributional impact of lottery games is one of the
greatest concerns surrounding lotteries, it is shown that the introduction
of Lotto games does not significantly affect the distributional burden of
lottery ticket expenditures. Given the international scope of lotteries
and the availability of international lottery game data, the paper
concludes by discussing future research on international lottery games.
Journal: International Review of Applied Economics
Pages: 213-227
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137096
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137096
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:213-227
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Is Manufacturing Industry Finished?
Abstract:
Journal: International Review of Applied Economics
Pages: 229-232
Issue: 2
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170151137113
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170151137113
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Handle: RePEc:taf:irapec:v:15:y:2001:i:2:p:229-232
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Bibow
Author-X-Name-First: Jorg
Author-X-Name-Last: Bibow
Title: Making EMU Work: Some lessons from the 1990s
Abstract:
This paper investigates what lessons may be learned from Europe's
convergence process of the 1990s. The paper challenges the conventional
focus on labour market institutions and 'structural rigidities' as the
root cause behind Europe's poor employment record. Instead, it is argued
that macro demand management played the key role, particularly monetary
policy. Concentrating on Germany, the analysis shows that fiscal
consolidation was accompanied by monetary tightness of an extraordinary
degree and duration. This finding is of interest regarding the past as
well as the future. For the Maastricht regime much resembles the one that
produced the unsound policy mix of the 1990s: a constrained fiscal
authority paired with an independent monetary authority free to impose its
will on the overall outcome. The analysis thus highlights a key asymmetry
in the Maastricht regime that is likely to continue to inflict a
deflationary bias on the system. It is argued that this policy bias may be
overcome only if the ECB deliberately assumed its real role of generating
domestic demand-led growth, thereby resolving Euroland's key structural
problem: asymmetric monetary policy. As regards the conventional
structuralist theme, the analysis debunks the 'Dutch myth' of supply-led
growth through structural reform. Depicting a popular fallacy of
composition, we stress that the peculiar Dutch strategy of demand-led
growth does not present itself as an option for Euroland.
Journal: International Review of Applied Economics
Pages: 233-259
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110051528
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110051528
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:233-259
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: Carsten Holz
Author-X-Name-First: Carsten
Author-X-Name-Last: Holz
Title: Why do Aggregate Production Functions Work? Fisher's simulations, Shaikh's identity and some new results
Abstract:
The literature on aggregation has shown that the conditions for
successful aggregation of micro production functions into an aggregate
production function are far too stringent to be believable (Fisher 1969,
1971). Despite this, aggregate production functions continue being used.
The reason is that they seem to 'work'. This happens, however, because
underlying every aggregate production function is the income accounting
identity that links input and output, i.e. output equals wages plus
profits. A simple algebraic transformation of this identity yields a form
that resembles a production function (Shaikh, 1974, 1980). This paper uses
Monte Carlo simulations to study two questions. First, how much
spuriousness can help explain the relatively good fits of the Cobb-Douglas
production function? The simulations show that the contribution of
spuriousness to a high R 2 is minor once we properly account for the fact
that input and output data used in production function estimations are
linked through the income accounting identity. It is mostly the link
through this identity that explains the results. Secondly, we study how
much factor shares have to vary in an economy so as to render the
Cobb-Douglas production function with a time trend a bad choice for
modelling and estimation purposes. We conclude that the Cobb-Douglas form
is robust to relatively large variations in the factor shares. What makes
this form often fail are the variations in the growth rates of the wage
and profit rates.
Journal: International Review of Applied Economics
Pages: 261-285
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052338
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:261-285
Template-Type: ReDIF-Article 1.0
Author-Name: Erkin Bairam
Author-X-Name-First: Erkin
Author-X-Name-Last: Bairam
Author-Name: Lawrence Ng
Author-X-Name-First: Lawrence
Author-X-Name-Last: Ng
Title: Thirlwall's Law and the Stability of Export and Import Income Elasticities
Abstract:
The aim of this paper is to examine the stability of income elasticities
used in Thirlwall's law to approximate a country's long-term growth and to
see empirically how non-constancy will affect these predictions. For this
purpose, three countries - Canada, New Zealand and the UK - are analysed,
using annual time series data from 1973 to 1995. These three countries
were chosen on the basis of their contrasting trade patterns. The results
obtained are different for each country but they still suggest the
predictive power of one of the two specifications of Thirlwall's law is
good.
Journal: International Review of Applied Economics
Pages: 287-303
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052347
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052347
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:287-303
Template-Type: ReDIF-Article 1.0
Author-Name: M. Harris
Author-X-Name-First: M.
Author-X-Name-Last: Harris
Author-Name: J. N. Lye
Author-X-Name-First: J. N.
Author-X-Name-Last: Lye
Title: The Fiscal Consequences of Privatisation: Australian evidence on privatisation by public share float
Abstract:
Privatisation has become a common government policy in many countries.
This paper summarises the salient features of privatisations by public
share float in Australia during the period 1989 to 1997. The costs
associated with these privatisations are examined, including both direct
costs and the opportunity cost of Australian governments selling assets
cheaply. Furthermore, the impact that such sales have on the net worth of
the public sector is estimated. The results suggest that there is a cost
of underpricing. There is also some evidence that the effect on the public
sector net worth may be negative. However, in some cases where the
enterprise sold is inefficient the government may realise a gain.
Journal: International Review of Applied Economics
Pages: 305-321
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052356
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052356
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:305-321
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob Madsen
Author-X-Name-First: Jakob
Author-X-Name-Last: Madsen
Author-Name: Richard Damania
Author-X-Name-First: Richard
Author-X-Name-Last: Damania
Title: Labour Demand and Wage-induced Innovations: Evidence from the OECD countries
Abstract:
This paper shows that increasing real wages steepens or reverses the
slope of the labour demand schedule because increasing wages give firms
incentives to innovate and to invest in newer and more efficient vintages
of capital. Using macroeconomic data for the OECD countries it is shown
that the efficiency inducement of higher real wages steepens the
traditional neoclassical labour demand function substantially. Taking into
account the adverse demand effects of wage reductions it is doubtful that
real wage reductions are a cure for the unemployment problem in the OECD
countries.
Journal: International Review of Applied Economics
Pages: 323-334
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052365
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052365
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:323-334
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson
Author-X-Name-First: Stephen
Author-X-Name-Last: Dobson
Author-Name: John Goddard
Author-X-Name-First: John
Author-X-Name-Last: Goddard
Author-Name: John Wilson
Author-X-Name-First: John
Author-X-Name-Last: Wilson
Title: League Structure and Match Attendances in English Rugby League
Abstract:
This paper investigates the effects of actual and hypothetical changes in
league structure on match attendances for English rugby league. An
empirical match attendance model is used to generate simulated attendances
under various alternative structural regimes.The simulations are used to
compare the effects on attendances of having larger and smaller divisions,
and of having regionalised lower divisions or divisions whose membership
is determined solely by playing quality. A limited form of regionalisation
emerges as a positive recommendation. The model is also used to decompose
the changes in average attendance, following the 1996 reorganisation, into
components attributable to the change of structure, changes in team
performance, and other factors.
Journal: International Review of Applied Economics
Pages: 335-351
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052374
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052374
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:335-351
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Savona
Author-X-Name-First: Maria
Author-X-Name-Last: Savona
Title: Does New Technology Cost Jobs?
Abstract:
Journal: International Review of Applied Economics
Pages: 353-355
Issue: 3
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110052383
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110052383
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Handle: RePEc:taf:irapec:v:15:y:2001:i:3:p:353-355
Template-Type: ReDIF-Article 1.0
Author-Name: Ozlem Onaran
Author-X-Name-First: Ozlem
Author-X-Name-Last: Onaran
Author-Name: Nurhan Yenturk
Author-X-Name-First: Nurhan
Author-X-Name-Last: Yenturk
Title: Do Low Wages Stimulate Investment? An analysis of the relationship between distribution and investment in Turkish private manufacturing industry
Abstract:
This study analyses the relative impact of profitability and demand on
accumulation in Turkish private manufacturing industry on the basis of the
theoretical framework outlined by Marglin & Bhaduri (1990). The main
motivation behind this analysis is to shed light on the demand aspects of
the slowdown in accumulation in the manufacturing industry despite the
increase in profitability during the structural adjustment episode. For
this purpose, the ratio of investment to value-added is estimated as a
function of the profit share and an accelerator term, namely the growth
rate of value-added, using panel data for the 26 industries of the private
manufacturing sector. The results show that investment is not responsive
to the profit share, whereas growth has a consistent positive impact. This
result is significant in explaining the inability of pro-capital income
policies to stimulate manufacturing investments throughout the
export-promotion era. The export boom maintained by the use of the
existing capacity rather than by new investments shows the limits of
export demand to compensate for the fall in domestic consumption out of
wages. The results make a strong case against the argument that
profitability enhances accumulation. Evidence shows that it is not
possible to enhance accumulation and long-term potential for growth simply
based on promoting profitability, without paying attention to the demand
aspects.
Journal: International Review of Applied Economics
Pages: 359-374
Issue: 4
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110081912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110081912
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Handle: RePEc:taf:irapec:v:15:y:2001:i:4:p:359-374
Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Voyvoda
Author-X-Name-First: Ebru
Author-X-Name-Last: Voyvoda
Author-Name: A. Erinc Yeldan
Author-X-Name-First: A. Erinc
Author-X-Name-Last: Yeldan
Title: Patterns of Productivity Growth and the Wage Cycle in Turkish Manufacturing
Abstract:
In this paper we investigate the distributional consequences of the
post-1980 accumulation patterns and technological change in the Turkish
manufacturing industries. We utilise two quantitative techniques. First,
we make use of the Hodrick-Prescott filter to disintegrate the cyclical
variations in productivity growth and wage rates from their respective
historical trends, and study the evolution of the wage cycle against the
long term productivity patterns in the sector. Next, we decompose the
fundamental characteristics of the contributions of productivity growth of
the manufacturing sub-sectors to the overall total. Our results suggest
very little structural change in the sectoral composition and nature of
productivity advances under the post-1980 structural adjustment reforms
and outward-orientation, and underscore that the gains in productivity in
this period did not materialise as gains in remunerations of wage labour.
Contrary to the prognostications of the orthodox theory, the post-1980
export orientation of Turkish manufacturing was not found to lend itself
to productivity contributions, and could not be sustained as a viable
strategy of 'export-led industrialisation'.
Journal: International Review of Applied Economics
Pages: 375-396
Issue: 4
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110081921
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110081921
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Handle: RePEc:taf:irapec:v:15:y:2001:i:4:p:375-396
Template-Type: ReDIF-Article 1.0
Author-Name: Helen Louri
Author-X-Name-First: Helen
Author-X-Name-Last: Louri
Author-Name: Ioanna Pepelasis Minoglou
Author-X-Name-First: Ioanna Pepelasis
Author-X-Name-Last: Minoglou
Title: A Quantitative Exploration on the Determinants of (De-)Industrialisation: The case of Greece
Abstract:
The aim of this paper is to explore the main determinants of (de-)
industrialisation, taking Greece as a case study. Industrialisation in
postwar Greece measured in terms of manufacturing industry's share of
output was not impressive. It reached its peak (20.2% of GDP) in the mid
1970s and, since then, it followed a declining path. Relevant theory
relates the evolution of industry to macro and micro variables, stressing
the role of structural change or 'trading up' within manufacturing. The
regression results underline that the reasons behind the unimpressive
Greek industrialisation performance, compared with advanced capitalist
economies, are to be found in the low GDP per capita, the deep and long
economic recession and the unfavourable manufacturing trade conditions.
The preponderance of traditional, low technology, consumer goods sectors
over high technology industries is also found to affect negatively the
share of manufacturing, but its statistical significance is relatively
small. The implications for industrialisation policies are that
macro-variables should preferably be used, since micro-tools are not
likely to be particularly effective.
Journal: International Review of Applied Economics
Pages: 397-410
Issue: 4
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110081930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110081930
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Handle: RePEc:taf:irapec:v:15:y:2001:i:4:p:397-410
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfram Elsner
Author-X-Name-First: Wolfram
Author-X-Name-Last: Elsner
Title: An Interactive Economic Policy Approach to Manage Structural Change: The case of industry conversion in the German state of Bremen
Abstract:
The present paper deals with (1) the regional experience of a severe and
sudden structural change sometimes faced by regions and cities which
display considerable industrial specialisation, and (2) a proactive
regional economic policy response: it offers a theoretical explanation of
this policy and discusses the basic philosophy behind it, the agents
involved, the instruments it employs and its effects. The German state
(Land) of the Free Hanseatic City of Bremen is a port and industry centre
that has not only had considerable experience of industrial decline, but
also of proactive industrial policy involvement. In addition, being the
centre of the defence industry in northern Germany, Bremen experienced
dramatic structural change due to the disarmament process that occurred
during the 1990s. Bremen's industrial defence conversion approach has been
widely considered as a case for further developing network forms of
regional economic policy and for a managed industrial diversification
strategy. It has indeed developed as a way to manage industrial change
during the last ten years. This paper will discuss (1) the basic
industrial problem; (2) some background conditions needed for success; (3)
the approach and instruments developed; (4) the results obtained; and (5)
a theoretical consideration on the basis of the experience.
Journal: International Review of Applied Economics
Pages: 411-428
Issue: 4
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110081949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110081949
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Handle: RePEc:taf:irapec:v:15:y:2001:i:4:p:411-428
Template-Type: ReDIF-Article 1.0
Author-Name: Ergun Dogan
Author-X-Name-First: Ergun
Author-X-Name-Last: Dogan
Title: External Scale Economies in Turkish Manufacturing Industries
Abstract:
In this study, the relationship between external scale economies
(agglomeration economies) and productivity is measured by using Turkish
data. The productivity increase can be due to economies from locating
closer to other firms in either the same industry (localisation economies)
or different industries (urbanisation economies). Localisation economies
are proxied by own industry size and urbanisation economies by city
population. Productivity (output per worker) is regressed on industry
size, city population, and other related variables. A measure of
concentration of state enterprises is included in the regressions to
control for the possible inefficiencies in public sector firms. The
functional form of the estimating equations is derived from the translog
production function. As a check, a constant elasticity of substitution
(CES) form is also experimented with. Data are cross-section data and come
from industrial and production surveys conducted by the State Institute of
Statistics of Turkey in 1985. The study finds that agglomeration economies
that are robust across different specifications of the agglomeration
economy function and production function exist in food products, textiles,
and wood products. Urbanisation economies are detected in food products
and textiles. In wood products there are localisation economies.
Journal: International Review of Applied Economics
Pages: 429-446
Issue: 4
Volume: 15
Year: 2001
X-DOI: 10.1080/02692170110081958
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110081958
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Handle: RePEc:taf:irapec:v:15:y:2001:i:4:p:429-446
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Andrew Brown
Author-X-Name-First: Andrew
Author-X-Name-Last: Brown
Author-Name: Kostas Mouratidis
Author-X-Name-First: Kostas
Author-X-Name-Last: Mouratidis
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: The Euro: Reflections on the first three years
Abstract:
In the first three years of its (virtual) existence, the euro has seen a
general decline in its value (notably against the dollar). In this paper
we look at this issue and reflect on the implications of the decline for
the future of the euro.The paper begins by briefly reviewing some of the
explanations that have been put forward for the weakness of the euro,
which might be seen as temporary factors or factors that do not arise from
the creation of the eurozone per se. These explanations include the
decline in the value of the euro as being a reaction to previous rises,
interest rate differentials as favouring the dollar and the decline in the
euro as being the obverse of a rise in the value of the dollar reflecting
the strength of the US economy. These explanations are found to be
unconvincing, and the view is advanced that there are serious weaknesses
within the eurozone itself and in the construction of the eurosystem,
along with its operation, that could be undermining the value of the euro.
The divergent euro area may be one of the more significant factors
contributing to the euro decline.
Journal: International Review of Applied Economics
Pages: 1-17
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110109308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110109308
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Handle: RePEc:taf:irapec:v:16:y:2002:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Mike Artis
Author-X-Name-First: Mike
Author-X-Name-Last: Artis
Title: The Performance of the European Central Bank
Abstract:
The European Monetary Union has been in operation since 1 January 1999.
The paper offers an interim assessment of the operations of the European
Central Bank (ECB) during this period. It describes how the ECB defined
its monetary strategy and carried out its policy. The evaluation offered
in the paper is largely positive, the principal objects of criticism being
found to stem from the constitution which defines the position and
principal objective of the ECB. This constitution embodies an extreme
version of Central Bank independence and creates a 'democratic deficit' in
consequence. Albeit the operating record is not without some blemishes,
for example in regard to the ECB's communication policy. So far, the ECB
has benefitted from a favourable macroeconomic conjuncture. This has
changed and a more testing time may now be in store.
Journal: International Review of Applied Economics
Pages: 19-29
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110109317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110109317
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Handle: RePEc:taf:irapec:v:16:y:2002:i:1:p:19-29
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Bibow
Author-X-Name-First: Jorg
Author-X-Name-Last: Bibow
Title: The Monetary Policies of the European Central Bank and the Euro's (Mal-)Performance: A stability-oriented assessment
Abstract:
The stability-oriented macroeconomic framework established in the
Treaties on European Union, especially the unparalleled status of
independence and peculiar mandate of the European Central Bank (ECB), were
promised virtually to guarantee price stability and a strong euro.
Shattering these hopes and promises in a rather drastic way, the euro's
external value has declined markedly while consumer price inflation has
quadrupled since the new currency's inception. This paper assesses the
ECB's role in relation to the euro's (mal-)performance. It challenges the
truly odd conventional wisdom that, despite these dismal monetary
developments, neither the Maastricht regime nor the ECB might possibly be
at fault. Reviewing the ECB's interest rate policies and scrutinising its
rationale, a conspicuous anti-growth bias is diagnosed that has produced
rather perverse consequences.This stability-oriented assessment concludes
that the ECB has been key to the 'euro puzzle', propagating euro weakness
and pushing up inflation. Euroland's democratically elected
representatives are therefore urged to reform Europe's key structural
problem, namely, the ECB, an independent monetary policymaker whose
unbounded discretion allows it to pursue ill-guided and thoroughly
idiosyncratic policies without being held to account for the consequences.
Journal: International Review of Applied Economics
Pages: 31-50
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110109326
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110109326
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Handle: RePEc:taf:irapec:v:16:y:2002:i:1:p:31-50
Template-Type: ReDIF-Article 1.0
Author-Name: James Forder
Author-X-Name-First: James
Author-X-Name-Last: Forder
Title: Interests and 'Independence': The European Central Bank and the theory of bureaucracy
Abstract:
The European Central Bank has an unprecedented degree of statutory
independence. This is presumably attributable to the view that central
banks, unimpeded by external forces, pursue the public interest. That
presumption has not always been common in the economics literature, even
in the discussion of central banking. The theory of bureaucracy suggests
that such institutions pursue their own interests. It is here applied to
the European central bank as it was in the past to other central banks.
First, consideration is given to what is today implied by the view that
central banks are primarily interested in maintaining their independence,
maximising their discretion, and avoiding blame for poor outcomes. Second,
the ECB's explanations of how it sees its role and status and its
presentation of its strategy are considered. Certain limitations in the
form of obscure explanation, confused analysis and selective referencing
are identified. These appear to suggest that the ECB is concerned with the
pursuit of its own agenda. Particular attention is drawn to the danger of
paying too much attention to what it says about its own 'accountability'.
Journal: International Review of Applied Economics
Pages: 51-69
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110109335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110109335
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Handle: RePEc:taf:irapec:v:16:y:2002:i:1:p:51-69
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hughes Hallett
Author-X-Name-First: Andrew Hughes
Author-X-Name-Last: Hallett
Author-Name: Laura Piscitelli
Author-X-Name-First: Laura
Author-X-Name-Last: Piscitelli
Title: Does One Size Fit All? A currency union with asymmetric transmissions and a stability pact
Abstract:
The theory of optimal currency areas stresses that a single currency zone
should have symmetry across shocks and structures. What happens if the
monetary transmission mechanisms differ so that a common monetary policy
has different effects in different places? Using a fully specified
econometric model, we find that such asymmetries are likely to destabilise
the business cycle and put countries out of phase with each other in a way
that cannot be corrected by deficit-constrained national fiscal policies.
Market discipline, however, could achieve this. Hence, the question is
whether the markets would create sufficient discipline on their own.
Journal: International Review of Applied Economics
Pages: 71-96
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110109344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110109344
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Template-Type: ReDIF-Article 1.0
Author-Name: Augusto Graziani
Author-X-Name-First: Augusto
Author-X-Name-Last: Graziani
Title: The Euro: An Italian perspective
Abstract:
The adoption of Euro as a common currency of twelve European countries
has meant a considerable change in the Italian exchange rate policy. In
the past, before Italy entered the EMS and again in 1992-96 when Italy
temporarily left the EMS, the Italian monetary authorities enacted a
policy of managed exchange rates, aiming at keeping the dollar rate
stable, while letting the Italian lira depreciate vis-a-vis the German
mark. By so doing, the danger of imported inflation was reduced (the
dollar area was then a major import area) and at the same time the Italian
exports to Europe were made easier. In the presence of a regime of fixed
exchange rates in the European area, Italian industry is trying to make
its exports more competitive by means of a reduction in costs. This means
moving segments of production to small or middle-size firms, located in
Italy as well as in developing countries. A further help is coming from
the gradual but consistent depreciation of the Euro against the US dollar.
The relevance of the dollar area in Italian exports has been
correspondingly increasing.
Journal: International Review of Applied Economics
Pages: 97-105
Issue: 1
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110114221
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110114221
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Handle: RePEc:taf:irapec:v:16:y:2002:i:1:p:97-105
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Tomlinson
Author-X-Name-First: Philip
Author-X-Name-Last: Tomlinson
Title: The Real Effects of Transnational Activity upon Investment and Labour Demand within Japan's Machinery Industries
Abstract:
This paper attempts to estimate the real effects of transnational
activity upon both investment and labour demand, within each of the five
industries that comprise Japan's domestic machinery sector. The study uses
a standard model of investment and labour demand, which is augmented to
include foreign wages. It is argued that this approach is the most
suitable for capturing the real effects of transnational activity, since
foreign wages indicate the attractiveness of alternative sites for
investment, production and employment. A simultaneous equations estimator
is employed and, for each industry, there is evidence that both the
behaviour of investment and labour demand are sensitive to foreign wage
conditions. The results indicate the extent to which transnational
activity has had a real effect upon Japan's domestic machinery sector.
Journal: International Review of Applied Economics
Pages: 107-129
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118867
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118867
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:107-129
Template-Type: ReDIF-Article 1.0
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Katsushi Imai
Author-X-Name-First: Katsushi
Author-X-Name-Last: Imai
Title: Rural Public Works and Poverty Alleviation--the case of the employment guarantee scheme in Maharashtra
Abstract:
This paper focuses on the poverty alleviating potential of the Employment
Guarantee Scheme (EGS) in (the Indian state of) Maharashtra. A point of
departure is the shift of emphasis from the static to the dynamic effects
of the EGS targeting, measured in terms of individuals moving into and out
of poverty, over the period 1979-84. An assessment is made of whether the
EGS prevents the vulnerable from falling into poverty or enables the poor
to move out of poverty, by distinguishing between the protective and
promotional roles of the scheme. Simulations involving a wide range of
poverty thresholds and different assumptions about the distribution of EGS
earnings reveal that the poverty alleviating potential is limited in most
cases. If, however, a larger EGS outlay is combined with more accurate
targeting, the potential is substantially greater. Larger outlays are
feasible if other rural public works are merged under the EGS. If this is
combined with a reallocation in favour of backward areas, the targeting
may improve substantially.
Journal: International Review of Applied Economics
Pages: 131-151
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118876
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118876
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:131-151
Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan
Author-X-Name-First: Jordan
Author-X-Name-Last: Shan
Author-Name: Alan Morris
Author-X-Name-First: Alan
Author-X-Name-Last: Morris
Title: Does Financial Development 'Lead' Economic Growth?
Abstract:
We use the Toda & Yamamoto (1995) causality testing procedure to
investigate the relationship, if any, between financial development and
economic growth.We use quarterly data from 19 OECD countries and China,
and use total credit and interest spread as indicators of financial
development. We also consider the impact of financial development on
investment and productivity. We find meagre evidence that financial
development 'leads' economic growth, either directly or indirectly. This
casts further doubt on claims that financial development is a necessary
and perhaps sufficient precursor to economic growth.
Journal: International Review of Applied Economics
Pages: 153-168
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118885
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118885
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:153-168
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Trigg
Author-X-Name-First: Andrew
Author-X-Name-Last: Trigg
Title: Using Micro Data to Test the Divergence between Prices and Labour Values
Abstract:
An extremely robust finding in Marxian empirical economics is the 'Shaikh
result' that estimates of labour values are closely correlated with
prices. This result is established using input-output data together with a
standard procedure in which variations in money wages are assumed to
reflect labour quality. Two problems with this standard procedure can be
identified. First, there is no translation between money units of wages
and labour value units of output produced by different types of
heterogeneous labour. Second, the standard procedure assumes perfectly
competitive labour markets. In this paper, a new micro procedure for
estimating labour values is developed in which both of these problems are
addressed. To translate between money wage rates and the labour value of
outputs a practical starting point for empirical analysis is suggested
using some of the readily available tools of neoclassical economics. The
assumption of perfect competition is accordingly relaxed by estimating a
microeconometric wage equation using data from the UK Family Expenditure
Survey. Conjoining this micro data with input-output data, estimates of
labour values are used to test the Shaikh result, which is found not to
hold in this particular exercise; with labour values diverging
substantially from money prices.
Journal: International Review of Applied Economics
Pages: 169-186
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118894
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:169-186
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Title: A Problem with Some Estimations and Interpretations of the Mark-up in Manufacturing Industry
Abstract:
This paper evaluates the methodological foundations of some recent
attempts to estimate econometrically the degree of market power and the
degree of returns to scale in manufacturing. The method discussed is based
on estimating the aggregate production function in growth rate form. It is
argued, following an argument made in another context by Phelps Brown,
Shaikh & Simon, that as the data used in empirical analyses are in value
terms (i.e. monetary values at constant prices), the parameter derived as
a mark-up can be reinterpreted simply as a coefficient from the income
accounting identity, which takes a value of unity subject to omitted
variable bias. Thus, it cannot be unambiguously interpreted as a mark-up.
It is also shown that the large estimates of the degree of increasing
returns to scale are similarly flawed. The argument also has implications
for understanding cyclical fluctuations of the Solow residual, which turns
out to be largely the result of the procyclical fluctuations of the profit
rate.We conclude by questioning whether the aggregate production function
can ever be statistically tested or, in other words, whether it is capable
of being refuted, as opposed to its parameters being merely estimated.
Journal: International Review of Applied Economics
Pages: 187-215
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118902
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118902
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:187-215
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Funk
Author-X-Name-First: Mark
Author-X-Name-Last: Funk
Title: Basic Research and International Spillovers
Abstract:
This paper discriminates between basic and developmental research when
estimating international research spillovers between nine OECD nations.
Using panel cointegration techniques, the estimates show that basic
research generates much larger international spillovers than developmental
research. Developmental research in turn appears more easily appropriated
by the research performer, and thus has a stronger effect domestically.
These results suggest growth models should incorporate the firm's choice
between basic and developmental research. More importantly, since basic
research receives a large proportion of its funding from public sources,
the finding of large international spillovers from basic research suggests
current public research policies should be reevaluated. The results
support the argument in favor of increased international coordination of
basic research policies.
Journal: International Review of Applied Economics
Pages: 217-226
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118911
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118911
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:217-226
Template-Type: ReDIF-Article 1.0
Author-Name: Lopez Julio
Author-X-Name-First: Lopez
Author-X-Name-Last: Julio
Title: Modernization, Heterogeneity and Employment in Mexico
Abstract:
The principal objective of this paper is to study the effects of Mexico's
recent economic reforms on employment and labour productivity. The author
argues that the globalization and modernization entailed by the reforms
tended to accentuate the structural heterogeneity and the differentials in
productivity levels between different sectors.While in formal activities
the growth rate of labour productivity accelerated, the contrary occurred
in informal activities. Given the relatively moderate rate of increase in
output and employment of formal activities, it is very likely that the
greater heterogeneity has contributed to the decrease in the average
growth rate of labour productivity as observed in Mexico in the period
studied.
Journal: International Review of Applied Economics
Pages: 227-242
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118939
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118939
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:227-242
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Slater
Author-X-Name-First: Gary
Author-X-Name-Last: Slater
Title: The Poverty of Flexibility
Abstract:
Journal: International Review of Applied Economics
Pages: 243-251
Issue: 2
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170110118920
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170110118920
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:243-251
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Christine Oughton
Author-X-Name-First: Christine
Author-X-Name-Last: Oughton
Author-Name: Mario Pianta
Author-X-Name-First: Mario
Author-X-Name-Last: Pianta
Title: Innovation and the Economy
Abstract:
Unemployment has remained at relatively high levels across most European
countries for a generation now. There have been a number of suggested
explanations for this, with correspondingly different policy implications.
Two of the major hypotheses relate, first, to the impact on the European
economies from increased international competition, and 'globalisation'
more generally, and, secondly, to the effects of new technology and
innovation. The effects of both globalisation and technology on growth and
employment in Europe have been researched over the past two years through
an EU-funded project, the results of which, relating in particular to
innovation, are reported in this Special Issue of the International Review
of Applied Economics. (The results relating to globalisation were reported
in a Special Issue of the Journal of Interdisciplinary Economics , Volume
13.) It is clear from the empirical work reported that the effects of
technological innovation have been mixed. There is no doubt that some
innovation has had a negative effect on employment, without the
compensatingly positive effects that new technology usually brings in its
wake. However, in high technology manufacturing sectors there is scope for
boosting both productivity and employment. But this requires an
appropriate policy environment, conducive to increased investment in
capital, R&D and the workforce itself.
Journal: International Review of Applied Economics
Pages: 253-264
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136091
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Template-Type: ReDIF-Article 1.0
Author-Name: Marva Corley
Author-X-Name-First: Marva
Author-X-Name-Last: Corley
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Christine Oughton
Author-X-Name-First: Christine
Author-X-Name-Last: Oughton
Title: Technology, Growth and Employment
Abstract:
The relationship between technology, productivity and employment is a
complex one. Increased productivity can lead not just to increased market
share, but through falling relative prices can help expand markets, and
through product innovation can develop new markets. On the other hand, if
demand and hence output does not expand in line with productivity, then an
inverse relation between productivity and employment will result. The
European Union seeks to improve living standards in Europe by boosting
productivity, competitiveness and employment together. How, though, is
this to be achieved? This paper looks at the effects on productivity of
different forms of investment--in physical capital, in Research &
Development, and in human capital. The paper also distinguishes between
the high-tech and low-tech sectors. There does appear to be scope for
boosting both productivity and employment, particularly in the high tech
sectors. But to do so will require increased investment across all three
categories--in machinery, in innovation and in people.
Journal: International Review of Applied Economics
Pages: 265-276
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136109
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:265-276
Template-Type: ReDIF-Article 1.0
Author-Name: L. Nascia
Author-X-Name-First: L.
Author-X-Name-Last: Nascia
Author-Name: G. Perani
Author-X-Name-First: G.
Author-X-Name-Last: Perani
Title: Diversity of Innovation in Europe
Abstract:
This paper uses data from the second 'Community Innovation Survey', from
the 'New Cronos' database, to analyse a range of determinants and outcomes
of innovation in Europe, across 13 countries and a range of industries.
Regression and cluster analysis are used to test for the significance of
the various relationships. National Systems of Innovation are found to be
of continued importance. Even when the performance of a firm is more
likely to be linked to the performance of the sector in which it is
operating, its strategies--such as over cooperation with other
companies--are influenced more by the national system of innovation within
which it operates, than any 'sectoral' system.
Journal: International Review of Applied Economics
Pages: 277-293
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136118
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136118
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:277-293
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Antonucci
Author-X-Name-First: Tommaso
Author-X-Name-Last: Antonucci
Author-Name: Mario Pianta
Author-X-Name-First: Mario
Author-X-Name-Last: Pianta
Title: Employment Effects of Product and Process Innovation in Europe
Abstract:
This paper develops a model of the employment impact of innovation
considering, on the one hand, the interactions with demand and labour
costs and, on the other, the variety of patterns of technological change.
Different technological strategies are considered. First, a search for
technological competitiveness is based on product innovation and
productivity rooted in quality advantages; second a strategy of active
price competitiveness has productivity growth rooted in process
innovation-based restructuring; third a passive price competitiveness
strategy is pursued by non-innovators relying on cost-cutting. The new
European innovation database drawn from the Community Innovation Survey
1994-96, merged with structural and macroeconomic data 1994-99 drawn from
the OECD are analysed at a sectoral level across eight European countries:
Italy, France, Germany, Denmark, Netherlands, Finland, the UK, and Sweden.
The innovation survey data provide information on several quantitative and
qualitative aspects of firms' innovative activities. A comparison of the
results from the first (1990-92) and second (1994-96) Community innovation
survey data is also carried out. The results show that, in the last
decade, technological change has had a major impact on employment in
manufacturing industry, associated with the dominance of an active price
competitiveness strategy.
Journal: International Review of Applied Economics
Pages: 295-307
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136127
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136127
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:295-307
Template-Type: ReDIF-Article 1.0
Author-Name: Rinaldo Evangelista
Author-X-Name-First: Rinaldo
Author-X-Name-Last: Evangelista
Author-Name: Maria Savona
Author-X-Name-First: Maria
Author-X-Name-Last: Savona
Title: The Impact of Innovation on Employment in Services: Evidence from Italy
Abstract:
This article investigates the employment impact of innovation in
services, using the data gathered through the 1993-95 Italian innovation
survey. The empirical evidence shows that the impact of innovation on
employment varies greatly across industries and according to the level of
qualification of the labour force. Among small firms and in less than a
half of the service sectors considered, the employment impact of
innovation is positive, particularly in industries that have a strong
scientific and technological base. A negative impact of innovation on
employment is, on the contrary, found among large firms, capital-intensive
industries and in all financial-related sectors (banking, insurance and
other financial services). In these industries the labour-saving effect of
innovation seems to be linked to the widespread use of Information and
Communication Technologies (ICTs) which displace the least qualified
employees. In the case of Italy, an overall negative impact of innovation
on employment is found. It is argued that this result is affected by the
Italian economy's specialisation in the most traditional service
industries.
Journal: International Review of Applied Economics
Pages: 309-318
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136136
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136136
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:309-318
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Sellenthin
Author-X-Name-First: Mark
Author-X-Name-Last: Sellenthin
Author-Name: Leif Hommen
Author-X-Name-First: Leif
Author-X-Name-Last: Hommen
Title: How innovative is Swedish industry? A factor and cluster analysis of CIS II
Abstract:
This article provides a description and analysis of innovation in Swedish
manufacturing, based on data generated by the second Community Innovation
Survey (CIS II). Following a brief introduction, CIS II, which is the
first CIS survey ever conducted in Sweden, is discussed. The purpose is to
indicate the relevance and significance of data from CIS II. Methodology
is then addressed and a sectoral analysis of the data from CIS II is
presented. The important dimension of the direction of innovative effort
in different sectors is addressed by means of a cluster analysis that
distinguishes between strategies regarding markets and competitors. A
summary and a section on policy implications conclude.
Journal: International Review of Applied Economics
Pages: 319-331
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136145
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136145
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:319-331
Template-Type: ReDIF-Article 1.0
Author-Name: Fulvio Castellacci
Author-X-Name-First: Fulvio
Author-X-Name-Last: Castellacci
Title: Technology Gap and Cumulative Growth: Models and outcomes
Abstract:
Addressing the question of why productivity growth rates differ between
countries from a disequilibrium standpoint, the paper explores the
possibility of combining in a single formalisation two different but
complementary theories of technical change and macroeconomic
growth--namely the Kaldorian idea of cumulative causation and the
technology-gap approach to economic growth. In order to investigate the
complementarities between these two approaches, a two-country
macroeconomic model of technology-gap and cumulative growth is presented.
The analytical solutions of the model for the growth rates of productivity
and demand, and the dynamics of the technology-gap show the existence of a
large set of possible outcomes: the follower country can fall behind,
partly or totally catch up, or overtake the leader. Moreover, even if the
follower is able to close the technology-gap, it will not necessarily be
able to close the growth rate differential. The empirical evidence on the
experience of 26 OECD countries during 1991-99 shows the relevance of the
model for explaining the recent performance of technological activities
and productivity growth.
Journal: International Review of Applied Economics
Pages: 333-346
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136154
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136154
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:333-346
Template-Type: ReDIF-Article 1.0
Author-Name: Mariacristina Piva
Author-X-Name-First: Mariacristina
Author-X-Name-Last: Piva
Author-Name: Marco Vivarelli
Author-X-Name-First: Marco
Author-X-Name-Last: Vivarelli
Title: The Skill Bias: Comparative evidence and an econometric test
Abstract:
Many empirical studies have shown how technological change,
organisational change and globalisation can be alternatively (or jointly)
seen as causes of skill bias. In this paper, after discussing some
evidence on the G7 countries which shows a clear upskilling trend in
manufacturing industries over the 1980s, an illustrative example is
provided.The panel analysis of a sample of 488 Italian manufacturing firms
shows how the upskilling trend of employment is a function of the
reorganisational strategy adopted by firms, while technological change and
FDI seem to play negligible roles.
Journal: International Review of Applied Economics
Pages: 347-357
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136163
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136163
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:347-357
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Castellani
Author-X-Name-First: Davide
Author-X-Name-Last: Castellani
Title: Firms' Technological Trajectories and the Creation of Foreign Subsidiaries
Abstract:
Multinational firms are traditionally considered as firms possessing some
technological lead and which are exploiting this proprietary advantage in
international markets, but a growing literature has been arguing that
multinational firms set up foreign subsidiaries not only as a means to
exploit their own technology but also to enrich it. This paper provides
some empirical evidence for this. The aim of the paper is to assess the
effects of the creation of foreign subsidiaries on firms' technological
trajectories.The idea is that by setting up subsidiaries in foreign
countries, multinational firms can achieve some form of reverse technology
transfer that can be expected to affect their technological
trajectories.The empirical investigation uses data from 1992 to 1996 for a
sample of 2185 Italian manufacturing firms. Results support the view that
the creation of manufacturing subsidiaries has a positive impact on firms'
productivity trajectories and this positive impact is greater when
subsidiaries are created in regions where knowledge spillovers are
expected to be relatively higher, such as the US.
Journal: International Review of Applied Economics
Pages: 359-371
Issue: 3
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210136172
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136172
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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:359-371
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Author-Name: Philip Tomlinson
Author-X-Name-First: Philip
Author-X-Name-Last: Tomlinson
Title: Revisiting the Roots of Japan's Economic Stagnation: The role of the Japanese corporation
Abstract:
For a long period in the 20th century, the development of the Japanese
corporation appeared congruent with the development of the Japanese
economy. The growth-maximising behaviour of the Japanese corporation and
the preference for internal growth over acquisitions (see Odagiri, 1992)
appeared to suit the long-term ambitions of Japan. Now, that formerly
clear connection between the ambitions of corporate Japan and the Japanese
public interest is no longer so clear. Increasingly, the global ambitions
of the corporation appear as an impediment to Japan's economic
development. By favouring the development of large-scale transnational
corporations, Japanese industrial policy-making appears to have contained
a fundamental flaw. Japan is now dominated by large-scale organisations
with global ambitions, controlled by corporate elites. It is unlikely that
their strategic decisions will correspond with the wider public interest,
which raises the possibility that Japan is now afflicted with 'strategic
failure'. Other examples from around the world suggest that Japan is not
unique in this respect. Alternative ways forward are suggested.
Journal: International Review of Applied Economics
Pages: 373-390
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161129
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:373-390
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Author-Name: Roland Craigwell
Author-X-Name-First: Roland
Author-X-Name-Last: Craigwell
Title: Market Power and Interest Rate Spreads in the Caribbean
Abstract:
This paper investigates the determinants of the high bank spreads
observed in the Caribbean over the financially liberalised period of the
1990s. A theoretical model is formulated and tested using panel data.
Among other factors, market power is found to be one of the main
influences on these large spreads. A major conclusion of the paper is that
to reduce interest rate spreads, alternatives to commercial banks' loans
should be encouraged, and the recent move to impose monetary regulations
on non-banks be discouraged.
Journal: International Review of Applied Economics
Pages: 391-405
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161138
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:391-405
Template-Type: ReDIF-Article 1.0
Author-Name: Fiorella Kostoris Padoa Schioppa
Author-X-Name-First: Fiorella Kostoris Padoa
Author-X-Name-Last: Schioppa
Author-Name: Claudio Lupi
Author-X-Name-First: Claudio
Author-X-Name-Last: Lupi
Title: Family Income and Wealth, Youth Unemployment and Active Labour Market Policies
Abstract:
This paper studies some features of unemployment in Italy using cross
section individual micro data. Since unemployment is particularly harsh
with respect to youths, interest is focused on 15-29-year-old youngsters.
The analysis is carried out using standard logit models and the results
show that personal and family characteristics play an essential role in
shaping youth activity and unemployment rates of short and long duration,
together with product market conditions and labour market features. In
particular, the income effect seems relevant for participation decisions,
while the family wealth helps in reducing youth unemployment. Various
policy instruments might be able to reduce youth unemployment, especially
if these instruments are targeted through means-testing on family income
and wealth and through a proper distinction between the first job seekers
and the strictly unemployed.
Journal: International Review of Applied Economics
Pages: 407-416
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161147
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:407-416
Template-Type: ReDIF-Article 1.0
Author-Name: Autar Dhesi
Author-X-Name-First: Autar
Author-X-Name-Last: Dhesi
Title: Expected Life-earnings Paths with and without Higher Education: The case of India
Abstract:
The paper analyses students' expectations of earnings with and without
higher education at three career points: at entry to the labour force, at
the five year point, and career peak, constructing paths of expected
earnings. The estimated expected internal rates of return to investment in
different types of higher education are quite high. Considering ratios of
expected peak-year to entry earnings, the highest gradient is in the case
of specialised/professional education. Similarly for the case of students
of urban origin as compared with those of semi-urban or rural origin.
Likewise, the gradient is relatively high in the case of students with an
English medium of study compared with the case of students with Punjabi or
Hindi. As expected, the gradient is higher for those who aspire to higher
education than those who do not, in all three types of higher education.
The association between expected peak earnings and the proportion of gains
in earnings that take place in the first five years is negative in all
cases; only expectations of sustained growth in earnings lead to the
highest predicted peak earnings levels. The regression results suggest
that socio-economic background, social capital, ability, and
school-related variables significantly influence the formation of
expectations about earnings.
Journal: International Review of Applied Economics
Pages: 417-433
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161156
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:417-433
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Cook
Author-X-Name-First: Christopher
Author-X-Name-Last: Cook
Title: Public Versus Private Savings Rates in LDCs: Please Effects in recent development
Abstract:
Please Effects, first noted in the 1950s, refer to more vigorous tax
efforts having an adverse effect on overall savings in LDCs. It is argued
here that, by the 1980s, the reforms imposed by conditionality combined
with a less forgiving world economy should have led to significant
improvements in public savings performances such that Please Effects would
no longer be a widely observed phenomenon, and that perhaps even 'reverse'
Please Effects might now be observed. Based on a broadly specified
cross-country life cycle regression model, and samples ranging from 89 to
93 LDCs, no evidence whatsoever was found for Please Effects in both the
1980s and the 1990s. In fact, our results provided clear evidence for just
the opposite, although for tax policy purposes the reverse Please Effects
were not found to be especially large. Savings rates would typically rise
about 3% for a 10% rise in the tax/GDP ratio. It was concluded that those
who would argue for a greater public role in economies that are clearly
savings deficient may once again have a case if, as our results indicate,
increased taxation to fund social capital accumulation is not at the
expense of savings overall.
Journal: International Review of Applied Economics
Pages: 435-449
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161165
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:435-449
Template-Type: ReDIF-Article 1.0
Author-Name: Dionysios Chionis
Author-X-Name-First: Dionysios
Author-X-Name-Last: Chionis
Title: The Hysteretic Effects on the Real Exchange Rates
Abstract:
In this paper we investigate the dynamics developed from the exchange
rate relative price relationship using a hysteresis framework. The
rationale for such hysteretic effects is in terms of firms'
unresponsiveness to the exchange rate changes due to pricing to
market-type arguments.The empirical support of these ideas is derived by
applying a linear approximation of the hysteretic effects.We conclude that
the hysteretic effects are a source of non-linearity, strongly affecting
the long-run relationship of exchange rate and prices.
Journal: International Review of Applied Economics
Pages: 451-463
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161174
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:451-463
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Modelling the Persistence of Unemployment in Canada
Abstract:
The persistence of unemployment in Canada is examined in this article by
means of fractionally integrated techniques. Using Sowell's (1992)
procedure of estimating ARFIMA models by maximum likelihood along with
other techniques, we show that the order of integration of the series is
higher than one, implying that unemployment is a highly persistent
variable.
Journal: International Review of Applied Economics
Pages: 465-477
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161183
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:465-477
Template-Type: ReDIF-Article 1.0
Author-Name: Esra Erden
Author-X-Name-First: Esra
Author-X-Name-Last: Erden
Author-Name: Philip Kozel
Author-X-Name-First: Philip
Author-X-Name-Last: Kozel
Title: Contesting Neoliberal Globalisation: An egalitarian perspective
Abstract:
Journal: International Review of Applied Economics
Pages: 479-482
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161200
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:479-482
Template-Type: ReDIF-Article 1.0
Author-Name: Egon Matzner
Author-X-Name-First: Egon
Author-X-Name-Last: Matzner
Title: Arguments for a Re-regulation of Global Finance
Abstract:
Journal: International Review of Applied Economics
Pages: 483-492
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161219
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161219
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:483-492
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Roberts
Author-X-Name-First: Simon
Author-X-Name-Last: Roberts
Title: Addressing Lacunae of Neo-classical Economics: Firms, production and technology
Abstract:
Journal: International Review of Applied Economics
Pages: 493-496
Issue: 4
Volume: 16
Year: 2002
X-DOI: 10.1080/02692170210161228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161228
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Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:493-496
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Perraton
Author-X-Name-First: Jonathan
Author-X-Name-Last: Perraton
Title: Balance of Payments Constrained Growth and Developing Countries: An examination of Thirlwall's hypothesis
Abstract:
Thirlwall's hypothesis of balance of payments constrained growth has been
widely tested for developed countries, but much less for developing
countries. Further, previous tests have used dated estimates derived using
non-robust econometric techniques. After discussing the conditions under
which Thirlwall's hypothesis would be valid and the econometric issues
involved, this study reports error correction estimates of import and
export demand functions for a large sample of developing countries.
Deriving the long run income elasticities of demand from these functions,
the study reports tests for different specifications of Thirlwall's
hypothesis on this sample and finds some support for it.
Journal: International Review of Applied Economics
Pages: 1-22
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673169
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673169
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dunne
Author-X-Name-First: Paul
Author-X-Name-Last: Dunne
Author-Name: Sam Perlo-Freeman
Author-X-Name-First: Sam
Author-X-Name-Last: Perlo-Freeman
Title: The Demand for Military Spending in Developing Countries
Abstract:
Numerous studies have estimated demand for military expenditure in terms
of economic, political and strategic variables. Ten years after the end of
the Cold War, this paper attempts to ascertain if the new strategic
environment has changed the pattern of determinants, by estimating
cross-country demand functions for developing countries for periods during
and just after the Cold War. The results suggest that, for both periods,
military burden depended on neighbours' military spending and internal and
external conflict. Democracy and population both relate negatively to
military burden. There is little evidence of a change in the underlying
relationship between the periods.
Journal: International Review of Applied Economics
Pages: 23-48
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673166
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673166
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:23-48
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Archibugi
Author-X-Name-First: Daniele
Author-X-Name-Last: Archibugi
Author-Name: Giuseppe Ciccarone
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Ciccarone
Author-Name: Mauro Mare
Author-X-Name-First: Mauro
Author-X-Name-Last: Mare
Author-Name: Bernardo Pizzetti
Author-X-Name-First: Bernardo
Author-X-Name-Last: Pizzetti
Author-Name: Flaminia Violatiabstract
Author-X-Name-First: Flaminia
Author-X-Name-Last: Violatiabstract
Title: Triangular Relations in Public Service Economics
Abstract:
This paper critically re-examines the restructuring of public services.
Four main decision-making phases are identified: the public oversight to
be guaranteed to socially sensitive economic activities; the ways of
financing them; the economic organisation of the industry; and the
production decisions. By focusing on organisation, the paper reinterprets
the market structure in public service industries on the basis of the
interactions among three main players: users/citizens, the government and
the service supplier. It argues that the issue of public versus private
ownership has been overemphasised, and that an effective increase in
efficiency can be obtained by introducing appropriate incentives for both
public and business players. Instead of using a single policy instrument,
namely privatisation, public action ought to be informed by an array of
organisational solutions.
Journal: International Review of Applied Economics
Pages: 49-68
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673168
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:49-68
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Regional Economic Integration, the Environment and Community: East Asia and APEC
Abstract:
This paper argues that regional economic integration can be compatible
with concern for the environment in rapidly industrializing parts of the
developing world, but that this compatibility would be aided by
reconceptualizing the collective decision-making process in regional
economic communities in a manner that employs a plural subject concept of
the decision-making agent. The focus of the paper is the environmental
challenges faced by the East Asian members of the Asia Pacific Economic
Cooperation (APEC) forum. The plural subject concept is applied to the
problem of environmental 'super-externalities' faced by members of APEC.
The argument of the paper distinguishes between two concepts of trust, one
associated with non-cooperative game theory and instrumental rationality,
and one associated with an alternative form of rationality, termed
deontological rationality, developed in connection with the idea of the
plural subject. Cooperation in connection with the former is highly
fragile, but cooperation in connection with the latter offers promise on
account of the role it creates for obligations upon APEC members.
Journal: International Review of Applied Economics
Pages: 69-83
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673165
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:69-83
Template-Type: ReDIF-Article 1.0
Author-Name: Imam Alam
Author-X-Name-First: Imam
Author-X-Name-Last: Alam
Author-Name: Rahim Quazi
Author-X-Name-First: Rahim
Author-X-Name-Last: Quazi
Title: Determinants of Capital Flight: An econometric case study of Bangladesh
Abstract:
While Bangladesh remains steeped in staggering external debt, it is also
concurrently witnessing a substantial outflow of domestic capital. This
situation raises serious policy concerns for its development prospects.
This paper applies the Bounds testing and the Autoregressive Distributed
Lag procedures to confirm the existence of a long-run equilibrium
relationship between capital flight and its determinants, and to estimate
the long-run and short-run behavior of capital flight from Bangladesh. The
estimated results suggest that political instability is the single most
significant cause of capital flight from Bangladesh, while increases in
corporate income taxes, higher real interest rate differentials between
the capital-haven countries and Bangladesh, and lower GDP growth rates
also significantly contribute to capital flight.
Journal: International Review of Applied Economics
Pages: 85-103
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673164
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:85-103
Template-Type: ReDIF-Article 1.0
Author-Name: Kent Matthews
Author-X-Name-First: Kent
Author-X-Name-Last: Matthews
Title: VAT Evasion and VAT Avoidance: Is there a European Laffer curve for VAT?
Abstract:
This paper estimates the VAT revenue maximising rate of VAT for the
European Union for given conditions of non-compliance and other black
economy transactions. It estimates a Laffer curve for the standard rate of
VAT using a pooled sample of data of revenue statistics for 14 countries
in the EU. The results confirm that the efficiency of the VAT system
declines as the VAT rate increases. The decline in efficiency is due to a
mixture of a reduction in the VAT base, and VAT evasion and avoidance. As
a result of the single market, the EU Commission has proposed a common or
closely converged rate of VAT within Europe. The actual common rate of VAT
has yet to be decided. This paper contributes to this policy debate.
Journal: International Review of Applied Economics
Pages: 105-114
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/713673162
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713673162
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:105-114
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Review Article
Abstract:
Journal: International Review of Applied Economics
Pages: 115-119
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/714891068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/714891068
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:115-119
Template-Type: ReDIF-Article 1.0
Author-Name: John Grahl
Author-X-Name-First: John
Author-X-Name-Last: Grahl
Title: Review Article
Abstract:
Linda Clarke, Peter de Gijsel & Jorn Janssen (eds) (2000) The Dynamics of
Wage Relations in the New Europe (Dordrecht, Kluwer Academic)ISBN
0-7923-7742-7 £83 368 pp.
Journal: International Review of Applied Economics
Pages: 121-124
Issue: 1
Volume: 17
Year: 2003
X-DOI: 10.1080/714891067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/714891067
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Handle: RePEc:taf:irapec:v:17:y:2003:i:1:p:121-124
Template-Type: ReDIF-Article 1.0
Author-Name: D. Frantzen
Author-X-Name-First: D.
Author-X-Name-Last: Frantzen
Title: The Causality between R&D and Productivity in Manufacturing: An international disaggregate panel data study
Abstract:
This study analyses the causality between productivity and domestic and
foreign R&D on the basis of panel data with respect to 22 manufacturing
sectors in 14 OECD countries during the period 1972-94. A unit root
analysis shows that the relation between the log of total factor
productivity (TFP) and the logs of domestic and foreign R&D is
cointegrated. Causality tests are performed on corresponding dynamic VAR
and error correction augmented VAR models, estimated both on the total
panel and on 22 sub-panels, sector by sector. Their results show that,
although there are feedbacks, both on average and in a clear majority of
sectors the causation runs mainly from the R&D variables to TFP rather
than the other way round. This causation is, moreover, shown to be, in the
first place, long-run in nature. It is concluded that, when considered in
conjunction, these results suggest an essentially supply-type rather than
demand-pull kind of interpretation of the cointegrating relation between
TFP and R&D.
Journal: International Review of Applied Economics
Pages: 125-146
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064017
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:125-146
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Seguino
Author-X-Name-First: Stephanie
Author-X-Name-Last: Seguino
Author-Name: Maria Sagrario Floro
Author-X-Name-First: Maria Sagrario
Author-X-Name-Last: Floro
Title: Does Gender have any Effect on Aggregate Saving? An empirical analysis
Abstract:
This study investigates the effects of gender on aggregate saving. We
test the hypothesis that shifts in women's relative income, which can
affect their bargaining power within the household, have a discernible
impact on household saving and, by extension, gross domestic saving, due
to differing saving propensities by gender. The empirical analysis is
based on panel data for a set of semi-industrialised economies, covering
the period 1975-95. The results indicate that, as some measures of women's
relative income and bargaining power increase, gross domestic saving rates
rise. The implied gender disparity in saving propensities may be linked to
differences in saving motives based on gender roles, and well as divergent
experiences of economic vulnerability. These findings suggest the
importance of understanding gender differences in planning for savings
mobilisation and in the formulation of financial and investment policies.
Journal: International Review of Applied Economics
Pages: 147-166
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064026
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:147-166
Template-Type: ReDIF-Article 1.0
Author-Name: NoemI Levy
Author-X-Name-First: NoemI
Author-X-Name-Last: Levy
Author-Name: Guadalupe MANTEY
Author-X-Name-First: Guadalupe
Author-X-Name-Last: MANTEY
Title: Private Pension Funds in Oligopolistic Financial Markets: Some qualifications to conventional theory of financial development
Abstract:
The paper inquires into the efficiency of financial development policies
in economies where the financial sector is based on oligopolistic
commercial banking. In this case, interest rates on deposits may be set
below the level required to achieve balance of payments equilibrium, so
that banks are able to exact a risk free financial margin in their
holdings of government bonds. Under such circumstances, banks lack
incentives to place indirect debt in domestic security markets, as a means
of providing long-term finance; and private capital market deepening is
hindered. Pension fund privatisation, in this institutional environment,
does not relieve public finances, because the government must act as
issuer of last resort in order to stabilise the currency. This point is
illustrated with Mexican data, and some policy measures to deal with this
situation in developing economies are proposed.
Journal: International Review of Applied Economics
Pages: 167-180
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064035
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:167-180
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Holmes
Author-X-Name-First: Mark
Author-X-Name-Last: Holmes
Author-Name: Ping Wang
Author-X-Name-First: Ping
Author-X-Name-Last: Wang
Title: Oil Price Shocks and the Asymmetric Adjustment of UK Output: A Markov-switching approach
Abstract:
This paper examines the role played by real oil price shocks in
influencing the growth in UK GDP. Our particular interest is the
possibility that asymmetries might exist in such a relationship. Using
Hamilton's regime-switching estimation, we consider whether oil price
shocks influence both the deepness and duration of the business cycle. We
find that asymmetries arise insofar as oil price appreciation is most
likely to curtail the duration of the expansionary phase of the business
cycle. This result is in contrast to existing studies of the oil
price-macroeconomy relationship that have largely concerned the US.
Journal: International Review of Applied Economics
Pages: 181-192
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064044
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:181-192
Template-Type: ReDIF-Article 1.0
Author-Name: Don Bredin
Author-X-Name-First: Don
Author-X-Name-Last: Bredin
Author-Name: Stilianos Fountas
Author-X-Name-First: Stilianos
Author-X-Name-Last: Fountas
Author-Name: Eithne Murphy
Author-X-Name-First: Eithne
Author-X-Name-Last: Murphy
Title: An Empirical Analysis of Short-run and Long-run Irish Export Functions: Does exchange rate volatility matter?
Abstract:
We analyse the long-run and short-run relationship between merchandise
export volume and its determinants, foreign income, relative prices and
exchange rate volatility, using the techniques of cointegration and error
correction. The model was estimated for Irish exports and sectoral exports
SITC 0-4 and SITC 5-8 to the EU using quarterly data for the period
1978-1998. The sectoral classification corresponds to the exports of
mainly indigenous Irish firms and multinationals, respectively. We find
that the exchange rate volatility has no effect on the volume of trade in
the short-run but a significant positive effect in the long run. This is
true in the aggregate and for our sectoral classifications. We can
tentatively conclude that the decline in intra-EU exchange rate volatility
associated with the single currency will lead to a long-run fall in Irish
exports to the EU.
Journal: International Review of Applied Economics
Pages: 193-208
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064053
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:193-208
Template-Type: ReDIF-Article 1.0
Author-Name: Gianluigi Giorgioni
Author-X-Name-First: Gianluigi
Author-X-Name-Last: Giorgioni
Author-Name: Ken Holden
Author-X-Name-First: Ken
Author-X-Name-Last: Holden
Title: Does the Ricardian Equivalence Proposition Hold in Less Developed Countries?
Abstract:
The objective of this paper is to assess whether the Ricardian
Equivalence Proposition (REP) holds in developing countries. Prima facie,
since the REP requires a number of assumptions that might not appear to be
satisfied in developing countries, it seems that the REP should not hold.
However, the empirical evidence provided so far is mixed. In this paper,
the validity of the REP will be tested using panel data for ten developing
countries: Burundi, El Salvador, Ethiopia, Honduras, India, Morocco,
Nigeria, Pakistan, Sri Lanka and Zimbabw1e. The countries were chosen for
the availability of data and should reflect the various circumstances of
low-income countries. Despite the obvious limitation of the data available
and the diversity of the countries, the results provide some tentative
support for the REP for developing countries, at least warranting further
research.
Journal: International Review of Applied Economics
Pages: 209-221
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064062
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064062
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:209-221
Template-Type: ReDIF-Article 1.0
Author-Name: Egon Matzner
Author-X-Name-First: Egon
Author-X-Name-Last: Matzner
Title: Review Article
Abstract:
Journal: International Review of Applied Economics
Pages: 223-229
Issue: 2
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000064071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000064071
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Handle: RePEc:taf:irapec:v:17:y:2003:i:2:p:223-229
Template-Type: ReDIF-Article 1.0
Author-Name: Santonu Basu
Author-X-Name-First: Santonu
Author-X-Name-Last: Basu
Title: Why do Banks Fail?
Abstract:
Banks advance loans in the absence of precise knowledge in relation to
the outcome of borrowers' projects. Consequently, uncertainty in relation
to loan repayment emerges. Thus, banks introduce the 'credit standard' as
insurance against loans, so that should borrowers' projects fail,
borrowers have an alternative means of honouring their debt obligations.
It is argued in this paper that in the competitive atmosphere under which
this sector operates, it is not possible to secure the entire loan
portfolio by introducing the credit standard, and in recent years this
difficulty has been further exacerbated by financial liberalisation, which
may have caused bank failures.
Journal: International Review of Applied Economics
Pages: 231-248
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090469
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090469
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:231-248
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Nell
Author-X-Name-First: Kevin
Author-X-Name-Last: Nell
Title: A 'Generalised' Version of the Balance-of-Payments Growth Model: An application to neighbouring regions
Abstract:
This paper applies a 'generalised' version of Thirlwall's
balance-of-payments (BOP) constrained growth model by testing for long-run
relationships between the output growth rates of OECD countries and two
neighbouring regions; South Africa (SA) and the rest of the Southern
African Development Community (RSADC). The empirical results find strong
support for the 'generalised' BOP growth model, which stresses the mutual
interdependence of the world economy where one country's growth rate
depends on others'. Although the policy implications are not mutually
exclusive, they may be viewed from the individual perspectives of SA and
RSADC. SA is only BOP constrained with respect to OECD. The message to
SA's policy makers is that faster growth rates may be the result of an
improvement in the structural demand features of its exports to OECD.
RSADC is only BOP constrained with respect to SA. Growth-promoting
policies in SA may have a high and positive impact on the whole SADC
region. Policy-makers in RSADC, however, are advised to reduce their
dependence on SA by improving the structural demand features of their
exports to OECD.
Journal: International Review of Applied Economics
Pages: 249-267
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090478
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:249-267
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Ibarra
Author-X-Name-First: Carlos
Author-X-Name-Last: Ibarra
Title: Slow Growth, Trade Liberalisation and the Mexican Disease: A medium-term macroeconomic model with an application to Mexico
Abstract:
The purpose of this paper is to analyse Mexico's medium-term
macroeconomic outlook, from the vantage point of the country's recent
development. The analysis is carried out within a formal model for the
determination of the rates of employment and inflation under conditions of
external and internal balance. In equilibrium, the real wage and the rates
of employment and inflation depend inter alia on the level of labour
productivity, the ratio of foreign debt to domestic output, and the
foreign trade regime. Econometric tests based on Mexican data support the
model's basic postulates and, in addition, reveal the presence of
structural change, linked to trade reform, in the trade balance and the
manufactures' productivity growth equations. The macroeconomic
implications of such parameter changes are discussed with the help of the
analytical model developed.
Journal: International Review of Applied Economics
Pages: 269-292
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090487
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090487
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:269-292
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Orhan Kara
Author-X-Name-First: Orhan
Author-X-Name-Last: Kara
Title: Relative Responsiveness of Trade Flows to a Change in Prices and Exchange Rate
Abstract:
A country can restrict her imports by imposing tariffs and stimulating
her exports by providing subsidies. The same goal could be achieved
through devaluation. One policy question that we face is the time it takes
for either policy to affect the trade flows. We investigate here the
relative responsiveness of the trade flows to a change in relative prices
versus to a change in exchange rate. After estimating an error-correction
version of import and export demand functions for nine industrial
countries, unlike earlier studies that employed non-stationary data, our
findings indicate that there is no specific answer and trade flows of
different countries react differently.
Journal: International Review of Applied Economics
Pages: 293-308
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090496
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090496
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:293-308
Template-Type: ReDIF-Article 1.0
Author-Name: Turan Subasat
Author-X-Name-First: Turan
Author-X-Name-Last: Subasat
Title: Does the Dollar Index Really Measure Outward Orientation?
Abstract:
This paper assesses an important attempt to measure 'trade orientation'
by a World Bank economist, David Dollar. Recognising the difficulties in
measuring trade openness, Dollar (1992) produced an index of outward
orientation. He adjusted national price levels with factor endowments, and
used the difference between actual and predicted price levels as a measure
of real exchange rate distortion. Although the 'Dollar index' was produced
almost ten years ago and has been subject to various criticisms, it still
remains the most popular measure of trade openness. First, this paper
argues that the critics have not been entirely successful in discrediting
the index. It goes on to produce alternative theoretical and empirical
evidence that suggests that the Dollar index has fundamental flaws, and
thus has no relevance to the debate on trade orientation and should be
abandoned.
Journal: International Review of Applied Economics
Pages: 309-326
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090504
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090504
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:309-326
Template-Type: ReDIF-Article 1.0
Author-Name: Juncal Cunnado
Author-X-Name-First: Juncal
Author-X-Name-Last: Cunnado
Author-Name: Fernando PErez De Gracia
Author-X-Name-First: Fernando PErez
Author-X-Name-Last: De Gracia
Title: Sacrifice Ratios: Some lessons from EMU countries, 1960-2001
Abstract:
This paper estimates the sacrifice ratios based on the Phillips curve.
Using annual data, we estimate individual and common sacrifice ratios for
EMU countries. In addition, we test whether the sacrifice ratio is stable
for the whole period, which includes years of both high and low inflation
rates, such as those observed after the European integration.
Journal: International Review of Applied Economics
Pages: 327-337
Issue: 3
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000090513
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000090513
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Handle: RePEc:taf:irapec:v:17:y:2003:i:3:p:327-337
Template-Type: ReDIF-Article 1.0
Author-Name: John Weeks
Author-X-Name-First: John
Author-X-Name-Last: Weeks
Title: Small manufacturing establishments in developing countries: An empirical analysis
Abstract:
There is considerable literature on the promotion of small and medium
establishments (SMEs) in developing countries. Rather little attention has
been given to the long-term performance of these in the development
process. This paper considers the small literature on the trends in the
SMEs' contribution to manufacturing in the long run, and the more recent
discussion of the effect of policy on these trends. Using considerably
more data than previous studies, the paper concludes that (1) it appears
that the importance of SMEs tends to decline in early stages of
development (as others have suggested), but that this is reversed as
countries reach middle-income status, and (2) several of the
generalisations frequently made about the impact of policy variables on
SMEs cannot be sustained at the country level.
Journal: International Review of Applied Economics
Pages: 339-359
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118710
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118710
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:339-359
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Author-Name: Kristen Leblond
Author-X-Name-First: Kristen
Author-X-Name-Last: Leblond
Title: The phillips curve and US macroeconomic performance during the 1990s
Abstract:
This paper identifies two competing accounts of recent US macroeconomic
performance, both of which are capable of explaining the concurrence of
low unemployment and low inflation experienced by the US after 1995.
Econometric evidence provides partial support for both views, establishing
that while there has been no change in the position of the long run
Phillips curve in the US during the 1990s, this long run Phillips curve is
likely not vertical. These results suggest that recent US macroeconomic
performance is not sustainable and that US policy makers ultimately face a
choice between higher unemployment or higher inflation in the long run.
Journal: International Review of Applied Economics
Pages: 361-376
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118729
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118729
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:361-376
Template-Type: ReDIF-Article 1.0
Author-Name: Thanasis Maniatis
Author-X-Name-First: Thanasis
Author-X-Name-Last: Maniatis
Title: The net social wage in greece 1958-95
Abstract:
The object of this paper is to assess the net distributive impact of
state expenditures and revenues on labour income in Greece for the 1958-95
period. This effect is measured by the net social wage defined as the
difference between the total benefits received by labour from state
spending and the labour taxes. We also discuss certain issues related to
the empirical methodology employed in the present and similar studies and
the way its inconsistent use has affected inter-country comparisons of the
net social wage in the literature. Our empirical findings for Greece
indicate that for the entire period no redistribution of income in favour
of labour has taken place via the actions of the state. The average net
social wage is very close to zero even though during the last decade we
observe an increasing involvement of the state in the reproduction of
labour. The positive net social wage of the few recent years coincided
with high public deficits and appears to be a result of slow growth, high
unemployment rates and compensation for the adverse developments for
labour in the market distribution of income.
Journal: International Review of Applied Economics
Pages: 377-398
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118738
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118738
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:377-398
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Stephan
Author-X-Name-First: Andreas
Author-X-Name-Last: Stephan
Title: Assessing the contribution of public capital to private production: Evidence from the German manufacturing sector
Abstract:
Using time-series cross-section data from the manufacturing sector of the
11 West German 'Bundeslander' (Federal States) from 1970 to 1996, I
examine the impact of public capital on private production. My econometric
analysis explicitly takes into account four of the most frequent
specification issues in the context of time-series crosssection data
analysis: serial correlation, groupwise heteroscedasticity,
cross-sectional correlation and non-stationarity of data. For all
approaches and tested specifications, I find that public capital is a
significant input for production in the manufacturing sector. Moreover, I
find that differences in public capital endowment can explain long-term
differences in productivity across the Bundeslander. One tentative
conclusion that can be drawn from this finding is that differences in
public capital endowment might also explain a part of the still-existing
productivity gap between manufacturing in East and West Germany. However,
I emphasise that the existence of positive effects of public capital on
private production is a necessary, but not a sufficient condition for
concluding that public investments should be boosted in the future.
Journal: International Review of Applied Economics
Pages: 399-417
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118747
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118747
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:399-417
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Maudos
Author-X-Name-First: Joaquin
Author-X-Name-Last: Maudos
Author-Name: Jose Manuel Pastor
Author-X-Name-First: Jose Manuel
Author-X-Name-Last: Pastor
Author-Name: Lorenzo Serrano
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Serrano
Title: Human capital in OECD countries: Technical change, efficiency and productivity
Abstract:
The aim of this paper is to analyse the role of human capital in the
productivity gains of the OECD countries in the period 1965-90, breaking
down the productivity gains into technical change and gains in efficiency.
For this purpose we use both a stochastic frontier approach and a
non-parametric approach (DEA) and calculate Malmquist indices of
productivity. The results obtained indicate the existence of both a level
effect (a higher level of human capital raises labour productivity) and a
rate effect (a higher level of human capital affects positively the rate
of technical change) associated with human capital. The differences among
countries in endowments of human capital have worked against labour
productivity convergence, since the richer countries, thanks to their
greater endowment of human capital, have experienced higher rates of
technical change.
Journal: International Review of Applied Economics
Pages: 419-435
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118756
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118756
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:419-435
Template-Type: ReDIF-Article 1.0
Author-Name: Jari RitsilAa
Author-X-Name-First: Jari
Author-X-Name-Last: RitsilAa
Author-Name: Mika Haapanen
Author-X-Name-First: Mika
Author-X-Name-Last: Haapanen
Title: Where do the highly educated migrate? Micro-level evidence from finland
Abstract:
This paper analyses the role which migration of highly educated labour
plays in human capital reallocation. The study focuses on actual migrants,
examining the direct effect of educational attainment on destination
choices. The paper uses the ordered probability model and a micro-level
data set in econometric analyses. Individual level investigations of
migrants show that highly educated migrants are likely to move to urban
regions. As a result, the reallocation of highly educated labour, and
thereby also the redistribution of human capital, seems to be taking place
in Finland.
Journal: International Review of Applied Economics
Pages: 437-448
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118765
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:437-448
Template-Type: ReDIF-Article 1.0
Author-Name: Sushanta Mallick
Author-X-Name-First: Sushanta
Author-X-Name-Last: Mallick
Title: In search of a third way: Between liberalization and intervention
Abstract:
Journal: International Review of Applied Economics
Pages: 449-450
Issue: 4
Volume: 17
Year: 2003
X-DOI: 10.1080/0269217032000118774
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000118774
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Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:449-450
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Review Article
Abstract:
Journal: International Review of Applied Economics
Pages: 1-4
Issue: 1
Volume: 18
Year: 2004
X-DOI: 10.1080/0969217032000148681
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0969217032000148681
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-4
Template-Type: ReDIF-Article 1.0
Author-Name: Andong Zhu
Author-X-Name-First: Andong
Author-X-Name-Last: Zhu
Author-Name: Michael Ash
Author-X-Name-First: Michael
Author-X-Name-Last: Ash
Author-Name: Robert Pollin
Author-X-Name-First: Robert
Author-X-Name-Last: Pollin
Title: Stock Market Liquidity and Economic Growth: a Critical Appraisal of the Levine/Zervos Model
Abstract:
Levine & Zervos (1998) presented cross-country econometric evidence
showing that, in a sample of 47 countries, stock market liquidity
contributed a significant positive influence on GDP growth between
1976-93. We show that the Levine-Zervos results are not robust to
alternative specifications because of the incomplete manner in which they
control for outliers in their data. We show that when one properly
controls for outliers, stock market liquidity no longer exerts any
statistically observable influence on GDP growth.
Journal: International Review of Applied Economics
Pages: 1-8
Issue: 1
Volume: 18
Year: 2004
Keywords: Stock market, economic growth,
X-DOI: 10.1080/0269217032000148645
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148645
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-8
Template-Type: ReDIF-Article 1.0
Author-Name: Constantinos Alexiou
Author-X-Name-First: Constantinos
Author-X-Name-Last: Alexiou
Title: An Econometric Investigation into the Macroeconomic Relationship between Investment and Saving: Evidence from the EU Region
Abstract:
Within the EU region, the emerging policy orientation of pursuing
balanced or in-surplus budgets as a means of revitalising investment has
dominated economic policy. Nonetheless, the notion that saving must be
boosted in order to expand investment, is a contention that has to be
taken with a 'pinch of salt'. This study, by elaborating on the causal
dimension between investment and saving, provides econometric evidence on
the basis of which investment is a variable of the utmost importance.
Journal: International Review of Applied Economics
Pages: 1-14
Issue: 1
Volume: 18
Year: 2004
Keywords: Investment, saving, European Union, VAR,
X-DOI: 10.1080/0269217032000148663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148663
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-14
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Fontana
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Fontana
Author-Name: Alfonso Palacio-Vera
Author-X-Name-First: Alfonso
Author-X-Name-Last: Palacio-Vera
Title: Monetary Policy Uncovered: Theory and Practice
Abstract:
This paper discusses the current 'new consensus' view on monetary policy
and the theoretical framework on which that practical view relies, namely,
the 'targets-and-instrument approach'. We argue that in the modern world
of financial innovation and liability management central banks cannot
choose between an interest rate-targeting policy and a money-targeting
policy. A money-targeting regime is not desirable, if not unfeasible. In
addition, in the context of Poole's approach to the 'instrument' problem,
the implementation of a money-targeting regime would raise the expected
value of the loss function of the central bank and would thus shift the
balance in favour of an interest-rate targeting regime.
Journal: International Review of Applied Economics
Pages: 1-19
Issue: 1
Volume: 18
Year: 2004
Keywords: Monetary policy, Poole's approach, Post Keynesian economics, endogenous money,
X-DOI: 10.1080/0269217032000148627
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148627
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-19
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weller
Author-X-Name-First: Christian
Author-X-Name-Last: Weller
Author-Name: Laura Singleton
Author-X-Name-First: Laura
Author-X-Name-Last: Singleton
Title: Political Freedom, External Liberalization and Financial Stability
Abstract:
The chance of financial crises has grown in emerging economies in recent
decades. Increasingly, the interest has shifted away from market-based
reforms, such as more transparency, towards potentially stabilizing
institutions. Among these institutions are better political freedoms, as
they could help to foster stronger and more stable domestic demand growth.
Using data from the IMF and Freedom House, we test the effectiveness of
political freedoms, in particular of civil liberties and political rights,
in reducing the chance of banking and currency crises. Our results show
that more civil liberties, which are closely linked to worker rights,
lower the chance of banking and currency crises, while political rights
have no effect on the chance of financial crises. Also, this effect
disappears in more open economies, likely due to increased capital
mobility.
Journal: International Review of Applied Economics
Pages: 1-22
Issue: 1
Volume: 18
Year: 2004
Keywords: Banking crisis, currency crisis, labor standards, emerging economies,
X-DOI: 10.1080/0269217032000148636
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148636
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Dopke
Author-X-Name-First: Jorg
Author-X-Name-Last: Dopke
Title: How Robust is the Empirical Link between Business-Cycle Volatility and Long-Run Growth in OECD Countries?
Abstract:
It has been argued that business-cycle volatility dampens growth. This
paper argues that this is no stylised fact. A review of the literature
reveals that arguments in favour of no, or even a positive, impact of
business-cycle volatility on growth are as convincing as the arguments
pointing in the other direction. Empirical evidence using annual data for
24 OECD countries from 1960 to 2000, based on robust cross-country
regressions and panel models, raises doubts about a clear negative impact
of volatility on growth. Moreover, the hypothesis of Granger-non-causality
of business-cycle volatility for growth cannot be rejected.
Journal: International Review of Applied Economics
Pages: 1-23
Issue: 1
Volume: 18
Year: 2004
Keywords: Business-cycle volatility, growth, empirical test,
X-DOI: 10.1080/0269217032000148672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148672
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Handle: RePEc:taf:irapec:v:18:y:2004:i:1:p:1-23
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Explaining European Unemployment: Testing the NAIRU Hypothesis and a Keynesian Approach
Abstract:
The aim of the paper is to compare the NAIRU hypothesis regarding
European unemployment and a Keynesian approach to the issue and to
evaluate them econometrically. For the NAIRU explanation, wage push
variables are key in explaining the rise of European unemployment, for a
Keynesian approach it is capital accumulation that is key. The theories
are tested using time series data for Germany, France, Italy, the UK and
the USA, using the seemingly unrelated regression method (SUR).
Unemployment benefits, union density and the tax wedge are used as wage
push variables, and the growth of business capital stock as the
accumulation variable. The NAIRU specification performs poorly, with only
the tax wedge having a positive effect on unemployment as predicted and
only unemployment benefits having a negative effect on employment growth.
However the results are not robust to changes in the specification. The
Keynesian approach is more successful, with capital accumulation being
statistically significant in all countries and robust to changes in the
specification. Moreover, it can be pooled across countries.
Journal: International Review of Applied Economics
Pages: 1-26
Issue: 1
Volume: 18
Year: 2004
Keywords: Unemployment, NAIRU, Keynesian theory, labor market flexibility, capital accumulation,
X-DOI: 10.1080/0269217032000148618
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0269217032000148618
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Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Gabriel Rodriguez
Author-X-Name-First: Gabriel
Author-X-Name-Last: Rodriguez
Author-Name: Mario Seccareccia
Author-X-Name-First: Mario
Author-X-Name-Last: Seccareccia
Title: Similitudes and Discrepancies in Post-Keynesian and Marxist Theories of Investment: A Theoretical and Empirical Investigation
Abstract:
There has been a substantial amount of convergence between post-Keynesian
and Marxist economics, the writings of Kalecki being common ground for
both traditions. Still, some differences remain. While authors in both
traditions seem to agree to a large extent on short-period issues,
long-period matters relating to the role of saving, the rate of profit,
inflation, crowding out, excess money supply, are still contentious. All
this seems to depend on the exact form taken by the investment function,
more specifically the role of capacity utilization. Four different
equations are set up to be tested, two of which correspond to two variants
of the Marxist view, while the other two equations correspond to a naive
and a sophisticated Kaleckian view, the latter being based on hysteresis.
The equations are tested on three sets of annual Canadian data. Various
statistical tests are applied to all four equations in an effort to rank
them, notably information and encompassing tests. The Kaleckian equation
with hysteresis generally comes out empirically with the preferred
statistical properties, when manufacturing data on actual rates of capital
accumulation are considered separately or when both realized and intended
rates of investment for the total industrial sector are used.
Journal: International Review of Applied Economics
Pages: 127-149
Issue: 2
Volume: 18
Year: 2004
Keywords: Investment functions, post-Keynesian economics, Marxist economics, encompassing tests,
X-DOI: 10.1080/0269217042000186697
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:127-149
Template-Type: ReDIF-Article 1.0
Author-Name: Janine Berg
Author-X-Name-First: Janine
Author-X-Name-Last: Berg
Author-Name: Dante Contreras
Author-X-Name-First: Dante
Author-X-Name-Last: Contreras
Title: Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96
Abstract:
This paper tests whether a wage curve—a negative relationship
between the level of unemployment and the level of pay—existed in
Chile during 1957-96. The analysis is divided into two periods. For
1957-73, during inward-led development, we reject the existence of a wage
curve. For 1974-96, when the economy opened, state-run industries were
privatised and labour rights weakened, we find a wage curve of -0.08.
Based on this finding we conclude that the unemployment-pay elasticity in
the post-reform period is similar to the -0.07 to -0.10 wage curve found
in other western, capitalist countries. Disaggregating the analysis by
group, we find that women, non-university educated workers and public
sector workers have suffered more from unemployment. Yet informal sector
workers have not experienced pay drops as a result of unemployment,
contradicting the hypothesis that the informal sector acts as a buffer
during economic downturns.
Journal: International Review of Applied Economics
Pages: 151-165
Issue: 2
Volume: 18
Year: 2004
Keywords: Wage curve, unemployment, inequality, Chile,
X-DOI: 10.1080/0269217042000186651
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:151-165
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore D'Acunto
Author-X-Name-First: Salvatore
Author-X-Name-Last: D'Acunto
Author-Name: Sergio Destefanis
Author-X-Name-First: Sergio
Author-X-Name-Last: Destefanis
Author-Name: Marco Musella
Author-X-Name-First: Marco
Author-X-Name-Last: Musella
Title: Exports, Supply Constraints and Growth: An Investigation using Regional Data
Abstract:
In this work we first model the role of demand- and supply-side factors
(labour market adjustment, productive efficiency) in explaining economic
growth. Empirically testing the model, we evaluate why different growth
regimes may appear in the 20 Italian administrative regions. This exercise
uses a two-stage econometric approach. Estimates for the elasticity of
manufacturing output to exports are obtained from regional time series: a
significant long-run relationship indicates the existence of a
demand-constrained growth regime. We then ascertain whether the regional
dispersion of supply-side factors has an impact on the regional dispersion
of growth regimes. The empirical evidence supports our expectations of
strong regional differences. Southern regions are less likely to display
demand-constrained regimes. In explanation of these differences,
second-stage analysis reveals that a strong role is played by such
efficiency-enhancing factors as technological innovation, bank diffusion
and 'social capital'. No role is found for labour market rigidities.
Journal: International Review of Applied Economics
Pages: 167-189
Issue: 2
Volume: 18
Year: 2004
Keywords: Export-led growth, supply-constrained growth, dualistic development, long-run relationships,
X-DOI: 10.1080/0269217042000186660
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:167-189
Template-Type: ReDIF-Article 1.0
Author-Name: Ardeshir Sepehri
Author-X-Name-First: Ardeshir
Author-X-Name-Last: Sepehri
Author-Name: Saeed Moshiri
Author-X-Name-First: Saeed
Author-X-Name-Last: Moshiri
Title: Inflation-Growth Profiles Across Countries: Evidence from Developing and Developed Countries
Abstract:
There is growing evidence from multi-country studies indicating that
there is a turning point in the relationship between inflation and
economic growth beyond which the detrimental effects of high inflation
offset the stimulating effects of mild inflation on growth. However, it is
not clear whether it is appropriate to assume an identical turning point
in the inflation and growth relation across countries at various stages of
development. Using a non-linear specification and the data from four
groups of countries at various stages of development, this paper examines
the possibility for a family rather than a single inverted U relation
across countries at various stages of development. The estimated turning
points are found to vary widely from as high as 15% per year for the
lower-middle-income countries to 11% for the low-income countries, and 5%
for the upper-middle-income countries. No statistically detectable,
long-run relationship between inflation and growth is evident for the OECD
countries. The results indicate the potential bias in the estimation of
inflation-growth nexus that may result from combining various countries at
different levels of development. The existence of such a degree of
heterogeneity across countries at various stages of development also
suggests the inappropriateness of setting a single, uniform numerical
policy target applicable to all (developing) countries.
Journal: International Review of Applied Economics
Pages: 191-207
Issue: 2
Volume: 18
Year: 2004
Keywords: Inflation, growth, non-linearity, developed and developing countries,
X-DOI: 10.1080/0269217042000186679
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:191-207
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Zagler
Author-X-Name-First: Martin
Author-X-Name-Last: Zagler
Title: A New Look at Old Issues: Keynesian Unemployment Revisited
Abstract:
Economists have long sensed that the failure of goods markets to clear is
a prime reason for the emergence of unemployment. The novel feature of
this paper is that it discovers a new theoretical basis proving this
assumption. The paper claims that in a permanently growing economy,
unemployment may be due to the failure of the markets to provide consumers
with ever-new varieties of consumption goods. As the difference between
desired and available product widens, effective demand declines, leading
on the one hand to unemployment, which exhibits a decisive Keynesian
flavour as it is the result of goods markets failures, and on the other
hand to an increase in involuntary savings, which provide the financial
basis to foster innovation and growth. As the higher growth rate increases
the probability of failures in effective demand, it further increases
unemployment and increases involuntary savings, resulting in a finite
multiplier process.
Journal: International Review of Applied Economics
Pages: 209-224
Issue: 2
Volume: 18
Year: 2004
Keywords: Keynesian unemployment, effective demand, multiplier analysis, economic growth, product innovations,
X-DOI: 10.1080/0269217042000186685
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:209-224
Template-Type: ReDIF-Article 1.0
Author-Name: Toke Reichstein
Author-X-Name-First: Toke
Author-X-Name-Last: Reichstein
Author-Name: Michael Dahl
Author-X-Name-First: Michael
Author-X-Name-Last: Dahl
Title: Are Firm Growth Rates Random? Analysing Patterns and Dependencies
Abstract:
Using Danish firm data covering almost 9000 observations, we find
significant proof that firm growth cannot be considered as a simple Gibrat
growth process. Key variables, such as size, age, geographical location
and industry structure are tested against firm growth rates in turnover
and employment. Besides running the regressions on all observations, we
also consider and find highly interesting patterns in an industry context.
Thus, we conclude that firm growth cannot be considered idiosyncratic.
Firm growth is highly dependent on industry and geography.
Journal: International Review of Applied Economics
Pages: 225-246
Issue: 2
Volume: 18
Year: 2004
Keywords: Firm growth, geographical location, industrial differences,
X-DOI: 10.1080/0269217042000186705
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:225-246
Template-Type: ReDIF-Article 1.0
Author-Name: F. Voulgaris
Author-X-Name-First: F.
Author-X-Name-Last: Voulgaris
Author-Name: D. Asteriou
Author-X-Name-First: D.
Author-X-Name-Last: Asteriou
Author-Name: G. Agiomirgianakis
Author-X-Name-First: G.
Author-X-Name-Last: Agiomirgianakis
Title: Size and Determinants of Capital Structure in the Greek Manufacturing Sector
Abstract:
Increasing competition in the European Union (EU) and world markets
affects the Greek manufacturing sector. Capital structure is essential for
the survival, growth and performance of a firm. There has been a growing
interest worldwide in identifying the factors associated with debt
leverage. However, nothing has been done so far in contrasting small and
medium sized enterprises (SMEs) and large sized enterprises (LSEs) on
these aspects. SMEs are very important in the Greek manufacturing sector
for employment and growth. Empirical studies show that capital structure
and the factors affecting it vary with firm size. In this paper we
investigate the determinants of capital structure of Greek manufacturing
firms and formulate some policy implications that may improve the
financial performance of the sector. Our study utilizes panel data of two
random samples, one for SMEs and another for LSEs. The findings show that
profitability is a major determinant of capital structure for both size
groups. However, efficient assets management and assets growth are found
essential for the debt structure of LSEs as opposed to efficiency of
current assets, size, sales growth and high fixed assets, which were found
to affect substantially the credibility of SMEs. In an era of increasing
globalization, the findings imply that Greek SMEs should focus their
efforts on (a) increasing their cash flow capacity through better assets
management and achievement of higher exports and (b) ensuring good bank
relations, but at the same time, turn to alternative forms of financing.
Greek LSEs should adopt strategies that will lead to the improvement of
their competitiveness and securing new forms of financing. Government
policy measures aiming at structural changes and economic efficiency
should be designed clearly depending upon its targets: SMEs need policies
that will encourage information exchange and co-operation in local and
foreign markets and use of e-business, as well as, financial assistance.
On the other hand, LSEs should be supported by policies aimed at new
high-technology investments, entrance of new firms and foreign investments
in the country, tax alleviation and increase of R&D and training
expenditures. The upgrading and transparency of the capital market in
Greece is expected to improve the capital structure of Greek manufacturing
firms.
Journal: International Review of Applied Economics
Pages: 247-262
Issue: 2
Volume: 18
Year: 2004
Keywords: Capital structure, industry study, manufacturing, dynamic panel data, non-linear regression analysis,
X-DOI: 10.1080/0269217042000186714
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Handle: RePEc:taf:irapec:v:18:y:2004:i:2:p:247-262
Template-Type: ReDIF-Article 1.0
Author-Name: Jagjit Chadha
Author-X-Name-First: Jagjit
Author-X-Name-Last: Chadha
Author-Name: Charles Nolan
Author-X-Name-First: Charles
Author-X-Name-Last: Nolan
Title: Output, Inflation and the New Keynesian Phillips Curve
Abstract:
Explicit modelling of factor markets clarifies two fundamental aspects of
the New Keynesian Phillips Curve (NKPC). First, we clarify the
relationship between output and marginal cost. Second, for the NKPC in
inflation-output space, we identify the key stochastic influences on
inflation without recourse to ad hoc cost or excess demand shocks. The
econometric implementation of this clarified NKPC, which evolves strictly
according news on the stream of future marginal costs, allows us jointly
to derive inflation as a forecast of future variables. Our approach
clarifies the empirical successes and failures of the NKPC and allows us
to provide new aggregate evidence on the degree of price rigidity in the
UK economy.
Journal: International Review of Applied Economics
Pages: 271-287
Issue: 3
Volume: 18
Year: 2004
Keywords: Inflation, Phillips curve, marginal cost, output gap, factor markets, price stickiness,
X-DOI: 10.1080/0269217042000227060
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:271-287
Template-Type: ReDIF-Article 1.0
Author-Name: Romar Correa
Author-X-Name-First: Romar
Author-X-Name-Last: Correa
Author-Name: Tripati Rao
Author-X-Name-First: Tripati
Author-X-Name-Last: Rao
Title: Saving, Lending and Interest Rates: A Critique (of the Model) of Financial Liberalisation in India
Abstract:
The case for financial liberalisation is founded on the neoclassical
proposition that savings causes investment and that the interest rate
tends to move to equate the two. We find little support for this thesis
from the experience of India. Alternatively, we suggest that the Post
Keynesian approach that includes the liquidity preferences of banks might
be a fruitful way to examine the dynamics of an economy in transition.
Journal: International Review of Applied Economics
Pages: 289-299
Issue: 3
Volume: 18
Year: 2004
Keywords: Interest rate liberalisation, banks' liquidity preference,
X-DOI: 10.1080/0269217042000227105
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:289-299
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Steel
Author-X-Name-First: Douglas
Author-X-Name-Last: Steel
Author-Name: Alan King
Author-X-Name-First: Alan
Author-X-Name-Last: King
Title: Exchange Rate Pass-through: The Role of Regime Changes
Abstract:
We consider the effect on the degree of exchange rate pass-through of the
exchange rate regime in operation. We test the hypothesis that
pass-through will be lower under a float as firms may be reluctant to pass
appreciations or depreciations on to their customers when there is a
strong chance that they will be subsequently reversed. Taylor's hypothesis
that pass-through will be lower in a low-inflation environment is also
considered. Both hypotheses are assessed in relation to the price of
manufactured imports into New Zealand and we find that, whereas the shift
to a float dramatically lowered the degree of pass-through, the later
shift to a low-inflation regime has no significant additional effect on
the pass-through relationship.
Journal: International Review of Applied Economics
Pages: 301-322
Issue: 3
Volume: 18
Year: 2004
Keywords: Exchange rate pass-through, inflation, exchange rate regime,
X-DOI: 10.1080/0269217042000227114
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:301-322
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Fillat-Castejon
Author-X-Name-First: Carmen
Author-X-Name-Last: Fillat-Castejon
Author-Name: Jose Ma Serrano-sanz
Author-X-Name-First: Jose Ma
Author-X-Name-Last: Serrano-sanz
Title: Linder Revisited: Trade and Development in the Spanish Economy
Abstract:
The literature has tended to treat Linder's hypothesis with excessive
simplicity given the absence of any formalization for this intuitive
theory on trade potential in manufacturers, closely related to the
intra-industry trade paradigm. Against this background, in this paper we
first propose a complete empirical model of bilateral trade containing all
the determinants suggested by Linder, with special emphasis being placed
on non-homothetic preferences, national income distribution, international
economic convergence and geographic distance. We then test the model in an
appropriate case, namely that of Spain during the period of its economic
transition running from approximately 1959 to 1986. This period was
characterized by increasing openness and structural change, as well as by
convergence until that country's integration into the then European
Economic Community. The results confirm the importance of the
characteristics of internal demand, essentially of income distribution and
non-homothetic preferences. We find that trade horizons delimited by
bilateral proximity in development and geographical distance, together
with multilateral convergence in economic development are the main
indicators for selecting trade partners as markets and suppliers, thereby
reinforcing the idea that foreign markets can be considered as an
extension of the national market.
Journal: International Review of Applied Economics
Pages: 323-348
Issue: 3
Volume: 18
Year: 2004
Keywords: Economic development, international trade, demand, economic convergence,
X-DOI: 10.1080/0269217042000227097
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:323-348
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Optimising and Non-optimising Balance of Trade Models: A Comparative Evidence from India
Abstract:
This study estimates and compares the competing optimising and
non-optimising balance of trade models using Indian data. The results
obtained from the optimising model suggest that the prices relative to
user cost of capital and the real wealth lead to a deterioration, while
the real capital stock results in an improvement in trade balance. The
estimates of conventional non-optimising balance of trade model show the
significant effect of domestic income and real exchange rate and the
insignificant effect of world income on the balance of trade. The error
correction models reinforce the long run estimates and show the
significant effect of lagged equilibria on the balance of trade. The
non-nested hypothesis tests provide mixed evidence for the preference of
one model over the other. The J test suggests that the optimising model
outperforms the non-optimising model, while the F test shows that both
these models are acceptable in explaining the balance of trade.
Journal: International Review of Applied Economics
Pages: 349-368
Issue: 3
Volume: 18
Year: 2004
Keywords: Optimising model, non-optimising model, cointegration, error correction model, non-nested tests,
X-DOI: 10.1080/0269217042000227123
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:349-368
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: The J-Curve: Evidence from Fiji
Abstract:
This article provides new evidence on both long run and short-run
determinants of trade balance for Fiji and investigates evidence of
J-curve adjustment behaviour in the aftermath of a devaluation. We adopt a
partial reduced form model that models the real trade balance directly as
a function of the real exchange rate and real domestic and foreign
incomes. Cointegration analysis is based on a recently developed
autoregressive distributed lag approach—shown to provide robust
results in finite samples. The long run elasticities are also estimated
using a dynamic ordinary least squares approach and the Fully Modified
Ordinary Least Squares (FM-OLS) approach. Amongst our key results we find
that there is a long-run relationship between trade balance and its
determinants. There is evidence of the J-curve pattern; growth in domestic
income affects Fiji's trade balance adversely while foreign income
improves it.
Journal: International Review of Applied Economics
Pages: 369-380
Issue: 3
Volume: 18
Year: 2004
Keywords: Fiji, trade balance, cointegration, J-curve,
X-DOI: 10.1080/0269217042000227088
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:369-380
Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta
Author-X-Name-First: Jati
Author-X-Name-Last: Sengupta
Title: Dynamic Efficiency with Learning by Doing
Abstract:
This article focuses on the measurement of economic efficiency of firms
in an industry in a dynamic framework, where R&D investments and learning
experience play critical roles. Dynamic aspects of cost and production
efficiency and the impact of capital through learning by doing are
developed here in semiparametric forms. The production and cost frontiers
estimated here for the US computer industry over the period 1987-98 are
robust in the sense that no specific functional form need be assumed. The
empirical estimates measure the pattern of level and growth efficiency in
the computer industry, which has undergone rapid changes in recent years.
Journal: International Review of Applied Economics
Pages: 381-395
Issue: 3
Volume: 18
Year: 2004
Keywords: Dynamic efficiency, learning effects, scale economies,
X-DOI: 10.1080/0269217042000227079
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Handle: RePEc:taf:irapec:v:18:y:2004:i:3:p:381-395
Template-Type: ReDIF-Article 1.0
Author-Name: Karl Aiginger
Author-X-Name-First: Karl
Author-X-Name-Last: Aiginger
Title: The three tier strategy followed by successful European countries in the 1990s
Abstract:
In general, the economic performance of European countries was
disappointing in the 1990s. However, country differences increased, and in
some European countries economic growth matched US rates. This paper uses
a set of performance indicators to carve out a group of successful
European countries and to compare their economic strategies to those of
the more poorly performing, big continental economies. The analysis shows
that the successful countries implemented a policy mixture of cost
cutting, improving institutions, and investing in future growth. We
consider the first two strategy elements to be preconditions, while
investment in growth drivers such as research, education and technology
diffusion is the sufficient condition for long-run growth. The difference
between top and low performers is larger with respect to the dynamics of
future investment than in cost cutting. In research expenditures, the top
countries surpassed the big continental European countries in 1987, and
have been increasing their lead steadily since that time. They are welfare
states with a comprehensive social net, which they have maintained in
principle, while improving institutions and incentive structures. The
results are not in line with the usual twin hypotheses that high welfare
costs and insufficient labour market flexibility are the main culprits in
European underperformance.
Journal: International Review of Applied Economics
Pages: 399-422
Issue: 4
Volume: 18
Year: 2004
Keywords: Economic growth, country strategy, welfare reform,
X-DOI: 10.1080/0269217042000266418
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:399-422
Template-Type: ReDIF-Article 1.0
Author-Name: JOSE Ma ARRANZ
Author-X-Name-First: JOSE Ma
Author-X-Name-Last: ARRANZ
Author-Name: Juan Muro
Author-X-Name-First: Juan
Author-X-Name-Last: Muro
Title: Recurrent unemployment, welfare benefits and heterogeneity
Abstract:
The objective of this paper is to investigate the causes of the
recurrences of individuals in unemployment during benefit periods. So as
to attain this objective, we use administrative data from the Spanish
Employment Agency to estimate a duration model with multiple spells that
allows for unemployment state dependence through lagged unemployment
duration in order to distinguish the heterogeneity and scarring effects.
We find that an increase in the duration of previous unemployment benefit
periods lengthens the expected duration of future unemployment benefit
periods. True state dependence and heterogeneity, intensity of job search
and local labour market conditions are among the elements that explain
this unemployment state dependence.
Journal: International Review of Applied Economics
Pages: 423-441
Issue: 4
Volume: 18
Year: 2004
Keywords: State dependence, unemployment benefits, mixed proportional hazard model, unobserved heterogeneity,
X-DOI: 10.1080/0269217042000266436
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:423-441
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Rossi
Author-X-Name-First: Sergio
Author-X-Name-Last: Rossi
Title: Monetary integration strategies and perspectives of new EU countries
Abstract:
The poor record of economic convergence between the euro area and those
countries that joined the European Union (EU) in May 2004 raises serious
doubts about the possibility for the latter countries to adopt the
European single currency in the not too distant future. In fact, many new
EU countries would have to make considerable efforts in order to fulfil
all EMU criteria by the end of the present decade. These efforts could
lead to output and growth losses in these countries, which would run
counter to their catching-up process with respect to the rest of the EU.
To avoid a number of shortcomings elicited by the obligation to respect
the convergence criteria in the short term, and also to avoid the
financial instability risks implied by participation in the ERM II, this
paper suggests an alternative plan for integrating the new EU countries
monetarily. The plan consists in creating a European settlement agent in
charge of the final payment of the new EU countries' international
transactions. These transactions would be settled using an international
monetary standard whose creation would eliminate instability on the
foreign exchange market by its being the yardstick that the current
international monetary system lacks.
Journal: International Review of Applied Economics
Pages: 443-469
Issue: 4
Volume: 18
Year: 2004
Keywords: Euro, exchange rate strategies, international settlement systems, monetary policy, monetary union,
X-DOI: 10.1080/0269217042000266454
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:443-469
Template-Type: ReDIF-Article 1.0
Author-Name: Rikard Althin
Author-X-Name-First: Rikard
Author-X-Name-Last: Althin
Author-Name: Lars Behrenz
Author-X-Name-First: Lars
Author-X-Name-Last: Behrenz
Title: An efficiency analysis of Swedish employment offices
Abstract:
In this paper the method-production frontier analysis is used to analyse
differences in efficiency between different Swedish Employment Offices.
Earlier empirical labour market policy evaluation studies have utilised
various measures that, however, do not take into consideration differences
between organisation units. The main result of this investigation is that
employment offices show major differences in the efficiency with which
they carry out their job matching services.
Journal: International Review of Applied Economics
Pages: 471-482
Issue: 4
Volume: 18
Year: 2004
Keywords: Labour market policy, employment service, evaluation, nonparametric methods,
X-DOI: 10.1080/0269217042000266427
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:471-482
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Author-Name: Chang Shu
Author-X-Name-First: Chang
Author-X-Name-Last: Shu
Title: Consumption and stock markets in Asian economies
Abstract:
This paper investigates the causal links between stock market performance
and consumption for five Asian economies by applying the bound tests of
Pesaran et al. and lag augmented VAR of Toda and Yamamoto . We find
two-way causal relationships between stock market performance and
consumption in the cases of Hong Kong and Taiwan in the long run. The
existence of such two-way causal links indicates that stock market
performance and consumption mutually affect each other, implying that the
previous studies may have overestimated the wealth effect of the stock
markets without taking account of the reverse causation from consumption
to the stock markets. The short-run effect of the stock market on
consumption is more visible than the long-run effect in most of the sample
economies, suggesting that changes in consumption directly reflect stock
market fluctuations.
Journal: International Review of Applied Economics
Pages: 483-496
Issue: 4
Volume: 18
Year: 2004
Keywords: Asian economies, bound tests, consumption, lag-augmented VAR and stock markets,
X-DOI: 10.1080/0269217042000266435
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:483-496
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Feaver
Author-X-Name-First: Donald
Author-X-Name-Last: Feaver
Author-Name: Kenneth Wilson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Wilson
Title: The 'Market' for contingent protection
Abstract:
Anti-dumping and countervailing duty law and policy has, for several
decades, been one of the most contentious issues affecting trading
relations between members of the World Trade Organization. A major concern
among researchers and policy-makers is that the decision-making process of
regulatory authorities responsible for the administration of anti-dumping
and countervailing duty (AD/CVD) laws is biased in favour of providing
protectionist outcomes for national applicant firms and industries. In
this paper a new, broader approach for testing empirically AD/CVD outcome
decisions is advocated that analyses the provision of contingent
protection as the outcome of a quasi-market process involving supply and
demand behaviour played out in a quasi-market context susceptible to
market failure. This approach provides, arguably, a fairer test of AD/CVD
outcomes. Using data from Australia, historically a heavy user of AD/CVD
laws and policy, the paper finds support for the hypothesis that
regulatory process bias including administrative and statutory biases, are
important explanators of AD/CVD outcomes. Moreover the findings of this
paper suggest that failure to include variables capturing these effects in
other studies that have modelled empirically AD/CVD outcomes may have led
to missing variable bias and false conclusions.
Journal: International Review of Applied Economics
Pages: 497-509
Issue: 4
Volume: 18
Year: 2004
Keywords: Dumping, anti-dumping, contingent protection,
X-DOI: 10.1080/0269217042000266409
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Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:497-509
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Achim Truger
Author-X-Name-First: Achim
Author-X-Name-Last: Truger
Title: What ever happened to Germany? Is the decline of the former european key currency country caused by structural sclerosis or by macroeconomic mismanagement?
Abstract:
This paper challenges the institutional sclerosis view of the German
crisis according to which rigid labour markets and generous welfare state
institutions have driven Germany into its position as 'Europe's sick man'.
In general, the view is not convincing, because the underlying hypotheses
about the effects of labour market regulation and welfare state
institutions on employment and growth cannot unambiguously be derived from
modern labour market theory and are at least partially at odds with
accepted empirical findings. In particular, the explanation is
unconvincing, because in international comparison Germany's labour market
and welfare state institutions are simply not as sclerotic as often
supposed. In most of the aggregate indicators for structural rigidities
Germany is not worse than the average OECD or EU country. Moreover, there
is a macroeconomic explanation focusing on the combined effects of
restrictive and pro-cyclical monetary, fiscal and wage policies in Germany
that is broadly consistent with modern macroeconomic theory and is
supported by empirical data.
Journal: International Review of Applied Economics
Pages: 3-28
Issue: 1
Volume: 19
Year: 2005
Keywords: Labour market institutions, macroeconomic policy, employment determination, Germany, European Monetary Union,
X-DOI: 10.1080/0269217042000312588
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Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Bibow
Author-X-Name-First: Jorg
Author-X-Name-Last: Bibow
Title: Germany in crisis: the unification challenge, macroeconomic policy shocks and traditions, and EMU
Abstract:
Conventional wisdom blames Germany's ongoing economic and fiscal crisis
on the unification shock of the early 1990s and structural problems in
labour markets. Challenging this view, this paper offers a fresh
assessment that focuses on macroeconomic demand management. It is shown
that Germany's fiscal crisis cannot be attributed to unification per se;
it arose as a consequence of ill-guided macroeconomic policies pursued in
response to that event. Many structural problems that popped up along the
way were mere symptoms of persistent macroeconomic mismanagement and
protracted domestic demand stagnation. Arguably, systematically ill-guided
macroeconomic policies of this type are potent enough to wreck any real
world economy, no matter how flexible it may be. Because Germany provided
the blueprint for Europe's stability-oriented macroeconomic policy regime,
it comes as no surprise that a peculiar repeat of certain symptoms that
started to arise in Germany a decade ago may now be observed across the
euro area—protracted domestic demand weakness and inflation
stickiness because of 'tax-push inflation' in particular.
Journal: International Review of Applied Economics
Pages: 29-50
Issue: 1
Volume: 19
Year: 2005
Keywords: German unification, budgetary sustainability, tight money, policy inconsistency, EMU,
X-DOI: 10.1080/0269217042000312597
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Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Guy
Author-X-Name-First: Frederick
Author-X-Name-Last: Guy
Title: Earnings distribution, corporate governance and CEO pay
Abstract:
We investigate the relationship between earnings differentials and the
pay of CEOs of 190 British companies between 1970 and 1990. We find that
(i) changes in the differential between the 90th and 50th weekly earnings
percentiles for non-manual adult male workers [90:50] explain changes in
the level of real CEO salary and bonus in our sample of companies; (ii)
changes in this differential also account for changes in the elasticity of
CEO pay to firm size; (iii) a broader measure of earnings inequality does
far worse than 90:50 at explaining changes in both the level and the firm
size elasticity of CEO pay; (iv) fitting the model on data for 1970-1983
and predicting pay levels for the period starting with the widespread
adoption of executive share option schemes in 1984, we find a structural
break in the relationship between lower management pay differentials and
the pay of the CEO. We conclude first that top executive pay prior to 1984
was a stable function of both firm size and earnings differentials lower
on the administrative ladder, consistent with a hypothesis advanced by
Herbert Simon in 1957; and second that the use of share options from 1984
onward represents not simply a change in the mode of top executive
compensation, but a de-linking of the pay of top executives and that of
their subordinates.
Journal: International Review of Applied Economics
Pages: 51-65
Issue: 1
Volume: 19
Year: 2004
Keywords: Executive pay, earnings, inequality,
X-DOI: 10.1080/0269217042000312605
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Template-Type: ReDIF-Article 1.0
Author-Name: Sushanta Mallick
Author-X-Name-First: Sushanta
Author-X-Name-Last: Mallick
Author-Name: Brigitte Granville
Author-X-Name-First: Brigitte
Author-X-Name-Last: Granville
Title: How best to link poverty reduction and debt sustainability in IMF-World Bank models?
Abstract:
This paper attempts to provide an economic model in the context of
developing countries to address the policy strategies related to poverty
reduction. With a view to deal with the shortcomings of the existing
approaches as regards poverty reduction, this paper develops a model on
the basis of the policy framework of the IMF and the World Bank to show
how demand growth can be a crucial mechanism in determining the potential
rate of growth, and then to suggest ways in which
poverty—conceptualised officially in absolute terms with a
subjective cut-off point (e.g. US $1/$2 a day), and a new objective
measure in terms of consumption deprivation—can be linked with the
key policy variables contained in the adjustment programmes. A strategy of
investment in infrastructure and in human development, and improving
access to credit markets, particularly in rural areas to encourage or
'crowd in' private investment is a precondition for growth and poverty
alleviation. Debt relief can only provide a temporary, not a sustainable,
solution to the problem of reducing poverty.
Journal: International Review of Applied Economics
Pages: 67-85
Issue: 1
Volume: 19
Year: 2005
Keywords: Stabilisation, growth, poverty reduction, debt sustainability,
X-DOI: 10.1080/0269217042000312614
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Handle: RePEc:taf:irapec:v:19:y:2005:i:1:p:67-85
Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Altavilla
Author-X-Name-First: Carlo
Author-X-Name-Last: Altavilla
Author-Name: Luigi Landolfo
Author-X-Name-First: Luigi
Author-X-Name-Last: Landolfo
Title: Cross-country asymmetries in monetary policy transmission: evidence from EMU members
Abstract:
This paper analyzes monetary policy asymmetries in EMU participating
countries. In particular, we use a structural dynamic modelling approach
to investigate asymmetric monetary transmission in Europe. Asymmetries are
investigated in two different ways. First, we restrict the estimated
structural models reflecting the monetary constraints each country faced
during the EMS period. We obtain well-behaved and comparable effects of
monetary policy shocks. Second, efficiency frontiers for the selected EMU
countries are estimated. In computing the optimal combinations of output
gap and inflation volatility we use a weighted average of interest rate
and exchange rate, i.e. the Monetary Condition Index (MCI), as a policy
instrument. The impulse response analysis implemented with the MCI shows
relatively small differences in the responses of the real economy to
monetary policy shocks. Altogether the results suggest that, no matter
which policy instrument is used, output gap and inflation respond to
identical monetary shocks with a similar speed and movement, albeit with a
different degree of effect.
Journal: International Review of Applied Economics
Pages: 87-106
Issue: 1
Volume: 19
Year: 2005
Keywords: Monetary transmission mechanism, asymmetries, MCI,
X-DOI: 10.1080/0269217042000312623
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Handle: RePEc:taf:irapec:v:19:y:2005:i:1:p:87-106
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Title: Detecting long-run relationships in regional house prices in the UK
Abstract:
Recent developments in the analysis of cointegration in the presence of
asymmetric adjustment are extended and applied to data on regional house
prices in the UK. This extension is found to have a dramatic impact upon
the results derived. In contrast to recent studies employing standard
methods, allowance for the possibility of asymmetric behaviour results in
the detection of a large number of long-run relationships between house
prices in different regions. A consistent pattern of asymmetric adjustment
is observed, with reversion to equilibrium occurring more rapidly (slowly)
when house prices in the South of England decrease (increase) relative to
other regions. While the results derived support the existence of a ripple
effect underlying the observed movements in regional house prices, the
extent of cointegration uncovered casts doubt upon the recently proposed
notion of weak segmentation in the UK housing market.
Journal: International Review of Applied Economics
Pages: 107-118
Issue: 1
Volume: 19
Year: 2005
Keywords: Cointegration, threshold autoregression, regional house prices, ripple effect, asymmetry,
X-DOI: 10.1080/0269217042000312632
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Handle: RePEc:taf:irapec:v:19:y:2005:i:1:p:107-118
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Leao
Author-X-Name-First: Pedro
Author-X-Name-Last: Leao
Title: Why does the velocity of money move pro-cyclically?
Abstract:
The velocity of money usually rises in expansions and falls in recessions
This paper explains this pro-cyclical movement of velocity using two
ideas: (i) during business cycles the movement of investment and
consumption of durable goods has a larger amplitude than consumption of
non-durable goods and services; (ii) the velocity associated with
expenditure on investment and durable goods is much higher than the
velocity associated with consumption of non-durable goods and services,
because the former expenditures are synchronized with the attainment of
money by economic agents whereas the latter are not. In this setting, the
rise in the weight of expenditure in durable goods relative to the weight
of non-durable goods and services, which occurs during expansions,
generates an increase in the average velocity of circulation. The opposite
happens during recessions and thus velocity moves pro-cyclically.
Journal: International Review of Applied Economics
Pages: 119-135
Issue: 1
Volume: 19
Year: 2005
Keywords: Velocity of money, money demand, business cycle, monetary policy, endogenous money,
X-DOI: 10.1080/0269217042000312641
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Handle: RePEc:taf:irapec:v:19:y:2005:i:1:p:119-135
Template-Type: ReDIF-Article 1.0
Author-Name: William Milberg
Author-X-Name-First: William
Author-X-Name-Last: Milberg
Author-Name: Ellen Houston
Author-X-Name-First: Ellen
Author-X-Name-Last: Houston
Title: The high road and the low road to international competitiveness: Extending the neo-Schumpeterian trade model beyond technology
Abstract:
Extending the neo-Schumpeterian trade model, we estimate a 'social-gap'
model for a group of 17 OECD countries over the period 1975-1995. We find
that government spending on social protection, employment protection
regulations, union density, strike activity, and income security in the
labor market (all measured in 'gap' form) are statistically significantly
related to changes in international competitiveness. Specifically, we find
some support for a Calmfors-Driffil, nonlinear, relation between
cooperative labor relations and social spending patterns on the one hand,
and international trade (and inward foreign investment) competitiveness on
the other, implying that countries with relatively stronger institutional
arrangements have better international economic performance than countries
in the middle of the scale of conflict and cooperation. Our results
indicate that models focusing solely on innovative effort are
misspecified, and may suffer from an omitted variable bias caused by the
absence of consideration of other institutional factors influencing
international trade and investment.
Journal: International Review of Applied Economics
Pages: 137-162
Issue: 2
Volume: 19
Year: 2005
Keywords: International trade theory, technology gaps, social expenditure, labor relations, JEL Classification: F10, H50, J50,
X-DOI: 10.1080/02692170500031646
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:137-162
Template-Type: ReDIF-Article 1.0
Author-Name: Holger Gorg
Author-X-Name-First: Holger
Author-X-Name-Last: Gorg
Author-Name: Eric Strobl
Author-X-Name-First: Eric
Author-X-Name-Last: Strobl
Title: Employment dynamics in foreign and domestic plants: Evidence from Irish manufacturing
Abstract:
In this paper we investigate the driving factors behind the diverse
employment performances of indigenous and foreign-owned (multinational)
plants in Ireland. Examining aggregate job creation and job destruction
rates we find that the net gain of the foreign sector in Irish
manufacturing employment was due to a considerably lower rate of job
destruction and a slightly higher job creation rate. An econometric
investigation into the determinants of net employment growth at the plant
level lends further credence to the argument that foreign plants performed
better than domestic plants. Even after controlling for a number of plant
and sector specific effects, multinationals experienced greater net
employment growth rates than their indigenous counterparts.
Journal: International Review of Applied Economics
Pages: 163-178
Issue: 2
Volume: 19
Year: 2005
Keywords: Employment adjustment, job flows, multinational companies, JEL Classification: F23, L60, J63,
X-DOI: 10.1080/02692170500031349
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:163-178
Template-Type: ReDIF-Article 1.0
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Veena Kulkarni
Author-X-Name-First: Veena
Author-X-Name-Last: Kulkarni
Title: Anthropometric failure and persistence of poverty in rural India
Abstract:
Recent studies have drawn attention to the high prevalence of stunting
among children in rural India. In fact, these estimates point to more
pervasive deprivation than conventional measures of poverty based on
income or consumption expenditure shortfalls imply. Since stunting
reflects cumulative nutritional and health deprivation, it is likely to
persist despite higher incomes. With a view to shedding some new light on
this issue, an analysis of the determinants of stunting is carried out,
based on a recent all-India survey of rural households. While income
matters, other factors acting independently of it matter too. These
include household size, whether household head is male, caste affiliation,
mother's age at marriage, mother's age, age composition of children,
male-female wage differences, hygiene and sanitation facilities, and
prices of food items. So, while higher incomes will help mitigate
stunting, careful attention must also be given to enhancing women's
autonomy through more remunerative employment opportunities for them,
enabling households to improve hygiene and sanitation facilities, and
facilitating more competitive local markets for food.
Journal: International Review of Applied Economics
Pages: 179-197
Issue: 2
Volume: 19
Year: 2005
Keywords: Stunting, chronic deprivation, autonomy, hygiene and sanitation, food prices, JEL Classification: D1, D63, H51, I12,
X-DOI: 10.1080/02692170500031711
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:179-197
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Pieroni
Author-X-Name-First: Luca
Author-X-Name-Last: Pieroni
Author-Name: David Aristei
Author-X-Name-First: David
Author-X-Name-Last: Aristei
Title: Testing separability of public consumption in household decisions
Abstract:
In this paper we propose a sequential strategy, based on the
microeconomic approach of the demand theory, in order to test for
separability between private and public consumption. The aim of the
present work is to verify, using a conditional almost ideal demand system,
whether the different components of public consumption exert conditioning
effects on the allocative structure of private spending. The empirical
estimation of the model and the separability tests are developed for both
a demand system in five functional categories of private spending, and for
a demand system in six categories, where the private expenditures on those
goods and services which can also be offered by the public sector are
enclosed in a single functional category. The results of the separability
tests, obtained using UK data for the 1974-2000 period, show that public
individual consumption plays an important role in modifying consumer
choices, while public collective consumption does not affect private
consumption behaviours. The relationships between the different components
of private spending and public individual consumption are both of
substitutability and complementarity; in particular, we find that public
individual consumption and the corresponding private expenditures on
'Health, education, recreation and social protection' are complements.
Journal: International Review of Applied Economics
Pages: 199-218
Issue: 2
Volume: 19
Year: 2005
Keywords: Consumer demand, government consumption, non-separability, demand systems, JEL Classification: D1, H3, H4,
X-DOI: 10.1080/02692170500031331
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:199-218
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas
Author-X-Name-First: Basil
Author-X-Name-Last: Dalamagas
Title: Income and substitution effects of fiscal policy on work effort
Abstract:
The focus of this paper is twofold. First, it examines the impact on work
effort of changes in government purchases financed with lump-sum taxes, in
a neoclassical framework, with respect to four industrialised countries.
Second, it reconsiders the expenditure-work effort relationship in a
broader conceptual context that allows for distortionary taxation and a
disaggregation of the income and substitution effects. Our findings are
shown to cast doubt on the empirical plausibility of the prevailing
(neoclassical and New Keynesian) models which seem to rely heavily on the
lump-sum tax notion, thus ignoring the substitution effects of
distortionary taxation.
Journal: International Review of Applied Economics
Pages: 219-242
Issue: 2
Volume: 19
Year: 2005
Keywords: Taxation, government spending, work effort, fiscal ignorance, income effect, substitution effect, country-specific determinants of employment, lump-sum vis-a-vis distortionary taxes, JEL Classification: E1, E6,
X-DOI: 10.1080/02692170500031760
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:219-242
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Temporal causality and the dynamics of democracy, emigration and real income in Fiji
Abstract:
This study is the first to explore temporal causality between democracy,
emigration and real income in Fiji within a multivariate cointegration
model. We find three long run relationships between democracy, emigration
and real income. In the long run there is evidence that migration and
democracy Granger cause real GDP in Fiji; real GDP and democracy Granger
cause migration from Fiji and that real GDP and migration Granger cause
democracy in Fiji. In the short run we find unidirectional Granger
causality running from migration to real GDP and from democracy to real
GDP, but neutrality between democracy and migration in the short run. We
also extend the analysis to examine the degree of exogeneity of the
variables beyond the sample period through considering the decomposition
of variance and impulse response functions.
Journal: International Review of Applied Economics
Pages: 245-261
Issue: 2
Volume: 19
Year: 2005
Keywords: Fiji, democracy, migration, cointegration, causality,
X-DOI: 10.1080/02692170500031356
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:245-261
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Inequality and the state
Abstract:
Journal: International Review of Applied Economics
Pages: 265-266
Issue: 2
Volume: 19
Year: 2005
X-DOI: 10.1080/02692170500031778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500031778
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:265-266
Template-Type: ReDIF-Article 1.0
Author-Name: Moritz Cruz
Author-X-Name-First: Moritz
Author-X-Name-Last: Cruz
Title: The business cycle in a financially deregulated context: Theory and evidence
Abstract:
This article proposes Minsky's financial instability hypothesis (FIH) as
a theoretical underpinning for a three-regime business cycles model.
Further, it is argued that the development of the FIH for open, developing
economies (FIH-ODE) provides a better understanding of the performance of
business cycles in these economies, particularly during the last two
decades. In support of these claims, a three-regime autoregressive Markov
switching model is estimated from 1980q1 to 2000q4 to Mexico's quarterly
real GDP to investigate its business cycle behaviour. The estimated
probabilities of the high and medium growth regimes suggest, for example,
that after the financial liberalisation programme was fully launched, in
the late 1980s, the economy shifted from the regime of medium to high
growth (and vice versa) swiftly, reflecting its dependence on capital
flows. Furthermore, the estimated parameters indicate that the average
length of the business cycle has not changed.
Journal: International Review of Applied Economics
Pages: 271-287
Issue: 3
Volume: 19
Year: 2005
Keywords: Autoregressive-Markov switching model, business cycles, Mexico, financial liberalisation, developing economies, JEL Classification: E12, E32, F41, F32,
X-DOI: 10.1080/02692170500119763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119763
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:271-287
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Sylwester
Author-X-Name-First: Kevin
Author-X-Name-Last: Sylwester
Title: Foreign direct investment, growth and income inequality in less developed countries
Abstract:
How does foreign direct investment (FDI) affect economic growth in less
developed countries (LDCs)? What is its association with changes in the
income distribution? This paper empirically examines these issues within a
cross section of less developed countries between 1970 and 1989. FDI is
positively associated with economic growth within this sample of
countries. However, there is no strong association between FDI and changes
in income inequality within these same countries and over this same time
period. Hence, there is no evidence that FDI is increasing income
inequality within this group of LDCs.
Journal: International Review of Applied Economics
Pages: 289-300
Issue: 3
Volume: 19
Year: 2005
Keywords: Economic growth, income inequality, foreign direct investment, JEL Classification: O15, F21, F43,
X-DOI: 10.1080/02692170500119748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119748
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:289-300
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Cook
Author-X-Name-First: Christopher
Author-X-Name-Last: Cook
Title: Population growth and savings rates: Some new cross-country estimates
Abstract:
It is widely recognised that population growth can have two conflicting
effects on savings. It reduces savings as it leads to more dependent
children, but if balanced it can also increase savings by increasing the
number entering the working part of the life cycle and hence the number of
potential savers. However, this positive effect has largely been ignored
in the empirical literature. Based on the population growth rate as its
measure and an augmented cross-country life cycle regression model
evidence for its existence is confirmed. Confidence in the estimates is
undermined by tests indicating that in many countries over the relevant
period population growth was not in steady state balance. This is
ameliorated by the high regression R2s and by comparable labour force
growth rate estimates, but it was also found that the estimates could not
be interpreted as evidence that countries with more rapid population
growth rates actually save more. This is because the negative impact of
larger families was found to outweigh any increase in savings because of
more families. The net elasticity effect was calculated to be - 0.08. The
paper concludes that savings continues to be a cost of rapid population
growth, but perhaps not quite as debilitating as some might have presumed.
Journal: International Review of Applied Economics
Pages: 301-319
Issue: 3
Volume: 19
Year: 2005
Keywords: Life cycle model, savings rates, population growth, dependency, JEL Classification: E210, J100, O150, O160,
X-DOI: 10.1080/02692170500119755
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119755
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:301-319
Template-Type: ReDIF-Article 1.0
Author-Name: Yannis Georgellis
Author-X-Name-First: Yannis
Author-X-Name-Last: Georgellis
Author-Name: Howard Wall
Author-X-Name-First: Howard
Author-X-Name-Last: Wall
Title: Gender differences in self-employment
Abstract:
This paper examines the factors that influence transitions into
self-employment, paying particular attention to gender differences. We
find that: (i) men are more responsive to the wage differential between
wage/salaried employment and self-employment; (ii) liquidity constraints
are more important for men; and (iii) the link between father's
self-employment status and the probability of self-employment is stronger
for men. Taken together, these results suggest that, for women,
self-employment is a closer substitute for part-time work and
labour-market inactivity than it is for men. We attribute such differences
to the different labour market opportunities and occupational strategies
of women.
Journal: International Review of Applied Economics
Pages: 321-342
Issue: 3
Volume: 19
Year: 2005
Keywords: Self-employment, gender differences, entrepreneurship, German labour market, JEL Classification: J23, J16,
X-DOI: 10.1080/02692170500119854
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119854
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:321-342
Template-Type: ReDIF-Article 1.0
Author-Name: Maria De Paola
Author-X-Name-First: Maria
Author-X-Name-Last: De Paola
Author-Name: Claudio Lupi
Author-X-Name-First: Claudio
Author-X-Name-Last: Lupi
Author-Name: Patrizia Ordine
Author-X-Name-First: Patrizia
Author-X-Name-Last: Ordine
Title: Wage expectations in northern and southern Italian regions: An interpretation based on psychological and social factors
Abstract:
Individual wage expectations of Italian unemployed are studied. The
analysis is carried out separately for the North-Central and southern
Italian regions using semiparametric additive models. Results show a
marked difference in expectations formation across regions. We argue that
as far as the labour market information in the South is less diffuse and
more ambiguous than in the North, the divergence between the econometric
model based on a utility-maximisation mainstream theory and the actual
wage expectation mechanism may be large. A tentative explanation based on
psychological and social factors is offered.
Journal: International Review of Applied Economics
Pages: 343-358
Issue: 3
Volume: 19
Year: 2005
Keywords: Wage expectations, regional disparities, generalised additive models, JEL Classification: D84, J30, J60,
X-DOI: 10.1080/02692170500119805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119805
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:343-358
Template-Type: ReDIF-Article 1.0
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Time variation in the cointegrating relationship between stock prices and economic activity
Abstract:
The present paper examines whether there exists a long-run cointegrating
relationship between a stock market index and output and interest rates.
Moreover, estimation is conducted over the full sample and both a
recursive and rolling sample to examine any time variation in the nature
of the relationship. The results support evidence of a single
cointegrating vector, where stock prices typically exhibit a positive
relationship with industrial production and a negative relationship with
interest rates. However, there is significant time variation and periods
of time where contrary results are observed. As such any model of stock
prices needs to account for such time variation
Journal: International Review of Applied Economics
Pages: 359-368
Issue: 3
Volume: 19
Year: 2005
Keywords: Stock Prices, cointegration, time variation, JEL Classification: C22, G12,
X-DOI: 10.1080/02692170500119862
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119862
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:359-368
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Gabriel
Author-X-Name-First: Paul
Author-X-Name-Last: Gabriel
Title: The effects of differences in year-round, full-time labor market experience on gender wage levels in the United States
Abstract:
This paper utilizes longitudinal information on annual hours worked to
construct a more robust measure of labor market experience for young
workers in the USA. This enhanced experience measure is then used to
assess recent gender wage differentials. Our experience measure yields a
dramatic improvement in the ability of standard earnings regressions to
explain the variation in wages across individuals, especially for young
women. In addition, our results indicate that approximately one-fourth of
the gender difference in average wages is attributable to the higher work
experience levels of men.
Journal: International Review of Applied Economics
Pages: 369-377
Issue: 3
Volume: 19
Year: 2005
Keywords: Wages, gender, discrimination, JEL Classification: J1, J16,
X-DOI: 10.1080/02692170500119813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500119813
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:369-377
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Title: Preface
Abstract:
Journal: International Review of Applied Economics
Pages: 379-379
Issue: 4
Volume: 19
Year: 2005
X-DOI: 10.1080/02692170500213350
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500213350
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:379-379
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Howard Stein
Author-X-Name-First: Howard
Author-X-Name-Last: Stein
Title: An Institutional Perspective to Finance and Development as an Alternative to Financial Liberalisation
Abstract:
This paper argues that financial liberalisation as practiced recently
worldwide engenders widespread financial crises precisely because of the
weak foundations of its theoretical framework and poor empirical
performance. Financial liberalisation is critically evaluated on both
theoretical and empirical grounds, which suggests that an alternative is
vitally necessary. Based on institutional theory,a new approach is
proposed the focus of which is on ways to affect financial and banking
transformation that is more consistent with economic development. We
demonstrate how this theoretical approach can be applied in the real
world, and indeed how the theoretical propositions we put forward in this
contribution, very different from those of financial liberalisation,
produce a more developmentally oriented set of policies for the countries
that are prepared to pursue them.
Journal: International Review of Applied Economics
Pages: 381-398
Issue: 4
Volume: 19
Year: 2005
Keywords: Financial liberalisation, financial crises, institutional-centric perspectives,
X-DOI: 10.1080/02692170500208459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500208459
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:381-398
Template-Type: ReDIF-Article 1.0
Author-Name: Korkut Erturk
Author-X-Name-First: Korkut
Author-X-Name-Last: Erturk
Title: Economic Volatility and Capital Account Liberalization in Emerging Countries
Abstract:
Economic volatility has increased drastically in the age of financial
liberalization. The tendency among mainstream economists has been to
explain this trend by government misdeeds and various market
imperfections. For instance, government overspending was the main culprit
in the first generation models of currency crises. Following the Asian
crisis the emphasis shifted onto capital flow reversals, and arguments
based on the 'moral hazard' problems began to replace the emphasis on the
monetized government deficits. This paper outlines an explanation of
economic volatility that is not based on moral hazard problems or other
market distortions. Two stylized facts associated with the aftermath of
financial and capital account liberalization are singled out for emphasis
and brought together in the context of a macroeconomic framework that
draws from Keynes' Treatise. These are: (i) liquidity preference becomes
intertwined with currency substitution, producing a macroeconomic
destabilizer that explains procyclical changes in bank credit
independently of moral hazard problems; and (ii) asset prices become
fairly easy to predict, stimulating destabilizing 'trend' speculation by
foreign investors, which means that profit seeking and market rationality
might lie behind erratic shifts in capital flows.
Journal: International Review of Applied Economics
Pages: 399-417
Issue: 4
Volume: 19
Year: 2005
Keywords: Economic volatility, financial liberalization, currency crises, capital flows, asset price speculation,
X-DOI: 10.1080/02692170500208475
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500208475
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:399-417
Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Singh
Author-X-Name-First: Ajit
Author-X-Name-Last: Singh
Author-Name: Jack Glen
Author-X-Name-First: Jack
Author-X-Name-Last: Glen
Author-Name: Ann Zammit
Author-X-Name-First: Ann
Author-X-Name-Last: Zammit
Author-Name: Rafael De-Hoyos
Author-X-Name-First: Rafael
Author-X-Name-Last: De-Hoyos
Author-Name: Alaka Singh
Author-X-Name-First: Alaka
Author-X-Name-Last: Singh
Author-Name: Bruce Weisse
Author-X-Name-First: Bruce
Author-X-Name-Last: Weisse
Title: Shareholder Value Maximisation, Stock Market and New Technology: Should the US Corporate Model be the Universal Standard?
Abstract:
In 1992 a blue-ribbon group of US economists led by Michael Porter
concluded that the US stock market-based corporate model was misallocating
resources and jeopardising US competitiveness. The faster growth of US
economy since then and the supposed US lead in the spread of information
technology has brought new legitimacy to the stock market and the
corporate model, which is being hailed as the universal standard. Two main
conclusions of the analysis presented here are: (a) there is no warrant
for revising the blue-ribbon group's conclusion; and (b) even US
corporations let alone developing country ones would be better off not
having stock market valuation as a corporate goal.
Journal: International Review of Applied Economics
Pages: 419-437
Issue: 4
Volume: 19
Year: 2005
Keywords: Shareholder wealth, Information Technology, stock-market efficiency,
X-DOI: 10.1080/02692170500208533
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500208533
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:419-437
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Dymski
Author-X-Name-First: Gary
Author-X-Name-Last: Dymski
Title: Financial Globalization, Social Exclusion and Financial Crisis
Abstract:
This paper suggests one set of mechanisms that ties financial
globalization processes to local dynamics of financial inclusion or
exclusion. Specifically, this paper explores the worldwide reconsideration
of financial firms' strategies that has accompanied financial
globalization. It is shown that the neoliberal and asymmetric-information
approaches to credit markets and financial crises in developing economies
overlook these dimensions of financial globalization because of their
tendency to focus on representative credit markets. Banks' strategic shift
has led to the global homogenization and stratification of financial
practices—and this in turn has been a key driver of processes of
financial exclusion. Financial exclusion then involves bifurcation within
financial markets, so that different markets serve different portions of
the household and business population. This analysis suggests a
reconstruction of Minsky's microfoundational model of the origins of
financial fragility and crisis, which shifts from Minsky's emphasis on a
representative borrower-lender relationship to a situation of
borrower-lender relationships in bifurcated markets.
Journal: International Review of Applied Economics
Pages: 439-457
Issue: 4
Volume: 19
Year: 2005
Keywords: Financial globalization, financial exclusion, financial fragility, banks, banking strategy,
X-DOI: 10.1080/02692170500213319
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500213319
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:439-457
Template-Type: ReDIF-Article 1.0
Author-Name: Sofia Babilis
Author-X-Name-First: Sofia
Author-X-Name-Last: Babilis
Author-Name: Valpy Fitzgerald
Author-X-Name-First: Valpy
Author-X-Name-Last: Fitzgerald
Title: Risk Appetite, Home Bias and the Unstable Demand for Emerging Market Assets
Abstract:
Home bias arises when the actual portfolio of an investor consists of a
smaller proportion of foreign assets than that predicted by standard
portfolio theory for the observed set of risks and returns on available
assets. The existence and persistence of home bias undermines the
theoretical case for the efficiency of international capital markets. In
this paper we use data on UK pension fund portfolios to measure home bias,
and find that this is doubly acute in the case of emerging market
equity—a bias against overseas assets as a whole being further
magnified by a bias against emerging markets within the foreign equity
class as a whole. Moreover, contrary to the conventional assumption that
risk aversion is both relatively low and stable over time (canonised in
neoclassical theory by the derivation of constant relative risk aversion
from the utility function itself) our finding that home bias fluctuates
over time suggests that risk aversion is in fact time-variant and
path-dependent. We sketch an alternative Keynesian approach in conclusion.
Journal: International Review of Applied Economics
Pages: 459-476
Issue: 4
Volume: 19
Year: 2005
Keywords: Asset demand, risk and uncertainty, international finance, pension funds, emerging markets, financial stability,
X-DOI: 10.1080/02692170500213335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500213335
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Handle: RePEc:taf:irapec:v:19:y:2005:i:4:p:459-476
Template-Type: ReDIF-Article 1.0
Author-Name: Ilene Grabel
Author-X-Name-First: Ilene
Author-X-Name-Last: Grabel
Title: Taxation of International Private Capital Flows and Securities Transactions in Developing Countries: Do Public Finance Considerations Augment the Macroeconomic Dividends?
Abstract:
This paper examines policies to tax international private capital flows
and securities transactions in developing countries. Many recent studies
focus on the macroeconomic dividends associated with these policies
(namely, their contribution to macroeconomic and financial stability and
lengthened investor time horizons). In this paper I explore whether the
potential of these policies to raise much-needed tax revenues in
developing countries augments their well-known macroeconomic benefits. To
my knowledge, there has been no effort to examine systematically the
public finance issues related to the taxation of international private
capital flows or securities transactions in the developing country
context. I conclude that the public finance implications of these policies
in middle-income developing countries offers additional support to the
macroeconomic case for them. To different degrees, taxation of
international private capital flows and securities transactions has the
potential to raise modest revenues in middle-income countries. However,
far more important is the potential of these policies to offer valuable
macroeconomic dividends on the national level. These national
macroeconomic dividends have the potential to bear fruit globally. This is
because experiences with financial contagion over the last decade suggest
that global financial stability can be enhanced via the promotion of
domestic financial stability in developing countries.
Journal: International Review of Applied Economics
Pages: 477-497
Issue: 4
Volume: 19
Year: 2005
Keywords: Tax revenue, developing countries, stock markets, securities transactions taxes, taxation of international private capital flows, development policy, macroeconomic stability,
X-DOI: 10.1080/02692170500213368
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Template-Type: ReDIF-Article 1.0
Author-Name: Mariano Torras
Author-X-Name-First: Mariano
Author-X-Name-Last: Torras
Title: The Impact of Power Equality, Income, and the Environment on Human Health: Some Inter-Country Comparisons
Abstract:
Economic studies on environmental degradation generally have a narrow
focus on per capita income as an explanatory variable, and often fail to
distinguish among the various types of environmental quality or damage.
This paper addresses both problems by examining the effect of relative
equality in the distribution of power on environmental outcomes, and
making a clear distinction between health-related environmental outcomes
and so-called 'environmental amenities,' only the latter of which should
correlate strongly with income. This paper introduces a national index of
power equality that is derived from related socioeconomic variables, and
studies its effects on individual country achievement in addressing
environmental quality and population health. This model is applied to a
data set of 180 countries, as well as to subgroups of the entire country
set. Employing disability-adjusted life expectancy and the population
child mortality rate as two health proxies, this paper finds that power
equality in most cases positively influences population health, and that
power equality is in every case no worse and in some cases better than per
capita income at explaining population health.
Journal: International Review of Applied Economics
Pages: 1-20
Issue: 1
Volume: 20
Year: 2006
Keywords: Health, environment, power distribution, power inequality, power,
X-DOI: 10.1080/02692170500362199
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Template-Type: ReDIF-Article 1.0
Author-Name: Zelealem Yiheyis
Author-X-Name-First: Zelealem
Author-X-Name-Last: Yiheyis
Title: The Effects of Devaluation on Aggregate Output: Empirical Evidence from Africa
Abstract:
This paper tests the contractionary devaluation hypothesis in the context
of select African countries. The output effect of devaluation is examined
within an empirical model that controls, among others, for the parallel
currency premium, the rate of net capital inflow, the degree of capacity
utilization and political instability. The model is estimated on pooled
data drawn from 20 African countries, employing alternative indicators of
devaluation and pooling procedures. The results indicate that the
contemporaneous output effect of nominal devaluation is negative,
providing statistical support for the hypothesis that devaluation is
contractionary in the short run. On the other hand, the coefficient of the
lagged rate of devaluation is found to be positive, implying that the
contractionary problem is temporary. The magnitude of the observed
contractionary effect appears to depend on the rate of net capital inflow
and the degree of capacity utilization. Devaluations accompanied by
augmented net capital inflow and implemented in the presence of excess
capacity are found to be less contractionary than otherwise equivalent
exchange-rate changes. The results also seem to imply that devaluations
launched in the context of sizeable unofficial markets for foreign
exchange are less injurious to aggregate economic activity than other
exchange-rate adjustments.
Journal: International Review of Applied Economics
Pages: 21-45
Issue: 1
Volume: 20
Year: 2006
Keywords: Devaluation, exchange rates, output, Africa,
X-DOI: 10.1080/02692170500362264
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Template-Type: ReDIF-Article 1.0
Author-Name: J. Robert Branston
Author-X-Name-First: J. Robert
Author-X-Name-Last: Branston
Author-Name: Roger Sugden
Author-X-Name-First: Roger
Author-X-Name-Last: Sugden
Author-Name: Pedro Valdez
Author-X-Name-First: Pedro
Author-X-Name-Last: Valdez
Author-Name: James Wilson
Author-X-Name-First: James
Author-X-Name-Last: Wilson
Title: Generating Participation and Democracy: An Illustration from Electricity Reform in Mexico
Abstract:
Privatisation is a fundamental issue for both 'developed' and 'less
developed' countries. Many see it as a requirement for access to a
globalised economy, and furthermore imply that countries have no room for
manoeuvre when it comes to ensuring that privatisation takes place.
However, we would argue that a mere requirement leaves options for how
privatisation is to be undertaken. We consider the possibility of an
economy developing according to the aims of its people, and
correspondingly of a privatisation model that contributes to the nurturing
of democratic economies. How this might be achieved in practice is
addressed by using the specific case of electricity in Mexico as an
illustration. We explore an ownership and control structure that balances
different interests. It is envisaged that pension funds could be
important, linking investment back to individuals and groups with
interests wider than those usually associated with international
investors. While this could move towards the guiding principle of
democratic control, it would fall short of being fully inclusive.
Therefore a more direct incorporation of citizens, through a formal right
to participate in strategic decision-making, is also contemplated. Various
governance mechanisms are identified that, with further refinement and
positioning in the context of particular cases, might allow effective
participation to be realised.
Journal: International Review of Applied Economics
Pages: 47-68
Issue: 1
Volume: 20
Year: 2006
Keywords: Privatisation, economic development, electricity, democracy, Mexico,
X-DOI: 10.1080/02692170500362512
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Template-Type: ReDIF-Article 1.0
Author-Name: L. Josh Bivens
Author-X-Name-First: L. Josh
Author-X-Name-Last: Bivens
Title: Wages, Profits, and Rent-Sharing in an Open Economy
Abstract:
This paper examines the link between international trade and labor market
bargaining power. It reviews simple theories of rent-sharing in closed and
open economies. Earlier studies on the issue of rent-sharing implicitly
assume a closed economy. This assumption may provide some misleading
results, especially for studying current developments in the US labor
market. Empirical results suggest that the apparent decline in labor's
bargaining power in US manufacturing may be attributable to growing
international integration.
Journal: International Review of Applied Economics
Pages: 69-83
Issue: 1
Volume: 20
Year: 2006
Keywords: Wages, rent-sharing, bargaining power, globalization,
X-DOI: 10.1080/02692170500362678
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Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:69-83
Template-Type: ReDIF-Article 1.0
Author-Name: Santonu Basu
Author-X-Name-First: Santonu
Author-X-Name-Last: Basu
Title: Structural Problems in Financing Development: Issues Relating to India
Abstract:
This paper argues that the process of financing development in India
increased the fragility of the financial market. Consequently, the need
arose for the government to implement policies that would reduce that
fragility, and also to introduce strong enforceable bankruptcy laws, in
order to prevent the emergence of corruption. It appears that the recent
capital market reform did not give adequate attention to reducing the
fragility of the financial market.
Journal: International Review of Applied Economics
Pages: 85-101
Issue: 1
Volume: 20
Year: 2006
Keywords: Financial reforms, credit standard, economic development, India,
X-DOI: 10.1080/02692170500362793
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500362793
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Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:85-101
Template-Type: ReDIF-Article 1.0
Author-Name: C. Charles Okeahalam
Author-X-Name-First: C. Charles
Author-X-Name-Last: Okeahalam
Title: Production Efficiency in the South African Banking Sector: A Stochastic Analysis
Abstract:
Econometric estimates of the level of efficiency at bank branches are
likely to provide detailed insight into the overall level of efficiency in
banking. Therefore this paper uses Bayesian stochastic frontier analysis
to assess the production efficiency of 61 bank branches in the nine
provinces of the Republic of South Africa. We find that every branch is
operating at increasing returns to scale and that the level of production
efficiency of bank branches is lower than it could be. We also find that
at current levels of output, on average, bank branches can reduce their
costs by about 17% if they improve the level of efficiency. In addition,
we find that Gauteng Province has the lowest average level of returns to
scale, while the Free State Province has the highest average level of the
nine provinces. In addition, via estimates of the posterior mean for
shares and price elasticities, we find that the price of capital is the
largest predicted proportion of costs. These findings suggest that bank
branches could also obtain cost reductions by increasing the level of
output. Regulatory policy reforms and competitive incentives to enable
banks to meet this objective should be encouraged.
Journal: International Review of Applied Economics
Pages: 103-123
Issue: 1
Volume: 20
Year: 2006
Keywords: South Africa, banks, branches, efficiency, stochastic frontier,
X-DOI: 10.1080/02692170500362819
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Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:103-123
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Pastor
Author-X-Name-First: Jose
Author-X-Name-Last: Pastor
Author-Name: Lorenzo Serrano
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Serrano
Title: The Effect of Specialisation on Banks' Efficiency: An International Comparison
Abstract:
This study analyses the effects of specialisation on the cost efficiency
of a set of banking systems of the European Union over the period
1992-1998. Unlike in the established literature in which specialisation
differences are not considered, in this paper cost inefficiencies are
decomposed into two different components: the first is related to the
inefficiency associated with the composition of specialisations in each
banking system and the second is related to specific inefficiencies of
banks within their specialisation. The results show the existence of high
cost inefficiencies. However, the intra-specialisation inefficiencies
indicate that the inefficiencies of the European banking systems are much
smaller when the effect of productive composition (specialisation) is
discounted. This effect is much more evident in those banking systems
specialised in the more costly types of business (retail banking) because
their composition inefficiency is higher.
Journal: International Review of Applied Economics
Pages: 125-149
Issue: 1
Volume: 20
Year: 2006
Keywords: Efficiency, DEA, specialisation, cluster,
X-DOI: 10.1080/02692170500362868
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Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:125-149
Template-Type: ReDIF-Article 1.0
Author-Name: Marianna Belloc
Author-X-Name-First: Marianna
Author-X-Name-Last: Belloc
Author-Name: Pietro Vertova
Author-X-Name-First: Pietro
Author-X-Name-Last: Vertova
Title: Public Investment and Economic Performance in Highly Indebted Poor Countries: An Empirical Assessment
Abstract:
Understanding how public investment affects economic performance in
highly indebted low-income countries is crucial in order to implement
effective fiscal policies for adjustment with growth. In this paper we
provide an empirical analysis to investigate the relationship between
public investment, private investment and output. A dynamic econometric
procedure is implemented on a selected group of Highly Indebted Poor
Countries (HIPCs). Our results provide empirical support for the
crowding-in hypothesis and a positive relation between public investment
and output.
Journal: International Review of Applied Economics
Pages: 151-170
Issue: 2
Volume: 20
Year: 2006
Keywords: Crowding-in, crowding-out, economic growth, fiscal adjustment, highly indebted countries, public investment,
X-DOI: 10.1080/02692170600581086
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:151-170
Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Kleinknecht
Author-X-Name-First: Alfred
Author-X-Name-Last: Kleinknecht
Author-Name: Remco Oostendorp
Author-X-Name-First: Remco
Author-X-Name-Last: Oostendorp
Author-Name: Menno Pradhan
Author-X-Name-First: Menno
Author-X-Name-Last: Pradhan
Author-Name: C. W. M. Naastepad
Author-X-Name-First: C. W. M.
Author-X-Name-Last: Naastepad
Title: Flexible Labour, Firm Performance and the Dutch Job Creation Miracle
Abstract:
Unlike internal ('functional') forms of flexibility of labour, external
('numerical') forms of flexibility (i.e. high shares of people on
temporary contract or a high turnover of personnel) yield substantial
savings on a firm's wage bill. Savings on wage bills lead to higher job
growth, but do not translate into higher sales growth. Externally flexible
labour appears to be related to lower labour productivity growth, the
effects being different for innovating vs non-innovating firms. We discuss
these findings from firm-level and worker-level data against the
background of the Dutch job creation miracle during the 1980s and 1990s.
Modest wage increases and flexibilization of labour markets may indeed
create lots of jobs. However, this is likely to happen at the expense of
labour productivity growth, raising serious doubts about the long-run
sustainability of a low-productivity-high-employment growth path.
Journal: International Review of Applied Economics
Pages: 171-187
Issue: 2
Volume: 20
Year: 2006
Keywords: Flexible labour, determinants of labour productivity growth, wage costs, firm growth and employment,
X-DOI: 10.1080/02692170600581102
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:171-187
Template-Type: ReDIF-Article 1.0
Author-Name: J. Robert Branston
Author-X-Name-First: J. Robert
Author-X-Name-Last: Branston
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Author-Name: Roger Sugden
Author-X-Name-First: Roger
Author-X-Name-Last: Sugden
Title: Corporate Governance and the Public Interest
Abstract:
Corporate governance has long been a concern for industrial economists
but not typically a centrepiece of policy. One reason is that policy
design has been based on a market-orientated approach to the theory and
impact of the firm. In contrast, this paper is rooted in a strategic
decision-making perspective that makes corporate governance a central
policy issue. Moreover, whereas responses to corporate scandals have
focused on shareholders wronged by managers, we see the significance of
corporate governance very differently. Merely to punish managers who fail
shareholders is to ignore systemic failures, namely that, by design,
managers are not democratically accountable to all interests in
corporations' activities. The impact of modern corporations turns
crucially on who governs. In practice preferences over strategy vary
across actors but not all interests are currently being represented in
decision making, resulting in a failure to govern in the public interest.
As solutions, we consider the design of company law and also more
immediate ways forward, focusing on regulation and democratically
controlled public agencies. Our prime concern is the fundamental
significance of active, effective citizens. Throughout, the arguments are
illustrated using examples from various countries and industries.
Journal: International Review of Applied Economics
Pages: 189-212
Issue: 2
Volume: 20
Year: 2006
Keywords: Governance, strategic decisions, corporations, public interest, industrial economic policy,
X-DOI: 10.1080/02692170600581110
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Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson
Author-X-Name-First: Terry
Author-X-Name-Last: Robinson
Title: The Revealed Preference of Regulatory Menus: Evidence from the Pre-Nationalisation British Gas Industry
Abstract:
Prior to nationalisation British gas undertakings were faced with a
choice of three different regulatory schemes linking the price charged for
gas with the amount of dividend that could be paid. The three schemes, the
maximum price system, the sliding scale and the basic price system
possessed varying incentive properties. This paper investigates,
empirically, the characteristics of firms under each regime. The
multinomial logit results suggest that larger firms with lower unit costs
were more likely to opt for regulatory options with more powerful
incentive mechanisms.
Journal: International Review of Applied Economics
Pages: 213-221
Issue: 2
Volume: 20
Year: 2006
Keywords: Regulatory regimes, gas industry, multinomial logit,
X-DOI: 10.1080/02692170600581128
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170600581128
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:213-221
Template-Type: ReDIF-Article 1.0
Author-Name: Fulvio Castellacci
Author-X-Name-First: Fulvio
Author-X-Name-Last: Castellacci
Author-Name: Isabel Alvarez
Author-X-Name-First: Isabel
Author-X-Name-Last: Alvarez
Title: Innovation, Diffusion and Cumulative Causation: Changes in the Spanish Growth Regime, 1960-2001
Abstract:
This article presents a model of macroeconomic growth that combines in a
single formalization two complementary views on innovation and economic
growth, the technology-gap approach and the Kaldorian theory of cumulative
causation. The model suggests that what matters for economic growth in the
long run is the existence of a good match between the patterns of
technological change, income distribution and demand growth. The model is
estimated for the Spanish economy during the period 1960-2001, and the
econometric results show that important changes have happened in its
growth regime over time. Since the 1980s, innovation and diffusion of new
technologies provide a greater stimulus to productivity growth, but the
technology push on the supply-side is not sustained by the prevailing
patterns of income distribution and demand growth.
Journal: International Review of Applied Economics
Pages: 223-241
Issue: 2
Volume: 20
Year: 2006
Keywords: Innovation, diffusion, cumulative causation, economic growth,
X-DOI: 10.1080/02692170600581144
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:223-241
Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini
Author-X-Name-First: Corrado
Author-X-Name-Last: Andini
Title: Unemployment and Welfare Participation in a Structural VAR: Rethinking the 1990s in the United States
Abstract:
A report by the Council of Economic Advisers (1997) is the first of a
group of studies, known as caseload studies, analysing the relationship
between the US unemployment rate and the welfare participation rate, with
special regard to the 1990s. We examine this relationship in a structural
VAR model over the period of 1960-2000 and find that the unemployment rate
does not help to predict the welfare participation rate while the converse
is more likely to hold. These results are robust to state and year
heterogeneity over a period of unprecedented positive correlation between
unemployment and welfare participation, i.e. 1990-1998. Further, we find
that a shock to the welfare participation rate has a contemporaneous
impact on the unemployment rate while the converse is less likely to hold.
The main conclusion is that several caseload studies may be based on the
wrong assumption that the unemployment rate is an exogenous explanatory
variable of the welfare participation rate.
Journal: International Review of Applied Economics
Pages: 243-253
Issue: 2
Volume: 20
Year: 2006
Keywords: Welfare, unemployment, VAR,
X-DOI: 10.1080/02692170600581185
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:243-253
Template-Type: ReDIF-Article 1.0
Author-Name: Orietta Marsili
Author-X-Name-First: Orietta
Author-X-Name-Last: Marsili
Title: Stability and Turbulence in the Size Distribution of Firms: Evidence from Dutch Manufacturing
Abstract:
This paper examines the shape of the firm size distribution over time and
across sectors, using a longitudinal data set of manufacturing firms in
the Netherlands in 1978-1998. Although the size distribution is highly
skewed and resembles the Pareto law, a variety of patterns emerge across
sectors, with the lognormal providing a better fit in some sectors. The
size distribution and the underlying firm dynamics evolve over time. In
the long term, the distribution has become less skewed and thinner at the
tails, the slope of the Pareto law has declined, and mobility of firms at
the lower tail has increased. In addition, the slope of the Pareto law
tends to become steeper in correspondence with an economic recession, with
peaks of mobility of firms at different size classes.
Journal: International Review of Applied Economics
Pages: 255-272
Issue: 2
Volume: 20
Year: 2006
Keywords: Size distribution, Zipf plot, market turbulence, Pareto law,
X-DOI: 10.1080/02692170600581193
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170600581193
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Handle: RePEc:taf:irapec:v:20:y:2006:i:2:p:255-272
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Title: Preface
Abstract:
Journal: International Review of Applied Economics
Pages: 281-282
Issue: 3
Volume: 20
Year: 2006
X-DOI: 10.1080/02692170600736276
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170600736276
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:281-282
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: John McCombie
Author-X-Name-First: John
Author-X-Name-Last: McCombie
Title: The Tyranny of the Identity: Growth Accounting Revisited
Abstract:
It has been argued in the literature that growth accounting may be
undertaken by directly differentiating the national income and product
accounts identity where total income equals labour's total compensation
and total profits. This paper shows that this is simply an exercise in the
manipulation of an accounting identity without necessarily having any
theoretical foundation. Simulations show that the estimates of total
factor productivity growth resulting from growth accounting performed with
aggregate monetary data are not equivalent to the true rate of
technological progress implied by the micro-data. This suggests that
results from the orthodox growth accounting approach may be very
misleading.
Journal: International Review of Applied Economics
Pages: 283-299
Issue: 3
Volume: 20
Year: 2006
Keywords: Total factor productivity growth, accounting identity,
X-DOI: 10.1080/02692170600735963
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170600735963
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:283-299
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Temple
Author-X-Name-First: Jonathan
Author-X-Name-Last: Temple
Title: Aggregate Production Functions and Growth Economics
Abstract:
Rigorous approaches to aggregation indicate that aggregate production
functions do not exist except in unlikely special cases. This paper
considers the awkward implications for growth economics. It provides a
conventional defence of growth theory in terms of 'parables' and then
considers how empirical growth research might avoid the need for aggregate
production functions.
Journal: International Review of Applied Economics
Pages: 301-317
Issue: 3
Volume: 20
Year: 2006
Keywords: aggregation, production functions, growth econometrics,
X-DOI: 10.1080/02692170600736052
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:301-317
Template-Type: ReDIF-Article 1.0
Author-Name: Amitava Krishna Dutt
Author-X-Name-First: Amitava Krishna
Author-X-Name-Last: Dutt
Title: Aggregate Demand, Aggregate Supply and Economic Growth
Abstract:
While mainstream growth theory in its neoclassical and new growth theory
incarnations has no place for aggregate demand, Keynesian growth models in
which aggregate demand determines growth neglect the role of aggregate
supply. By assuming that the rate of technological change responds to
labour market conditions, this paper develops a simple and conventional
growth model that integrates the roles of aggregate demand and aggregate
supply. The model shows how the long-run equilibrium growth rate of the
economy, at which the unemployment rate is constant, can be affected by
aggregate demand.
Journal: International Review of Applied Economics
Pages: 319-336
Issue: 3
Volume: 20
Year: 2006
Keywords: Growth, aggregate demand, aggregate supply, technological change, Keynesian growth models, hysteresis,
X-DOI: 10.1080/02692170600736094
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:319-336
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Title: Interest, Debt and Capital Accumulation—A Kaleckian Approach
Abstract:
In the present paper we explicitly introduce interest payments and debt
into a Kaleckian distribution and growth model with an investment function
very close to Kalecki's original writings. This implies that growth in
this model is 'wage-led'. The effects of interest rate variations on the
short-run equilibrium values of capacity utilisation, capital accumulation
and the rate of profit are derived, and the long-run effects on the
equilibrium debt-capital ratio are analysed. It is shown, that the effects
of interest variations on the endogenously determined real equilibrium
values of the model do not only depend on the parameter values in the
saving and investment functions but also on the interest elasticity of
distribution and in some cases on initial conditions with respect to the
interest rate and the debt-capital ratio. If the conditions for short-run
'normal' effects of interest rate variations are given, the economy will
be characterised by a long-run unstable debt-capital ratio and by the
macroeconomic 'paradox of debt'. These results are similar to other models
in the tradition of Kalecki and hint to the robustness of Kaleckian
'monetary' distribution and growth models with respect to the concrete
specification of the investment function.
Journal: International Review of Applied Economics
Pages: 337-352
Issue: 3
Volume: 20
Year: 2006
Keywords: Interest rate, debt, capital accumulation, Kaleckian model,
X-DOI: 10.1080/02692170600736128
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:337-352
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Georgios Chortareas
Author-X-Name-First: Georgios
Author-X-Name-Last: Chortareas
Author-Name: Evangelia Desli
Author-X-Name-First: Evangelia
Author-X-Name-Last: Desli
Title: Technical Efficiency and Financial Deepening in the non-OECD Economies
Abstract:
This contribution investigates the channels through which the
relationship between financial deepening and growth materializes. While
this relationship has been extensively explored over the recent past, less
attention has been paid to the channels through which the relationship
comes about. In continuing our exploration of this relationship, instead
of using a total factor productivity measure, as the existing literature
does, we model productive efficiency in a more explicit and comprehensive
way using non-parametric methodologies to construct efficiency frontiers.
We consider the link between financial deepening and productive efficiency
in a number of non-OECD countries, using the data available from the Penn
World Tables. Our results show that financial development has in general a
positive effect on productive efficiency.
Journal: International Review of Applied Economics
Pages: 353-373
Issue: 3
Volume: 20
Year: 2006
Keywords: Financial deepening, efficiency, data envelopment analysis,
X-DOI: 10.1080/02692170600736151
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170600736151
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:353-373
Template-Type: ReDIF-Article 1.0
Author-Name: L. Randall Wray
Author-X-Name-First: L. Randall
Author-X-Name-Last: Wray
Title: Flexible Exchange Rates, Fed Behavior, and Demand Constrained Growth in the USA
Abstract:
This paper examines Chairman Greenspan's recent claim that central
bankers around the world have been operating 'as if' monetary policy were
constrained by gold that backs up reserves. The paper argues, instead,
that central banks in flexible exchange rate regimes operate with an
overnight interest rate target, which eliminates the possibility of
discretionary control over bank reserves. In other words, central banks
cannot behave as if reserves are constrained by gold. The paper will argue
that fiscal policy, however, has been operated as if it faced financing
constraints. For this reason, growth has been demand-constrained by
austere fiscal policy. However, the perceived constraints on fiscal policy
are not appropriate to a sovereign government operating with a floating
currency. The paper concludes by arguing that adoption of a floating rate
system from the mid 1970s (what Greenspan disparagingly calls a fiat money
standard) has made it possible to operate fiscal policy without these
constraints—that is, to take advantage of the possibilities offered
to the issuer of a floating currency. This would include maintenance of
full employment at home while enjoying the benefits of a trade deficit.
Journal: International Review of Applied Economics
Pages: 375-389
Issue: 3
Volume: 20
Year: 2006
Keywords: Monetary policy, fiscal policy, economic growth, demand-constraints, exchange rate regimes,
X-DOI: 10.1080/02692170600736193
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:375-389
Template-Type: ReDIF-Article 1.0
Author-Name: Michelle Baddeley
Author-X-Name-First: Michelle
Author-X-Name-Last: Baddeley
Title: Convergence or Divergence? The Impacts of Globalisation on Growth and Inequality in Less Developed Countries
Abstract:
This paper assesses the impacts of globalisation on the cross-country
comparative patterns of growth and development. In the theoretical
section, some of the key linkages between growth, development and
globalisation are explored including the positive and negative impacts of
globalisation and the constraints on effective development in a globalised
world. Some of the key factors emphasised include trade and capital flows
as well as computerisation. These issues are then analysed empirically
using σ and club convergence models, estimated using panel
techniques. The empirical evidence presented indicates that globalisation
has been associated with increasing trade and financial flows to less
developed countries. It has also coincided with increasing penetration of
the Internet suggesting that increases in informational flows have
complemented economic and financial linkages, but the empirical evidence
also shows that the current era of globalisation has not been associated
with convergence in economic outcomes; instead less-developed countries
have suffered from increases in international income inequality. In the
final section, conclusions and policy implications are presented including
a discussion of how international and national development policies could
be designed properly to ameliorate tendencies towards growing
international disparities in economic growth.
Journal: International Review of Applied Economics
Pages: 391-410
Issue: 3
Volume: 20
Year: 2006
Keywords: Globalisation, growth, development, convergence,
X-DOI: 10.1080/02692170600736250
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Handle: RePEc:taf:irapec:v:20:y:2006:i:3:p:391-410
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Martinez-Lopez
Author-X-Name-First: Diego
Author-X-Name-Last: Martinez-Lopez
Title: Linking Public Investment to Private Investment. The Case of Spanish Regions
Abstract:
Public investment constitutes one of the main instruments of regional
policies. The existence of a direct link between infrastructure and
regional income per capita is usually accepted. Literature also describes
a positive effect of public investment on private capital accumulation.
This paper seeks to provide new empirical evidence on this latter
relationship for the case of Spanish regions over the period 1965-1997
using panel data methodology. The results show a positive effect of
productive and social public investment (especially in education) on
private investment. The spillover effects generated by the productive
infrastructures located in other regions do not seem to encourage the
private investment in neighbouring regions. Public consumption and
interest rate exert a negative influence on private capital accumulation.
These results are robust to changes in the econometric specification.
Journal: International Review of Applied Economics
Pages: 411-423
Issue: 4
Volume: 20
Year: 2006
Keywords: Crowding-out, regional economics, investment, panel data,
X-DOI: 10.1080/02692170600873996
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:411-423
Template-Type: ReDIF-Article 1.0
Author-Name: T. Huw Edwards
Author-X-Name-First: T. Huw
Author-X-Name-Last: Edwards
Title: Who Gains from Restructuring the Post-Soviet Transition Economies, and Why?
Abstract:
To explore the mixed economic results and huge distributional changes
experienced by post-Soviet economies, I set up a series of theoretical and
numerical simulation models using an approach based upon heterogeneous
firms, where 'reform' means closure of inefficient capacity. In the
presence of significant costs to new firm entry and international capital
mobility, restructuring and privatisation can lead to falls in GDP and
real wages, while capital is transferred abroad. This situation can occur
even under perfect competition, but is worse when industrial production is
concentrated and trade costs are high. By contrast, workers can gain when
costs of establishing new firms are low, and/or when the inefficient
industries are capital-intensive. For countries with high costs of firm
set-up and of trade, capital controls may be justified to protect wages.
Journal: International Review of Applied Economics
Pages: 425-448
Issue: 4
Volume: 20
Year: 2006
Keywords: Transition, wages, general equilibrium,
X-DOI: 10.1080/02692170600874010
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Template-Type: ReDIF-Article 1.0
Author-Name: William Jackson
Author-X-Name-First: William
Author-X-Name-Last: Jackson
Title: Post-Fordism and Population Ageing
Abstract:
Two features of recent economic experience have been the transition to
post-Fordism and the ageing of populations. Post-Fordism entails diverse
production and consumption, flexible employment, privatisation and a
smaller welfare state. Population ageing is predicted to cause financial
problems for state pension schemes and could provoke an ageing crisis.
Although post-Fordism and population ageing have similar expected
consequences, with a stress on welfare retrenchment, they have been
discussed as separate topics and few connections have been made between
them; the present paper aims to bring them closer together and consider
how they are related. Post-Fordism could be seen as resolving the ageing
crisis and offering people better work and retirement choices in a new,
post-Fordist life course, but this version of events is questionable. An
alternative view is that post-Fordism and the ageing crisis are symptoms
of the general movement towards privatisation and laissez faire, which is
by no means guaranteed to improve the welfare of older people.
Journal: International Review of Applied Economics
Pages: 449-467
Issue: 4
Volume: 20
Year: 2006
Keywords: Population ageing, post-Fordism, pensions, retirement,
X-DOI: 10.1080/02692170600874036
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:449-467
Template-Type: ReDIF-Article 1.0
Author-Name: Gail Pacheco
Author-X-Name-First: Gail
Author-X-Name-Last: Pacheco
Author-Name: Vic Naiker
Author-X-Name-First: Vic
Author-X-Name-Last: Naiker
Title: Impact of the Minimum Wage on Expected Profits
Abstract:
This paper investigates the impact of a significant reform to the youth
minimum wage in New Zealand in 2001, on the expectations of low wage
employers' profits. In March 2001, the eligibility for adult minimum wage
rates was lowered from 20 to 18 years while the youth minimum wage for
16-17 year olds was also increased from 60 to 70% of the adult minimum
wage. We construct a descriptive profile of minimum wage workers in New
Zealand and their industry membership. We find that most minimum wage
workers in New Zealand predominantly work in the four industry sectors;
(1) Retail, (2) Textile and apparel, (3) Accommodation, cafes and
restaurants, and (4) Agriculture, forestry, and fishing. Next using an
event study methodology we examine the economic impact of the substantial
increase in youth minimum wage rates on employers in industries with high
concentrations of minimum wage workers. Surprisingly, all conclusions
point to there being an insignificant impact on profit expectations for
low wage employers by investors.
Journal: International Review of Applied Economics
Pages: 469-490
Issue: 4
Volume: 20
Year: 2006
Keywords: minimum wage, shareholder wealth, event study,
X-DOI: 10.1080/02692170600874077
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:469-490
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Tasiran
Author-X-Name-First: Ali
Author-X-Name-Last: Tasiran
Author-Name: Kerem Tezic
Author-X-Name-First: Kerem
Author-X-Name-Last: Tezic
Title: Parental Income and Continuing Education of Second Generation Immigrants in Sweden
Abstract:
Understanding the economic integration of minority ethnic communities
requires an analysis of the educational process. This paper examines
second-generation immigrant youths' educational attainments in comparison
with those of similarly aged native Swedes. Binomial-logit,
grouped-regression and multinomial-logit models are applied to
longitudinal data, 1991-1996. The results give evidence for socioeconomic
determinants of post-compulsory education and for parental influence on
educational choices. Parental income affects second-generation immigrants'
post-compulsory education and Swedes' choice of level of education. In
general, the stronger the labour market positions of the parents, the
higher the probability of the children continuing education. It is also
found that the geographical origin of second-generation immigrants matter,
with youths of Asian origin having a higher probability of continuing
their education. We suggest policy changes on different levels based on
the evidence of the paper, as short-run, long-run and in general.
Journal: International Review of Applied Economics
Pages: 491-514
Issue: 4
Volume: 20
Year: 2006
Keywords: Second-generation immigrants, educational choices, probability- and grouped-regression models,
X-DOI: 10.1080/02692170600874176
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:491-514
Template-Type: ReDIF-Article 1.0
Author-Name: Gour Gobinda Goswami
Author-X-Name-First: Gour Gobinda
Author-X-Name-Last: Goswami
Author-Name: Sadaquat Junayed
Author-X-Name-First: Sadaquat
Author-X-Name-Last: Junayed
Title: Pooled Mean Group Estimation of the Bilateral Trade Balance Equation: USA vis-a-vis her Trading Partners
Abstract:
The autoregressive distributed lag model (ARDL), even though it
distinguishes between the short run and the long run effect, allows both
the intercepts and slopes to vary across countries. Static panel
estimations, such as fixed-effects estimation (FE), cannot distinguish
between the short run and the long run behavior. To address the issue of
short run heterogeneity as well as long run homogeneity of the estimated
coefficients in a panel framework, the pooled mean group (PMG) estimator
has gained popularity since 1999. In this paper, we estimate the bilateral
trade balance model for the USA vis-a-vis her 19 OECD trading partners for
the period 1973q1-2004q4 using the PMG estimator and find that PMG
performs better than ARDL, FE, and MG estimators and provides significant
and theoretically consistent results.
Journal: International Review of Applied Economics
Pages: 515-526
Issue: 4
Volume: 20
Year: 2006
Keywords: Bilateral trade balance equation, pooled mean group estimator, panel data,
X-DOI: 10.1080/02692170600874218
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:515-526
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: Capitalism Unleashed
Abstract:
Journal: International Review of Applied Economics
Pages: 527-530
Issue: 4
Volume: 20
Year: 2006
X-DOI: 10.1080/02692170600874242
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:527-530
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Rondinella
Author-X-Name-First: Tommaso
Author-X-Name-Last: Rondinella
Title: Globalization of Employment and Inequality
Abstract:
Journal: International Review of Applied Economics
Pages: 531-534
Issue: 4
Volume: 20
Year: 2006
X-DOI: 10.1080/02692170600874259
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Handle: RePEc:taf:irapec:v:20:y:2006:i:4:p:531-534
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Title: SPECIAL ISSUE: Industrial Development Policy
Abstract:
Journal: International Review of Applied Economics
Pages: 535-535
Issue: 5
Volume: 20
Year: 2006
X-DOI: 10.1080/02692170601007750
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Handle: RePEc:taf:irapec:v:20:y:2006:i:5:p:535-535
Template-Type: ReDIF-Article 1.0
Author-Name: David Bailey
Author-X-Name-First: David
Author-X-Name-Last: Bailey
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Title: Industrial Policy and Vulnerable Capitalism
Abstract:
This paper emphasises the linkages between corporate strategy, the
macroeconomy and the role of industrial policy in this macropolicy
context. While this is an aspect of industrial policy that is rarely
addressed, we suggest that there is, in fact, a real and highly
significant complementarity, especially in the context of modern
capitalism, with its distinctive features. The underlying premise is that
problems cannot be resolved easily directly at the macro level:
appropriate industrial policy may be a necessary ingredient in securing
better economic performance. Current discussions of exchange rate policies
and the major adjustments required for eliminating external imbalances
between the USA, China, Japan and Europe would seem to point to this
conclusion. This paper emphasises the linkage between corporate strategy,
the macroeconomy and the role of industrial policy in this macropolicy
context, and points to appropriate policies that aim to rebalance the
economy by shifting towards a more diffuse governance structure that
deconcentrates strategic decision making and opens up the potential for
new forces of dynamism.
Journal: International Review of Applied Economics
Pages: 537-553
Issue: 5
Volume: 20
Year: 2006
Keywords: Strategic choice, modern capitalism, advertising, consumption, imbalances, public policies,
X-DOI: 10.1080/02692170601005481
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Template-Type: ReDIF-Article 1.0
Author-Name: David Bailey
Author-X-Name-First: David
Author-X-Name-Last: Bailey
Author-Name: Lisa De Propris
Author-X-Name-First: Lisa
Author-X-Name-Last: De Propris
Author-Name: Roger Sugden
Author-X-Name-First: Roger
Author-X-Name-Last: Sugden
Author-Name: James Wilson
Author-X-Name-First: James
Author-X-Name-Last: Wilson
Title: Public Policy for Economic Competitiveness: An Analytical Framework and a Research Agenda
Abstract:
The prime concern is to highlight the strategic choice framework (SCF)
for analysing localities' economic development and competitiveness
policies in the context of globalisation. The SCF is centred on hypotheses
relating to the governance of production, where 'governance' is understood
in terms of the processes and associated structures for identifying and
making strategic choices. The argument is illustrated from discussions of
current realities at micro, meso and macro levels, and from analyses of
the potential for 'democratic' development paths. This leads to an
explicit focus on competitiveness policies. The conceptualisation of
'competitiveness' is discussed, and we advocate a focus on the degree to
which policies serve the democratically determined public interest. The
paper's secondary concern is to highlight implications of the SCF for the
research agenda. We envisage an emphasis on boundary spanning research. It
is suggested that the SCF be applied in the context of experiences in
actual localities, in diverse forms of enterprise, and in networking and
clusters; and that the SCF be deepened by focusing on aspects of three
topics: economic democracy, economic performance and policy evaluation.
Journal: International Review of Applied Economics
Pages: 555-572
Issue: 5
Volume: 20
Year: 2006
Keywords: Strategic choice, governance, economic development, competitiveness, public policies,
X-DOI: 10.1080/02692170601005499
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Template-Type: ReDIF-Article 1.0
Author-Name: Karl Aiginger
Author-X-Name-First: Karl
Author-X-Name-Last: Aiginger
Author-Name: Susanne Sieber
Author-X-Name-First: Susanne
Author-X-Name-Last: Sieber
Title: The Matrix Approach to Industrial Policy
Abstract:
The objective of this paper is to analyse the development of industrial
policy in the European Union. The changing concepts and rationale for
industrial policy are reported with reference to the treaties and
communications of the European Commission. Industrial policy has followed
the course of these changes, although in reality, the practical changes
have occurred at a slower and less radical pace than the changes in
philosophy. A new paradigm of industrial policy has recently been
developed by the European Commission in a document that first calls for
measures improving the competitiveness in all sectors in terms of rather
broad measures, and subsequently acknowledges sector differences in the
impact of these measures, calling for complementary sector-specific
measures. We label this new paradigm the 'matrix approach' to industrial
policy, because it combines horizontal and vertical measures. On the
empirical level, we see a divide between countries practising a
future-oriented approach emphasising innovation and knowledge, and
countries that take a more defensive stance, with higher subsidies and a
greater amount of regulation. The countries pursuing the more
future-oriented approach achieve higher shares of technology-driven and
skill-intensive industries and excel with respect to the goals of the
Lisbon strategy.
Journal: International Review of Applied Economics
Pages: 573-601
Issue: 5
Volume: 20
Year: 2006
Keywords: Industrial policy, Lisbon strategy, horizontal vs vertical policies, framework conditions, competitiveness, innovation,
X-DOI: 10.1080/02692170601005507
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Template-Type: ReDIF-Article 1.0
Author-Name: Patrizio Bianchi
Author-X-Name-First: Patrizio
Author-X-Name-Last: Bianchi
Author-Name: Sandrine Labory
Author-X-Name-First: Sandrine
Author-X-Name-Last: Labory
Title: Empirical Evidence on Industrial Policy using State Aid Data
Abstract:
This paper provides evidence of the evolution of industrial policy in
European countries through a detailed analysis of state aid data. We show
the emergence of a new phase of industrial policy in the years 2000-2004.
The two previous phases were respectively an 'interventionist' phase,
whereby national champions were directly and strongly supported, and a
'liberal' phase where industrial policy meant providing the conditions for
the competitiveness of industry, in the sense of only defining the rules
of the competitive game. The new phase can be called 'pragmatic'. The
reason for such a term is that industrial policy implemented today is
somewhere in between the two extremes constituted by the previous two
phases, the rules of the game still being emphasised but some vertical
industrial policy measures being envisaged where necessary. In other
words, stress is still on horizontal policy measures but some vertical
policy measures are adopted to meet the specific needs of the various
sectors of the economy. The approach is pragmatic in that it focuses on
the results rather than on ideology.
Journal: International Review of Applied Economics
Pages: 603-621
Issue: 5
Volume: 20
Year: 2006
Keywords: State aid, industrial policy, comparative country study, open and knowledge-based economy,
X-DOI: 10.1080/02692170601005556
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Handle: RePEc:taf:irapec:v:20:y:2006:i:5:p:603-621
Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Mueller
Author-X-Name-First: Dennis
Author-X-Name-Last: Mueller
Title: Corporate Governance and Economic Performance
Abstract:
What is the best corporate governance system? Is the Germanic corporate
governance system the best? The Japanese? The Anglo-Saxon? This article
reviews some of the relevant literature for answering this question.
Particular attention is devoted to corporate governance problems in
developing countries. It emphasizes that the nature of problems that
corporate governance systems must deal with can be expected to vary with
the state of development of a country. Central to any discussion of
corporate governance is the question of how well a particular set of
institutions mitigates the various principal/agent problems that arise in
a firm. The article thus reviews the basic principal/agent problem and
discusses its relevance for countries in different stages of development.
It examines the advantages and disadvantages of each type of corporate
governance system in mitigating principal/agent problems, and reviews the
relevant empirical evidence for assessing their performance.
Journal: International Review of Applied Economics
Pages: 623-643
Issue: 5
Volume: 20
Year: 2006
Keywords: Corporate governance, principal/agent, developing countries,
X-DOI: 10.1080/02692170601005598
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Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Title: Electricity Prices as Signals for the Evaluation of Reforms: An Empirical Analysis of Four European Countries
Abstract:
This paper looks at price trends as signals for the evaluation of utility
reforms. A specific example is considered: electricity prices in four
countries, namely France, Germany, Italy and UK. These countries offer a
natural experiment in different patterns of public/private ownership and
liberalisation of electricity industry. Electricity prices are mainly
influenced by the mix of energy inputs, their costs, and by consumption
per capita. Under different institutional settings, prices for business
users are often more cost-reflective than prices for residential users.
Beyond these common features, the evidence does not support the view that
there is clear dominance of one industry pattern in terms of welfare
change for the representative consumer. This conclusion tends to question
the widely held idea that one specific 'orthodox' reform should be
preferred: privatisation with liberalisation and vertical disintegration.
Utility reforms should be flexible and country-specific.
Journal: International Review of Applied Economics
Pages: 1-27
Issue: 1
Volume: 21
Year: 2007
Keywords: Electricity industry, tariffs, public services, utilities reforms,
X-DOI: 10.1080/02692170601034093
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Template-Type: ReDIF-Article 1.0
Author-Name: Nazim Kadri Ekinci
Author-X-Name-First: Nazim Kadri
Author-X-Name-Last: Ekinci
Author-Name: Korkut Alp Erturk
Author-X-Name-First: Korkut Alp
Author-X-Name-Last: Erturk
Title: Turkish Currency Crisis of 2000-2001, Revisited
Abstract:
Turkey's exchange rate based stabilization programme had collapsed within
just 11 months of its implementation in the midst of a liquidity crunch in
November 2000 caused by a reversal in the capital inflow. The onset of the
stabilization programme created ample opportunities for speculative
investors to make relatively safe one-sided bets, and the initial success
of the programme in bringing down interest rates implied substantial
capital gains over securities obtained in 1999 and early stages of the
programme. It was only natural that speculative investors would take the
opportunity to realize these gains while the firm exchange rate commitment
was still in place. The programme failed to deal with this contingency
effectively, assuming that as long as it was implemented faithfully,
long-term investors would be forthcoming to takeover positions speculators
would want to unload. That assumption proved disastrously wrong.
Journal: International Review of Applied Economics
Pages: 29-41
Issue: 1
Volume: 21
Year: 2007
Keywords: Currency crises, financial liberalization, capital flow reversals, Turkey, asset price speculation,
X-DOI: 10.1080/02692170601034986
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Template-Type: ReDIF-Article 1.0
Author-Name: Alex Luiz Ferreira
Author-X-Name-First: Alex Luiz
Author-X-Name-Last: Ferreira
Title: On the Transmission Mechanism of Monetary Constraints to the Real Side of the Economy
Abstract:
Contrary to the predictions of the theory underlying international
finance, inflows of capital triggered by financial liberalisation have
neither equalised real interest rates nor increased income growth in many
emerging economies. We explain this puzzle by developing a model that
combines the balance-of-payments constraint approach to economic growth
with a less stringent version of the real interest rate parity hypothesis.
The model's foundations are based on robust empirical findings or
well-established macroeconomic models. We show that a perverse combination
of income elasticities of demand for imports and exports generates slow
income growth and high real interest rates. As domestic income grows and
imports rise faster than exports, the real exchange rate is expected to
depreciate in order to clear the balance of payments (or the foreign
exchange rate market). An incipient capital outflow arises and interest
rates increase. Faster adjustment in capital rather than in the goods
market therefore generates a higher real interest rate differential
between the domestic small open-economy and the rest of the world. The
long run analysis shows that a constant degree of risk aversion implies a
positive equilibrium real interest rate differential that affects economic
growth. A permanent increase in default risk driven by persistent current
account imbalances thus impacts on long run growth. The model's results
are illustrated with evidence from the three major Latin America
economies: Argentina, Brazil and Mexico.
Journal: International Review of Applied Economics
Pages: 43-54
Issue: 1
Volume: 21
Year: 2007
Keywords: Real interest rate differentials, balance of payments constraint,
X-DOI: 10.1080/02692170601034994
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Template-Type: ReDIF-Article 1.0
Author-Name: Troy Matheson
Author-X-Name-First: Troy
Author-X-Name-Last: Matheson
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Convergence in Productivity Across Industries: Some Results for New Zealand and Australia
Abstract:
New Zealand shares a wealth of common interests and experiences with
Australia. This has tempted some to assume that these economies form an
'Economic Club', in which one would expect to identify common aggregate
trends and growth experiences. In this paper we present results that test,
and generally reject, convergence in labour productivity across Australia
and New Zealand, using both aggregate and disaggregate, industry-level
data. We find that only two industries satisfy our definition of
Conditional Convergence (Agriculture, Forestry and Fishing and Cultural
and Recreational Services), and that the Mining and Wholesale Trade
industries have particularly important roles to play in explaining the
measured divergence. Cointegration-based tests reveal more stochastic
trends governing Australian productivity than in New Zealand. The evidence
suggests, therefore, that the underlying growth processes of the two
economies are fundamentally different, thereby questioning the relevance
of aggregate comparisons between them. New evidence using industry-level
data does not, therefore, resolve the aggregate-level 'non-convergence
puzzle' identified here, and elsewhere.
Journal: International Review of Applied Economics
Pages: 55-73
Issue: 1
Volume: 21
Year: 2007
Keywords: Productivity, convergence, Australia, New Zealand, industry,
X-DOI: 10.1080/02692170600874143
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Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Frantzen
Author-X-Name-First: Dirk
Author-X-Name-Last: Frantzen
Title: Technical Diffusion, Productivity Convergence and Specialisation in OECD Manufacturing
Abstract:
A panel data regression analysis investigates the issue of total factor
productivity (TFP) convergence in OECD manufacturing during the period
1970-1995. The results imply: conditional β convergence, actual
catching up and stronger convergence at a disaggregate level than at the
level of manufacturing as a whole. The evolution of the standard deviation
of the log of TFP shows that there is also evidence of σ
convergence. The stronger convergence of TFP at a disaggregate level is
explained by a high level of OECD manufacturing production specialisation,
which is also shown to be very persistent. The degree of research
specialisation is shown to be even higher and equally sticky. A
correlation analysis shows that both specialisation patterns are related.
Journal: International Review of Applied Economics
Pages: 75-98
Issue: 1
Volume: 21
Year: 2007
Keywords: Innovation, technical diffusion, productivity convergence, specialisation,
X-DOI: 10.1080/02692170601035017
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Template-Type: ReDIF-Article 1.0
Author-Name: Marion Frenz
Author-X-Name-First: Marion
Author-X-Name-Last: Frenz
Author-Name: Grazia Ietto-Gillies
Author-X-Name-First: Grazia
Author-X-Name-Last: Ietto-Gillies
Title: Does Multinationality Affect the Propensity to Innovate? An Analysis of the Third UK Community Innovation Survey
Abstract:
The paper is developed at the interface between internationalization and
innovation studies. It utilizes data on innovation from the UK Community
Innovation Surveys 3 and 2 (CIS3 and CIS2) to assess whether
multinationality affects the innovation propensity of surveyed
enterprises. The indicators of innovation propensity—our dependent
variables—are taken from the following CIS sets of variables:
innovation outputs; innovation inputs; innovation outcomes (patent
applications); innovation continuity/sustainability. The latter element is
considered to be the ability of the enterprise to sustain innovation over
a long period of time and the relevant variable is derived from both CIS3
and 2 data. This allows the paper to introduce dynamic elements into the
analysis. Four hypotheses are developed and tested. Our main hypothesis
states that multinationality per se (i.e. being part of a multinational
company network) affects the propensity to innovate. We also test for
three sub-hypotheses related to characteristics of multinationality:
belonging to a group vs being independent; degree of multinationality;
being part of a foreign vs domestic multinational. The results show that
all those CIS enterprises that belong to a multinational
corporation—whether UK or foreign—are more likely to exhibit
innovation propensity; they are also more likely to engage in innovation
activities on a continuous basis.
Journal: International Review of Applied Economics
Pages: 99-117
Issue: 1
Volume: 21
Year: 2007
Keywords: Multinational companies, innovation, Community Innovation Survey UK, innovation activity in the UK, foreign-owned companies, degree of multinationality,
X-DOI: 10.1080/02692170601035033
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Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:99-117
Template-Type: ReDIF-Article 1.0
Author-Name: Liangshu Qi
Author-X-Name-First: Liangshu
Author-X-Name-Last: Qi
Title: The Relationship Between Growth, Total Investment and Inward FDI: Evidence from Time Series Data
Abstract:
This paper explores the causal relationship between growth, total
investment and inward FDI in 47 countries. Using error-correction model,
the significance, direction and sign of long-run and short-run causal
effects between GDP, capital stock and FDI stock are investigated. The
miscellaneous results echo the divergent theoretical viewpoints and the
mixed empirical results of previous works. However, the evidence found in
this study suggests that there are differences in growth mechanism between
developed and developing countries, between various developing regions,
and between oil-exporting and non-oil-exporting countries. The main policy
implication is that capital investment is essential for growth while FDI's
effect is uncertain in developing countries. FDI as well as total
investment enhances growth only under some conditions.
Journal: International Review of Applied Economics
Pages: 119-133
Issue: 1
Volume: 21
Year: 2007
Keywords: Growth, capital investment, FDI, causal relationship,
X-DOI: 10.1080/02692170601035058
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Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:119-133
Template-Type: ReDIF-Article 1.0
Author-Name: Peter McAdam
Author-X-Name-First: Peter
Author-X-Name-Last: McAdam
Title: USA, Japan and the Euro Area: Comparing Business-Cycle Features
Abstract:
There has been much discussion of the differences in macroeconomic
performance and prospects between the USA, Japan and the Euro area. Using
Markov-switching techniques, we identify and compare specifically their
major business-cycle features and examine the case for a common business
cycle, asymmetries in the national cycles and, using a number of
algorithms, date business-cycle turning points. Despite a high degree of
trade and financial linkages, the cyclical features of USA, Japan and the
Euro area appear quite distinct. Documenting and comparing such
international business-cycle features can, for example, aid the
development of business-cycle models and inform policy making.
Journal: International Review of Applied Economics
Pages: 135-156
Issue: 1
Volume: 21
Year: 2007
Keywords: Business cycle, Markov switching, synchronization, turning points,
X-DOI: 10.1080/02692170601035066
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Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:135-156
Template-Type: ReDIF-Article 1.0
Author-Name: Lars Behrenz
Author-X-Name-First: Lars
Author-X-Name-Last: Behrenz
Author-Name: Mats Hammarstedt
Author-X-Name-First: Mats
Author-X-Name-Last: Hammarstedt
Author-Name: Jonas Månsson
Author-X-Name-First: Jonas
Author-X-Name-Last: Månsson
Title: Second-Generation Immigrants in the Swedish Labour Market
Abstract:
This study focuses on the labour market performance among
second-generation immigrants in Sweden. One motivation behind the analysis
is that it gives insight into the long-term consequences of immigration.
Labour market performance relates the probability of having a job,
referred to here as a threshold effect and to the differences in income
from work, given that a person is in the market and is referred to as an
income from work effect. We have shown that a clear threshold effect of
being a second-generation immigrant exists and that different groups of
second-generation immigrants perform differently in the Swedish labour
market.
Journal: International Review of Applied Economics
Pages: 157-174
Issue: 1
Volume: 21
Year: 2007
Keywords: Second-generation immigrants, threshold effect, income from work, labour market position,
X-DOI: 10.1080/02692170601035074
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Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:157-174
Template-Type: ReDIF-Article 1.0
Author-Name: A. Altuzarra
Author-X-Name-First: A.
Author-X-Name-Last: Altuzarra
Author-Name: C. Puerta
Author-X-Name-First: C.
Author-X-Name-Last: Puerta
Author-Name: F. Serrano
Author-X-Name-First: F.
Author-X-Name-Last: Serrano
Title: Evaluating the Relative Innovative Position of European Union Member Countries: An Empirical Analysis
Abstract:
This paper aims to provide empirical evidence about the relative
positions of European Union member states on innovation and, more
specifically, on innovation in manufacturing. These positions were
obtained from the aggregation of different innovation variables using the
principal component analysis. We do not provide, from the statistical
viewpoint, a synthetic indicator, even if, from the economic perspective,
the information we obtained was similar to what such an indicator would
provide. Our unit of analysis is the sector in each country, what we will
term 'country-sector', covering both innovative and non-innovative firms.
Journal: International Review of Applied Economics
Pages: 175-188
Issue: 1
Volume: 21
Year: 2007
Keywords: Community innovation survey, innovation, competitiveness, manufacturing sector, principal components analysis,
X-DOI: 10.1080/02692170600874127
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Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:175-188
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Albala-Bertrand
Author-X-Name-First: J. M.
Author-X-Name-Last: Albala-Bertrand
Title: Relative Capital Shortage and Potential Output Constraint: A Gap Approach
Abstract:
Focusing on core-infrastructure capital vis-a-vis productive capital, we
propose a macroeconomic method to estimate their optimal utilisation ratio
in production and their relative shortage in any period. The method is
based on an adapted two-gap model, estimated via linear programming, with
application to Chile and Mexico over the 1950-2000 period. Core
infrastructure appears to support a variable level of productive
investment, relative capital shortage alternating and imposing constraints
on potential output over time. This suggests an optimal investment trade
off, based on a social opportunity cost that derives from the prevailing
gap in any period.
Journal: International Review of Applied Economics
Pages: 189-205
Issue: 2
Volume: 21
Year: 2007
Keywords: Capital shortage, potential output, two-gap model,
X-DOI: 10.1080/02692170701189094
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:189-205
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Asli Gunay
Author-X-Name-First: Asli
Author-X-Name-Last: Gunay
Title: Inflation Dynamics and its Sources in the Ottoman Empire: 1586-1913
Abstract:
This study examines the dynamics and determinants of inflation in the
Ottoman Empire during the 1586-1913 period. There are two possible reasons
for inflation: fiscal expansion and monetary expansion, which could be
generated through the debasement of local currency (Akce). We used a set
of political and structural variables in order to explain the change in
inflation dynamics. In particular, we considered the war years, periods of
Ottoman history that show different characteristics (the slow-down period,
the recession period and the break-up period) and the period of
constitutional monarchy. Moreover, we tested whether the inflation process
was the same for each sultan and whether each sultan's behavior during the
first year was different from the rest of his reign. The empirical
evidence reported here suggests that war accelerated inflation as expected
and fiscal expansion rather than the debasement of the Akce was the main
reason for inflation. Moreover, the slow-down, the recession and the
break-up periods affected inflation positively; both fiscal expansion and
the debasement of the Akce were seen in these three periods as sources of
inflation. While employing different inflationary policies during his
reign, each sultan accelerated inflation in the first year of his reign by
the debasement of the Akce or by fiscal expansion. Last, the
constitutional monarchy period had a significant positive effect on
inflation although fiscal expansion, rather than the debasement of the
Akce, was the source of inflation during this period.
Journal: International Review of Applied Economics
Pages: 207-245
Issue: 2
Volume: 21
Year: 2007
Keywords: Inflation, debasement, fiscal expansion, Ottoman Empire,
X-DOI: 10.1080/02692170701189102
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:207-245
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Montuenga-Gomez
Author-X-Name-First: Victor
Author-X-Name-Last: Montuenga-Gomez
Author-Name: Melchor Fernandez
Author-X-Name-First: Melchor
Author-X-Name-Last: Fernandez
Author-Name: Andres Romeu
Author-X-Name-First: Andres
Author-X-Name-Last: Romeu
Title: The Link Between Wages and Productivity in Spain
Abstract:
This paper examines the effect of productivity on wages for Spanish
industrial sectors by developing a model that captures effects from both
sector-specific and aggregate variables. The results show that a dual
behaviour can be inferred, at the sector level, in the wage-setting
mechanism. It is also found that the linkage between wages and
productivity varies over time. Some explanations for the increase in wage
dispersion are provided, focusing on the increasing decentralisation in
wage bargaining after 1986. Finally, we cast some light on the theoretical
structure underlying the labour market.
Journal: International Review of Applied Economics
Pages: 247-272
Issue: 2
Volume: 21
Year: 2007
Keywords: Sectoral analysis, insider-outsider model, efficiency wage hypothesis, extreme bound analysis,
X-DOI: 10.1080/02692170701189151
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:247-272
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weller
Author-X-Name-First: Christian
Author-X-Name-Last: Weller
Title: The Presence of Multinational Banks and the Supply and Quality of Credit in Emerging Economies
Abstract:
Barriers to entry for multinational banks (MNBs) have been reduced in
many countries. This paper studies the effect of the presence of MNBs on
the supply and quality of credit in emerging economies. This study uses
data from the Bank for International Settlements and the International
Monetary Fund. The results indicate that the credit supply declines in
response to increased competition from MNBs. However, the adverse effect
of MNBs on the credit supply is less pronounced when the presence of MNBs
is larger. The paper also provides some tentative results on the effect of
MNBs on the quality of loans. The results suggest that banks shift their
portfolios away from loans as a result of increased international
financial competition, thereby reducing default risk, which is also
reflected in a negative relationship between MNB presence and the chance
of a banking crisis occurring.
Journal: International Review of Applied Economics
Pages: 273-292
Issue: 2
Volume: 21
Year: 2007
Keywords: Emerging economies, multinational banks, credit supply, quality of loan portfolios,
X-DOI: 10.1080/02692170701189177
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:273-292
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmut Yasar
Author-X-Name-First: Mahmut
Author-X-Name-Last: Yasar
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Author-Name: Carl Nelson
Author-X-Name-First: Carl
Author-X-Name-Last: Nelson
Author-Name: Roderick Rejesus
Author-X-Name-First: Roderick
Author-X-Name-Last: Rejesus
Title: Is there Evidence of Learning-by-Exporting in Turkish Manufacturing Industries?
Abstract:
Exporting has always been thought of as one tool to improve productivity
and, consequently, to spur economic growth in low- to middle-income
economies. However, empirical evidence of this so-called
'learning-by-exporting' effect has been limited. This article determines
whether learning-by-exporting is evident in two Turkish manufacturing
sectors—the textile and apparel (T&A) and the motor vehicle and
parts (MV&P) industries. A semi-parametric estimator that controls for
problems associated with simultaneity and unobserved plant heterogeneity
is used to test the learning-by-exporting hypothesis. After controlling
for these issues, our results suggest statistically stronger
learning-by-exporting effects in the T&A than in the MV&P industry. The
highly concentrated and capital-intensive nature of the MV&P industry is
the main reason for the lower learning-by-exporting effect in this sector.
From a policy perspective, this implies that targeting export-enhancing
policies to industries with significant learning-by-exporting effects may
lead to more productivity gains and would better stimulate an export-led
growth.
Journal: International Review of Applied Economics
Pages: 293-305
Issue: 2
Volume: 21
Year: 2007
Keywords: Learning-by-exporting, heterogeneity, productivity, trade liberalization,
X-DOI: 10.1080/02692170701189193
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:293-305
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Rosenberg
Author-X-Name-First: Samuel
Author-X-Name-Last: Rosenberg
Title: Employment Policy and Social Policy as Productive Factors
Abstract:
Journal: International Review of Applied Economics
Pages: 307-311
Issue: 2
Volume: 21
Year: 2007
X-DOI: 10.1080/02692170701189250
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Handle: RePEc:taf:irapec:v:21:y:2007:i:2:p:307-311
Template-Type: ReDIF-Article 1.0
Author-Name: Helena Lenihan
Author-X-Name-First: Helena
Author-X-Name-Last: Lenihan
Author-Name: Mark Hart
Author-X-Name-First: Mark
Author-X-Name-Last: Hart
Author-Name: Stephen Roper
Author-X-Name-First: Stephen
Author-X-Name-Last: Roper
Title: Industrial Policy Evaluation: Theoretical Foundations and Empirical Innovations: New Wine in New Bottles
Abstract:
Journal: International Review of Applied Economics
Pages: 313-319
Issue: 3
Volume: 21
Year: 2007
X-DOI: 10.1080/02692170701390304
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:313-319
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Wren
Author-X-Name-First: Colin
Author-X-Name-Last: Wren
Title: Reconciling Practice with Theory in the Micro-Evaluation of Regional Policy
Abstract:
This paper seeks to reconcile evaluative practice with theory, focusing
on the micro-evaluation of UK regional industrial policy. Two issues are
examined: the measurement of the pecuniary external effects, including
displacement and linkages; and the concept of 'additionality', which is
central to the industrial survey approach. It argues that current
evaluative practice is at odds with theory, but while cost-benefit
analysis simplifies the measurement of the external effects, it has other
features that may limit its appeal. On 'additionality', the paper traces
its evolution, and shows that it is a multi-dimensional concept. It argues
that in practice the use of 'additionality' is deficient as it ignores the
firm's private funds and all forms of deadweight transfer.
Journal: International Review of Applied Economics
Pages: 321-337
Issue: 3
Volume: 21
Year: 2007
Keywords: Evaluation, regional policy, external effects, cost-benefit analysis (CBA), 'additionality',
X-DOI: 10.1080/02692170701390312
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:321-337
Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Binelli
Author-X-Name-First: Chiara
Author-X-Name-Last: Binelli
Author-Name: Alessandro Maffioli
Author-X-Name-First: Alessandro
Author-X-Name-Last: Maffioli
Title: A Micro-econometric Analysis of Public Support to Private R&D in Argentina
Abstract:
This paper investigates the relationship between government interventions
to promote investments in innovation and firm-financed R&D. Merging a
unique panel data set on Argentinean firms in the 1990s with a data base
on different types of public support received through the FONTAR (Fondo
Tecnologico Argentino) program, we estimate a fixed effects model and find
evidence of a significant positive impact of FONTAR on private R&D. A 1
per cent increase in the amount received through FONTAR induces an average
increase of 547.6 real pesos in annual R&D expenditures. The result is
robust to the use of an instrumental variable estimator that controls for
the potential bias induced by changes in the structure of the program. An
analysis by type of financial support reveals that the impact is mainly
due to targeted and fiscal credit with no evidence that funding received
through matching grants has an additionality effect on private
investments. This result is in line with the predictions of a simple
theoretical model that investigates the impact of different policy
interventions to promote investments in R&D. When firms' preferences are
not directly observable, the provision of direct subsidies is more likely
to incur the risk of adverse selection attracting firms that would have
invested in innovation even in the absence of public support or dismiss
some of the non-financed projects, thus leaving unchanged or decreasing
the overall level of expenditures in R&D.
Journal: International Review of Applied Economics
Pages: 339-359
Issue: 3
Volume: 21
Year: 2007
Keywords: Innovation and R&D, policy evaluation, panel data,
X-DOI: 10.1080/02692170701390320
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:339-359
Template-Type: ReDIF-Article 1.0
Author-Name: Karen Bonner
Author-X-Name-First: Karen
Author-X-Name-Last: Bonner
Author-Name: Seamus McGuinness
Author-X-Name-First: Seamus
Author-X-Name-Last: McGuinness
Title: Assessing the Impact of Marketing Assistance on the Export Performance of Northern Ireland SMEs
Abstract:
This paper examines the extent to which marketing assistance administered
to a group of high performing Northern Ireland SMEs led to improved export
revenue growth. Standard OLS models provided no evidence to support the
view that marketing grants substantially improved the export performance
of assisted firms; however, substantial impacts were detected when
treatment models were estimated, indicating that selection into marketing
assistance tended to be a non-random event. Marketing assistance was found
to be a highly effective policy tool when targeted towards SMEs already
active in export markets and/or involved in product innovation. From a
methodological standpoint the analysis highlights the potential benefits
of using other grant information within the treatment model as a means of
uncovering additional important information on firm level characteristics
that might otherwise have been missed.
Journal: International Review of Applied Economics
Pages: 361-379
Issue: 3
Volume: 21
Year: 2007
Keywords: Small firms, exports, government assistance, marketing grants, Heckman,
X-DOI: 10.1080/02692170701390346
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:361-379
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo G. Colombo
Author-X-Name-First: Massimo G.
Author-X-Name-Last: Colombo
Author-Name: Luca Grilli
Author-X-Name-First: Luca
Author-X-Name-Last: Grilli
Author-Name: Cinzia Verga
Author-X-Name-First: Cinzia
Author-X-Name-Last: Verga
Title: High-tech Start-up Access to Public Funds and Venture Capital: Evidence from Italy
Abstract:
Several studies have highlighted that new technology-based firms (NTBFs)
are often financially constrained, with these constraints hindering firms'
growth and even threatening their survival. Even though the provision of
venture capital (VC) may allow firms to overcome these constraints, VC
supply may be fairly limited, especially in bank-based countries such as
Italy and the cost of accessing VC funds may be too high for most young
high-tech firms. Policy makers may try to relax the financial constraints
suffered by NTBFs through the provision of direct subsidies to firms.
Technology policy may also aim at signalling the high quality of
subsidized firms to external investors, reducing information asymmetries.
However, policy makers may not be able to identify those firms that most
need public aid. In this paper we investigate the determinants of NTBF
access to public funds and venture capital. This analysis enables us to
draw some considerations both on the investment selection criteria adopted
by venture capitalists and on the existing Italian technology policy's
capacity to address NTBFs' financial constraints. In order to do so, we
consider a sample composed of 550 Italian NTBFs that operate in both
manufacturing and services and resort to the estimation of a dynamic
bivariate survival model so as to highlight simultaneously the
determinants of firms' access to both these modes of financing. The
results of our estimates only partially confirm the relevance of founders'
competencies as important drivers of VC investment decisions, pointing to
the multifaceted nature of human capital, and suggest the presence of
inefficiencies in venture capital markets that are not alleviated by the
existing Italian technology policy measures towards high-tech start-ups.
Journal: International Review of Applied Economics
Pages: 381-402
Issue: 3
Volume: 21
Year: 2007
Keywords: New technology-based firms, venture capital, public subsidies, technology policy,
X-DOI: 10.1080/02692170701390361
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:381-402
Template-Type: ReDIF-Article 1.0
Author-Name: Elaine Ramsey
Author-X-Name-First: Elaine
Author-X-Name-Last: Ramsey
Author-Name: Derek Bond
Author-X-Name-First: Derek
Author-X-Name-Last: Bond
Title: Evaluating Public Policy Formation and Support Mechanisms for Technological Innovation
Abstract:
Policy evaluation is a complex task. Most approaches now adopt a mixed
method approach combining both quantitative and qualitative techniques. A
shortcoming of the standard approaches is that they fail to measure or
investigate deeper perceptions of the policy. In this paper the usefulness
of projective techniques as a tool for policy evaluation is investigated.
Projective techniques are widely used in psychology and consumer studies
but their usefulness in policy evaluation has still to be assessed. A
simple evaluation is done in this paper by reporting on a study of
owner-managers of tradeable-services small and medium size enterprises
attitudes to government e-business policy. The survey included firms from
Northern Ireland, Republic of Ireland and New Zealand. Traditional
quantitative and qualitative survey techniques were used, however these
failed to produce conclusive evidence. To overcome this limitation two
projective techniques—word association and completion
tests—were employed as an additional evaluation method. The paper
illustrates how the results of projective techniques can be analysed using
both context and matrix analysis. Given that the area of e-business is
dynamic and fast changing and that SMEs are extremely heterogeneous, it is
argued that the application of projective techniques to assess their
attitudes and perceptions of government policy is a good test of the
usefulness of the method. The results of the projective techniques lead to
more insight into the perceptions and attitudes of the owner-managers and
provide interesting individual perspectives into the issues. Problems with
the method, such as costs, the level of skill needed to apply the
technique and generalization are highlighted. The overall conclusions are
that projective techniques could provide an interesting additional tool
for policy evaluation and that further assessment of its usefulness is
needed.
Journal: International Review of Applied Economics
Pages: 403-418
Issue: 3
Volume: 21
Year: 2007
Keywords: Policy evaluation, projective techniques: E-business, SMEs,
X-DOI: 10.1080/02692170701390387
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Template-Type: ReDIF-Article 1.0
Author-Name: Mariana Zanatta
Author-X-Name-First: Mariana
Author-X-Name-Last: Zanatta
Author-Name: Sergio Queiroz
Author-X-Name-First: Sergio
Author-X-Name-Last: Queiroz
Title: The Role of National Policies on the Attraction and Promotion of MNEs' R&D Activities in Developing Countries
Abstract:
The technology internationalization process of multinational companies
(MNCs) is characterized by the growing decentralization of this activity
to other countries, including developing ones. Within this process, world
competition for foreign direct investment (FDI) in research and
development (R&D) has been increasing in the last few years. Consequently,
to attract this kind of FDI national policies and their instruments have
become ubiquitous. For a country to succeed in its quest for FDI, its
policies need to be consistent and articulated encompassing measures that
influence and promote all the determining factors of FDI in R&D, i.e.
supply of qualified professionals, adequate infrastructure, favorable laws
and regulations, etc. This means that a FDI policy cannot be restricted
only to fiscal incentives and grants. The aim of this paper consists in
identifying and analyzing Chinese, Indian and Brazilian policy measures,
to offer a better understanding about how they affect the attraction and
promotion of FDI in R&D, as well as their differences and similarities.
The analysis shows that despite the flaws still presented in both Chinese
and Indian economic and technological systems, they have been implementing
a more articulated and consistent set of policies, thus attracting FDI in
R&D from all over the world. However, Brazilian policies seem to be less
articulated and still based on the concession of fiscal incentives to
attract this kind of FDI.
Journal: International Review of Applied Economics
Pages: 419-435
Issue: 3
Volume: 21
Year: 2007
Keywords: Internationalization of R&D, multinational companies, FDI policies, developing countries,
X-DOI: 10.1080/02692170701390395
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:419-435
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Huggins
Author-X-Name-First: Robert
Author-X-Name-Last: Huggins
Author-Name: Mehmet Demirbag
Author-X-Name-First: Mehmet
Author-X-Name-Last: Demirbag
Author-Name: Violina Iankova Ratcheva
Author-X-Name-First: Violina Iankova
Author-X-Name-Last: Ratcheva
Title: Global Knowledge and R&D Foreign Direct Investment Flows: Recent Patterns in Asia Pacific, Europe, and North America
Abstract:
The global nature of foreign direct investment (FDI) is changing in terms
of both location and sectors of activity. This paper analyses recent flows
of R&D FDI across the globe. It is found that North America has been the
source of one-half of all R&D FDI between 2002 and 2005. Asia Pacific,
especially China and India, has been the overwhelming destination for most
R&D FDI, accounting for more than one-half of all investment and almost
three-quarters of the jobs created. In general, R&D FDI has not been
equitably spread across nations such as India and China but concentrated
in a small number of locations. R&D FDI from advanced economies is
facilitating the emergence of new centres and clusters of knowledge across
the globe. This global redistribution of knowledge brings challenges to
policymakers in both the developed and the developing world. The
challenges come in two main forms: first, cross-regional disparities in
knowledge-based wealth creation within particular nations; and second,
anxieties about the offshoring of knowledge-based tasks and jobs. It is
argued that current patterns of global knowledge flow require policies to
nurture the open regional innovation systems being established by these
flows.
Journal: International Review of Applied Economics
Pages: 437-451
Issue: 3
Volume: 21
Year: 2007
Keywords: Foreign direct investment (FDI), research and development (R&D), knowledge flows, knowledge clusters, China, India,
X-DOI: 10.1080/02692170701390437
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:437-451
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Author-Name: David Bailey
Author-X-Name-First: David
Author-X-Name-Last: Bailey
Author-Name: Alex De Ruyter
Author-X-Name-First: Alex
Author-X-Name-Last: De Ruyter
Author-Name: Noel Kavanagh
Author-X-Name-First: Noel
Author-X-Name-Last: Kavanagh
Title: Lisbon, Sapir and Industrial Policy: Evaluating the 'Irish Success Story'
Abstract:
This paper provides a critical macro-level evaluation of the Lisbon
process and Sapir report, through the lens of examining the Irish
experience. Our assessment of the performance of the Irish economy depicts
a picture of catch-up and convergence with average EU productivity and GNP
levels, rather than a 'miracle'. In so doing, we attempt to provide a more
balanced appraisal of how Ireland managed to get things 'right' in some
sense in recent years while also recognising on-going challenges for the
economy and the vulnerability caused by FDI-dependent growth. The Sapir
report and follow-up papers were right to identify administrative capacity
and a favourable investment environment (including education systems) as a
precondition for strong economic performance. However, we argue that
corporatist social pacts, an opportunistic exchange rate policy and a high
rate of in-migration (and the more general expansion of the labour supply)
have also contributed to Irish success, along with substantial EU
structural assistance. Moreover, Sapir's analysis is superficial, we would
suggest, in that a key 'lesson' for new EU member states from Ireland's
recent economic history is that simply attracting FDI is not enough to
generate spillovers. Irish policymakers have recognised this and have
attempted to shift policy away from a focus purely on attracting FDI
towards a more sophisticated industrial policy.
Journal: International Review of Applied Economics
Pages: 453-467
Issue: 3
Volume: 21
Year: 2007
Keywords: Ireland, Lisbon, Sapir, industrial policy, policy evaluation,
X-DOI: 10.1080/02692170701390452
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Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:453-467
Template-Type: ReDIF-Article 1.0
Author-Name: Penelope Pacheco-Lopez
Author-X-Name-First: Penelope
Author-X-Name-Last: Pacheco-Lopez
Author-Name: A. P. Thirlwall
Author-X-Name-First: A. P.
Author-X-Name-Last: Thirlwall
Title: Trade Liberalisation and the Trade-Off Between Growth and the Balance of Payments in Latin America
Abstract:
The broad purpose of trade liberalisation is to raise the rate of growth
of countries on a sustainable basis, consistent with the achievement of
other macroeconomic objectives. In this article we consider whether trade
liberalisation in 17 countries of Latin America has improved the trade-off
between gross domestic product (GDP) growth and the trade balance,
allowing the countries to grow faster without sacrificing foreign
exchange. We find that in the aftermath of liberalisation, the majority of
countries did grow faster, but at the expense of a deteriorating trade
balance. Testing formally for the impact of trade liberalisation in a full
model of trade balance determination, we find that only in Chile and
Venezuela has the trade-off unequivocally improved. In other countries
there has been a significant deterioration or no change. Nine out of the
17 countries have grown faster post-liberalisation than pre-liberalisation
but, except for Chile and Venezuela, at the expense of a wider trade or
current account deficit.
Journal: International Review of Applied Economics
Pages: 469-490
Issue: 4
Volume: 21
Year: 2007
Keywords: Latin America, trade liberalisation, growth, balance of payments,
X-DOI: 10.1080/02692170701474587
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Handle: RePEc:taf:irapec:v:21:y:2007:i:4:p:469-490
Template-Type: ReDIF-Article 1.0
Author-Name: Robert A. Blecker
Author-X-Name-First: Robert A.
Author-X-Name-Last: Blecker
Title: The Economic Consequences of Dollar Appreciation for US Manufacturing Investment: A Time-Series Analysis
Abstract:
This article analyses the effects of the real value of the dollar on
investment in US domestic manufacturing using aggregate data for
1973-2004. Econometric estimation shows a negative effect that is much
larger than has been found in any previous study. The exchange rate
affects investment mainly, although not exclusively, through the channel
of financial or liquidity constraints, rather than by affecting the
desired stock of capital. Counterfactual simulations show that US
manufacturing investment would have been 61% higher and the capital stock
would have been 17% higher in 2004 if the dollar had not appreciated after
1995.
Journal: International Review of Applied Economics
Pages: 491-517
Issue: 4
Volume: 21
Year: 2007
Keywords: Investment, manufacturing, exchange rate, US dollar, profits, US economy,
X-DOI: 10.1080/02692170701474595
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Handle: RePEc:taf:irapec:v:21:y:2007:i:4:p:491-517
Template-Type: ReDIF-Article 1.0
Author-Name: Jose L. Zofio
Author-X-Name-First: Jose L.
Author-X-Name-Last: Zofio
Author-Name: Angel M. Prieto
Author-X-Name-First: Angel M.
Author-X-Name-Last: Prieto
Title: Measuring Productive Efficiency in Input-Output Models by Means of Data Envelopment Analysis
Abstract:
The goal of the present research is to evaluate productive efficiency in
an input-output framework by means of data envelopment analysis (DEA).
This mathematical programming technique allows researchers to assess
potential efficiency improvements in the form of input requirements
reduction. By constructing envelopment unitary isoquants corresponding to
comparable sectors across different local, regional or national economies,
e.g. agriculture and manufacturing, DEA identifies as productive
benchmarks those economies that exhibit the lowest technical coefficients,
i.e. lowest input amount to produce one unit of output. Once these
reference frontiers have been defined, it is possible to assess what would
be the potential efficiency improvements available to the inefficient
economies if they were to produce according to the best practice
technologies of their benchmark peers. From an equivalent perspective,
these simulations identify the necessary changes that each productive
sector needs to undertake in order to reach the efficiency levels of the
most successful economies. Finally, within Leontief's analytical
construction, these calculations allow us to assess what would have been
the economy-wid,e benefits for the inefficient economies—in terms
of intermediate consumption reductions and final demand
increases—of producing with best practice technologies. The model
is empirically illustrated using the input-output tables for a set of OECD
countries.
Journal: International Review of Applied Economics
Pages: 519-537
Issue: 4
Volume: 21
Year: 2007
Keywords: Productive efficiency, input-output tables, data envelopment analysis,
X-DOI: 10.1080/02692170701189219
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Template-Type: ReDIF-Article 1.0
Author-Name: Mehrene Larudee
Author-X-Name-First: Mehrene
Author-X-Name-Last: Larudee
Title: Causes of Growth and Decline in Mexico's Maquiladora Apparel Sector
Abstract:
Under the North American Free Trade Agreement (NAFTA) beginning in 1994,
the maquiladora sector was the dynamic manufacturing sector in Mexico, and
its apparel subsector was especially so, more than quadrupling in
employment from December 1993 to July 2000. Yet NAFTA's influence on
apparel employment is hard to find in a careful time series econometric
analysis. Instead, much of employment growth is explained for 1980 to the
present by changes in US demand as measured by real US gross domestic
product or by real US apparel spending, by US/Mexico relative labor cost
as proxied by the real peso-dollar exchange rate, and by the relaxation of
quotas on US apparel imports from Mexico in 1988-1990. In equations
including these variables, tests for a structural break at the time of
NAFTA find an effect which is either insignificant or else quite small and
in some models negative. Possible explanations for this surprising result
are discussed, along with the implications for cost-benefit analysis of
free trade agreements.
Journal: International Review of Applied Economics
Pages: 539-559
Issue: 4
Volume: 21
Year: 2007
Keywords: Employment, exchange rate, apparel, liberalization, NAFTA, quotas,
X-DOI: 10.1080/02692170701189136
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Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Author-Name: Alan Speight
Author-X-Name-First: Alan
Author-X-Name-Last: Speight
Title: Time Irreversibility in Consumers' Expenditure: An Analysis of Disaggregated Data
Abstract:
The literature on testing for the presence of cyclical asymmetry in
consumers' expenditure is extended via the application of tests for time
irreversibility to UK data subject to a higher degree of disaggregation
than considered in previous studies. The empirical findings reported
provide support for a positive relationship between the durability of
goods and the asymmetric, and specifically time irreversible, behaviour
they exhibit at a fine level of disaggregation. Further investigation of
the underlying causes of such time irreversibility exhibit pronounced
difference according to the degree of durability, in that nonlinearity in
the underlying data generating process is a prevalent feature of highly
disaggregated durable good expenditures, but is a less marked feature of
semi-durable and non-durable expenditures. Prominent among the durable and
semi-durable good expenditure categories exhibiting such nonlinearities
are expenditures relating to housing fittings and communication equipment.
These findings are consistent with threshold effects in inventory control
as well as the effects of credit rationing, such that these expenditures
are more likely to be made at times when those constraints are eased by
income windfalls or by the easing of credit availability, possibly
associated with mortgage (re-) financing.
Journal: International Review of Applied Economics
Pages: 561-575
Issue: 4
Volume: 21
Year: 2007
Keywords: Time reversibility, time irreversibility, nonlinearity, consumers' expenditure, disaggregated data,
X-DOI: 10.1080/02692170701189110
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Author-Name: Arslan Razmi
Author-X-Name-First: Arslan
Author-X-Name-Last: Razmi
Title: The Contractionary Short-Run Effects of Nominal Devaluation in Developing Countries: Some Neglected Nuances
Abstract:
This article extends the model developed by Krugman and Taylor (1978) to
take into account interesting features of the evolving structure of global
trade. The growing presence of transnational production chains and
differential pricing behaviour of exports destined for industrial and
developing countries are accommodated. Individual country and panel data
pass-through estimates derived from several econometric approaches are
provided to justify the latter extension. The likelihood of contractionary
short-run effects of devaluations is shown to be positively related to: 1)
the proportion of a country's exports destined for other developing
countries; and 2) the presence of transnational corporations (TNCs) in
either the export or home goods-producing sector. Unlike the
Krugman-Taylor case, devaluation will generally have a contractionary
impact even if: 1) trade is initially balanced; 2) consumption behaviour
does not differ between wage and profit earners; and 3) the government
sector has a high marginal propensity to consume in the short run. The
resulting policy implications underline the need to take into account
these increasingly important nuances of international trade while
designing exchange rate policies for developing countries.
Journal: International Review of Applied Economics
Pages: 577-602
Issue: 5
Volume: 21
Year: 2007
Keywords: Differential pass-through elasticities, contractionary devaluations, transnational corporations, error correction models, autoregressive distributed lag models, structuralist models,
X-DOI: 10.1080/02692170701474611
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Handle: RePEc:taf:irapec:v:21:y:2007:i:5:p:577-602
Template-Type: ReDIF-Article 1.0
Author-Name: Iris Biefang-Frisancho Mariscal
Author-X-Name-First: Iris Biefang-Frisancho
Author-X-Name-Last: Mariscal
Author-Name: Peter Howells
Author-X-Name-First: Peter
Author-X-Name-Last: Howells
Title: Monetary Policy Transparency in the UK: The Impact of Independence and Inflation Targeting
Abstract:
There is a widespread belief that the transparency of UK monetary policy
has increased substantially as a result of the introduction of inflation
targeting in 1992 and a number of procedural and institutional reforms
which accompanied and followed it. Here, money market responses (and other
data) are used to test the possibility that improved anticipation of
policy moves may be the result of developments other than the
institutional reforms popularly cited. We find overwhelming evidence that
the switch to inflation targeting itself significantly reduced monetary
policy surprises, while subsequent reforms have contributed little. Where
we advance substantially on earlier work is to look at the cross-sectional
dispersion of agents' anticipation. If the benefit of transparency is the
elimination of policy surprise, there is little benefit if the averagely
correct anticipations of agents conceal a wide dispersion of view.
Journal: International Review of Applied Economics
Pages: 603-617
Issue: 5
Volume: 21
Year: 2007
Keywords: Monetary policy, central banks, independence, transparency,
X-DOI: 10.1080/02692170701525966
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Handle: RePEc:taf:irapec:v:21:y:2007:i:5:p:603-617
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Roberts
Author-X-Name-First: Mark
Author-X-Name-Last: Roberts
Title: The Conditional Convergence Properties of Simple Kaldorian Growth Models
Abstract:
Findings of conditional convergence are usually interpreted within a
neoclassical growth framework. This follows from the methodology of
testing for conditional convergence, whereby the estimating equation is
explicitly derived from a neoclassical growth model. Given this explicit
derivation, findings of conditional convergence might be thought to
discriminate against alternative approaches to growth in general and the
Kaldorian approach to growth in particular. This article shows, however,
that this is not the case. It does so by examining the conditional
convergence properties of the 'core' model of Kaldorian growth
theory—the Kaldor-Dixon-Thirlwall (KDT) model. In particular, the
paper demonstrates that this model predicts conditional convergence of a
qualitatively identical nature to that predicted by the neoclassical
growth model. A simple extension of the KDT model that is reconciled with
quantitative estimates of the speed of conditional convergence is also
presented.
Journal: International Review of Applied Economics
Pages: 619-632
Issue: 5
Volume: 21
Year: 2007
Keywords: growth, convergence, Kaldor,
X-DOI: 10.1080/02692170701474678
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Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Title: Exploring the Economic Choice to Participate in Sport: Results from the 2002 General Household Survey
Abstract:
This article explores the decision to participate in sports activities in
the United Kingdom using a qualitative choice framework. The consistency
of the results with neoclassical theories of leisure, and heterodox
economic theory, which embraces a psychological view of decision making
and structure of demand, is assessed. Finding more support for the latter
perspective, the implications of this for sports policy are discussed.
Journal: International Review of Applied Economics
Pages: 633-653
Issue: 5
Volume: 21
Year: 2007
Keywords: Sports, participation, choice behaviour,
X-DOI: 10.1080/02692170701474710
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Author-Name: Mohammed Yusoff
Author-X-Name-First: Mohammed
Author-X-Name-Last: Yusoff
Title: The Malaysian Real Trade Balance and the Real Exchange Rate
Abstract:
The cointegration technique is used to examine the long-run and short-run
relationships between the real Malaysian trade balance with the real
exchange rate, domestic and world incomes. The results suggest that a real
ringgit exchange rate depreciation improves the trade balance in the long
run. World and domestic incomes are also found to be important
determinants of trade balance. The significance of world income on trade
balance indicates that Malaysia is prone to external shocks. An
error-correction model is then estimated to study the short-run dynamics
of the effects of exchange rate. The impulse response analysis shows that
the effect of exchange rate on the trade balance lasts for about three
years. A devaluation of ringgit will initially improve the trade balance,
albeit small, after which the trade balance starts to deteriorate, and
then improves again suggesting that there exists a delayed J-curve.
Journal: International Review of Applied Economics
Pages: 655-667
Issue: 5
Volume: 21
Year: 2007
Keywords: Trade balance, ringgit, real exchange rate, Malaysia,
X-DOI: 10.1080/02692170701474686
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Template-Type: ReDIF-Article 1.0
Author-Name: Charles Okeahalam
Author-X-Name-First: Charles
Author-X-Name-Last: Okeahalam
Title: Estimating Market Power in the South African Banking Sector
Abstract:
Indicators of market power can be ambiguous because cost economies
associated with scale and not market imperfections may influence results.
This article illustrates that without direct measures of concentration,
estimates of costs, scale economies and profitability can be used to
identify market power in banking. Secondly, via this method, econometric
estimates provide meaningful evidence of market power in the South African
banking sector over the study sample period (1979-1998). A reasonable
conclusion is that while industrial structure is important, careful
consideration needs to be given to cost economies and profitability when
assessing market power. In addition, there is a need to consider
appropriate policy to reduce market power in banking in South Africa.
Journal: International Review of Applied Economics
Pages: 669-685
Issue: 5
Volume: 21
Year: 2007
Keywords: Costs, scale, banks, South Africa,
X-DOI: 10.1080/02692170701474702
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Title: Efficiency in Crime Prevention: A Study of Lisbon's Police Precincts
Abstract:
This article analyses the technical efficiency of Lisbon's police
precincts by evaluating their relative performance. It starts from the
assumption that there is time-varying efficiency and uses a stochastic
cost-frontier model to generate efficiency scores. Indeed, this efficiency
model is thoroughly investigated. However, the results are found to be at
best mixed, because the model reveals low efficiency and time-unvarying
scores. To increase efficiency, this article advocates an improvement of
top management procedures, based on a governance-environment framework.
Journal: International Review of Applied Economics
Pages: 687-697
Issue: 5
Volume: 21
Year: 2007
Keywords: Efficiency, police forces, Cobb-Douglas model, Lisbon precincts,
X-DOI: 10.1080/02692170701474736
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Handle: RePEc:taf:irapec:v:21:y:2007:i:5:p:687-697
Template-Type: ReDIF-Article 1.0
Author-Name: John Grieve Smith
Author-X-Name-First: John Grieve
Author-X-Name-Last: Smith
Title: REVIEW ARTICLE
Abstract:
Journal: International Review of Applied Economics
Pages: 699-702
Issue: 5
Volume: 21
Year: 2007
X-DOI: 10.1080/02692170701474751
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Handle: RePEc:taf:irapec:v:21:y:2007:i:5:p:699-702
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Ramirez
Author-X-Name-First: Miguel
Author-X-Name-Last: Ramirez
Title: What explains Latin America's poor investment performance during the 1980-2001 period?: a panel unit root analysis
Abstract:
This article analyses the theoretical and empirical links between key
economic variables and private investment spending in Latin America during
the 1980-2001 period. The Seemingly Unrelated Regression (SUR) estimates
for the pooled investment model suggest that real (lagged) public
investment, the output gap, lagged domestic credit to the private sector,
and the national savings rate have a positive and significant effect on
private capital formation, while the standard deviation of the real
exchange rate index has a negative effect on private capital formation. A
major contribution of the study is the application of recently developed
panel unit roots test on the stacked residuals of the pooled regressions.
The tests indicate that the included variables have a stable, non-spurious
(cointegrated) relationship. All in all, the findings in this article make
an important contribution to the ongoing debate about which policies need
to be promoted to raise and sustain the rate of private capital formation
- Latin America's future source of employment and income creation.
Journal: International Review of Applied Economics
Pages: 1-15
Issue: 1
Volume: 22
Year: 2008
Keywords: cointegration, panel unit root tests, pooled investment model, real devaluation, stabilization policies, SUR estimation,
X-DOI: 10.1080/02692170701745861
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Author-Name: Jacques Mazier
Author-X-Name-First: Jacques
Author-X-Name-Last: Mazier
Author-Name: Sophie Saglio
Author-X-Name-First: Sophie
Author-X-Name-Last: Saglio
Title: Interdependency and adjustments in the European Union
Abstract:
Since the euro was launched, divergences in European economies'evolutions
have been more significant than generally expected. The article, based on
a multinational macroeconomic model describing the interdependence between
14 European countries, examines the role played by relative-price
adjustment mechanisms and difficulties inherent in asymmetric evolutions.
The efficiency of relative-price adjustment mechanisms seems limited and,
even in the most flexible countries, the return to equilibrium is slow and
still incomplete after 10 years. Differences in relative-price adjustment
mechanisms remain a source of asymmetries between member countries.
Extra-European exchanges have a stabilizing role which is uneven on
account of trade openness and price elasticities. A decrease of the world
demand and a depreciation of the euro, still have an important impact with
significant disparities between countries. Several lessons can be drawn in
terms of economic policy. A more restrictive European fiscal policy proves
more costly in the long run in Germany and the Netherlands on account of
the weakness of price compensation effects. On the contrary, thanks to
their greater flexibility, the United Kingdom and Sweden can offset an
initial negative shock more rapidly. The wage dimension in the definition
of a good European policy mix has also to be examined.
Journal: International Review of Applied Economics
Pages: 17-44
Issue: 1
Volume: 22
Year: 2008
Keywords: Monetary union, asymmetries, prices adjustments, exchange rate,
X-DOI: 10.1080/02692170701745879
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Template-Type: ReDIF-Article 1.0
Author-Name: Turan Subasat
Author-X-Name-First: Turan
Author-X-Name-Last: Subasat
Title: Do liberal trade policies promote trade openness?
Abstract:
Although trade liberalization and trade openness are assumed to be
strongly associated with each other and often used interchangeably, the
empirical evidence has not been forthcoming. This article is an attempt to
fill this gap. By investigating the link between trade openness and trade
restrictions, it argues that while a negative link between various types
of trade restrictions and trade openness is evident, the relationship is
weak, statistically not always significant and there is no clear evidence
that the removal of trade restrictions (trade-liberalization) invariably
leads to improved trade openness.
Journal: International Review of Applied Economics
Pages: 45-61
Issue: 1
Volume: 22
Year: 2008
Keywords: Trade policy, openness, liberalization,
X-DOI: 10.1080/02692170701745887
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Handle: RePEc:taf:irapec:v:22:y:2008:i:1:p:45-61
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Olive
Author-X-Name-First: Michael
Author-X-Name-Last: Olive
Title: Scale economies with regard to price adjustment costs and the speed of price adjustment in Australian manufacturing
Abstract:
This paper aims to examine the impact of firm size, industry
concentration and the length of production on industry speed of price
adjustment. To motivate the paper, an industry pricing model in error
correction form is derived from firm pricing behaviour. As a new
development, firms are assumed to have price adjustment costs that are a
function of their size. The empirical model is estimated using two-digit
Australian manufacturing industry data for the period 1994:3 to 2006:1.
The results suggest that the industry speed of price adjustment is
positively related to firm size and negatively related to industry
concentration and the production lag. Implied values for industry speeds
of price adjustment are generally small when compared to other country
industry studies. However, the industry average median lag of 7.1 quarters
indicates a slightly faster speed of price adjustment than the estimate
for the Australian consumer price index by Dwyer and Leong (2001).
Journal: International Review of Applied Economics
Pages: 63-75
Issue: 1
Volume: 22
Year: 2008
Keywords: speed of price adjustment, adjustment costs, Australian manufacturing,
X-DOI: 10.1080/02692170701745895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170701745895
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Handle: RePEc:taf:irapec:v:22:y:2008:i:1:p:63-75
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroaki Sasaki
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Sasaki
Title: Classical biased technical change approach and its relevance to reality
Abstract:
The purpose of this article is to evaluate empirically the classical
viability condition for East Asia, Latin America, Sub-Saharan Africa
1980-1995, and advanced countries 1950-1992. The viability condition is
proposed by Foley and Michl (1999), and is used for judging empirically
which approach is more valid, the classical biased technical change
approach or neoclassical production function approach. Our results
acknowledge the predominance of the former, which is Foley-Michl's
contention. However, there remains a disputable interpretation as to the
case of a declining labour productivity, which is broadly seen in Latin
America and Sub-Saharan Africa during the period considered.
Journal: International Review of Applied Economics
Pages: 77-91
Issue: 1
Volume: 22
Year: 2008
Keywords: classical biased technical change, viability condition,
X-DOI: 10.1080/02692170701745903
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Handle: RePEc:taf:irapec:v:22:y:2008:i:1:p:77-91
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Gour Goswami
Author-X-Name-First: Gour
Author-X-Name-Last: Goswami
Author-Name: Bidyut Kumar Talukdar
Author-X-Name-First: Bidyut Kumar
Author-X-Name-Last: Talukdar
Title: The bilateral J-curve: Canada versus her 20 trading partners
Abstract:
There is a common belief that currency depreciation worsens the trade
balance in the short run and improves it in the long run resulting in the
so called J-curve phenomenon. Early studies employed aggregate data and
provided mixed results. Recent studies, however, have employed
disaggregated data to remove any aggregation bias from their analysis. In
this article we consider the Canadian experience and test the phenomenon
between Canada and her 20 major trading partners. Using quarterly data and
the bounds testing approach to cointegration, and error-correction
modelling we were able to provide support for the J-curve in 11 out of 20
cases.
Journal: International Review of Applied Economics
Pages: 93-104
Issue: 1
Volume: 22
Year: 2008
Keywords: bilateral J-curve, bounds testing, cointegration, Canada,
X-DOI: 10.1080/02692170701745952
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Handle: RePEc:taf:irapec:v:22:y:2008:i:1:p:93-104
Template-Type: ReDIF-Article 1.0
Author-Name: Jay Squalli
Author-X-Name-First: Jay
Author-X-Name-Last: Squalli
Author-Name: Kenneth Wilson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Wilson
Author-Name: Sarah Hugo
Author-X-Name-First: Sarah
Author-X-Name-Last: Hugo
Title: An analysis of growth competitiveness
Abstract:
The publication of the Global Competitiveness Report 2005-2006 by the
World Economic Forum (WEF) (2005) has focused attention once more upon the
relative abilities of many countries to compete in world markets. This
article provides an analysis and evaluation of the approach taken by the
WEF in constructing its measure of international growth competitiveness,
the Growth Competitiveness Index (GCI) which is used to rank countries. In
particular, the study identifies three areas where the GCI is vulnerable
to criticism. First, the treatment of outliers for hard data items is
ambiguous and we identify alternative methods for dealing with outliers
that are justifiable or even superior. Second, the crucial role of the
variable utility patents in the calculation of the GCI is questioned and
serious doubts concerning the use of this variable are raised. Third, the
article suggests an alternative approach, based upon structural equation
modeling, which should be used for the determination of weights in the
index calculation process, rather than the arbitrary method adopted by the
WEF.
Journal: International Review of Applied Economics
Pages: 105-126
Issue: 1
Volume: 22
Year: 2008
Keywords: World Economic Forum, Growth Competitiveness Index, structural equation modeling, international growth competitiveness,
X-DOI: 10.1080/02692170701745978
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Handle: RePEc:taf:irapec:v:22:y:2008:i:1:p:105-126
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Epstein
Author-X-Name-First: Gerald
Author-X-Name-Last: Epstein
Author-Name: Erinc Yeldan
Author-X-Name-First: Erinc
Author-X-Name-Last: Yeldan
Title: Inflation Targeting, Employment Creation and Economic Development: Assessing the Impacts and Policy Alternatives
Abstract:
Journal: International Review of Applied Economics
Pages: 129-130
Issue: 2
Volume: 22
Year: 2008
X-DOI: 10.1080/02692170801889676
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:129-130
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Epstein
Author-X-Name-First: Gerald
Author-X-Name-Last: Epstein
Author-Name: Erinc Yeldan
Author-X-Name-First: Erinc
Author-X-Name-Last: Yeldan
Title: Inflation targeting, employment creation and economic development: assessing the impacts and policy alternatives
Abstract:
Inflation targeting (IT) has recently become the dominant monetary policy
prescription for both developing and industrialized countries alike.
Emerging market governments, in particular, are increasingly pressured to
follow IT as part of their International Monetary Fund (IMF)-led
stabilization packages and the routine rating procedures of the
international finance institutions. However, the common expectation of IT
promoters that price stability would ultimately lead to higher employment
and sustained growth has failed to materialize. Generally, the current
growth patterns of the world economy are too concentrated and uneven to
generate sufficient capital investment and reduce unemployment. To
contribute to the task of designing a more socially desirable
macroeconomic policy environment, we offer concrete country case studies
that devise viable alternatives to inflation targeting central bank
policies in order to promote employment, sustained growth and improved
income distribution.
Journal: International Review of Applied Economics
Pages: 131-144
Issue: 2
Volume: 22
Year: 2008
Keywords: inflation targeting, central banks,
X-DOI: 10.1080/02692170701880601
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:131-144
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Antonio Cordero
Author-X-Name-First: Jose Antonio
Author-X-Name-Last: Cordero
Title: Economic growth under alternative monetary regimes: inflation targeting vs real exchange rate targeting
Abstract:
The main features and implications of a monetary regime based on
inflation targeting are examined and compared to a system based on real
exchange rate targeting. The latter is very effective in stimulating
economic growth, but the 'trilemma' reduces the effectiveness of
stabilization based on open market operations. Inflation targeting is very
effective in stabilizing prices but it hurts growth and employment. The
dynamics of long-run equilibrium is also analyzed for both regimes.
Journal: International Review of Applied Economics
Pages: 145-160
Issue: 2
Volume: 22
Year: 2008
Keywords: inflation targeting, monetary policy, trilemma, growth,
X-DOI: 10.1080/02692170701880619
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:145-160
Template-Type: ReDIF-Article 1.0
Author-Name: Arjun Jayadev
Author-X-Name-First: Arjun
Author-X-Name-Last: Jayadev
Title: The class content of preferences towards anti-inflation and anti-unemployment policies
Abstract:
This paper assesses class-based preferences towards anti-inflationary and
anti-unemployment policy. Using a consistent cross-country social survey,
I find that the working class broadly defined, and those with lower
occupational skill and status are more likely to prioritize combating
unemployment rather than inflation. The result that the working class is
less 'relatively inflation averse' is robust to the inclusion of several
plausible controls. In addition, I find that those respondents who exhibit
a broadly pro-business and anti-redistributionary attitude are more
relatively inflation averse. The finding that inflation and unemployment
aversion have a distinct class character has implications for current
debates on the implications of macroeconomic policies such as inflation
targeting.
Journal: International Review of Applied Economics
Pages: 161-172
Issue: 2
Volume: 22
Year: 2008
Keywords: inflation, unemployment, social surveys, radical political economy,
X-DOI: 10.1080/02692170701880643
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:161-172
Template-Type: ReDIF-Article 1.0
Author-Name: Elissa Braunstein
Author-X-Name-First: Elissa
Author-X-Name-Last: Braunstein
Author-Name: James Heintz
Author-X-Name-First: James
Author-X-Name-Last: Heintz
Title: Gender bias and central bank policy: employment and inflation reduction
Abstract:
This article considers the employment costs of inflation reduction in
developing countries from a gender perspective. We explore two broad
empirical questions: (1) what is the impact of inflation reduction on
employment, and is the impact different for women and men, and (2) how are
monetary policy indicators (e.g. real interest rates) connected to
deflationary episodes and gender-specific employment effects? We find a
common pattern among countries undergoing what we term contractionary
inflation reduction, or periods of declining inflation that are
accompanied by a loss of formal employment. After controlling for
long-term employment trends, we find that the ratio of women's to men's
employment tends to decline during these periods in the majority of
countries examined. During the fewer periods of expansionary inflation
reduction, however, there are no clear patterns to the relative changes in
women's and men's employment. Maintaining competitive exchange rates seems
to counterbalance the gender-biased effects of contractionary inflation
reduction episodes, however.
Journal: International Review of Applied Economics
Pages: 173-186
Issue: 2
Volume: 22
Year: 2008
Keywords: gender, monetary policy, inflation, employment, Central Banks,
X-DOI: 10.1080/02692170801889643
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:173-186
Template-Type: ReDIF-Article 1.0
Author-Name: Nelson Barbosa-Filho
Author-X-Name-First: Nelson
Author-X-Name-Last: Barbosa-Filho
Title: Inflation targeting in Brazil: 1999-2006
Abstract:
This paper describes the Brazilian experience with inflation targeting in
1999-2006. The data presented in the paper show that inflation targeting
managed to reduce inflation in Brazil after its 1999 and 2002 currency
crises, with a substantial help of exchange-rate appreciation. The data
also show that economic growth was slow under inflation targeting than
during exchange-rate targeting in Brazil, but with a smaller volatility
and an apparent upward trend during inflation targeting than during
exchange-rate targeting. The paper also shows that inflation targeting
reduced the real interest rate of the economy, which nevertheless remained
well above international standards and more than three times higher than
the Brazilian gross domestic product growth rate.
Journal: International Review of Applied Economics
Pages: 187-200
Issue: 2
Volume: 22
Year: 2008
Keywords: Brazil, inflation targeting, monetary policy, exchange rate,
X-DOI: 10.1080/02692170701880684
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:187-200
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Miguel Galindo
Author-X-Name-First: Luis Miguel
Author-X-Name-Last: Galindo
Author-Name: Jaime Ros
Author-X-Name-First: Jaime
Author-X-Name-Last: Ros
Title: Alternatives to inflation targeting in Mexico
Abstract:
The paper addresses Mexico's experience with inflation targeting, which
became operational in the aftermath of the 1994/95 tequila crisis. Using
VAR econometrics over the post-1980 time series data, we find that
monetary policy of the Banco de Mexico was asymmetric with respect to
exchange rate movements - tightening when exchange rates depreciated, but
not loosening when exchange rates appreciated. This lent a bias in favor
of an over-valued exchange rate, leading to contractionary effects on
output. We propose a more 'neutral' monetary policy so that the central
bank of Mexico responds symmetrically to real exchange rate movements and
thereby avoids the bias toward over-valuation. This policy may continue to
be implemented within the boundaries of inflation targeting wherein the
central bank would promote a 'stable and competitive' real exchange rate
by establishing a sliding floor to the exchange rate in order to prevent
excessive appreciation, but by allowing it to float freely otherwise.
Journal: International Review of Applied Economics
Pages: 201-214
Issue: 2
Volume: 22
Year: 2008
Keywords: monetary policy, inflation, Mexico: central banks,
X-DOI: 10.1080/02692170701880718
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:201-214
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Frenkel
Author-X-Name-First: Roberto
Author-X-Name-Last: Frenkel
Author-Name: Martin Rapetti
Author-X-Name-First: Martin
Author-X-Name-Last: Rapetti
Title: Five years of competitive and stable real exchange rate in Argentina, 2002-2007
Abstract:
We argue that the macroeconomic regime focused on the preservation of a
stable and competitive real exchange rate (SCRER) has been a key factor
explaining the rapid growth experienced in Argentina during 2002-2007.
This policy promoted economic growth not only by preserving external and
fiscal accounts sustainability, but also by providing incentives to the
tradable sector and thus encouraging the expansion of its production,
employment and investment. Monetary and exchange rate policies aimed at
preserving a SCRER collide with conventional wisdom, particularly with the
open economy trilemma. We argue that the critiques based on the trilemma
may fail to hold in situations of excess supply of foreign currency and
analyze the conditions under which the SCRER policy is sustainable.
Journal: International Review of Applied Economics
Pages: 215-226
Issue: 2
Volume: 22
Year: 2008
Keywords: real exchange rate, growth, monetary policy, trilemma, Argentina,
X-DOI: 10.1080/02692170701880734
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:215-226
Template-Type: ReDIF-Article 1.0
Author-Name: Cagatay Telli
Author-X-Name-First: Cagatay
Author-X-Name-Last: Telli
Author-Name: Ebru Voyvoda
Author-X-Name-First: Ebru
Author-X-Name-Last: Voyvoda
Author-Name: Erinc Yeldan
Author-X-Name-First: Erinc
Author-X-Name-Last: Yeldan
Title: Macroeconomics of twin-targeting in Turkey: analytics of a financial computable general equilibrium model
Abstract:
The paper provides an overview of the post-1998 Turkish economy and
constructs a macroeconomic computable general equilibrium (CGE) model to
illustrate the real and financial sectoral adjustments of the Turkish
economy under the conditionalities of the 'twin targets': on primary
surplus to gross national product (GNP) ratio and on the inflation rate.
We further utilize the model to study three sets of issues: (i) the
critical role of the expanded foreign capital inflows in resolving the
macroeconomic impasse between the disinflation motives of the central bank
and imperatives of debt sustainability and fiscal credibility of the
ministry of finance; (ii) reduction of the central bank's interest rates,
and (iii) a labor market reform of reducing payroll taxes. Our simulation
results suggest that the current monetary strategy, which involves a heavy
reliance on foreign capital inflows along with a relatively high real rate
of interest, is effective in bringing inflation down; yet it suffers from
increased cost of interest burden to the public sector, and strains fiscal
credibility. In contrast, given the ex ante constraints of the domestic
economy in the short run, an alternative heterodox policy of reduction of
the central bank interest rate and lowering of the payroll tax burden in
labor markets indicate strong employment and growth effects along with
strengthened fiscal credibility.
Journal: International Review of Applied Economics
Pages: 227-242
Issue: 2
Volume: 22
Year: 2008
Keywords: twin-targeting, CGE, inflation, central banks,
X-DOI: 10.1080/02692170701880767
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:227-242
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Epstein
Author-X-Name-First: Gerald
Author-X-Name-Last: Epstein
Title: An employment targeting framework for central bank policy in South Africa
Abstract:
This paper presents an employment targeting (ET) framework as an
alternative to an inflation targeting monetary policy framework for South
Africa. The framework incorporates some of the advantages normally claimed
for a targeting framework - namely, enhancing transparency and
accountability - while focusing the goals of monetary policy more directly
on critical macroeconomic problems facing the South African economy,
namely, employment, subject, of course, to an inflation constraint.
Re-orienting monetary policy toward generating employment will require
that monetary policy re-develop and utilize a multiplicity of monetary
policy and credit tools, including tools for credit allocation and capital
management. The paper presents a VAR based simulation model for South
Africa that shows that more expansionary monetary policy can contribute to
faster economic growth without seriously exacerbating inflation or
exchange rate instability.
Journal: International Review of Applied Economics
Pages: 243-258
Issue: 2
Volume: 22
Year: 2008
Keywords: monetary policy, inflation, employment, Central Banks, South Africa,
X-DOI: 10.1080/02692170701880775
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:243-258
Template-Type: ReDIF-Article 1.0
Author-Name: Raghbendra Jha
Author-X-Name-First: Raghbendra
Author-X-Name-Last: Jha
Title: Inflation targeting in India: issues and prospects
Abstract:
This paper evaluates the case for inflation targeting (IT) in India. It
states the objectives of monetary policy in India and argues that, with
widespread poverty still present, inflation control cannot be an exclusive
concern of monetary policy. The rationale for IT is spelt out and found to
be incomplete. The paper provides some evidence on the effects of IT in
developed and transition economies and argues that although IT may have
been responsible for maintaining a low inflation regime, it has not
brought down the inflation rate itself substantially and or changed the
volatility of the exchange rate. Output movements in transition countries
adopting IT have been higher than in developed market economies. I discuss
India's experience with using nominal targets for monetary policy and why
India is not ready for IT. Further, even if India's central bank wanted
to, it could not pursue IT because the short-term interest rate does not
have a significant effect on inflation. The paper concludes by listing
monetary policy options for India.
Journal: International Review of Applied Economics
Pages: 259-270
Issue: 2
Volume: 22
Year: 2008
Keywords: inflation targeting, economic growth, India,
X-DOI: 10.1080/02692170701880783
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:259-270
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Lim
Author-X-Name-First: Joseph
Author-X-Name-Last: Lim
Title: Central banking in the Philippines: from inflation targeting to financing development
Abstract:
The Philippines' shift in monetary policy from 'monetary targeting' in
the 1980s and 1990s to 'inflation targeting' (IT) in 2002 has so far
brought in a more 'benign' monetary policy that is more sensitive to
output objectives. This result is mainly due to low inflation rates in the
Philippines following the downward trend of world inflation in recent
years. Whether this 'benign' policy will continue faces a critical test if
inflationary pressures were to return. The problem is that both the
monetary and IT regimes are based on a demand explanation of inflation
that blames inflation on overexpansion of money and credit. The evidence
for the Philippines shows the inflation experience had been mostly a
supply-led and cost-push phenomenon. The paper documents that, even with a
lax monetary policy, the macroeconomy is still not able to adequately
increase lending to the private sector amid fiscal difficulties; this
contributes to lagging investment and employment creation. Monetary policy
is not independent from the other macro sectors as well as the real and
external sectors of the economy. This paper therefore proposes alternative
monetary policies to IT that take into consideration the bigger and more
complex role of monetary policy in an economy that requires a more
development-promoting program.
Journal: International Review of Applied Economics
Pages: 271-285
Issue: 2
Volume: 22
Year: 2008
Keywords: Philippines, monetary policy, inflation, central bank,
X-DOI: 10.1080/02692170701880791
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Handle: RePEc:taf:irapec:v:22:y:2008:i:2:p:271-285
Template-Type: ReDIF-Article 1.0
Author-Name: Jens Kruger
Author-X-Name-First: Jens
Author-X-Name-Last: Kruger
Title: Capacity utilization and technology shocks in the US manufacturing sector
Abstract:
The ability of real business cycle models to generate reasonable
aggregate fluctuations depends on the time series properties of technology
shocks measured by the change of total factor productivity. Three
specifications of a non-parametric productivity analysis which correct to
different degrees for variations of capacity utilization are compared in
this article using data for three- and four-digit US manufacturing
industries during the years 1958-1996. The results show that correcting
for utilization generally leads to substantially smaller technology shocks
that are less strongly correlated with growth of output and hours.
Moreover, the probability of technological regress is considerably lower
after the correction.
Journal: International Review of Applied Economics
Pages: 287-298
Issue: 3
Volume: 22
Year: 2008
Keywords: technology shocks, business cycles, non-parametric productivity measurement,
X-DOI: 10.1080/02692170802003368
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Handle: RePEc:taf:irapec:v:22:y:2008:i:3:p:287-298
Template-Type: ReDIF-Article 1.0
Author-Name: N. Bauduin
Author-X-Name-First: N.
Author-X-Name-Last: Bauduin
Author-Name: N. Chusseau
Author-X-Name-First: N.
Author-X-Name-Last: Chusseau
Author-Name: J. Hellier
Author-X-Name-First: J.
Author-X-Name-Last: Hellier
Title: Combining minimum wage and exchange rate policy to release the external constraint on growth
Abstract:
In this article we analyse the combination of a minimum wage and a
devaluation/depreciation so as to release the external constraint on
growth. The policy maker aims at achieving both balanced trade and higher
growth. These may be reached by devaluating the domestic currency, which
however supports traditional industries characterized by high price
elasticity and low income elasticity of demand. The release of the
external constraint in the short term then yields a stronger constraint in
the longer term. If traditional industries are unskilled and
labour-intensive, the setting of a minimum wage distorts the
specialization towards sectors with high demand growth.
Devaluation/depreciation and minimum wage may thus be combined to release
both the short term and longer term external constraint. We determine the
condition for such a policy to be efficient. This combined policy must
come with an educational policy that supports skill upgrading. It is
typically tailored to 'advanced emerging countries' which aim at changing
their specialization without slowing their growth.
Journal: International Review of Applied Economics
Pages: 299-320
Issue: 3
Volume: 22
Year: 2008
Keywords: devaluation, external constraint, growth, minimum wage,
X-DOI: 10.1080/02692170802003475
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Handle: RePEc:taf:irapec:v:22:y:2008:i:3:p:299-320
Template-Type: ReDIF-Article 1.0
Author-Name: Ralitza Dimova
Author-X-Name-First: Ralitza
Author-X-Name-Last: Dimova
Title: The impact of labour reallocation and competitive pressure on TFP growth: firm-level evidence from crisis and transition ridden Bulgaria
Abstract:
This article uses the experiment of a macro-financial crisis and radical
liberalization in Bulgaria to explore the impact of labour reallocation
and competitive pressure on Total Factor Productivity (TFP) growth in the
manufacturing sector. Our results indicate that labour reallocated from
less efficient to more efficient firms in virtually all industries but the
influence of other within industry characteristics on TFP growth was
significantly higher than the impact of between industry characteristics.
Furthermore, while increased competitive pressure had a positive impact on
TFP growth among relative laggards in the respective industries, this
impact was more than overwhelmed by the inability of industrial leaders to
leapfrog their competitors. This result is inconsistent with evidence from
developed industrialized economies, but similar to that of less developed
countries marked by credit crunch and institutional failure. It has
potentially important policy implications.
Journal: International Review of Applied Economics
Pages: 321-338
Issue: 3
Volume: 22
Year: 2008
Keywords: Total factor productivity, employment turnover, competitive pressure, technological frontier, Bulgaria, Europe,
X-DOI: 10.1080/02692170802003624
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Handle: RePEc:taf:irapec:v:22:y:2008:i:3:p:321-338
Template-Type: ReDIF-Article 1.0
Author-Name: Shahrukh Rafi Khan
Author-X-Name-First: Shahrukh Rafi
Author-X-Name-Last: Khan
Author-Name: Sajid Kazmi
Author-X-Name-First: Sajid
Author-X-Name-Last: Kazmi
Title: Value chains in the informal sector: income shares of home-based subcontracted workers in Pakistan
Abstract:
This article attempts to contribute to the literature by carefully
documenting home-based work in four sectors in Pakistan in a value chain
context. We attempt to isolate and compare the unit remuneration of
workers relative to unit value added at the lowest tier of the chain as a
measure of income share. These income shares are not adequate to move
home-based workers above the poverty line.
Journal: International Review of Applied Economics
Pages: 339-352
Issue: 3
Volume: 22
Year: 2008
Keywords: value chains, gender, home-based workers, Pakistan,
X-DOI: 10.1080/02692170802003681
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Handle: RePEc:taf:irapec:v:22:y:2008:i:3:p:339-352
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Fraga
Author-X-Name-First: Maria
Author-X-Name-Last: Fraga
Author-Name: O. Martins
Author-X-Name-First: O.
Author-X-Name-Last: Martins
Author-Name: Paulo Anciaes
Author-X-Name-First: Paulo
Author-X-Name-Last: Anciaes
Title: Patterns of innovation diffusion and technological competition in Portuguese manufacturing and service industries
Abstract:
This article uses data from the Portuguese Community Innovation Survey
(CIS III) to analyse the inter-industry heterogeneity in the diffusion of
innovations and level of technological competition in Portuguese
manufacturing and service industries. The industries are classified with
reference to the relationship between the level of participation in
innovation and the strategies of innovative firms. Methods of multivariate
statistics are used to synthesize the data and to group the observations
into subsets. Four distinctive innovation patterns are identified, defined
along the following dimensions: output-orientation of innovation,
importance of disembodied innovation, role of technologically advanced
innovation and level of innovation opportunities. It is also found that
high levels of technological competition tend to occur in sectors with
relatively low dimension, productivity and overall investment.
Journal: International Review of Applied Economics
Pages: 353-372
Issue: 3
Volume: 22
Year: 2008
Keywords: innovation patterns, innovation diffusion, technological competition, CIS,
X-DOI: 10.1080/02692170802005371
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Author-Name: Damian Ward
Author-X-Name-First: Damian
Author-X-Name-Last: Ward
Title: An assessment of mortgage interest inflation measurement bias in the UK
Abstract:
This article recognizes the highly differentiated nature of UK mortgages.
Applying hedonic pricing models in the generation of interest quality
adjusted indices this study would suggest the need for a 0.24 percentage
point increase in the retail price index (RPI) (which, at an average RPI
of 3%, represents a measurement error of 9%). Moreover, this study finds
that lenders tend to restrain increases in observable initial interest
rates, but more than recoup this restraint through quality adjustments.
These findings question the practice of removing mortgage interest
repayments from macroeconomic inflationary target measures. This indicates
the need to recognize the indirect inflationary impact of base rate rises
on the price of highly differentiated debt based products.
Journal: International Review of Applied Economics
Pages: 373-386
Issue: 3
Volume: 22
Year: 2008
Keywords: hedonic pricing, mortgage products, inflation measurement, UK,
X-DOI: 10.1080/02692170802005405
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Author-Name: Grazia Ietto-Gillies
Author-X-Name-First: Grazia
Author-X-Name-Last: Ietto-Gillies
Title: On quasi-markets and privatizations in public services
Abstract:
Journal: International Review of Applied Economics
Pages: 387-395
Issue: 3
Volume: 22
Year: 2008
X-DOI: 10.1080/02692170802005413
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Handle: RePEc:taf:irapec:v:22:y:2008:i:3:p:387-395
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dietrich
Author-X-Name-First: Michael
Author-X-Name-Last: Dietrich
Author-Name: Jackie Krafft
Author-X-Name-First: Jackie
Author-X-Name-Last: Krafft
Author-Name: Jacques-Laurent Ravix
Author-X-Name-First: Jacques-Laurent
Author-X-Name-Last: Ravix
Title: The governance and regulation of the firm
Abstract:
Journal: International Review of Applied Economics
Pages: 397-405
Issue: 4
Volume: 22
Year: 2008
X-DOI: 10.1080/02692170802137521
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Handle: RePEc:taf:irapec:v:22:y:2008:i:4:p:397-405
Template-Type: ReDIF-Article 1.0
Author-Name: Michel Aglietta
Author-X-Name-First: Michel
Author-X-Name-Last: Aglietta
Title: Corporate governance and the long-run investor
Abstract:
This paper lays out prolegomena for an alternative to shareholder theory.
It links the corporation as the owner of the firm, a team theory of the
firm that defines corporate governance as a co-ordination game and the
crucial role of the Board of Directors as an integrator of stakeholders'
interests. The spur of intangible assets as sources of value creation has
enhanced the diversity of claimants on the firm's value. The paper shows
that the co-ordination game has multiple stable solutions, leading to
diverse modes of governance. The Stock market cannot pick up one-best-way.
The outcome of the game depends on the power structure within
corporations, which in turn is linked to the dominant pattern in the
financial system. The second section of the paper emphasizes the upcoming
preponderance of long-run institutional investors, who can be considered
as universal owners. Their strategic asset allocation induces them to
maximize total long-run value of all the firms in the whole economy, to
integrate extra-financial risks associated with intangible assets and with
long-run liabilities and to use voice rather than exit in corporate
governance. The paper suggests how the activism of those investors can
introduce checks and balances in the corporate power structure.
Journal: International Review of Applied Economics
Pages: 407-427
Issue: 4
Volume: 22
Year: 2008
Keywords: intangible assets, universal owners, mean reverting force, shareholder activism,
X-DOI: 10.1080/02692170802137497
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Handle: RePEc:taf:irapec:v:22:y:2008:i:4:p:407-427
Template-Type: ReDIF-Article 1.0
Author-Name: Blanche Segrestin
Author-X-Name-First: Blanche
Author-X-Name-Last: Segrestin
Author-Name: Armand Hatchuel
Author-X-Name-First: Armand
Author-X-Name-Last: Hatchuel
Title: The shortcomings of the corporate standard: towards new enterprise frameworks?
Abstract:
As corporate governance is more driven by shareholder-oriented
principles, managers are expected to adopt new attitudes and to be more
accountable to shareholders in terms of their strategies and decisions.
Yet, when governance is seen primarily as a 'corporate matter', it
exclusively concerns the coalition of shareholders. This convergence
towards the model of the public corporation raises major questions as it
leaves aside collective activities and their value creation processes.
Coordination, capabilities development and innovation are omitted in the
prevalent representation of the corporation. This omission is symptomatic
of the confusion between the legal corporate model and the actual
activities of the firm. In their own ways, both shareholders' and
stakeholders' approaches of the firm refer to the legal framework of the
public corporation. This article argues that the concept of the firm
should be distinguished from its corporate forms. Going back to the basic
nature of the firm, it suggests that a firm is a collective endeavour
whose activities are directed by management to create new potentials. By
challenging the public corporation as a relevant model for the governance
of the firm, it indicates new possible and pluralist norms of governance.
Journal: International Review of Applied Economics
Pages: 429-445
Issue: 4
Volume: 22
Year: 2008
Keywords: enterprise, governance, corporation, corporate law, stakeholder, shareholder, management,
X-DOI: 10.1080/02692170802137547
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Handle: RePEc:taf:irapec:v:22:y:2008:i:4:p:429-445
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Author-Name: Cecile Cezanne-Sintes
Author-X-Name-First: Cecile
Author-X-Name-Last: Cezanne-Sintes
Title: Modern corporate changes: reinstating the link between the nature, boundaries and governance of the firm
Abstract:
The theory of the firm and corporate governance are two fields of
analysis traditionally tackled separately in the economic literature. This
paper seeks to rediscover the link between the nature, boundaries and
governance of the firm on the basis of changes in corporate industrial
firms. We advance the argument that, to understand the human
capital-intensive firm, this analytical interconnection should be
restored. On the basis of critical resource theory, we present an
innovative vision of the nature, boundaries and governance of firms whose
productive activity is built around its key partners' human capital. The
organisational mode of governance has changed, linked to a renewed
conception of the firm. What we term the 'multi-resources' model of
governance of the firm depends on an original representation of the
structure, organisation and power relationships of modern firms, whose
value arises from the accumulation of specific human capital.
Consequently, the multi-resources model involves hybrid governance
instrument in order to protect the integrity of the human
capital-intensive firm.
Journal: International Review of Applied Economics
Pages: 447-461
Issue: 4
Volume: 22
Year: 2008
Keywords: human capital, nature and boundaries of the firm, corporate governance, critical resource theory,
X-DOI: 10.1080/02692170802137596
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Handle: RePEc:taf:irapec:v:22:y:2008:i:4:p:447-461
Template-Type: ReDIF-Article 1.0
Author-Name: Jacques-Laurent Ravix
Author-X-Name-First: Jacques-Laurent
Author-X-Name-Last: Ravix
Title: Nature and governance of the firm: in search of an integrated perspective
Abstract:
In this paper we argue that in order to analyse firm governance we need
to reappraise the nature of the firm. Based on Austrian and Marshallian
categories we consider the firm as a processor of production and
knowledge, whose governance is implemented through the cooperative actions
of stakeholders involved in a collective learning process. This
interpretation conflicts with models of corporate governance based on
shareholder-value principles.
Journal: International Review of Applied Economics
Pages: 463-478
Issue: 4
Volume: 22
Year: 2008
Keywords: nature of the firm, governance of the firm, processor of production and knowledge, stakeholders, shareholders, collective learning processes,
X-DOI: 10.1080/02692170802137620
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Handle: RePEc:taf:irapec:v:22:y:2008:i:4:p:463-478
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Author-Name: Cristiano Antonelli
Author-X-Name-First: Cristiano
Author-X-Name-Last: Antonelli
Author-Name: Pier Paolo Patrucco
Author-X-Name-First: Pier Paolo
Author-X-Name-Last: Patrucco
Author-Name: Francesco Quatraro
Author-X-Name-First: Francesco
Author-X-Name-Last: Quatraro
Title: The governance of localized knowledge externalities
Abstract:
This paper articulates the hypothesis that there is an optimal size of
knowledge pools. Too little a density of innovation activities reduces the
accessibility of external knowledge. Too large a density enhances
congestion and reduces appropriateness. Firms can benefit from actual
increasing returns stemming from the indivisibility, replicability and
non-exhaustibility of knowledge only when the size of innovation networks
is comprised between the two extremes. The empirical evidence confirms
that the output elasticity of knowledge, included in a typical Griliches
production function, is itself a quadratic function of the size of
innovation networks. Knowledge externalities do trigger increasing returns
that are external to each firm, only within a well defined interval.
Knowledge externalities are a property of the system into which firms are
embedded. As such they are endogenous to the system and likely to exhibit
specific properties related to the changing characteristics of the system
itself. The quality of knowledge governance mechanisms in place plays a
key role in assessing the actual size of the net positive effects of
knowledge externalities.
Journal: International Review of Applied Economics
Pages: 479-498
Issue: 4
Volume: 22
Year: 2008
Keywords: knowledge externalities, localized increasing returns, knowledge governance,
X-DOI: 10.1080/02692170802137661
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Author-Name: Albert Jolink
Author-X-Name-First: Albert
Author-X-Name-Last: Jolink
Author-Name: Eva Niesten
Author-X-Name-First: Eva
Author-X-Name-Last: Niesten
Title: Governance transformations through regulations in the electricity sector: the Dutch case
Abstract:
The liberalization and re-regulation of the European electricity
industries have been driven by the European Commission's attempt to create
one internal competitive electricity market. The European electricity
directives require the vertical separation of the European electricity
firms to enable the introduction of market forms of governance.
Transaction cost economics argues for the efficiency of vertical
integration in this industry on the basis of the attributes of the
transactions that are characterized by a great degree of asset-specificity
and uncertainty. This paper poses the questions whether regulation has led
to the prospected outcome of governance transformations to the market and
whether and how the attributes of transactions adapt to the altered forms
of governance. We answer these questions by analyzing the empirics of the
Dutch electricity industry. We found that the market forms of governance
did not emerge, the attributes of the transactions are relatively inert
and that regulation at most has led to second-best governance solutions.
Journal: International Review of Applied Economics
Pages: 499-508
Issue: 4
Volume: 22
Year: 2008
Keywords: regulation, transaction cost economics, liberalization, electricity industries,
X-DOI: 10.1080/02692170802137695
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Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Spencer
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Spencer
Title: Conditions for effective disclosure in the regulation of franchising
Abstract:
This paper outlines the use of disclosure in the regulation of the
franchise sector in Australia, demonstrating that it does not meet
conditions considered necessary for effective informational regulation.
First, there is not enough reliable information to gauge the risks in
informing the design of regulatory process and the choice of tools;
second, the information in the disclosure document is not uniformly
reliable, accessible and useable; and, third, a franchisee's ability to
act on the information is limited because the franchise contract is not
subject to negotiation and there are limited alternatives in the market.
As potential solutions, this paper proposes that increased cooperation
among and fuller representation of stakeholders, better information from
dispute resolution processes, and registration of disclosure would improve
the level of information about the sector generally. To ensure reliable,
accessible and useable information, the information that is required to be
disclosed should be identified by all stakeholders, with assurance that it
is provided in an accessible, useable way. Finally, educational
initiatives are needed to enhance franchisees' ability to act on the
information. This paper also briefly surveys some other regulatory tools
used in the regulation of franchising, but urges that these tools be
selected as part of a democratic and participative regulatory process that
accurately represents the interests of all stakeholders.
Journal: International Review of Applied Economics
Pages: 509-525
Issue: 4
Volume: 22
Year: 2008
Keywords: franchising, regulation of franchising, regulatory theory, regulatory process, regulatory tools, standard form contract, relational contract, informational regulation, disclosure, consumer law, consumer protection,
X-DOI: 10.1080/02692170802138289
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Author-Name: Servaas Storm
Author-X-Name-First: Servaas
Author-X-Name-Last: Storm
Author-Name: C. W. M. Naastepad
Author-X-Name-First: C. W. M.
Author-X-Name-Last: Naastepad
Title: The NAIRU reconsidered: why labour market deregulation may raise unemployment
Abstract:
According to the mainstream theory of equilibrium unemployment,
persistent unemployment is caused mainly by 'excessive' labour market
regulation, whereas aggregate demand, capital accumulation and
technological progress have no lasting effect on unemployment. We show
that the mainstream non-accelerating inflation rate of unemployment
(NAIRU) model is a special case of a general model of equilibrium
unemployment, in which aggregate demand, investment and endogenous
technological progress do have long-term effects. It follows that labour
market deregulation does not necessarily reduce steady-inflation
unemployment. Theoretically, if the decline in real wage growth claims
owing to deregulation is smaller than the ensuing decline in labour
productivity growth and in the warranted real wage growth, then in that
case steady-inflation unemployment may increase. Empirical evidence for 20
Organisation for Economic Cooperation and Development (OECD) countries
(1984-1997) indicates that the impact of labour market deregulation on
OECD unemployment is zero, and possibly negative (causing a higher rate of
unemployment).
Journal: International Review of Applied Economics
Pages: 527-544
Issue: 5
Volume: 22
Year: 2008
Keywords: demand-led growth, equilibrium unemployment, NAIRU, endogenous technological progress, Kaldor-Verdoorn relation,
X-DOI: 10.1080/02692170802287490
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Author-Name: Fiona MacPhail
Author-X-Name-First: Fiona
Author-X-Name-Last: MacPhail
Author-Name: Paul Bowles
Author-X-Name-First: Paul
Author-X-Name-Last: Bowles
Title: Temporary work and neoliberal government policy: evidence from British Columbia, Canada
Abstract:
We examine the impact of government policy on the incidence of temporary
work by analysing the case of British Columbia (BC), Canada. The analysis
is based upon the Canadian Labour Force Survey 1997-2004; temporary work
is defined as work that is not expected to last for more than 6 months and
includes seasonal, fixed-term, casual, and temporary help agency work. A
case study of BC provides a valuable opportunity to assess the impacts of
neoliberal government policy, designed to increase labour market
flexibility, on the extent of temporary work because we are able to
compare labour market trends in BC both before and after the reforms
introduced in 2001 and to compare BC with other provinces in Canada that
were not subject to such large changes in their policy environments. We
find that the shift to neoliberal policies in BC led to significant
increases in the likelihood of workers finding themselves in temporary
employment. We also find that the likelihood of being a temporary worker
in BC in the post-policy change period increases relative to all other
provinces over the same period. Taken together, these results indicate
that government policy is a key determinant of the level of temporary
work. As such, the level of temporary work should be seen as a
policy-sensitive variable, rather than as a phenomenon determined solely
by the exogenous forces of globalization and technological change.
Journal: International Review of Applied Economics
Pages: 545-563
Issue: 5
Volume: 22
Year: 2008
Keywords: temporary work, flexibility, labour markets, neoliberalism, government policy,
X-DOI: 10.1080/02692170802287524
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Author-Name: Fabrizio Ferretti
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Ferretti
Title: Patterns of technical change: a geometrical analysis using the wage-profit rate schedule
Abstract:
In this paper we examine some basic stylized facts of economic growth
according to the modern restatement of the classical theory of income
distribution. In particular, we make use of a wage-profit frontier in
order to explore the patterns of technical change experienced by a set of
18 industrialized economies, during the last 40 years. Our main purpose is
to document the evolution of technical change. Using empirical evidence
from the Italian industry, we also make an attempt to provide an
explanation to data from a classical perspective, alternative to the
standard approach founded on the aggregate production function.
Journal: International Review of Applied Economics
Pages: 565-583
Issue: 5
Volume: 22
Year: 2008
Keywords: fossil production function, Marx-biased technical change, wage-profit rate schedule,
X-DOI: 10.1080/02692170802287581
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Template-Type: ReDIF-Article 1.0
Author-Name: Anu Tokila
Author-X-Name-First: Anu
Author-X-Name-Last: Tokila
Author-Name: Mika Haapanen
Author-X-Name-First: Mika
Author-X-Name-Last: Haapanen
Author-Name: Jari Ritsila
Author-X-Name-First: Jari
Author-X-Name-Last: Ritsila
Title: Evaluation of investment subsidies: when is deadweight zero?
Abstract:
In the evaluation of investment subsidies one of the critical issues
concerns the assessment of deadweight, that is, the degree to which
projects would have been carried out without grant assistance. With the
increasing restrictions on and cuts in subsidies for investment projects
in the EU countries maximisation of the impact of the public resources
that remain can be achieved through their allocation for projects with
minimum deadweight. This paper studies the profile of subsidised zero
deadweight investment projects - projects that would be abandoned without
public subsidies - in Finland. The empirical analysis is conducted using
micro level data on investment projects by private sector firms. The data
set comprises 3,423 projects that were granted public investment subsidies
between 2001 and 2003. Our results show that the likelihood of zero
deadweight is significantly dependent on the characteristics of the
subsidised firm, the characteristics of the investment project and the
location of the subsidised firm.
Journal: International Review of Applied Economics
Pages: 585-600
Issue: 5
Volume: 22
Year: 2008
Keywords: Investment subsidies, deadweight effect, investment projects, public policy, regional policy,
X-DOI: 10.1080/02692170802287631
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Author-Name: Jean-Jacques Durand
Author-X-Name-First: Jean-Jacques
Author-X-Name-Last: Durand
Author-Name: Marilyne Huchet-Bourdon
Author-X-Name-First: Marilyne
Author-X-Name-Last: Huchet-Bourdon
Author-Name: Julien Licheron
Author-X-Name-First: Julien
Author-X-Name-Last: Licheron
Title: Sacrifice ratio dispersion within the Euro Zone: what can be learned about implementing a single monetary policy?
Abstract:
This article focuses on the comparison of sacrifice ratios as an
indicator for structural dispersion within the euro area over the period
1972-2003. Estimates of the sacrifice ratio, defined as the cumulative
output cost arising from permanent inflation reduction, are obtained using
structural VAR models. Results from sub-period analysis as well as
10-year-period rolling estimates lead to two main conclusions. First,
empirical evidence displays a recent increase in the average sacrifice
ratio, which can be linked to the simultaneous decrease in the average
inflation rate: this negative relationship between the initial level of
inflation and the cost of disinflation can be seen as a justification for
the choice of an inflation objective close to 2% for the European Central
Bank (ECB) rather than a target of perfect price stability, potentially
very damaging. Second, we cannot provide evidence of any reduction in
European sacrifice ratio dispersion, which would suggest that the nominal
convergence triggered by the Maastricht Treaty did not involve a true
reduction of structural differences. It is likely to be a problem in the
stance of a single monetary policy, because structural differences imply
asymmetric responses of real national economies to the same monetary
impulse.
Journal: International Review of Applied Economics
Pages: 601-621
Issue: 5
Volume: 22
Year: 2008
Keywords: sacrifice ratio, monetary policy, convergence, Economic and Monetary Union (EMU),
X-DOI: 10.1080/02692170802287672
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Template-Type: ReDIF-Article 1.0
Author-Name: Lukasz Rawdanowicz
Author-X-Name-First: Lukasz
Author-X-Name-Last: Rawdanowicz
Title: The enlargement of the euro area: differences in relative inflation
Abstract:
This paper investigates the structural determinants of relative inflation
(i.e. the inflation of non-tradables vs tradables) in the context of
overall inflation differentials in the EU. The analysis is based on the
Bergstrand theoretical model. This framework incorporates three
alternative hypotheses of relative inflation (Harrod-Balassa-Samuelson,
relative factors endowment, and demand effects). Due to the lack of
reliable data on capital stocks only a curtailed version of the model is
tested here empirically. The various specifications of the model are
estimated for the majority of EU countries, using the Pedroni panel group
mean FMOLS estimator. In general, relative labour productivity and demand
factors turn out to be significant and correctly signed, though evidence
in favour of the latter effect seems to be less robust. In addition,
differences in the determination of relative prices between the new and
old EU Member States are found. They seem to be consistent with
theoretical considerations and the transition phenomenon. The estimation
results are very sensitive to the definition of non-tradables. The paper
also discusses policy implications for overall inflation, stemming from
relative price models. It questions the usefulness of relative inflation
models for the analysis of overall inflation differentials and practical
policy decisions.
Journal: International Review of Applied Economics
Pages: 623-638
Issue: 5
Volume: 22
Year: 2008
Keywords: relative inflation, Bergstrand model, panel estimations, euro area enlargement,
X-DOI: 10.1080/02692170802287698
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Handle: RePEc:taf:irapec:v:22:y:2008:i:5:p:623-638
Template-Type: ReDIF-Article 1.0
Author-Name: Franz Hahn
Author-X-Name-First: Franz
Author-X-Name-Last: Hahn
Title: Testing for profitability and contestability in banking: evidence from Austria
Abstract:
The paper investigates the determinants of banking profitability and
banking market conditions in Austria. We conduct a panel econometric
analysis which allows for testing the hypotheses which have become the
most prominent in the literature on bank profitability: the
structure-conduct-performance hypothesis, the efficient-structure
hypothesis and the relative market-power hypothesis. Further, we test
whether Austrian banking markets are, on average, contestable. A newly
compiled dataset covering more than 700 Austrian banks ranging over the
period from 1995 to 2002 is used to carry out these econometric analyses.
The empirical findings support the view that the Austrian banks do exert,
on average, some local market power. However, the gains in terms of excess
profits are rather minor as a result of low deterrence powers of the
incumbent banks.
Journal: International Review of Applied Economics
Pages: 639-653
Issue: 5
Volume: 22
Year: 2008
Keywords: banking performance, banking profitability, banking market structure, panel econometrics,
X-DOI: 10.1080/02692170802287722
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Handle: RePEc:taf:irapec:v:22:y:2008:i:5:p:639-653
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Crespi
Author-X-Name-First: Francesco
Author-X-Name-Last: Crespi
Author-Name: Mario Pianta
Author-X-Name-First: Mario
Author-X-Name-Last: Pianta
Title: Demand and innovation in productivity growth
Abstract:
The labour productivity impact of demand and innovation is investigated
in this paper combining insights from the Kaldorian and Schumpeterian
traditions. After a review of studies in such traditions, a general model
is proposed for explaining productivity growth in European manufacturing
and service industries in the late 1990s, followed by two distinct
specifications for the industries oriented toward product innovation, and
for those where process innovation dominates. The empirical analysis is
based on the match of the SIEPI-CIS2 database developed at the University
of Urbino and Eurostat Input-Output Tables at the industry level, for 22
manufacturing sectors and 10 services sectors. Six European countries are
considered: Germany, France, Italy, the Netherlands, Portugal and the
United Kingdom. The results show that productivity growth in European
industries can be explained by a combination of technology factors and
demand dynamics, confirming the complementarity of technology and demand
effects. On the demand side, household consumption emerges as the most
pervasive component of demand, able to stimulate greater efficiency in all
manufacturing and service industries. Investment also has a role, focused
however on the capital goods producing industries. On the technology side,
the mechanisms of productivity growth are fundamentally different in the
industries oriented towards product innovation and in those dominated by
process innovation. This evidence supports the view that innovation in
firms and industries can be associated to two contrasting strategies,
searching either for technological competitiveness, through knowledge
generation, product innovation and expansion of new markets, or aiming at
greater cost competitiveness, through job reductions, labour saving
investment, flexibility and restructuring.
Journal: International Review of Applied Economics
Pages: 655-672
Issue: 6
Volume: 22
Year: 2008
Keywords: productivity, demand, product and process innovation,
X-DOI: 10.1080/02692170802407429
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:655-672
Template-Type: ReDIF-Article 1.0
Author-Name: Jerome Creel
Author-X-Name-First: Jerome
Author-X-Name-Last: Creel
Author-Name: Gwenaelle Poilon
Author-X-Name-First: Gwenaelle
Author-X-Name-Last: Poilon
Title: Is public capital productive in Europe?
Abstract:
This paper addresses the issue of whether and by how much public
investment or public capital can increase GDP. In comparison with the
literature on the subject, we apply many different methodologies to answer
these questions. A vector autoregressive (VAR) model (for France, Italy,
Germany, the UK and the USA), a panel composed of 6 European countries
(Austria, Belgium, France, Germany, Italy and the Netherlands) and a
regional panel (French regions) are estimated. Public investment is shown
to be a significant determinant of output; this is also true for public
capital but to a lesser extent than public investment with a VAR
methodology. The size of the estimated coefficient is also more realistic
than those obtained in the literature. This empirical result confirms that
the focus of some economists on safeguarding the level of public
investment is not misplaced. The debate on the introduction of a 'golden
rule of public finance' in the European Monetary Union is legitimate in
this respect.
Journal: International Review of Applied Economics
Pages: 673-691
Issue: 6
Volume: 22
Year: 2008
Keywords: public capital, public investment, VAR, panel data, European countries,
X-DOI: 10.1080/02692170802407577
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170802407577
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:673-691
Template-Type: ReDIF-Article 1.0
Author-Name: Mariana Spatareanu
Author-X-Name-First: Mariana
Author-X-Name-Last: Spatareanu
Title: The cost of capital, finance and high-tech investment
Abstract:
Investment is the most volatile component of aggregate demand and it is
often considered central to business cycles fluctuations. The
responsiveness of business investment to changes in its price is thus
crucial to our understanding of economic activity. In spite of the key
role played by the user cost of capital in economic analysis, there is
little empirical support for the existence of substantial user cost
elasticity. However, most of the evidence to date is based on aggregate
user cost data, which may have introduced downward biases in the estimated
user cost. This paper contributes to the literature by constructing a
disaggregated, industry-specific micro user cost variable and focusing on
a special class of firms - the high-tech firms. To provide a benchmark for
the results, the user cost estimates for the high-tech sector are compared
with those for the rest of the manufacturing sector. The results suggest
that there is little response of investment to variations in its user
cost. The findings also suggest that high-tech firms' investment behavior
is not, after all, that different from the rest of the manufacturing
sector.
Journal: International Review of Applied Economics
Pages: 693-705
Issue: 6
Volume: 22
Year: 2008
Keywords: business investment, user cost of capital, high-tech investment,
X-DOI: 10.1080/02692170802407635
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:693-705
Template-Type: ReDIF-Article 1.0
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Title: Price-value deviations: further evidence from input-output data of Japan
Abstract:
This paper subjects to empirical testing the labour theory of value using
input-output data from the economy of Japan for the years 1970, 1975,
1980, 1985 and 1990. The results of the analysis show that labour values
and prices of production are extremely good approximations to market
prices. In fact, the proximity of prices of production to market prices is
closer than that of labour values, a result which suggests that prices of
production constitute more concrete centres of gravitation for market
prices. Furthermore, we find that prices of production change as a result
of variations in income distribution more often than not in a monotonic
way and that in fewer cases they display curvatures, which may even
reverse the order between prices of production and values.
Journal: International Review of Applied Economics
Pages: 707-724
Issue: 6
Volume: 22
Year: 2008
Keywords: values, prices of production, income distribution, input-output tables,
X-DOI: 10.1080/02692170802407668
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:707-724
Template-Type: ReDIF-Article 1.0
Author-Name: Anton Nivorozhkin
Author-X-Name-First: Anton
Author-X-Name-Last: Nivorozhkin
Title: Layoffs, recalls and unemployment duration: evidence from Sweden
Abstract:
The question addressed in this paper is whether the possibility of exit
from unemployment to the previous employer affects the duration of
unemployment spells in Sweden. The empirical analysis is performed using
an employee-employer dataset that includes a number of enterprise
characteristics and provides information on individual tenure. The
econometric approach employs estimation of a competing risk duration model
to distinguish between exits to the previous employer and exits to a new
job. The findings suggest that greater tenure raises the risk of
transition to the previous employer, while high education levels increase
the risk of obtaining a new job. Moreover, the impact of benefit
exhaustion is observed only for transitions to new employment.
Journal: International Review of Applied Economics
Pages: 725-744
Issue: 6
Volume: 22
Year: 2008
Keywords: unemployment, unemployment duration, temporary layoffs,
X-DOI: 10.1080/02692170802407692
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:725-744
Template-Type: ReDIF-Article 1.0
Author-Name: Eithne Murphy
Author-X-Name-First: Eithne
Author-X-Name-Last: Murphy
Author-Name: Eoghan Garvey
Author-X-Name-First: Eoghan
Author-X-Name-Last: Garvey
Title: The inadequacy of cost of living indices based on subjective preferences: an ethical and methodological critique
Abstract:
In this paper we argue that there is scant justification for replacing
the traditional fixed-basket Laspeyres price index with so called 'true
cost of living indices'. We begin with a discussion of the possible
explanations for some empirical results for inflation found for different
social groups in Ireland in the late 1990s. Our arguments concerning
appropriate inflation indices are primarily ethical and are not dependent
on these results being interpreted in a non-neoclassical vein. They do
however gain extra force if one accepts non-neoclassical explanations for
the empirical results. We go on to draw conclusions as to how best to
measure the welfare effects of changes in the price of goods. This links
in to the broader debate regarding objective versus subjective measures of
welfare.
Journal: International Review of Applied Economics
Pages: 745-754
Issue: 6
Volume: 22
Year: 2008
Keywords: cost of living indices, welfare,
X-DOI: 10.1080/02692170802407734
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Handle: RePEc:taf:irapec:v:22:y:2008:i:6:p:745-754
Template-Type: ReDIF-Article 1.0
Author-Name: Xavier Raurich
Author-X-Name-First: Xavier
Author-X-Name-Last: Raurich
Author-Name: Hector Sala
Author-X-Name-First: Hector
Author-X-Name-Last: Sala
Author-Name: Valeri Sorolla
Author-X-Name-First: Valeri
Author-X-Name-Last: Sorolla
Title: Labour market effects of public capital stock: evidence for the Spanish private sector
Abstract:
This paper provides a new rationale for the positive effect of public
capital stock on employment and wages. We show that higher levels of
public capital reduce wages along the wage equation and enhance employment
due to the resulting larger elasticity of labour demand with respect to
wages. The estimation of a structural model for the Spanish private sector
reveals that this wage channel is empirically relevant. We use the
estimated parameters to simulate the recent incidence of the ratio of
public to private capital stock on the private sector economic
performance. We find (i) sizeable effects on employment, capital stock and
gross domestic product, and (ii) that the wage channel is particularly
important for employment.
Journal: International Review of Applied Economics
Pages: 1-18
Issue: 1
Volume: 23
Year: 2009
Keywords: public capital stock, wage setting, employment, economic growth,
X-DOI: 10.1080/02692170802496828
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Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Effects of European integration on Austria's economy
Abstract:
High expectations were placed on the project of European economic
integration and Austria's participation in it. Economists had expected
that the Single Market would provide a positive supply shock, i.e. rising
productivity, resulting in more growth. The optimistic forecasts for
neither the EU nor for Austria were borne out by actual economic trends.
Economic growth as well as productivity growth decelerated, while
unemployment increased. Monetary union was implemented with an economic
policy framework, the Stability and Growth Pact (SGP) that geared monetary
policy only to price stability and at the same time prescribed restrictive
fiscal policies. The SGP therefore reveals a deflationary bias. The
existing literature on the effects of EU accession on the Austrian economy
by design fails to account for the restrictive effects of the SGP. The
paper presents simulation results allowing for supply shocks as well as
demand shocks. The simulations are based on a medium-sized
macroeconometric model. The results indicate that recent studies
overestimate the positive effects of European integration. A simulation of
the restrictive demand-side effects of the SGP, with the assumption that
around half of the fall in public consumption growth in the Euro countries
can be attributed to the SGP, produced significant negative growth
effects. The net effect suggests a negative quarter percentage point p.a.
during the period 1995-2004.
Journal: International Review of Applied Economics
Pages: 19-40
Issue: 1
Volume: 23
Year: 2009
Keywords: European integration, Austria, macroeconomics, Stability and Growth Pact,
X-DOI: 10.1080/02692170802496836
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Template-Type: ReDIF-Article 1.0
Author-Name: Lena Vogel
Author-X-Name-First: Lena
Author-X-Name-Last: Vogel
Title: The endogeneity of the natural rate of growth - an empirical study for Latin-American countries
Abstract:
The aim of this paper is to analyse the sensitivity of the natural rate
of growth to the actual rate of growth for a sample of 11 Latin-American
countries, assuming the natural rate to be determined endogenously by
changes in the actual rate of growth. The natural rates of growth are
estimated in a system of SUR estimations over the period 1986-2003. In
order to determine whether they react endogenously to changes in the
actual rate of growth, a dummy variable for boom periods is added to the
system of regressions. The results confirm the hypothesis about the
endogeneity of the natural rate of growth.
Journal: International Review of Applied Economics
Pages: 41-53
Issue: 1
Volume: 23
Year: 2009
Keywords: natural rate of growth, actual rate of growth, endogeneity, Latin America, seemingly unrelated regressions,
X-DOI: 10.1080/02692170802496869
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Handle: RePEc:taf:irapec:v:23:y:2009:i:1:p:41-53
Template-Type: ReDIF-Article 1.0
Author-Name: John Ashton
Author-X-Name-First: John
Author-X-Name-Last: Ashton
Title: Synchronisation and staggering of interest rate change by UK financial services firms
Abstract:
This study examines the frequency and form of deposit account interest
rate change. Specifically the question of whether deposit interest rate
change is synchronised with other banks or staggered at periodic intervals
is addressed. Overall, evidence consistent with individual banks changing
deposit interest rates in a staggered manner is recorded. Further larger
banks are seen to change interest rates in a more synchronised manner than
smaller banks. Lastly, when banks offer multiple deposit accounts, these
products' interest rates are generally changed simultaneously by
individual banks. These findings extend the current understanding of
deposit interest rate change, and indicate that UK deposit interest rate
setting is relatively rigid.
Journal: International Review of Applied Economics
Pages: 55-69
Issue: 1
Volume: 23
Year: 2009
Keywords: retail banking, interest rates, staggering, synchronisation,
X-DOI: 10.1080/02692170802496695
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Template-Type: ReDIF-Article 1.0
Author-Name: Charles Okeahalam
Author-X-Name-First: Charles
Author-X-Name-Last: Okeahalam
Title: Product mix, transactions and cost behaviour: a study of South African bank branches
Abstract:
This paper utilizes microeconomic theory and a panel data set to assess
the impact of product mix and transactions on cost behaviour of bank
branches in South Africa over the short and long-term. Estimates of
properties of concavity and monotonocity indicate that the cost functions
of typical bank branches in South Africa are neither consistent with
short-term nor long-term cost-minimizing behaviour. This corroborates
earlier findings which indicate that South African banks have low
production efficiency and high market power. In addition the cost
functions and two production-output type indices indicate that overall,
the intermediation-output type mix (foreign exchange and custodial
services) has a more significant effect on cost behaviour than the
production-output type mix (cheque and deposit accounts). The variety of
production-output type services provided by a branch appears to have
limited effect on costs. However the financial value of production-output
type transactions has an impact on costs while the financial value of
intermediation type products does not. Branches that provide
intermediation-output type products tend to have higher variable costs -
the key determinant of costs is the number of transactions.
Journal: International Review of Applied Economics
Pages: 71-88
Issue: 1
Volume: 23
Year: 2009
Keywords: banking, product mix, cost behaviour, South Africa,
X-DOI: 10.1080/02692170802496794
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Handle: RePEc:taf:irapec:v:23:y:2009:i:1:p:71-88
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Cefis
Author-X-Name-First: Elena
Author-X-Name-Last: Cefis
Author-Name: Roberto Gabriele
Author-X-Name-First: Roberto
Author-X-Name-Last: Gabriele
Title: Spatial disaggregation patterns and structural determinants of job flows: an empirical analysis
Abstract:
The paper investigates the changes in job creation and destruction flows
at a very disaggregated level of analysis. We analyse whether job flows at
lower levels of spatial aggregation display regularities that are in line
with national ones in a bid to disentangle the role of labour market
institutions. Using a unique database of the population of firms in
Trentino (a north-eastern province of Italy) from 1991 to 2001, we find
that: (1) job flows show a 'fractal' tendency, i.e. many regularities
appear to be scale invariant (magnitude of flow and persistence) and that
job flow magnitude is in line with the average values for Italy; (2) there
are some qualifications to their 'fractality': the contribution of entrant
firms to the job creation process is lower than the corresponding
contribution at national level, as is the share of job destruction
accounted for by exiting firms; and (3) firm size and age influence job
flows.
Journal: International Review of Applied Economics
Pages: 89-111
Issue: 1
Volume: 23
Year: 2009
Keywords: labour reallocation, job creation, job destruction, spatial disaggregation two-stage Heckman estimator,
X-DOI: 10.1080/02692170802496778
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Handle: RePEc:taf:irapec:v:23:y:2009:i:1:p:89-111
Template-Type: ReDIF-Article 1.0
Author-Name: Ozlem Onaran
Author-X-Name-First: Ozlem
Author-X-Name-Last: Onaran
Title: Wage share, globalization and crisis: the case of the manufacturing industry in Korea, Mexico and Turkey
Abstract:
The aim of this paper is to analyze the changes in the wage share in the
manufacturing industry in Mexico, Turkey and Korea in the era of
globalization. The focus is on the one hand on the effects of
globalization on the wage share, which is measured by the effects of
international trade and FDI intensity of the economy. On the other hand,
the process of opening up has been accompanied by major currency crises in
most developing countries in the last decade, which has affected the wage
share through exchange rate depreciation and economic recession. The paper
develops a Post-Keynesian conflicting claims model for an open economy
under the pressure of globalization, and an equation for the wage share is
estimated for each country using the Seemingly Unrelated Regression
method. The results show that both recessions and nominal depreciations
have a clear and lasting negative effect on the manufacturing wage share
in all countries, whereas the effect of openness, in particular
international trade depends on industrial policy structure. Increased
export intensity leads to a decline in the manufacturing wage share in
Turkey and Mexico, but has no significant effect in Korea. The positive
expectations from FDI are also not materialized in any of the three
countries.
Journal: International Review of Applied Economics
Pages: 113-134
Issue: 2
Volume: 23
Year: 2009
Keywords: labor's share, developing countries, trade, FDI, crisis,
X-DOI: 10.1080/02692170802700435
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:113-134
Template-Type: ReDIF-Article 1.0
Author-Name: Yongbok Jeon
Author-X-Name-First: Yongbok
Author-X-Name-Last: Jeon
Title: Balance-of-payment constrained growth: the case of China, 1979-2002
Abstract:
The aim of this study is to empirically test the validity of Thirlwall's
Law in China during the reform period of 1979-2002. This study finds: (1)
that for 1979-2002, the Chinese economy has grown on average as fast as
Thirlwall's Law predicts - the average actual growth rate and predicted
growth rate were, respectively, 9.25 and 8.55, which are statistically
identical; (2) that the growth of GDP and of exports are cointegrated.
Both (1) and (2) provide strong support for Thirlwall's Law in China
during the reform period after 1978. The supportive result of Thirlwall's
Law implies the relevance of a demand-side approach to the economic growth
in China. For time series analyses, a bounds test approach is adopted.
Journal: International Review of Applied Economics
Pages: 135-146
Issue: 2
Volume: 23
Year: 2009
Keywords: Chinese economy, balance-of-payment constrained growth, demand-led growth, bounds test for cointegration,
X-DOI: 10.1080/02692170802700476
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:135-146
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Title: Are estimates of labour demand functions mere statistical artefacts?
Abstract:
This paper considers the estimation of putative neoclassical aggregate
labour demand functions using constant price value data. Regression
results normally find that employment is negatively related to the real
wage and that the constant-output elasticity of employment with respect to
the real wage is about -0.3. This is taken as evidence that unemployment
is the result of the real wage being too high, ceteris paribus. This paper
shows that these estimates are purely the result of an underlying identity
and cannot be interpreted as implying any causal relationship and, as
such, they have no policy implications.
Journal: International Review of Applied Economics
Pages: 147-168
Issue: 2
Volume: 23
Year: 2009
Keywords: labour demand functions, accounting identity,
X-DOI: 10.1080/02692170802700492
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:147-168
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Roberto Zoboli
Author-X-Name-First: Roberto
Author-X-Name-Last: Zoboli
Title: Embedding environmental innovation in local production systems: SME strategies, networking and industrial relations: evidence on innovation drivers in industrial districts
Abstract:
Technological innovation is a key factor for achieving better
environmental performances. Its role is even more relevant in local
productions system, where innovation density, knowledge spillovers and
externalities are concentrated in a circumscribed territory. The paper
exploits new data for a sample of manufacturing firms in Northern Italy.
New evidence is provided by testing a set of hypotheses, concerning
primarily the role of environmental-devoted R&D, networking activities,
quality/nature of industrial relations. The role played by environmental
policy pressure, structural firm features and past firm performances is
also investigated to account for more exogenous forces. We show that
structural characteristics of the firm appear to matter less than R&D,
induced policy costs and innovative-oriented industrial relations.
Environmental auditing schemes also show some relevant correlation to
innovation adoptions. R&D efforts appear to be associated to networking
activities, which substitute for size-related economies of scale. Overall,
endogenous factors driven by firm strategy or local idiosyncratic features
matter more than exogenous and structural firm factors.
Journal: International Review of Applied Economics
Pages: 169-195
Issue: 2
Volume: 23
Year: 2009
Keywords: environmental innovations, environmental R&D, manufacturing sector, local production system, environmental policy, SME, industrial relations, networking, industrial districts,
X-DOI: 10.1080/02692170802700500
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:169-195
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Xiao
Author-X-Name-First: Feng
Author-X-Name-Last: Xiao
Title: Does the stock market affect investment by Chinese firms? Some new evidence
Abstract:
During the 1990s, the Chinese government increasingly relied on the stock
market as the major tool for state-owned enterprise (SOE) reform and for
the allocation of investment resources. This paper investigates the impact
of stock market development in China on firm-level capital investment by
using a panel data set constructed by the author of all Chinese listed
firms for the period 1992 to 1999. The results show that stock market
valuation, as measured by Tobin's q, has a highly independent, significant
and positive influence on listed firms' investment decisions, particularly
during the stock market boom from 1996 to 1999. Given the sizable real
effects of the stock market, deviations of stock prices from fundamentals
can have substantially negative consequences. As a result, this study
suggests that sensible regulation of the Chinese stock market is needed in
order to enhance the efficiency of stock prices and facilitate an
effective channeling of investment funds.
Journal: International Review of Applied Economics
Pages: 197-213
Issue: 2
Volume: 23
Year: 2009
Keywords: firm-level capital investment, emerging stock markets, financial development, Chinese economy,
X-DOI: 10.1080/02692170802700542
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:197-213
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Lopez-Pueyo
Author-X-Name-First: Carmen
Author-X-Name-Last: Lopez-Pueyo
Author-Name: Jaime Sanau
Author-X-Name-First: Jaime
Author-X-Name-Last: Sanau
Author-Name: Sara Barcenilla
Author-X-Name-First: Sara
Author-X-Name-Last: Barcenilla
Title: International technological spillovers from ICT-producing manufacturing industries: a panel data analysis
Abstract:
This paper examines the effect of the international diffusion of
technological capacity from ICT sectors on the total factor productivity
in developed countries. Special attention is paid to the construction of a
more recent and homogeneous industry-level data set using unit value
ratios and a hedonic price index. A cointegration analysis is performed on
this annual panel data for 10 manufacturing sectors in six OECD countries
over the period 1979-2001. On the basis of our results, we may conclude
that a country receives more international technology spillovers in its
manufacturing industries the closer its relations with more
technologically advanced nations are and the more open it is to imports.
Meanwhile, information and communication technologies developed abroad
increase the total factor productivity of each of the manufacturing
sectors of a country, and this effect is enhanced where ICT goods are
imported from nations with advanced technology of this kind.
Journal: International Review of Applied Economics
Pages: 215-231
Issue: 2
Volume: 23
Year: 2009
Keywords: productivity, R&D international spillovers, international trade, ICT,
X-DOI: 10.1080/02692170802700583
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Handle: RePEc:taf:irapec:v:23:y:2009:i:2:p:215-231
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Franzini
Author-X-Name-First: Maurizio
Author-X-Name-Last: Franzini
Author-Name: Mario Pianta
Author-X-Name-First: Mario
Author-X-Name-Last: Pianta
Title: Mechanisms of inequality: an introduction
Abstract:
Journal: International Review of Applied Economics
Pages: 233-237
Issue: 3
Volume: 23
Year: 2009
X-DOI: 10.1080/02692170902811660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170902811660
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:233-237
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Serranito
Author-X-Name-First: Francisco
Author-X-Name-Last: Serranito
Title: Trade, catching-up and divergence
Abstract:
This paper investigates the link between trade and convergence in per
capita income by applying a threshold methodology to standard growth
regressions in order to capture a nonlinear effect of trade on growth. We
use 10 trade measures, divided into trade intensity ratios and measure of
trade restrictions. For the former group of indicators only, our tests
show that linear models have to be rejected in favour of threshold
regressions. We have identified three different regimes, characterized by
different relationships between growth and its determinants. Countries
belonging to the regimes grouping higher-income economies and poorer
countries are diverging. The conditional convergence hypothesis is only
accepted in the regime of middle-income countries; a process of
catching-up can be mainly found in the case of few developing countries.
For the vast majority of developing countries, divergence in per capita
income seems to be the norm. The correlation between measures of trade
restrictions and growth is different across regimes, and the positive
effect of a decrease in tariffs on growth depends on the level of
development; for the majority of the developing countries included in our
sample a decrease in tariffs will have no effect on growth.
Journal: International Review of Applied Economics
Pages: 239-264
Issue: 3
Volume: 23
Year: 2009
Keywords: conditional convergence, convergence clubs, threshold estimation, economic growth, openness to trade,
X-DOI: 10.1080/02692170902811678
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:239-264
Template-Type: ReDIF-Article 1.0
Author-Name: David Barlow
Author-X-Name-First: David
Author-X-Name-Last: Barlow
Author-Name: Gianluca Grimalda
Author-X-Name-First: Gianluca
Author-X-Name-Last: Grimalda
Author-Name: Elena Meschi
Author-X-Name-First: Elena
Author-X-Name-Last: Meschi
Title: Globalisation vs internal reforms as factors of inequality in transition economies
Abstract:
We examine factors of within-country income inequality in transition
economies of Central and Eastern Europe and the Commonwealth of
Independent States after the breakup of the Soviet Union. Internal reforms
dominate globalisation factors in accounting for inequality, with price
liberalisation showing the strongest effect. Privatisation measures also
show robust effects. We find some evidence that the extent of the private
sector magnifies the impact of price liberalisation. The only role for
globalisation seems to be to moderate the adverse impact of internal
reforms on inequality.
Journal: International Review of Applied Economics
Pages: 265-287
Issue: 3
Volume: 23
Year: 2009
Keywords: inequality, transition economies, international trade' skill biased technological change,
X-DOI: 10.1080/02692170902811702
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:265-287
Template-Type: ReDIF-Article 1.0
Author-Name: Marilena Giannetti
Author-X-Name-First: Marilena
Author-X-Name-Last: Giannetti
Author-Name: Daniela Federici
Author-X-Name-First: Daniela
Author-X-Name-Last: Federici
Author-Name: Michele Raitano
Author-X-Name-First: Michele
Author-X-Name-Last: Raitano
Title: Migrant remittances and inequality in Central-Eastern Europe
Abstract:
The impact of remittance flows on growth and income distribution has
attracted a great deal of attention, but the theoretical and empirical
literature on the relationship between remittances and economic
development is far from clear. Although there is wide consensus that
foreign remittances can help the receiving households to increase income,
consumption and capabilities to cope with socioeconomic shocks, there has
been little quantitative research on impacts of remittances on household
welfare and poverty. Our paper seeks to fill some of these gaps proposing
an empirical analysis of the role of remittances as a tool for reducing
inequality and covering households against poverty and social exclusion
risks. The empirical analysis focuses on four Eastern European Countries:
Slovenia, Poland, the Czech Republic and Hungary, and is based on the
EU-SILC (European Union Statistics on Income and Living Conditions) 2005
data-set providing for each household information as to the received
inter-household cash transfers and among which regular cash support from
households in other countries (i.e. remittances) are included. The results
show that remittances are statistically significant in terms of poverty
reduction even if their effects are generally smaller than those of
welfare transfers. Furthermore, the impact of remittances and welfare
transfers differ across the countries considered.
Journal: International Review of Applied Economics
Pages: 289-307
Issue: 3
Volume: 23
Year: 2009
Keywords: remittances, inequality, poverty,
X-DOI: 10.1080/02692170902811710
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:289-307
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Croci Angelini
Author-X-Name-First: Elisabetta Croci
Author-X-Name-Last: Angelini
Author-Name: Francesco Farina
Author-X-Name-First: Francesco
Author-X-Name-Last: Farina
Author-Name: Mario Pianta
Author-X-Name-First: Mario
Author-X-Name-Last: Pianta
Title: Innovation and wage polarisation in Europe
Abstract:
In this article we improve on the literature dealing with the polarising
effects of technological change on wages by proposing more rigorous
definitions of wage dispersion within industries and of the different
types and effects of innovation. We carry out an analysis across 10
manufacturing and service sectors in seven European countries (France,
Italy, Germany, the Netherlands, Portugal, Spain and the UK), for two time
periods. In addition to structural economic variables, we draw data from
two waves of the Community Innovation Surveys (CIS 2, 1994-1996 and CIS3,
1998-2000) and from two waves of the European Community Household Panel
(ECHP, 1994 and 2001) providing information on employment, wages,
education and other individual's characteristics, that we grouped in three
skill groups: managers and professionals, white-collar and blue-collar
workers. We set up econometric models to study the impact that different
technological strategies, labour market patterns, education and training
have on the levels of wage polarisation within industries. Higher wage
polarisation is found in industries with strong product innovation and
high shares of workers with university education. Wage compression is
associated to the diffusion of new process technologies and to high shares
of workers with secondary education. Finally, a fast employment dynamics
favours wage disparities.
Journal: International Review of Applied Economics
Pages: 309-325
Issue: 3
Volume: 23
Year: 2009
Keywords: wage polarisation, innovation, skill bias, education,
X-DOI: 10.1080/02692170902811736
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:309-325
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Bogliacino
Author-X-Name-First: Francesco
Author-X-Name-Last: Bogliacino
Title: Poorer workers. The determinants of wage formation in Europe
Abstract:
Using industry level data for eight European countries, we present
empirical evidence of poor wage performance in the two decades straddling
the millennium. There was a real wage decline in many sectors and we
examine its inequality-enhancing effect. A theoretical framework is
proposed and assessed in order to understand this evolution of wages,
identifying their main determinants. We investigate the role played by
different types of innovation, increasing international openness, demand,
norms limiting competition and employment change. The results are
consistent with our thesis that technology and globalization shape the
bargaining power of workers; increasing wages are found in industries
characterized by product innovation, while process innovation and greater
international openness are associated to a reduction of real wages.
Journal: International Review of Applied Economics
Pages: 327-343
Issue: 3
Volume: 23
Year: 2009
Keywords: efficiency wages, wage inequality, innovation, globalization,
X-DOI: 10.1080/02692170902811751
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:327-343
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Franzini
Author-X-Name-First: Maurizio
Author-X-Name-Last: Franzini
Author-Name: Michele Raitano
Author-X-Name-First: Michele
Author-X-Name-Last: Raitano
Title: Persistence of inequality in Europe: the role of family economic conditions
Abstract:
In this article we analyse the intergenerational transmission of income
inequality in 13 European countries on the basis of information provided
by the European Union Statistics on Income and Living Conditions 2005
dataset. Improving on the literature dealing with the influence of family
economic conditions on income earned in adult age by the offspring, we are
able to estimate separately the effect operating through education and a
direct economic effect. The latter, in some European countries, is of
significant magnitude and seems to be related to the welfare regimes of
the various countries. These findings highlight an additional
characteristic of welfare regimes and allow a better understanding on how
family conditions and institutions may interact in the process of
inequality persistence across generations.
Journal: International Review of Applied Economics
Pages: 345-366
Issue: 3
Volume: 23
Year: 2009
Keywords: intergenerational inequality, education, welfare regimes,
X-DOI: 10.1080/02692170902811777
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:345-366
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Giannini
Author-X-Name-First: Massimo
Author-X-Name-Last: Giannini
Title: National vs local funding for education: effects on growth and inequality
Abstract:
This paper develops a two-period overlapping generations model with
heterogeneous agents aiming at analysing how decentralization in the
provision of public education affects growth and personal inequality via
human capital investment. Education is financed by a tax levied by either
national or local authorities. The tax rate is chosen according to a
median voter mechanism. During their working period of life, individuals
look after their offspring by providing them with a high level of school
education stemming from taxation. In addition parent's contributions to
the social security system provide them with retirement income.
Heterogeneity accounts for the differences in the optimal taxation
mechanism, linking the income distribution to the tax rate, and hence to
human capital accumulation, growth and income inequality. In this way we
relate differences among agents to the tax rate. We show that
decentralization induces growth rate disparities among local communities
but it can be ruled out by a proper fiscal substitution between social
security and locally provided education. Unlike in the literature, this
type of fiscal design allows local economies to grow faster and more
equally than the national design.
Journal: International Review of Applied Economics
Pages: 367-385
Issue: 3
Volume: 23
Year: 2009
Keywords: education, inequality, fiscal federalism, median voter,
X-DOI: 10.1080/02692170902811785
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:367-385
Template-Type: ReDIF-Article 1.0
Author-Name: Debora Di Gioacchino
Author-X-Name-First: Debora
Author-X-Name-Last: Di Gioacchino
Author-Name: Laura Sabani
Author-X-Name-First: Laura
Author-X-Name-Last: Sabani
Title: The politics of social protection: social expenditure vs market regulation
Abstract:
It has been argued that the notion of a European social model is
misleading and that there are in fact different European social models
with different features and different performances in terms of efficiency
and equity. In this paper, we look at the welfare state from a political
economy point of view and interpret the different regimes as possible
outcomes of a political process through which heterogeneous preferences of
voters are aggregated. In our model, agents differ in two respects: income
and socio-economic vulnerability. Policy-makers have to decide on two
policies: a proportional income tax to finance a social transfer,
providing equal benefits to all citizens, and a market regulation policy
which benefits only vulnerable workers, providing them with additional
protection against unemployment risk. Market regulation is inefficient
because it decreases aggregate resources. Individuals' heterogeneity
generates a conflict over policies. We feature the political process as a
two-party electoral competition in a citizen-candidate model with
probabilistic voting. We show that an inefficient equilibrium exists and
that this outcome is more likely as income inequality and the proportion
of vulnerable workers become greater. Intuitively, greater inequality
raises the level of redistributive spending desired by the poor, making,
at the same time, the rich more adverse to the welfare state. In this
framework, both the rich and the poor, in order to win the election and
realise the fiscal gain, have an incentive to support market restrictions,
in the attempt to capture the votes of the vulnerable minority, who
benefit from these policies.
Journal: International Review of Applied Economics
Pages: 387-404
Issue: 3
Volume: 23
Year: 2009
Keywords: welfare state, social protection, market regulations, political process, political economy,
X-DOI: 10.1080/02692170902811843
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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:387-404
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Lemos
Author-X-Name-First: Sara
Author-X-Name-Last: Lemos
Title: Comparing employment estimates using different minimum wage variables: the case of Brazil
Abstract:
Several minimum wage variables have been suggested in the literature to
estimate the effect of the minimum wage on employment. The most common
ones are the real minimum wage, the 'Kaitz index', the 'fraction
affected', the 'fraction at' and the 'fraction below'. This diversity of
variables makes it difficult to compare the associated estimates across
studies. One problem is that these estimates are not always calibrated to
represent the employment effect of a 1% minimum wage increase. Another
problem is that these estimates measure employment effects for different
groups of workers. In this paper we critically compare employment effect
estimates using these five minimum wage variables and data from a
Brazilian monthly household survey panel from 1982 to 2000. Our principal
finding is that the sign of this effect is robust across the different
minimum wage variables, but that its magnitude and significance are
sensitive to the minimum wage variable used.
Journal: International Review of Applied Economics
Pages: 405-425
Issue: 4
Volume: 23
Year: 2009
Keywords: minimum wage, labour costs, employment effect, Brazil,
X-DOI: 10.1080/02692170902954759
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:405-425
Template-Type: ReDIF-Article 1.0
Author-Name: Ron Smith
Author-X-Name-First: Ron
Author-X-Name-Last: Smith
Author-Name: Gylfi Zoega
Author-X-Name-First: Gylfi
Author-X-Name-Last: Zoega
Title: Keynes, investment, unemployment and expectations
Abstract:
In Keynes' General Theory, investment determines effective demand, which
determines unemployment and the labour market plays a negligible role. In
New Keynesian models, labour market institutions determine the natural
rate of unemployment and the speed at which unemployment adjusts to it.
Investment is mostly ignored as a key variable behind the problem of high
unemployment, despite a strong empirical association between investment
and unemployment. We discuss the evolution of the 'Keynesian' model, and
how in the process of domesticating the General Theory, the central
relationship between unemployment and investment and the role of the state
of confidence was bred out of the model. We then present some evidence of
the centrality of investment and expectations to the long-term evolution
of unemployment in OECD countries. We also argue that recent results in
finance, which find that individuals do not behave rationally and,
moreover, that there may be no basis for rational calculation, provides
support for Keynes's notion that animal spirits play a central role in
investment.
Journal: International Review of Applied Economics
Pages: 427-444
Issue: 4
Volume: 23
Year: 2009
Keywords: unemployment, investment, Keynesian theory,
X-DOI: 10.1080/02692170902954767
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:427-444
Template-Type: ReDIF-Article 1.0
Author-Name: Dany Lang
Author-X-Name-First: Dany
Author-X-Name-Last: Lang
Author-Name: Christian de Peretti
Author-X-Name-First: Christian
Author-X-Name-Last: de Peretti
Title: A strong hysteretic model of Okun's Law: theory and a preliminary investigation
Abstract:
This paper presents a 'strong hysteretic' version of Okun's Law, that is,
a version of the law in which 'history matters.' In this version of the
link between fluctuations in unemployment and growth, the most important
past growth shock exerts an influence on the current unemployment rate. A
theoretical framework is proposed in order to lay the foundations of this
version of Okun's Law. In this framework, the hysteresis property arises
because a large number of heterogeneous firms discontinuously adjust their
activity levels in response to fluctuations in the rate of growth. The
foundations having been laid, a method for empirically testing our
hysteretic Okun's Law is presented. An algorithm permits construction of a
hysteresis operator, which synthesizes, for every moment, the growth
shocks that have remained in the memory bank of the unemployment rate.
Empirical tests are conducted to assess the empirical relevance of this
version of Okun's Law, as compared to the more familiar linear
relationship. Empirical results consistent with hysteresis are found for
several of the countries in our sample.
Journal: International Review of Applied Economics
Pages: 445-462
Issue: 4
Volume: 23
Year: 2009
Keywords: Okun's law, unemployment fluctuations, hysteresis,
X-DOI: 10.1080/02692170902954775
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:445-462
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Title: Market forces and competition in university systems: theoretical reflections and empirical evidence from Italy
Abstract:
This paper deals with the reforming processes in higher education (HE)
from centralised systems towards more competitive ones. In particular, I
discuss these issues referring to the Italian case, and the market-like
mechanisms introduced in it during 1990s and early 2000s. The focus of the
paper is in analysing the effects of the increasing competition on
teaching performance of universities. For this purpose, I develop a
theoretical model, moving from the framework of yardstick competition
(YC), to describe the functioning of a competition model based on
comparing performance of institutions. Then, I apply this model using data
from the Italian university system. The results suggest that an
increasingly competitive environment effectively improves the
universities' performance, which is also influenced by other factors,
namely the characteristics of the institutions themselves and of their
students, and by the resources available. As the exploratory nature of the
study, these findings must be validated through future research.
Journal: International Review of Applied Economics
Pages: 463-483
Issue: 4
Volume: 23
Year: 2009
Keywords: universities, market structure, competition, incentives, performance,
X-DOI: 10.1080/02692170902954783
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:463-483
Template-Type: ReDIF-Article 1.0
Author-Name: Santonu Basu
Author-X-Name-First: Santonu
Author-X-Name-Last: Basu
Title: Government success, failure of the market: a case study of rural India
Abstract:
Contrary to current thinking, in this paper we argue that a careful
examination of government intervention suggests that governments did not
fail in all their interventions. For example, in terms of achieving
self-sufficiency in food requirements, Indian government intervention was
highly successful. However, in terms of solving rural poverty, the
government left it to the market, and the market failed to resolve the
poverty problem. Rural poverty, instead of falling, increased and
subsequently, the government had to intervene to address the poverty.
Journal: International Review of Applied Economics
Pages: 485-501
Issue: 4
Volume: 23
Year: 2009
Keywords: green revolution, government intervention, structural change, rural poverty,
X-DOI: 10.1080/02692170902954791
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:485-501
Template-Type: ReDIF-Article 1.0
Author-Name: Raghbendra Jha
Author-X-Name-First: Raghbendra
Author-X-Name-Last: Jha
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Anurag Sharma
Author-X-Name-First: Anurag
Author-X-Name-Last: Sharma
Title: Modelling variety in consumption expenditure on food in India
Abstract:
In this paper we compute nutrient-income elasticities for two
macronutrients (calories and protein) and five micronutrients (calcium,
thiamine, riboflavin, carotene and iron) using an all-India sample of
rural households for 1994. We show that in each case the respective
elasticities are positive and significant. This lends support to our
hypothesis that an increase in income would increase nutrient intake by
varying amounts, contrary to some assertions. We then compute differences
in the elasticity of substitution for non-poor and poor across commodity
groups and show that these differences, while significant, are small. This
further corroborates our conclusion that increases in income of the poor
would lead to greater increases in their nutrient intake as compared to
the non-poor, although the magnitudes will be small.
Journal: International Review of Applied Economics
Pages: 503-519
Issue: 4
Volume: 23
Year: 2009
Keywords: nutrient-income elasticities, macronutrients, micronutrients, rural India,
X-DOI: 10.1080/02692170902954809
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:503-519
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Mazzoli
Author-X-Name-First: Marco
Author-X-Name-Last: Mazzoli
Author-Name: Christian Barducci
Author-X-Name-First: Christian
Author-X-Name-Last: Barducci
Title: Testing exchange rate efficiency: the case of euro-dollar
Abstract:
This paper tests the semi-strong efficiency of the euro-dollar currency
market by introducing a simple heuristic test, based on the
'general-to-specific' methodology and meant to include as two specific
sub-cases the 'efficient market hypothesis' (EMH) in the currency market
as well as alternative theories implying a time dependent process of
propagation of information. According to the results of our nested test,
the 'efficient market hypothesis' in the euro-dollar currency market is
rejected.
Journal: International Review of Applied Economics
Pages: 521-540
Issue: 4
Volume: 23
Year: 2009
Keywords: information and market efficiency, foreign exchange,
X-DOI: 10.1080/02692170902954817
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Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:521-540
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula Bali
Author-X-Name-Last: Swain
Author-Name: Fan Yang Wallentin
Author-X-Name-First: Fan Yang
Author-X-Name-Last: Wallentin
Title: Does microfinance empower women? Evidence from self-help groups in India
Abstract:
Microfinance programmes like the Self Help Bank Linkage Program in India
have been increasingly promoted for their positive economic impact and the
belief that they empower women. However, only a few studies rigorously
examine the link between microfinance and women's empowerment. This
article contributes to this discussion by arguing that women's empowerment
takes place when women challenge the existing social norms and culture, to
effectively improve their well-being. It empirically validates this
hypothesis by using quasi-experimental household sample data collected for
five states in India for 2000 and 2003. A general model is estimated by
employing appropriate techniques to treat the ordinal variables in order
to estimate the impact of the Self Help Group (SHG) on women's empowerment
for 2000 and 2003. The results strongly demonstrate that on average, there
is a significant increase in the empowerment of women in the SHG members
group. No such significant change is observed however, for the members of
the control group. The elegance of the result lies in the fact that the
group of SHG participants show clear evidence of a significant and higher
empowerment, while allowing for the possibility that some members might
have been more empowered than others.
Journal: International Review of Applied Economics
Pages: 541-556
Issue: 5
Volume: 23
Year: 2009
Keywords: microfinance, women's empowerment, general model,
X-DOI: 10.1080/02692170903007540
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Handle: RePEc:taf:irapec:v:23:y:2009:i:5:p:541-556
Template-Type: ReDIF-Article 1.0
Author-Name: Abdella Abdou
Author-X-Name-First: Abdella
Author-X-Name-Last: Abdou
Author-Name: Saeed Moshiri
Author-X-Name-First: Saeed
Author-X-Name-Last: Moshiri
Title: Privatization and capital formation in developing countries: an empirical analysis
Abstract:
The spur for privatization and its impact on economic performance have
been analysed from many perspectives, including microeconomics,
macroeconomics, and institutional economics. Previous research has focused
on efficiency reasons for privatization at the level of the firm, and the
relative performance of state-owned enterprises and privately owned firms.
This article investigates the macroeconomic facet of privatization with
particular attention paid to the relation between privatization and
capital formation in developing countries. Our study uses recent World
Bank data on privatization for 105 countries over the time period
1988-2003. We explore the impact of privatization on capital formation by
conducting two-stage least squares and ordinary least squares estimations
within three time frames. Our findings indicate that the effect of
privatization on capital formation varies across regions and time frames.
In general, privatization is neutral with regard to investment.
Journal: International Review of Applied Economics
Pages: 557-575
Issue: 5
Volume: 23
Year: 2009
Keywords: privatization, total investment, private investment, developing countries,
X-DOI: 10.1080/02692170903007557
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Handle: RePEc:taf:irapec:v:23:y:2009:i:5:p:557-575
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Hall
Author-X-Name-First: Michael
Author-X-Name-Last: Hall
Title: Why peg? The role of capital mobility and financial intermediation
Abstract:
Many economists argue that the growth of international capital mobility
has made the maintenance of pegged exchange rates more costly, forcing
developing states to choose alternative arrangements. But some states do
not simply abandon pegged exchange rates as their exposure to capital
mobility rises. Some states abandon pegs long before a crisis can erupt,
while others maintain pegs until the speculative pressures became
unbearable. Why, in an environment of growing capital mobility, do some
states maintain pegs longer than others do? One reason is that the more
that bank lending dominates investment in a country, the more likely that
state is to hold on to a pegged exchange rate. When banks have accumulated
significant amounts of foreign debt they lobby for exchange rate
stability. In a bank-dominated financial system, a concentrated banking
sector can organize easily and use its crucial role in the economy to
exert influence over economic policy. This article presents new evidence
from statistical tests on 61 developing countries that confirm that states
with deeper banking systems are more likely to peg their exchange rates,
in spite of growing capital mobility.
Journal: International Review of Applied Economics
Pages: 577-596
Issue: 5
Volume: 23
Year: 2009
Keywords: banking, capital mobility, exchange rate crises, exchange rate regime, financial system, interest groups,
X-DOI: 10.1080/02692170903007581
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Template-Type: ReDIF-Article 1.0
Author-Name: Elisa Ughetto
Author-X-Name-First: Elisa
Author-X-Name-Last: Ughetto
Title: Industrial districts and financial constraints to innovation
Abstract:
Informational frictions between borrowers and lenders are particularly
acute for innovative firms undertaking high-risk projects. As a
consequence, banks may end up denying credit to them. However, the
literature on relationship finance predicts that a closer relationship
between credit suppliers and obligors is deemed to alleviate information
asymmetries, hence preventing credit rationing from occurring. The
question of whether such situations also apply to innovative firms has so
far remained relatively unexplored. Using a cross-section of Italian
manufacturing firms, I find that credit constraints appear to be more
severe for firms undertaking innovative activities, although such effects
are weaker when measures of R&D intensity are included. The empirical
analysis also shows that firms located in an industrial district have
easier access to external finance. If I move to consider firms engaged in
substantial R&D activities located in a district, results suggest that
they can benefit from better financial conditions.
Journal: International Review of Applied Economics
Pages: 597-624
Issue: 5
Volume: 23
Year: 2009
Keywords: industrial districts, relationship finance, credit rationing, innovation,
X-DOI: 10.1080/02692170903007599
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Handle: RePEc:taf:irapec:v:23:y:2009:i:5:p:597-624
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: An index of macroeconomic performance
Abstract:
This article develops a composite index of macroeconomic performance
(IMP) and uses this index to ask: did the macroeconomic performance of the
US economy improve during the 1990s relative to its own past performance;
and has US macroeconomic performance been superior to that of other
advanced capitalist economies during the post-war period as a whole? It is
demonstrated that by studying the behaviour of an IMP, it is possible to
draw conclusions about these comparative macroeconomic performance puzzles
that are robust with respect to changes between multiple index weighting
schemes.
Journal: International Review of Applied Economics
Pages: 625-649
Issue: 5
Volume: 23
Year: 2009
Keywords: index of macroeconomic performance, comparative macroeconomic performance, US macroeconomic performance, index numbers, weighting schemes,
X-DOI: 10.1080/02692170903007680
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Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Sacchetti
Author-X-Name-First: Silvia
Author-X-Name-Last: Sacchetti
Author-Name: Roger Sugden
Author-X-Name-First: Roger
Author-X-Name-Last: Sugden
Title: Introduction
Abstract:
Journal: International Review of Applied Economics
Pages: 651-652
Issue: 6
Volume: 23
Year: 2009
X-DOI: 10.1080/02692170903239838
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Handle: RePEc:taf:irapec:v:23:y:2009:i:6:p:651-652
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Sacchetti
Author-X-Name-First: Francesco
Author-X-Name-Last: Sacchetti
Author-Name: Silvia Sacchetti
Author-X-Name-First: Silvia
Author-X-Name-Last: Sacchetti
Author-Name: Roger Sugden
Author-X-Name-First: Roger
Author-X-Name-Last: Sugden
Title: Creativity and socio-economic development: space for the interests of publics
Abstract:
Emphasising power in strategic choice, we consider people in actual and
potential publics kindling their imagination and ideas in order to shape
new directions in the economies in which they have an interest. This paper
proposes 'public creativity forums', spaces defined by relations aimed at
free communication and based upon shared values, including openness.
Artistic activities are highlighted as a viaticum for people's creativity,
hence for their potential significance in influencing development in any
sector or region. The case of self-styled Mutoids is presented following
original ethnographic research. These prospects are positioned in an
analysis of transnational corporations, uneven economic development,
choices over globalisation and regional competitiveness.
Journal: International Review of Applied Economics
Pages: 653-672
Issue: 6
Volume: 23
Year: 2009
Keywords: creative space, artistic activities, strategic choice, public interests, Mutoids, ethnography,
X-DOI: 10.1080/02692170903239846
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Handle: RePEc:taf:irapec:v:23:y:2009:i:6:p:653-672
Template-Type: ReDIF-Article 1.0
Author-Name: Johan Willner
Author-X-Name-First: Johan
Author-X-Name-Last: Willner
Author-Name: Sonja Gronblom
Author-X-Name-First: Sonja
Author-X-Name-Last: Gronblom
Title: The impact of budget cuts and incentive wages on academic work
Abstract:
Recent university reforms tend to mean budget cuts, economic incentives
at all levels and a more powerful management, in the spirit of the new
public management. Performance-based pay is often motivated through the
principal-agent theory where agents would provide inadequate efforts under
a fixed-wage regime. We amend the principal-agent model by introducing
intrinsic motivation as one side of a multiple self. It turns out that the
fixed regime can lead to higher creative efforts and a higher output per
employee under reasonable circumstances. Performance-based pay leads to
motivation crowding out if the wage approaches the threshold level for
quitting.
Journal: International Review of Applied Economics
Pages: 673-689
Issue: 6
Volume: 23
Year: 2009
Keywords: universities, new public management, performance-based pay,
X-DOI: 10.1080/02692170903239853
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Handle: RePEc:taf:irapec:v:23:y:2009:i:6:p:673-689
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Jackson
Author-X-Name-First: Ian
Author-X-Name-Last: Jackson
Author-Name: Philip Tomlinson
Author-X-Name-First: Philip
Author-X-Name-Last: Tomlinson
Title: The role of cooperation in a creative industry: the case of UK studio pottery
Abstract:
In this paper, we explore the role that cooperation plays in a
small-scale creative sector, namely that of UK studio pottery. Drawing
upon data from a survey of studio potters, we examine the extent to which
these artists cooperate with others in their production activities and
then assess the impact of this cooperation on their sales performance.
While our results suggest that studio potters can and do benefit from
establishing stronger cooperative ties, the nurturing of such ties is not
always easy and significant barriers to cooperation exist. Overcoming such
barriers depends very much upon the nature of dyadic relations between
actors, which is something we suggest reflects the governance structure of
the network.
Journal: International Review of Applied Economics
Pages: 691-708
Issue: 6
Volume: 23
Year: 2009
Keywords: co-operative ties, horizontal and vertical linkages, creative industries, economic governance,
X-DOI: 10.1080/02692170903239861
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Handle: RePEc:taf:irapec:v:23:y:2009:i:6:p:691-708
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Cohendet
Author-X-Name-First: Patrick
Author-X-Name-Last: Cohendet
Author-Name: David Grandadam
Author-X-Name-First: David
Author-X-Name-Last: Grandadam
Author-Name: Laurent Simon
Author-X-Name-First: Laurent
Author-X-Name-Last: Simon
Title: Economics and the ecology of creativity: evidence from the popular music industry
Abstract:
Creativity does not result from the talents of a few individuals, but, on
the contrary, nourishes itself from the repeated exchanges among a variety
of heterogeneous entities that all contribute in their own way to foster
the development of new ideas. As a result, the creative activity must be
considered as embedded in creative territories. In other words, these
creative milieus should be considered as specific innovative clusters that
allow for the creative process to be fully expressed. Following this
perspective, we argue that the dynamics of creativity lie in the
interaction between three different layers of a territory: the
underground, the middleground and the upperground. In order to illustrate
this point of view, we propose to analyse the birth of two distinct
musical styles that are both directly related to the places in which they
emerged: soul music in Detroit and rap music in New York.
Journal: International Review of Applied Economics
Pages: 709-722
Issue: 6
Volume: 23
Year: 2009
Keywords: creativity, innovation, invention, creative milieus, cities, music,
X-DOI: 10.1080/02692170903239879
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Template-Type: ReDIF-Article 1.0
Author-Name: Jens Christensen
Author-X-Name-First: Jens
Author-X-Name-Last: Christensen
Title: Reframing economic development: thing or mystery?
Abstract:
The aim of this article is to contribute to the conceptual platforms for
a critical and creative approach to economic development. Economic
development is a practical matter, but practice depends on the frame
within which the situation is experienced, conceptually and emotionally.
At a general level, the article discusses critical and creative thinking
in relation to economic development and with particular focus on
reframing. The key point is that a critical and creative approach
challenges the problematic aspects of an actual frame and enters into a
process of changing the frame. At a specific level, the article discusses
one approach to reframing economic development, namely by the introduction
of two core concepts, 'thing' and 'mystery'. 'Thing' is oriented towards
objects. 'Mystery' is oriented towards meaning. 'Thing' points at
expert-based calculation and manipulation; 'mystery' points at
participation and communication, as well as hermeneutics and art. A focus
on mystery challenges the expansive and dominative power of the
reification embedded in conventional economic thinking and practice.
Journal: International Review of Applied Economics
Pages: 723-741
Issue: 6
Volume: 23
Year: 2009
Keywords: critique, creativity, participation, dialogue, meaning, art, hermeneutics,
X-DOI: 10.1080/02692170903239887
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Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Carmichael
Author-X-Name-First: Fiona
Author-X-Name-Last: Carmichael
Title: Book review
Abstract:
Journal: International Review of Applied Economics
Pages: 743-746
Issue: 6
Volume: 23
Year: 2009
X-DOI: 10.1080/02692170903239895
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Template-Type: ReDIF-Article 1.0
Author-Name: Wolfram Elsner
Author-X-Name-First: Wolfram
Author-X-Name-Last: Elsner
Title: Regional service clusters and networks. Two approaches to empirical identification and development: the case of logistics in the German port city-states Hamburg and Bremen
Abstract:
This article discusses two approaches to the identification and
measurement of regional clusters and its networks in 'cross-sectoral'
services which are not available through official industrial statistics.
The first approach is a 'secondary-statistical' one consisting of a
firm-based blending of two separate official statistical data-sets,
industrial and 'functional' (that is, the professions practised within
firms). Thus, a service 'cross-sector' is identified across manufacturing
and service industries. In the matrices resulting, weights are attached in
an expert survey to the numbers of employees to aggregate the 'real'
logistics 'cross-sector'. This is applied to the two German port
city-states, Hamburg and Bremen. The second approach is
'primary-statistical', based on a small firms survey which generated data
on 'functional' supplier relations (the cluster) and on project-based
'strategic' cooperations (the networks within that cluster). This follows
a two-stage model of emerging clusters and 'its' networks. This data-set
is combined with the firms' affiliations to branches, firm size, age and
sales growth classes, in order to connect information with the industry
statistics. Also, the net densities and centrality structures are
calculated. The combined information provides indications of the relevance
of the service cluster and its networks as factors of future regional
development. The latter approach is applied to the State of Bremen only.
Two results appear to be transferable beyond the German cases: first, the
two approaches improve the knowledge about policy-relevant
'cross-sectors', clusters and networks; and second our knowledge about
service, namely logistics, clusters and networks (for which port regions
are prominent nodes) is improved. Finally, some implications for regional
cluster strategies are discussed.
Journal: International Review of Applied Economics
Pages: 1-33
Issue: 1
Volume: 24
Year: 2010
Keywords: Industry clusters, industry networks, services, logistics, professions, regions, port cities, statistics, net analysis,
X-DOI: 10.1080/02692170903007573
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Template-Type: ReDIF-Article 1.0
Author-Name: Werner Holzl
Author-X-Name-First: Werner
Author-X-Name-Last: Holzl
Title: Was there a Marxian bias in Austrian manufacturing? Evidence on the direction of technical change, 1978-1994
Abstract:
This paper presents a study of the bias of technical change for 20
industries of the Austrian manufacturing sector for the period 1978 to
1994 using empirical methods derived from both classical and neoclassical
economics. Overall, the results suggest that the technical bias in
Austrian manufacturing did not follow a Marxian pattern. Estimates based
on the classical framework suggest that 5 out of the 20 industries show a
Marxian bias over the period 1978-1994. Evidence based on a neoclassical
CES production function is provided and critically evaluated.
Journal: International Review of Applied Economics
Pages: 35-56
Issue: 1
Volume: 24
Year: 2010
Keywords: capital productivity, bias of technical change, aggregate production function, Austrian manufacturing industries,
X-DOI: 10.1080/02692170903424273
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Template-Type: ReDIF-Article 1.0
Author-Name: Ramaa Vasudevan
Author-X-Name-First: Ramaa
Author-X-Name-Last: Vasudevan
Title: Financial intermediation and fragility: the role of the periphery
Abstract:
A peculiar feature of the present international economy is that the
leading 'hegemonic' country, USA, has a large and mounting external
deficit which it finances by issuing debt in its own currency. The US can
be seen to be at the apex of a pattern of triangular payments recycling
the surpluses of creditor countries to debtor countries in the periphery.
The paper shows, within a stock-flow-consistent framework, how capital
flight from debtor periphery countries, by precipitating a shift from
assets denominated in domestic currency to those denominated in dollars,
acts like a safety valve for the international monetary system.
Journal: International Review of Applied Economics
Pages: 57-74
Issue: 1
Volume: 24
Year: 2010
Keywords: global imbalances, international financial system, financial intermediation, Minskian fragility, core-periphery relations,
X-DOI: 10.1080/02692170903424281
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Template-Type: ReDIF-Article 1.0
Author-Name: Shiro Takeda
Author-X-Name-First: Shiro
Author-X-Name-Last: Takeda
Title: A computable general equilibrium analysis of the welfare effects of trade liberalization under different market structures
Abstract:
Using a static world computable general equilibrium model with 16 sectors
and 14 regions, this paper compares welfare effects of trade
liberalization of the perfectly competitive model and eight imperfectly
competitive models. Our main findings are as follows. First, the size of
the welfare impact systematically depends on the type of model. Second,
the welfare impact of the perfectly competitive model is not necessarily
smaller than those of imperfectly competitive models. Third, the
integrated market model tends to have a larger welfare impact than the
segmented market model. Fourth, the model with the fixed number of firms
tends to have a small welfare impact. Finally, the variety effect tends to
have a stronger influence on the welfare effects of liberalization than do
scale and markup effects. Differences in the models can be viewed as
differences in the economic structures of the regions being analyzed, and
therefore the analysis in this paper makes it possible to derive policy
implications with regard to the relationship between economic structure
and trade liberalization.
Journal: International Review of Applied Economics
Pages: 75-93
Issue: 1
Volume: 24
Year: 2010
Keywords: trade liberalization, imperfectly competitive models, computable general equilibrium analysis,
X-DOI: 10.1080/02692170903424307
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Handle: RePEc:taf:irapec:v:24:y:2010:i:1:p:75-93
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Ebersberger
Author-X-Name-First: Bernd
Author-X-Name-Last: Ebersberger
Author-Name: Orietta Marsili
Author-X-Name-First: Orietta
Author-X-Name-Last: Marsili
Author-Name: Toke Reichstein
Author-X-Name-First: Toke
Author-X-Name-Last: Reichstein
Author-Name: Ammon Salter
Author-X-Name-First: Ammon
Author-X-Name-Last: Salter
Title: Into thin air: using a quantile regression approach to explore the relationship between R&D and innovation
Abstract:
Applying quantile regression to 760 Finnish firms, we show that the
relationship between R&D and firm performance is less straight forward
than so far assumed. OLS regression analysis fails to capture the effect
of R&D expenditure at different locations on the performance distribution.
We reveal that R&D matters, especially on the medium quantiles, while
regressing against the upper quantiles of the economic gains from
innovation distribution exhibit decreasing returns scale in R&D. Our
results confirm that Gaussian statistics fail to capture the most
interesting part of the distribution - namely the extreme observations
located in the tails.
Journal: International Review of Applied Economics
Pages: 95-102
Issue: 1
Volume: 24
Year: 2010
Keywords: quantile regression, R&D, economic gains from innovation,
X-DOI: 10.1080/02692170903424448
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Handle: RePEc:taf:irapec:v:24:y:2010:i:1:p:95-102
Template-Type: ReDIF-Article 1.0
Author-Name: Toan Nguyen
Author-X-Name-First: Toan
Author-X-Name-Last: Nguyen
Title: An analysis of East Asian currency area: Bayesian dynamic factor model approach
Abstract:
There has recently been an increasing interest in the establishment of a
common currency area in East Asia in the aftermath of the East Asian
financial crisis. In this article I examine the desirability and
feasibility of forming a currency area in the region by checking the
symmetry of shocks as an important criterion of the theory of Optimum
Currency Area. I employ a dynamic factor model to decompose aggregate
output into world, regional and country-specific components and estimate
the model using a Gibbs sampling simulation. Persistent properties of
those components are examined and variance decomposition analysis is
performed to investigate the role of each component in output variance.
The European Monetary Union, with the successful launch of the euro, is
the natural benchmark for comparison. Based on variance analysis, it is
found that East Asian countries, on average, are less plausible candidates
for a currency area than European counterparts. However, a subgroup of
countries in East Asia is as qualified as those in Europe. Given the
ongoing integration in East Asia, it is not premature to prepare for such
a currency area in this region.
Journal: International Review of Applied Economics
Pages: 103-117
Issue: 1
Volume: 24
Year: 2010
Keywords: East Asia, Currency Area, Bayesian, dynamic factor model, Gibbs sampling,
X-DOI: 10.1080/02692170903007631
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Handle: RePEc:taf:irapec:v:24:y:2010:i:1:p:103-117
Template-Type: ReDIF-Article 1.0
Author-Name: Yannis Panagopoulos
Author-X-Name-First: Yannis
Author-X-Name-Last: Panagopoulos
Author-Name: Ioanna Reziti
Author-X-Name-First: Ioanna
Author-X-Name-Last: Reziti
Author-Name: Aristotelis Spiliotis
Author-X-Name-First: Aristotelis
Author-X-Name-Last: Spiliotis
Title: Monetary and banking policy transmission through interest rates: an empirical application to the USA, Canada, the UK and the Eurozone
Abstract:
The main purpose of this paper is an examination of the pass-through
interest rate transmission from the wholesale rates (central bank and/or
money market rates) to the retail rates (deposit and lending rates) of the
banking system. Knowledge of the transmission substantially helps us to
calculate the pass-through interest rate margin or mark-up in the banking
systems under examination (USA, Canada, the UK and the Eurozone). The
selection of the wholesale interest rate is also an important part of this
pass-through transmission framework because it is related to the money
supply process and therefore the central bank's policy capabilities. In
the empirical part, a Johansen (1988) cointegration based error-correction
procedure (ECM-GE) is implemented for the wholesale interest rate
selection. Then an LSE-Hendry general-to-specific model (GETS) is applied,
for the revelation of the banking sector pass-through interest rate
behaviour. In the empirical part, on the issue of the wholesale interest
rate selection, the USA and the Eurozone seem to favour the Money Market
rate while the UK and Canada favour the central bank policy rate. The
results indicate two types of interest rate pass-through behaviour, with
market structure implication - namely, the US and UK banking systems
contrasted with Canada-Eurozone.
Journal: International Review of Applied Economics
Pages: 119-136
Issue: 2
Volume: 24
Year: 2010
Keywords: interest rate pass-through behaviour, monetary policy transmission, asymmetries,
X-DOI: 10.1080/02692171003590096
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:119-136
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Author-Name: Jonathan Williams
Author-X-Name-First: Jonathan
Author-X-Name-Last: Williams
Title: A note on productivity change in European cooperative banks: the Luenberger indicator approach
Abstract:
The Luenberger productivity indicator is employed to estimate and
decompose productivity change in a sample of cooperative banks operating
in 10 EU member states. An average annualised productivity growth of 2.59%
is reported between 1996 and 2003, though there is heterogeneity in growth
rates across countries. Generally speaking, productivity growth is driven
by technological change. However, cooperative banks in southern European
banking markets benefit as much from efficiency growth or catching-up with
industry best practice. The results suggest that technology sharing
arrangements and greater competition arising from deregulation are
positive contributors towards productivity change.
Journal: International Review of Applied Economics
Pages: 137-147
Issue: 2
Volume: 24
Year: 2010
Keywords: Europe, cooperative banks, Luenberger productivity indicator, productivity change,
X-DOI: 10.1080/02692171003590047
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:137-147
Template-Type: ReDIF-Article 1.0
Author-Name: Reed Neil Olsen
Author-X-Name-First: Reed Neil
Author-X-Name-Last: Olsen
Title: The impact of more complex family structure upon marital earnings premiums
Abstract:
This article employs a unique data set from Trinidad and Tobago to
examine the impact of their more complex family structures upon marital
earnings premiums. While family structure includes the single married
couple structure common in the US, families in Trinidad and Tobago often
have more adults living in the household, multiple married couples living
in the same family, and multigenerational families. Marital premiums for
family members most likely to invest in labor market production are
estimated to increase with more complex family structure. In contrast,
estimated marital premiums for members most likely to invest in home
production are decreased with more complex family structure. Results
suggest that specialization within the larger family help explain the
existence of marital premiums.
Journal: International Review of Applied Economics
Pages: 149-178
Issue: 2
Volume: 24
Year: 2010
Keywords: family structure, marital wages, developing economies,
X-DOI: 10.1080/02692171003590062
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:149-178
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Author-Name: Carlon Walkes
Author-X-Name-First: Carlon
Author-X-Name-Last: Walkes
Title: Does industrial concentration impact on the relationship between policies and volatility?
Abstract:
It is usually recommended that countries diversify their economies to
guard against any negative shocks that might impact on one industry.
However, previous research has not identified how concentration can impact
on the effectiveness of macroeconomic policies. This paper attempts to
evaluate the relationship between industrial concentration, policies and
economic volatility for a sample of 147 countries for the period 1970 to
2005. The study reports that less concentrated countries tend to have
lower rates of output, consumption and investment growth volatility. In
addition, while trade and capital account openness variables alone tend to
diminish economic volatility, in concentrated economies opening both the
capital and trade account can increase economic volatility.
Journal: International Review of Applied Economics
Pages: 179-202
Issue: 2
Volume: 24
Year: 2010
Keywords: diversification, volatility, policies,
X-DOI: 10.1080/02692170903424315
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:179-202
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo
Author-X-Name-Last: Maria Caporale
Author-Name: Christoph Hanck
Author-X-Name-First: Christoph
Author-X-Name-Last: Hanck
Title: Are PPP tests erratically behaved? Some panel evidence
Abstract:
This paper examines whether, in addition to standard unit root and
cointegration tests, panel approaches also produce test statistics
behaving erratically when applied to tests for Purchasing Power Parity
(PPP). We show that if appropriate tests (which are robust to
cross-sectional dependence) are used, any evidence of erratic behaviour
disappears, and empirical support is found for PPP.
Journal: International Review of Applied Economics
Pages: 203-221
Issue: 2
Volume: 24
Year: 2010
Keywords: Purchasing Power Parity, PPP, real exchange rates, erratic behaviour, panel tests,
X-DOI: 10.1080/02692170903424331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692170903424331
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:203-221
Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Riza
Author-X-Name-First: Yusuf
Author-X-Name-Last: Riza
Author-Name: Alan King
Author-X-Name-First: Alan
Author-X-Name-Last: King
Title: Sun, sand and September 11: a model of tourism demand for the Maldives
Abstract:
Tourism is a key source of income for many small island economies, and so
it is important to understand its determinants in such countries. We
estimate a tourism demand model for the Maldives' five main source markets
and find that, in addition to the usual foreign income and own price
variables, the cost of travel and of visiting alternative destinations
(often missing from studies of this nature) almost always have a
significant role. In addition, the country's own marketing efforts prove
effective at influencing demand. Finally, we find evidence the War on
Terror has persistently depressed demand from some markets.
Journal: International Review of Applied Economics
Pages: 223-238
Issue: 2
Volume: 24
Year: 2010
Keywords: tourism, demand, elasticities, Maldives, terrorism,
X-DOI: 10.1080/02692170903426054
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:223-238
Template-Type: ReDIF-Article 1.0
Author-Name: Javed Younas
Author-X-Name-First: Javed
Author-X-Name-Last: Younas
Author-Name: Boaz Nandwa
Author-X-Name-First: Boaz
Author-X-Name-Last: Nandwa
Title: Financial openness and capital mobility: a dynamic panel analysis
Abstract:
Does unrestricted control on the movement of capital increase capital
mobility? Theoretically, the answer is yes. This paper uses the
Feldstein-Horioka savings-investment methodology to examine the impact of
financial openness on the degree of capital mobility in 104 countries. Our
estimates suggest that financial openness has increased capital mobility
in developing countries, while its effect is statistically insignificant
in OECD countries. This also implies that a developing country with more
financial openness can have more access to external capital markets for
borrowings. Foreign aid also appears to supplement domestic savings for
investment in developing countries. In line with the previous findings,
our study also confirms that capital is more mobile for developing
countries.
Journal: International Review of Applied Economics
Pages: 239-246
Issue: 2
Volume: 24
Year: 2010
Keywords: Feldstein-Horioka, capital mobility, financial openness, dynamic panel,
X-DOI: 10.1080/02692170903426021
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Handle: RePEc:taf:irapec:v:24:y:2010:i:2:p:239-246
Template-Type: ReDIF-Article 1.0
Author-Name: William Milberg
Author-X-Name-First: William
Author-X-Name-Last: Milberg
Author-Name: Pascal Petit
Author-X-Name-First: Pascal
Author-X-Name-Last: Petit
Title: Introduction
Abstract:
Journal: International Review of Applied Economics
Pages: 247-249
Issue: 3
Volume: 24
Year: 2010
X-DOI: 10.1080/02692171003701370
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:247-249
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Petit
Author-X-Name-First: Pascal
Author-X-Name-Last: Petit
Title: The systemic nature of the rise in inequality in developed economies
Abstract:
The rise in inequality in the last two decades has affected most
developed economies. The systemic nature of this inequality is the focus
of this paper. A combination of product market internationalization,
financial globalization and technological changes favoring large
organizations created asymmetric pressure on the two ends of the
distribution of market incomes, resulting in greatly increased inequality.
A widespread credo of political liberalism prevented governments from
using taxes and transfers to check this rise in income inequality. Changes
in relative prices and borrowing facilities brought some support to the
standards of living of low-income groups but also contributed to increased
instability of these economies. The global financial crisis was one of the
possible crisis scenarios that rising inequality was bound to produce. The
paper assesses the cumulative factors behind the rise in inequality. These
factors reduce the capacity of industrial economies to face the challenges
of ever-changing environments.
Journal: International Review of Applied Economics
Pages: 251-267
Issue: 3
Volume: 24
Year: 2010
Keywords: political economy, factor income distribution, wages and labor compensation,
X-DOI: 10.1080/02692171003701396
File-URL: http://www.tandfonline.com/doi/abs/10.1080/02692171003701396
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:251-267
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Guttmann
Author-X-Name-First: Robert
Author-X-Name-Last: Guttmann
Author-Name: Dominique Plihon
Author-X-Name-First: Dominique
Author-X-Name-Last: Plihon
Title: Consumer debt and financial fragility
Abstract:
This article sheds light on a crucial aspect of the global crisis of
2007-2009: the steady increase of US consumer debt to precipitous levels
over a quarter of century. That trend, fed by a combination of
macro-economic, demographic, and political factors, intensified greatly in
the 2000s when a series of financial innovations allowed American
households to draw equity out of their homes while at the same time
feeding an unprecedented housing boom. Those same new mechanisms of
'structured' and 'synthetic' finance mobilized a significant and steadily
growing proportion of global savings and directed them into this
super-bubble as the world's surplus countries came to fund America's
debt-financed excess spending for perpetual reproduction of their
surpluses. Anachronistic policy preferences among both surplus countries
and the US prevented the proper functioning of various adjustment
mechanisms before the inevitable financial-fragility dynamic took hold to
burst the bubble and throw the global economy into a steep downturn. The
persistence of these global imbalances bodes ill for the medium-term
stability of the world economy and its recovery potential.
Journal: International Review of Applied Economics
Pages: 269-283
Issue: 3
Volume: 24
Year: 2010
Keywords: consumer debt, financial innovation, securitization, US housing boom, US current account deficit, credit crunch,
X-DOI: 10.1080/02692171003701420
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:269-283
Template-Type: ReDIF-Article 1.0
Author-Name: William Milberg
Author-X-Name-First: William
Author-X-Name-Last: Milberg
Author-Name: Deborah Winkler
Author-X-Name-First: Deborah
Author-X-Name-Last: Winkler
Title: Economic insecurity in the new wave of globalization: offshoring and the labor share under varieties of capitalism
Abstract:
Countries subject to the same degree of exposure to globalization may
experience very different levels of economic insecurity depending on
social support or employment protections provided by the state or even due
to insurance obtained by households. We identify five varieties of
industrialized countries, characterized by national levels of 'labor
support' and 'strictness of employment protection,' and analyze the
importance of the role of the state in mediating the impact of
globalization on economic security by estimating the relation between
offshoring and the labor share of income across the OECD. We find that the
effect of offshoring varies across countries depending on their regulatory
structure and in particular on the degree of labor market support provided
by governments. Regression analysis shows that for the countries providing
'more support', offshoring has a less unfavorable or more favorable effect
on the labor share of national income.
Journal: International Review of Applied Economics
Pages: 285-308
Issue: 3
Volume: 24
Year: 2010
Keywords: outsourcing, functional income distribution, economic security, varieties of capitalism,
X-DOI: 10.1080/02692171003701479
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:285-308
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Madrick
Author-X-Name-First: Jeff
Author-X-Name-Last: Madrick
Author-Name: Nikolaos Papanikolaou
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Papanikolaou
Title: The stagnation of male wages in the US
Abstract:
In an analysis of US wages and salaries by sex, age and educational
attainment between 1969 and 2008, we find that median wages and salaries
of males with no more than a high school diploma have fallen over more
than four decades for all but the oldest age group, which made only
marginal gains. The median wages and salaries of males with a college
degree have stagnated for at least 20, and up to 25, consecutive years
within the 39-year period analyzed. Wages and salaries for typical female
workers have risen, especially for those with college degrees, but they
have not risen at strong rates by historical standards. The gap in incomes
between males and females of comparable ages and education has narrowed
but remains large.
Journal: International Review of Applied Economics
Pages: 309-318
Issue: 3
Volume: 24
Year: 2010
Keywords: wage level and structure,
X-DOI: 10.1080/02692171003701495
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:309-318
Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Ghilarducci
Author-X-Name-First: Teresa
Author-X-Name-Last: Ghilarducci
Title: The future of retirement in aging societies
Abstract:
Amongst the hallmarks of a civilized society are that both the rich and
the poor experience increasing longevity, and that both groups are
entitled to leisure at the end of their working lives. Yet, as the
economic crises of 2008-2009 reduces the value of assets in pension funds
an emerging political rhetoric suggests work for retirees is healthy and
that pensions take resources from younger people. This study shows that
spending for programs for the elderly does not displace spending for
younger populations. Evidence from 58 nations reveals pension and
education spending increase together, which suggests that when political
forces are allied with the elderly and young families, social spending
increases across groups. A 10% increase in spending on education (as a
percent of GDP) is correlated with a 7.3% increase in spending on
pensions. Evidence from the US - where older people have more choices than
they had before about working at advanced ages - suggests that older
workers are increasing their labor force participation because retirement
income is eroding, rather than because older workers find work more
attractive and easier to do. Advertisers may link youthfulness with doing
paid work but, in the US, the elderly improve their health after retiring,
controlling for other factors affecting health status.
Journal: International Review of Applied Economics
Pages: 319-331
Issue: 3
Volume: 24
Year: 2010
Keywords: social security and public pensions, pension funds, government policy, economics of the elderly,
X-DOI: 10.1080/02692171003701511
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:319-331
Template-Type: ReDIF-Article 1.0
Author-Name: David Howell
Author-X-Name-First: David
Author-X-Name-Last: Howell
Author-Name: Anna Okatenko
Author-X-Name-First: Anna
Author-X-Name-Last: Okatenko
Title: By what measure? A comparison of French and US labor market performance with new indicators of employment adequacy
Abstract:
Comparisons of national labor market performance have conventionally
relied on standard unemployment and employment rates (UR and ER) and these
two 'quantity-of-employment' indicators have framed policy debates on the
merits of reforms that would move European labor markets closer to the
'American Model.' This paper compares French and US performance using a
variety of alternative indicators, including new measures that account for
job quality. While the UR was much higher for France between 1984 and
2007, it was lower than the US rate before 1984 and the rates have since
converged. It is also significant but not well-known that both prime-age
ERs and youth unemployment-to-population rates have been quite similar in
recent decades. We calculate two new summary indicators from each
country's main household survey for 1993-2005 designed to account for the
adequacy of pay and hours of work as well as the number of unemployed and
employed (the underemployed share of the labor force and the adequately
employed share of the working age population). France shows superior
performance on both, especially for less-educated workers, and the French
advantage has grown substantially since the late 1990s.
Journal: International Review of Applied Economics
Pages: 333-357
Issue: 3
Volume: 24
Year: 2010
Keywords: Unemployment incidence, wage level and structure, methodology for organizing macroeconomic data,
X-DOI: 10.1080/02692171003701578
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:333-357
Template-Type: ReDIF-Article 1.0
Author-Name: James Galbraith
Author-X-Name-First: James
Author-X-Name-Last: Galbraith
Author-Name: Jose Enrique Garcilazo
Author-X-Name-First: Jose Enrique
Author-X-Name-Last: Garcilazo
Title: Inequalities, employment and income convergence in Europe: evidence from regional data
Abstract:
This paper explores the relationship between pay inequality and
unemployment rates for 187 European Regions from 1984-2003. We measure
inequality within the regions between 16 industrial sectors in each region
- and also between the regions: thus, the inequality measures are nested.
Our model of unemployment employs a panel structure that permits us to
separate regional, national and continental influences on European
unemployment. This allows us to test whether a tradeoff exists between
cohesion and competitiveness. We find no evidence of this tradeoff;
instead, lower pay inequality is generally associated with a lower
regional unemployment rate. We find strong country effects lowering
unemployment (relative to the model) in relatively smaller countries such
as Ireland, Austria, Portugal and the Netherlands; on the other hand
unemployment is high, relative to the model, in Spain and Poland. Time
effects reveal the effects of European macro-environment on regional
unemployment. We find an employment penalty associated with the Maastricht
Treaty (1992) and its implementation of around four percentage points,
lasting until 1998, when a general reduction in unemployment appears to
coincide with the arrival of the euro. Unfortunately, the pattern is again
reversed in 2000, coinciding with the implementation of the Lisbon Treaty.
The analysis has grave implications for the consequences of the crisis of
2008 and after, although data on this period will not become available for
some time.
Journal: International Review of Applied Economics
Pages: 359-377
Issue: 3
Volume: 24
Year: 2010
Keywords: Europe, unemployment, regional inequality,
X-DOI: 10.1080/02692171003701594
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:359-377
Template-Type: ReDIF-Article 1.0
Author-Name: Gianluca Grimalda
Author-X-Name-First: Gianluca
Author-X-Name-Last: Grimalda
Author-Name: David Barlow
Author-X-Name-First: David
Author-X-Name-Last: Barlow
Author-Name: Elena Meschi
Author-X-Name-First: Elena
Author-X-Name-Last: Meschi
Title: Varieties of capitalisms and varieties of performances: accounting for inequality in post-Soviet Union transition economies
Abstract:
We partition post-Soviet Union Transition Economies into two groups:
European Union New Member States and countries belonging to the
Commonwealth of Independent States or the South Eastern Europe area. Both
groups started the 1980s with low levels of inequality, but in the early
2000s the latter group reached a level of inequality seven percentage
points higher. We review various factors of inequality and examine whether
these had differential effects in the two groups. Foreign Direct
Investments and trade flows with the EU had a bigger inequality-enhancing
effect in New Member States. We interpret this as evidence of
technological catching-up and productivity improvements taking place in
this region. Other specific reforms, such as privatisation and price
liberalisation, had similarly strong effects in the two groups. We also
find some evidence of an inequality-decreasing effect of an indicator of
Voice and Accountability in countries outside the EU, and that countries
with higher government effectiveness experienced lower levels of
inequality. This supports the relevance of institutional capacity in
tackling inequality. Finally, we speculate over the effects of the current
global crisis on future economic performance.
Journal: International Review of Applied Economics
Pages: 379-403
Issue: 3
Volume: 24
Year: 2010
Keywords: inequality, transition economies, varieties of capitalism,
X-DOI: 10.1080/02692171003701602
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:379-403
Template-Type: ReDIF-Article 1.0
Author-Name: El Mouhoub Mouhoud
Author-X-Name-First: El Mouhoub
Author-X-Name-Last: Mouhoud
Author-Name: Joël Oudinet
Author-X-Name-First: Joël
Author-X-Name-Last: Oudinet
Title: Inequality and migration: what different European patterns of migration tell us
Abstract:
Migration flows are often thought of as stemming from a reserve army of
labour from developing countries, putting downward pressure on wages of
low-qualified workers in developed countries. This paper analyses the
major determinants of migration flows among European countries and
stresses their diversity through a combination of labour market factors in
receiving countries and network effects attached to countries of origin.
The first part of the paper describes the changes in the dynamics of
European migration flows. The second part estimates a reduced form of
model of the relative determinants of migration flows, distinguishing
between labour market and network effects. The results of these
estimations lead to a distinction among various 'regimes of labour
migration' among European countries. These are briefly compared with the
pattern of migration observed in the US.
Journal: International Review of Applied Economics
Pages: 405-422
Issue: 3
Volume: 24
Year: 2010
Keywords: migration, Europe,
X-DOI: 10.1080/02692171003701628
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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:405-422
Template-Type: ReDIF-Article 1.0
Author-Name: Robert LaJeunesse
Author-X-Name-First: Robert
Author-X-Name-Last: LaJeunesse
Title: Effects of female labour force attachment on health in Australia
Abstract:
This study examines the impact of female labour force attachment on
health in Australia, where health care is socially provided. Longitudinal
panel data from Women's Health Australia is used in a metric analysis to
capture the impact of labour market attachment on the physical component
health score of relatively young and older female workers. After
controlling for the healthy worker effect - wherein firms hire and retain
the healthiest workers - and other health-related changes in
socio-economic status, the analysis suggests that even a moderate
attachment to the paid labour force has benevolent effects on health
relative to no or marginal attachment. Given the existing social structure
in Australia, remunerative work generally appears to enhance the health of
young women and arrest the decline of health for older female workers.
Journal: International Review of Applied Economics
Pages: 423-436
Issue: 4
Volume: 24
Year: 2010
Keywords: labour force participation, health, enhancement effect, long work hours,
X-DOI: 10.1080/02692171.2010.483794
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Handle: RePEc:taf:irapec:v:24:y:2010:i:4:p:423-436
Template-Type: ReDIF-Article 1.0
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Author-Name: Alan Speight
Author-X-Name-First: Alan
Author-X-Name-Last: Speight
Title: Bubbles in UK house prices: evidence from ESTR models
Abstract:
Recent movements in stock and house prices have led to an examination of
the presence of bubbles. Whilst, there is extensive research on stock
price data, there is relatively less for house prices. This paper uses a
present-value model for house prices to test for the presence of bubbles.
The results support the presence of a non-fundamental component within UK
national and regional house prices. In particular, for the majority of
series considered, evidence is presented of linear non-stationarity within
the fundamental present-value relationship, and of non-linear
stationarity, implying the presence of a non-fundamental, or bubble,
component. Furthermore, evidence is presented that prices adjust quicker
when they are below fundamental equilibrium, than when they are above
fundamental equilibrium, i.e. there is downward price stickiness. These
results support the hypothesis that house price dynamics can be
characterised by price-to-price momentum. Finally, forecast evidence
suggests that real prices are likely to adjust downwards and converge with
fundamental value.
Journal: International Review of Applied Economics
Pages: 437-452
Issue: 4
Volume: 24
Year: 2010
Keywords: house prices, present value model, ESTR model, momentum,
X-DOI: 10.1080/02692171.2010.483785
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Handle: RePEc:taf:irapec:v:24:y:2010:i:4:p:437-452
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Antonioli
Author-X-Name-First: Davide
Author-X-Name-Last: Antonioli
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Paolo Pini
Author-X-Name-First: Paolo
Author-X-Name-Last: Pini
Title: Productivity, innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy
Abstract:
The paper aims to provide an original contribution to evaluating several
kinds of relations between four areas of innovation activities - training,
technology, organization, ICT (information and communication technologies)
- and industrial relations and firm's economic performance. Quantitative
evidence for a SME-based local production system is provided by exploiting
two datasets: the first is derived from a direct survey carried out in
2005 collecting data on innovations, labour flexibility and industrial
relations; the second is represented by a panel of official balance sheets
data for the period 1998-2004. The analysis is divided in two
consequential parts. We first examine the drivers of different innovation
strategies and subsequently we exploit innovation indicators as potential
drivers of firm's productivity. The results show that training activities
and organizational changes have strong links with many industrial
relations indicators, thus emerging as industrial relations driven
innovations. On the contrary, ICT and technological innovation seem to be
more influenced by firms' past performances than by industrial relations.
The analysis on labour productivity drivers shows that training activities
are the most relevant factors; then, ranked consequently, technological
innovation, organisational innovations and, finally, ICT also appear to
impact on productivity levels. It is worth noting that the role of ICT
emerges more robustly when endogeneity is specifically addressed. Finally,
the role of firm size seems here to be overshadowed by other drivers.
Journal: International Review of Applied Economics
Pages: 453-482
Issue: 4
Volume: 24
Year: 2010
Keywords: local production system, productivity, SMEs, innovation strategies, industrial relations,
X-DOI: 10.1080/02692171.2010.483790
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Template-Type: ReDIF-Article 1.0
Author-Name: E. C. Mamatzakis
Author-X-Name-First: E. C.
Author-X-Name-Last: Mamatzakis
Title: The contribution of the publicly-funded R&D capital to productivity growth and an application to the Greek food and beverages industry
Abstract:
This paper follows the dual-cost function methodology and develops a
theoretical specification that assesses the contribution of public R&D
capital to the productivity growth. The empirical application focuses on
the Greek food and beverages industry. For this purpose it employs a
micro-aggregated annual data set over the period 1976-2002. The regression
analysis shows that publicly-funded R&D capital is a productive input as
8.7% and 7.3% of the total factor productivity growth in the food industry
and in the beverages industry respectively is attributed to the
publicly-funded R&D capital. The relationship between publicly-funded R&D
and privately-purchased inputs is also examined.
Journal: International Review of Applied Economics
Pages: 483-494
Issue: 4
Volume: 24
Year: 2010
Keywords: public R&D, productivity growth, rate of return,
X-DOI: 10.1080/02692171.2010.483795
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Handle: RePEc:taf:irapec:v:24:y:2010:i:4:p:483-494
Template-Type: ReDIF-Article 1.0
Author-Name: Hulya Dagdeviren
Author-X-Name-First: Hulya
Author-X-Name-Last: Dagdeviren
Author-Name: Hatim Mahran
Author-X-Name-First: Hatim
Author-X-Name-Last: Mahran
Title: A tale of industrial stagnation from Africa
Abstract:
Many African economies have experienced rather dismal industrial
development since the 1980s. The consensus is that African firms lack
competitiveness in a world with increasing trade openness. What determines
competitiveness? A well-known explanation is that resource endowments in
Africa favour land not labour, which results in high wages, especially in
comparison with 'labour abundant' Asian economies. This paper examines the
validity of this view on the basis of the case of Sudan. We demonstrate
that the lack of competitiveness of manufacturing industries is not caused
by high wages. Assuming a direct relationship between labour productivity
and international competitiveness, we argue that acute capacity
underutilisation, caused by supply-side constraints, lowers manufacturing
productivity, which in turn negatively influences competitiveness.
Journal: International Review of Applied Economics
Pages: 495-510
Issue: 4
Volume: 24
Year: 2010
Keywords: manufacturing, wages, productivity, capacity utilisation, Africa, Sudan,
X-DOI: 10.1080/02692171.2010.483792
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Handle: RePEc:taf:irapec:v:24:y:2010:i:4:p:495-510
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Zohre Ardalani
Author-X-Name-First: Zohre
Author-X-Name-Last: Ardalani
Author-Name: Marzieh Bolhasani
Author-X-Name-First: Marzieh
Author-X-Name-Last: Bolhasani
Title: Exchange rate volatility and US commodity trade with the rest of the world
Abstract:
Exchange rate volatility is argued to affect the trade flows negatively
and positively. Indeed, empirical studies that have addressed the issue
have supported both effects. These studies have used aggregate trade flows
data either between one country and the rest of the world or between two
countries at the bilateral level. Studies that have disaggregated trade
data by industry are rare. Thus, we extend the literature by looking at
the experiences of 66 American industries that trade with the rest of the
world using monthly data. In most cases, trade flows are not affected by
GARCH-based volatility of the real effective exchange rate of the dollar.
Journal: International Review of Applied Economics
Pages: 511-532
Issue: 5
Volume: 24
Year: 2010
Keywords: exchange rate volatility, GARCH, industry data, United States,
X-DOI: 10.1080/02692171.2010.483466
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Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:511-532
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Lanzafame
Author-X-Name-First: Matteo
Author-X-Name-Last: Lanzafame
Title: The endogeneity of the natural rate of growth in the regions of Italy
Abstract:
Following Leon-Ledesma and Thirlwall (2002a), this paper examines the
hypothesis that the natural rate of growth of the Italian regions is
endogenous to and positively affected by the actual growth rate. Relying
on fixed-effects and SUR estimation techniques and using annual data for
the 20 Italian regions over the period 1977-2003, we find strong support
for the endogeneity hypothesis suggesting that faster actual growth raises
the natural rate of growth of the average Italian region by about 3-3.7
percentage points. Furthermore, in line with recent findings in the
literature, our analysis provides evidence of asymmetries in Okun's Law.
In particular, the asymmetric Okun coefficient in the high-growth regime
turns out to be positive in several cases, implying the unemployment rate
may become pro-cyclical when actual growth rises above a certain threshold
rate.
Journal: International Review of Applied Economics
Pages: 533-552
Issue: 5
Volume: 24
Year: 2010
Keywords: endogenous growth, Okun's Law, Italian regions,
X-DOI: 10.1080/02692170903426039
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Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Chen
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Chen
Title: Managerial compensation and R&D investments: the role of the external managerial labour market
Abstract:
This paper investigates the importance of the external managerial labour
market in the determination of managerial compensation and in the
influence of the compensation incentives on a firm's R&D investments. I
design an empirical model including the compensation adjustment
regression, of which the focus is the role of the external labour market,
and the R&D regression that examines how the compensation incentives
derived from the external labour market affect a firm's R&D intensity.
Empirical results suggest that the R&D intensity is positively related to
the premium of the actual pay adjustments over the expected pay
adjustments based on the external labour market comparisons. The effect of
the compensation incentives on the R&D investments is strongest when
managers expect pay to decrease but actually experience an increase in
pay.
Journal: International Review of Applied Economics
Pages: 553-572
Issue: 5
Volume: 24
Year: 2010
Keywords: managerial compensation, R&D investments, external managerial labour market,
X-DOI: 10.1080/02692170903426047
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Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:553-572
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Oreiro
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Oreiro
Author-Name: Luiz Fernando de Paula
Author-X-Name-First: Luiz Fernando
Author-X-Name-Last: de Paula
Title: Macroeconomic determinants of bank spread in Latin America: a recent analysis with special focus on Brazil
Abstract:
Latin America has one of the highest interest margins in the world;
furthermore, credit to private sector and bank spread are negatively
correlated. Brazil, in particular, has one the highest bank spreads in the
world - it is even so far the highest one among the Latin American
economies. Indeed, despite of the decline in interest rates since
mid-1999, bank spread in Brazil continues to be extremely high in
international terms, and in recent years has stood at around 40 percentage
points. This paper intends to explore the discussion in the recent
literature on bank spread about what determines bank spread in Latin
America, with special focus on the Brazilian case, seeking in particular
but not exclusively to analyze the macroeconomic determinants of bank
spread in recent times.
Journal: International Review of Applied Economics
Pages: 573-590
Issue: 5
Volume: 24
Year: 2010
Keywords: bank spread, Latin America, Brazilian banking sector,
X-DOI: 10.1080/02692170903426062
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Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:573-590
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hess
Author-X-Name-First: Peter
Author-X-Name-Last: Hess
Title: Determinants of the adjusted net saving rate in developing economies
Abstract:
The adjusted net saving rate, initially known as the genuine saving rate,
was first published by the World Bank in the late 1990s as a more
comprehensive measure of national saving and one more indicative of
sustainable development. The adjusted net saving rate incorporated not
just physical capital depreciation, but natural capital depletion and
environmental damage, as well as including some human capital formation.
In this paper, using a cross-section of developing economies for
2001-2006, determinants of the adjusted net saving rate are estimated. For
comparison, the same determinants for the gross national saving rate are
estimated. Also, a basic Solow growth model is extended to incorporate
natural resources and to justify a more comprehensive measure of savings,
such as the adjusted net saving rate, for modeling economic growth. The
two measures of savings are then compared as determinants in estimations
of economic growth. Understanding the determinants of the adjusted net
saving rate is useful for policies to promote sustainable development.
Journal: International Review of Applied Economics
Pages: 591-608
Issue: 5
Volume: 24
Year: 2010
Keywords: sustainable development, adjusted net saving rate, genuine saving rate, economic growth,
X-DOI: 10.1080/02692170903426070
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Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:591-608
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Westerhoff
Author-X-Name-First: Frank
Author-X-Name-Last: Westerhoff
Author-Name: Martin Hohnisch
Author-X-Name-First: Martin
Author-X-Name-Last: Hohnisch
Title: Consumer sentiment and countercyclical fiscal policies
Abstract:
We re-explore the consequences of some popular countercyclical
intervention rules in a simple Keynesian-type macroeconomic model in which
the dynamics of consumer sentiment and business cycles are intertwined. We
find that fiscal policy does not only have a direct effect on national
income via the well-known Keynesian multiplier process but also an
indirect effect by affecting consumer sentiment. The good news is that the
indirect effect may amplify the direct effect and therefore increases a
policy-maker's impact on national income. However, the bad news is that
due to the interactions between the business cycle and the evolution of
consumer sentiment, the stabilization of national income is an intricate
matter.
Journal: International Review of Applied Economics
Pages: 609-618
Issue: 5
Volume: 24
Year: 2010
Keywords: business cycles, consumer sentiment, heterogeneous agents, countercyclical fiscal policies,
X-DOI: 10.1080/02692170903426088
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Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:609-618
Template-Type: ReDIF-Article 1.0
Author-Name: James Heintz
Author-X-Name-First: James
Author-X-Name-Last: Heintz
Title: The impact of public capital on the US private economy: new evidence and analysis
Abstract:
This paper presents new evidence on the impact of public capital on the
productivity of the US private sector. Using a production function
approach, we estimate the impact of public investment on private capital
productivity, specifically addressing the empirical critiques of earlier
studies. We find evidence of a cointegrating relationship in a dynamic
specification of an empirical model that includes public infrastructure as
a factor of production, indicating the existence of a long-run
relationship between the US public capital stock and the productivity of
the private capital stock. The results are used to explore how the decline
in the growth rate of the public capital stock would have affected the
performance of the private sector.
Journal: International Review of Applied Economics
Pages: 619-632
Issue: 5
Volume: 24
Year: 2010
Keywords: public investment, infrastructure, crowding out,
X-DOI: 10.1080/02692170903426104
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Template-Type: ReDIF-Article 1.0
Author-Name: William Bryant
Author-X-Name-First: William
Author-X-Name-Last: Bryant
Author-Name: Roselyne Joyeux
Author-X-Name-First: Roselyne
Author-X-Name-Last: Joyeux
Title: Interest linkages between the US, UK and German interest rates: should the UK join the European Monetary Union?
Abstract:
In light of continuing mixed results in the literature, this paper
re-examines the German Dominance Hypothesis (GDH) and considers whether
the UK should join the Eurozone. For this purpose, short-term interest
rate relationships between the UK, Germany, the Eurozone and the USA, for
the period January 1982 to June 2007, are studied. The policy implication
of a loss of monetary autonomy for the UK in favour of Germany or the
European Central Bank (ECB) would give support to the UK joining the EMU
as an economic response. From the early 1980s the Bundesbank's
responsibility was to use money growth targets to keep average inflation
rate down in the long run. This long run objective suggests that an
appropriate methodology for testing the GDH is to test whether the German
stochastic trend is a driving stochastic trend. In other words we
determine whether a permanent shock to the German interest rate has a
permanent effect on the UK interest rate. To this end the structural
shocks in a VECM are identified by imposing long-run restrictions of the
type developed in King et al. (1991). We apply the same techniques to
testing whether the UK has suffered a loss of monetary autonomy in favour
of the ECB.
Journal: International Review of Applied Economics
Pages: 633-647
Issue: 6
Volume: 24
Year: 2010
Keywords: Exchange Rate Mechanism, interest rates, vector error correction models,
X-DOI: 10.1080/02692171.2010.512143
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Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Are business cycles stationary fluctuations around a deterministic trend? Empirical evidence from 79 developing countries
Abstract:
There is a large literature that tests the univariate time series
properties of the real output series following the seminal work of Nelson
and Plosser (1982). Whether or not real output is characterized by a unit
root process has important implications. A unit root in real output, for
instance, is inconsistent with the notion that business cycles are
stationary fluctuations around a deterministic trend. In this paper, we
investigate the univariate time series properties of real output for 79
developing countries using the conventional augmented Dickey and Fuller
(1979) unit root test, the Zivot and Andrews' (1992) one structural break
unit root test, and the Lumsdaine and Papell (1997) two structural breaks
unit root test. Our main finding is that, for 40 countries, real output is
stationary around a trend. This indicates that business cycles are
stationary fluctuations around a deterministic trend for only 51% of the
developing countries in our sample.
Journal: International Review of Applied Economics
Pages: 649-664
Issue: 6
Volume: 24
Year: 2010
Keywords: structural break unit root test, business cycles, developing countries,
X-DOI: 10.1080/02692171.2010.512130
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Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Title: What is wrong with aggregate production functions. On Temple's 'aggregate production functions and growth economics'
Abstract:
In an article in the 2006 volume of this journal, Jonathan Temple
presented a defence of the use of the aggregate production function in
growth theory in the light of various criticisms that have been levelled
at it. These criticisms include the Cambridge Capital Theory
Controversies, various aggregation problems, and the problems posed by the
use of value data and the underlying accounting identity. We show that
Temple has underestimated the seriousness of these criticisms, especially
the last one, which vitiates the concept of the aggregate production
function. Because of the identity, estimates of putative aggregate
production functions, such as the aggregate elasticity of substitution,
cannot be interpreted as reflecting the underlying technology, and hence
the use of the aggregate production function is extremely problematical.
Journal: International Review of Applied Economics
Pages: 665-684
Issue: 6
Volume: 24
Year: 2010
Keywords: aggregate production function, growth econometrics, aggregation problems, accounting identity,
X-DOI: 10.1080/02692171.2010.512146
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Handle: RePEc:taf:irapec:v:24:y:2010:i:6:p:665-684
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Temple
Author-X-Name-First: Jonathan
Author-X-Name-Last: Temple
Title: Aggregate production functions, growth economics, and the part-time tyranny of the identity: a reply to Felipe and McCombie
Abstract:
A recent paper by Jesus Felipe and John McCombie argues that I have
understated the importance of the value added identity for conventional
estimates of production relationships. This reply seeks to clarify the
areas of agreement and disagreement. It suggests that the problems raised
by the accounting identity are genuine and deserve to be more widely
known, but Felipe and McCombie have sometimes exaggerated the scope of the
argument.
Journal: International Review of Applied Economics
Pages: 685-692
Issue: 6
Volume: 24
Year: 2010
Keywords: aggregation, production functions, value added identity,
X-DOI: 10.1080/02692171.2010.511454
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Handle: RePEc:taf:irapec:v:24:y:2010:i:6:p:685-692
Template-Type: ReDIF-Article 1.0
Author-Name: Mickaël Clevenot
Author-X-Name-First: Mickaël
Author-X-Name-Last: Clevenot
Author-Name: Yann Guy
Author-X-Name-First: Yann
Author-X-Name-Last: Guy
Author-Name: Jacques Mazier
Author-X-Name-First: Jacques
Author-X-Name-Last: Mazier
Title: Investment and the rate of profit in a financial context: the French case
Abstract:
The growth regime prevailing in France since the middle of the 1980s
allowed for a recovery of profitability, yet without durable resumption of
growth or accumulation of fixed capital. The financialization of this
growth regime shows on both the asset and liability sides of the balance
sheets. Following a post-Keynesian framework, we analyse and test the main
determinants of real investment and financial capital accumulation for
non-financial companies in France, based on data from the flow-of-funds
accounts. This analysis points to an arbitrage, prevailing between real
and financial accumulation, as a key reason explaining the insufficient
recovery of investment.
Journal: International Review of Applied Economics
Pages: 693-714
Issue: 6
Volume: 24
Year: 2010
Keywords: finance, investment, profit rate, growth regime,
X-DOI: 10.1080/02692170903426112
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Handle: RePEc:taf:irapec:v:24:y:2010:i:6:p:693-714
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Albala-Bertrand
Author-X-Name-First: J. M.
Author-X-Name-Last: Albala-Bertrand
Title: A contribution to estimate a benchmark capital stock. An optimal consistency method
Abstract:
There are alternative methods of estimating capital stock for a benchmark
year. However, these methods are costly and time-consuming, requiring the
gathering of much basic information as well as the use of some convenient
assumptions and guesses. In addition, a way is needed of checking whether
the estimated benchmark is at the correct level. This paper proposes an
optimal consistency method (OCM), which enables a capital stock to be
estimated for a benchmark year, and which can also be used in checking the
consistency of alternative estimates. This method, in contrast to most
current approaches, pays due regards both to potential output and to the
productivity of capital. It is applied to 45 cases for nine OECD countries
and six Latin American ones. It works reasonably well, and it requires
only small amounts of data, which are readily available. It appears to
exhibit similar accuracy to alternative methods, but it is virtually
inexpensive in both time and funding.
Journal: International Review of Applied Economics
Pages: 715-729
Issue: 6
Volume: 24
Year: 2010
Keywords: benchmark capital, perpetual inventory method (PIM), potential output, capital productivity, optimal consistency method (OCM),
X-DOI: 10.1080/02692171.2010.512128
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Handle: RePEc:taf:irapec:v:24:y:2010:i:6:p:715-729
Template-Type: ReDIF-Article 1.0
Author-Name: Sandro Montresor
Author-X-Name-First: Sandro
Author-X-Name-Last: Montresor
Author-Name: Giuseppe Vittucci Marzetti
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Vittucci Marzetti
Title: Outsourcing and structural change. Application to a set of OECD countries
Abstract:
The examination in this paper aims to bridge outsourcing and structural
change analyses in order to obtain more accurate insights into the extent
of outsourcing and to extract more reliable policy recommendations for
dealing with its effects. We do this by applying a 'battery' of
outsourcing measurements to a group of OECD countries from 1980 to the mid
1990s. Expected results (e.g. the idiosyncratic outsourcing patterns of
the UK) are confirmed on a more systematic and comparable basis, while
original results (e.g. the low integration of business services in
manufacturing in the former socialist economies) are based on the
exploitation of new data.
Journal: International Review of Applied Economics
Pages: 731-752
Issue: 6
Volume: 24
Year: 2010
Keywords: outsourcing, input-output, vertical integration, tertiarization, manufacturing,
X-DOI: 10.1080/02692171.2010.512147
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Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Lucas Grafl
Author-X-Name-First: Lucas
Author-X-Name-Last: Grafl
Title: Globalization and the effects of changes in functional income distribution on aggregate demand in Germany
Abstract:
Germany has experienced a period of extreme nominal and real wage
moderation since the mid-1990s. Contrary to the expectations of liberal
economists, this has failed to improve Germany's mediocre economic
performance. However, Germany is now running substantial current account
surpluses. One possible explanation for Germany's disappointing
performance is found in Kaleckian theory, which highlights that the
domestic demand effect of a decline in the wage share will typically be
contractionary, whereas net exports will increase (Blecker 1989). The size
of the foreign demand effect will critically depend on the degree of
openness of the economy. This paper aims at estimating empirically the
demand side of a Bhaduri and Marglin (1990) type model for Germany. The
paper builds on the estimation strategy of Stockhammer, Onaran, and Ederer
(2009) and Hein and Vogel (2008, 2009). The main contribution lies in a
careful analysis of the effects of globalization. Since Germany is a large
open economy by now it is a particularly interesting case study.
Journal: International Review of Applied Economics
Pages: 1-23
Issue: 1
Volume: 25
Year: 2011
Keywords: distribution, demand, investment, consumption, foreign trade, macroeconomics, Keynesian economics, Germany, globalization,
X-DOI: 10.1080/02692170903426096
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Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Title: On the effect of R&D in returns to experience
Abstract:
Using a recent macroeconomic database, we empirically estimate an
'erosion effect': we show that Total Factor Productivity (TFP) growth
decreases returns to experience. The 'erosion effect' is typically
stronger within the rich and the most experienced countries in the world.
This article complements the scarce microeconomic literature on the issue
and the theoretical macroeconomic literature recently coming to the
conclusion that this effect has important implications for the interaction
between human capital accumulation and TFP.
Journal: International Review of Applied Economics
Pages: 25-37
Issue: 1
Volume: 25
Year: 2011
Keywords: returns to experience, TFP, erosion effect,
X-DOI: 10.1080/02692170903426120
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Template-Type: ReDIF-Article 1.0
Author-Name: Sven Langedijk
Author-X-Name-First: Sven
Author-X-Name-Last: Langedijk
Author-Name: Martin Larch
Author-X-Name-First: Martin
Author-X-Name-Last: Larch
Title: Testing EU fiscal surveillance: how sensitive is it to variations in output gap estimates?
Abstract:
Real-time estimates of potential output are used for the calculation of
the cyclically adjusted budget balance, one of the main indicators in the
assessment of the fiscal performance of EU member states. The estimation
of potential output involves a decomposition of actual output into a
cyclical and a structural component based on arbitrary assumptions about
the statistical properties of the two unobserved components. With a very
high degree of smoothing, variations in GDP are mostly taken to be
temporary, as are the ensuing changes in the budget deficit. Conversely,
with a low degree of smoothing, variations in GDP are mostly taken to be
permanent, leading to different policy conclusions. Our paper examines
whether and how different potential output estimates would have supported
different decisions in the EU budgetary surveillance in terms of both
timing and substance. The results show that only a very high degree of
smoothing of potential output would significantly reduce the reliability
of the surveillance indicators. We conclude that a higher degree of
smoothing compared with current practice would not be harmful for EU
fiscal surveillance, while it could contribute to more cautious policies
by signalling larger and longer periods of economic 'good times'.
Journal: International Review of Applied Economics
Pages: 39-60
Issue: 1
Volume: 25
Year: 2011
Keywords: potential output, cyclical adjustment, EU budgetary surveillance, Stability and Growth Pact, Excessive Deficit Procedure, safety margin, minimum benchmark, fiscal surveillance indicators,
X-DOI: 10.1080/02692170903426138
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Template-Type: ReDIF-Article 1.0
Author-Name: Giulio Cainelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cainelli
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Roberto Zoboli
Author-X-Name-First: Roberto
Author-X-Name-Last: Zoboli
Title: Environmentally oriented innovative strategies and firm performance in services. Micro-evidence from Italy
Abstract:
This paper aims at analysing the impact of environmentally oriented
innovative strategies on firms' economic performance in terms of
employment, turnover and labour productivity growth. We exploit a unique
dataset of 773 Italian service firms with 20 or more employees, based on
1993-1995 Community Innovation Survey (CIS) II data on innovation
strategies and 1995-1998 System of the Enterprise Account (SEA). Using a
Gibrat-like empirical model, our findings show a negative link between
environmental motivations and growth in employment and turnover in the
short term, which then associates to a not significant or even negative
effect on labour productivity growth, a result which is explainable by
various factors: non-mature markets; early movers that need more time to
grasp the benefits of innovative actions; weaknesses of some service
branches. The effect on employment is in part compatible with the existing
evidence and may be based on efficiency improvements (dematerialisation
processes), which also impact on efficiency by reducing workforce numbers.
The effect on turnover of environmental innovation strategy is negative,
implying either a short-medium effect, possibly balanced in the long run
by net benefits in terms of higher added value, or a real negative impact,
which may be contingent on the period of observation, when environmental
strategies where not at the heart of strategic management policies.
Neither Porter-like effects nor virtuous circles among environmentally
strategies and performance seem to be present, at least in the short run
and for services firms, calling for the necessity of further analyses on
medium- long-term effects and performances of specific service branches.
Though effects on performances could turn out positive in the long run
when mature green markets and investments provide their benefits, our
evidence highlights that services could still find hard times in tackling
the well-known low productivity 'disease' even in the environmental realm.
Journal: International Review of Applied Economics
Pages: 61-85
Issue: 1
Volume: 25
Year: 2011
Keywords: services, firm environmental strategies, firm growth, CIS survey, innovation,
X-DOI: 10.1080/02692170903426146
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Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Antonietti
Author-X-Name-First: Roberto
Author-X-Name-Last: Antonietti
Author-Name: Davide Antonioli
Author-X-Name-First: Davide
Author-X-Name-Last: Antonioli
Title: The impact of production offshoring on the skill composition of manufacturing firms: evidence from Italy
Abstract:
In this work we explore how the international outsourcing of production
impacts the skill composition of employment within Italian manufacturing
firms. In particular, our aim is to assess whether the choice to offshore
production activities to cheap-labour countries implies a bias in the
employment of skilled workers relative to unskilled ones. Using a balanced
panel of firms covering the period 1995-2003, we set up a counterfactual
analysis in which, by using a difference-in-differences propensity score
matching estimator, we compare the dynamics of skill demand for treated
and control firms while addressing the possible problem of selection bias.
Our results identify a 'potential' skill bias effect of production
offshoring. In particular, we find that treated firms tend to show an
upward shift in the skill ratio with respect to the counterfactual sample,
but coefficients are not significantly different from zero. When we look
at the elements of the skill ratio separately, we find that the skill bias
is driven by a fall in the employment of production workers (blue
collars), rather than by the increase in the employment of non-production
workers (white collars), thus providing further evidence on the unskilled
labour-saving nature of international outsourcing.
Journal: International Review of Applied Economics
Pages: 87-105
Issue: 1
Volume: 25
Year: 2011
Keywords: difference-in-differences, production offshoring, propensity score matching, skill-bias,
X-DOI: 10.1080/02692171.2010.483461
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Handle: RePEc:taf:irapec:v:25:y:2011:i:1:p:87-105
Template-Type: ReDIF-Article 1.0
Author-Name: Myint Moe Chit
Author-X-Name-First: Myint Moe
Author-X-Name-Last: Chit
Author-Name: Amrit Judge
Author-X-Name-First: Amrit
Author-X-Name-Last: Judge
Title: Non-linear effect of exchange rate volatility on exports: the role of financial sector development in emerging East Asian economies
Abstract:
This paper empirically examines the role of financial sector development
in influencing the impact of exchange rate volatility on the exports of
five emerging East Asian countries - China, Indonesia, Malaysia, the
Philippines and Thailand - using a GMM-IV estimation method. The results
indicate that the effect of exchange rate volatility on exports is
conditional on the level of financial sector development. The less
financially developed an economy, the more its exports are adversely
affected by exchange rate volatility. In addition, a stable exchange rate
seems to be a necessary condition to achieve export promotion via a
currency depreciation in these economies.
Journal: International Review of Applied Economics
Pages: 107-119
Issue: 1
Volume: 25
Year: 2011
Keywords: East Asia, exports, exchange rate volatility, financial sector development,
X-DOI: 10.1080/02692171.2010.483463
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Handle: RePEc:taf:irapec:v:25:y:2011:i:1:p:107-119
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Global finance and social Europe
Abstract:
Journal: International Review of Applied Economics
Pages: 121-125
Issue: 1
Volume: 25
Year: 2011
X-DOI: 10.1080/02692171.2010.511459
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Handle: RePEc:taf:irapec:v:25:y:2011:i:1:p:121-125
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Fernando Ferrari-Filho
Author-X-Name-First: Fernando
Author-X-Name-Last: Ferrari-Filho
Author-Name: Luiz Fernando de Paula
Author-X-Name-First: Luiz Fernando
Author-X-Name-Last: de Paula
Title: Inflation targeting in Brazil
Abstract:
The purpose of this paper is to examine the Inflation Targeting (IT)
framework as it is applied in the case of Brazil since its adoption in
June 1999. For this purpose we first summarize the macroeconometric model
utilized by the Central Bank of Brazil (BCB) in its pursuit of the IT
framework. While the focus of this paper is on Brazil, we also examine the
experience of other countries with IT (in particular, the BRIC countries:
Brazil, Russia, India, and China), both for comparative purposes and for
evidence of the extent of success of this 'new' economic policy pursued by
other IT countries. In addition, we compare the experience of Brazil with
IT and with that of non-IT countries. In the context of non-IT countries,
we ask the question of whether it makes a difference in the fight against
inflation whether a country has adopted IT or not. Finally, we examine
some features of the Brazilian experience with IT regime.
Journal: International Review of Applied Economics
Pages: 127-148
Issue: 2
Volume: 25
Year: 2011
Keywords: inflation targeting, emerging economies, New Consensus Macroeconomic model, Brazilian economy,
X-DOI: 10.1080/02692171.2010.483465
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:127-148
Template-Type: ReDIF-Article 1.0
Author-Name: Leonce Ndikumana
Author-X-Name-First: Leonce
Author-X-Name-Last: Ndikumana
Author-Name: James Boyce
Author-X-Name-First: James
Author-X-Name-Last: Boyce
Title: Capital flight from sub-Saharan Africa: linkages with external borrowing and policy options
Abstract:
Even as African countries became increasingly indebted, they experienced
large-scale capital flight. Some of this was legitimately acquired capital
fleeing economic and political uncertainties; some was illegitimately
acquired wealth spirited to safer havens abroad. This paper presents new
estimates of the magnitude and timing of capital flight from 33
sub-Saharan African countries from 1970 to 2004. We then analyze its
determinants, including linkages to external borrowing. Our results
confirm that sub-Saharan Africa is a net creditor to the rest of the
world, in that the subcontinent's private external assets exceed its
public external liabilities: total capital flight amounted to $443 billion
(in 2004 dollars), compared to the external debt of $195 billion.
Econometric analysis indicates that for every dollar in external loans to
Africa in this period, roughly 60 cents flowed back out as capital flight
in the same year, a finding that suggests the existence of widespread
debt-fueled capital flight. The results also show a debt-overhang effect,
as increases in the debt stock spur additional capital flight in later
years. In addition to policies for recovery of looted wealth and
repatriation of externally held assets, we discuss the need for policies
to differentiate between legitimate and odious debts, both to ease current
burdens on African countries and to improve international financial
governance in the future.
Journal: International Review of Applied Economics
Pages: 149-170
Issue: 2
Volume: 25
Year: 2011
Keywords: capital flight, external debt, stolen assets, odious debt,
X-DOI: 10.1080/02692171.2010.483468
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:149-170
Template-Type: ReDIF-Article 1.0
Author-Name: Bilge Erten
Author-X-Name-First: Bilge
Author-X-Name-Last: Erten
Title: North-South terms-of-trade trends from 1960 to 2006
Abstract:
The composition of exports of developing countries is increasingly
dominated by manufactured goods. This has not changed the fact that their
major trading partners continue to be the developed countries. In order to
properly assess the distribution of gains from trade, there is a pressing
need to analyze the movements in the terms of trade of developing
countries with respect to the developed ones. A statistical analysis of
the North-South terms of trade reveals that the terms of trade have turned
against the South since the 1960s. However, the terms-of-trade
deterioration is neither continuous nor evenly distributed over different
country groupings. The existence of a structural break in the mid-to-late
1970s together with the greatest adverse terms-of-trade movements against
the highly indebted and least developed countries attest the discontinuity
and unevenness of this process.
Journal: International Review of Applied Economics
Pages: 171-184
Issue: 2
Volume: 25
Year: 2011
Keywords: distribution of gains from trade, North-South terms of trade, Prebisch-Singer hypothesis, error correction models, long-run trend estimation,
X-DOI: 10.1080/02692171.2010.483469
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:171-184
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Nicolini-Llosa
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Nicolini-Llosa
Title: Dual equilibrium and growth cycle in Argentina
Abstract:
Argentina's GDP growth cycle, tracing the high exchange rate volatility
in 1970-2008, is discussed. Growth depends on foreign exchange
availability. The country's comparative advantage is in agriculture, but
manufactured exports are grow faster. Two remarkably different PPP
exchange rates coexist - one appropriate for agriculture and one for
manufacturing - destabilising the market exchange rate. Thus, two unstable
growth equilibria coexist generating GDP fluctuations. Currency
devaluation sets the cycle's ceiling and the end of devaluation sets the
cycle's floor. Chronic government deficits widen the cycle, harming
institutions and decelerating growth. A land tax to finance rural
investment would facilitate a high and stable exchange rate (AR$/US$) and
convergence to the high growth equilibrium.
Journal: International Review of Applied Economics
Pages: 185-207
Issue: 2
Volume: 25
Year: 2011
Keywords: Argentina, business cycle, dual equilibrium, growth, balance of payments, development,
X-DOI: 10.1080/02692171.2010.483462
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:185-207
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Al-Najjar
Author-X-Name-First: Basil
Author-X-Name-Last: Al-Najjar
Title: The inter-relationship between capital structure and dividend policy: empirical evidence from Jordanian data
Abstract:
The study investigates the under-researched relationship between capital
structure and dividend policy in emerging markets with regard to the
Jordanian market. The empirical analysis focuses on the estimation of both
single equation models and structure equation models using the reduced
form equations to examine the joint determinants of capital structure and
dividend policy. The study investigates whether capital structure and
dividend policy theories can explain the financial decisions in emerging
market such as the Jordanian market. Namely, the study examines agency
theory, signalling theory, pecking order theory and bankruptcy theory. The
results indicate that there is a positive relationship between
debt-to-asset ratio on the one hand, and asset tangibility, profitability,
market-to-book, liquidity, firm size, and industry classification on the
other hand. Also, there is a negative relationship between debt-to-asset
ratio and profitability. In addition, there is a positive relationship
between dividend payout ratio on the one hand, and profitability, asset
tangibility, market-to-book and industry classification on the other hand.
Finally, the results of the reduced form equations show that capital
structure and dividend policy have the following common factors:
profitability; asset tangibility; market-to-book; industry classification;
and limited evidence of institutional ownership. Therefore, the
determinants of capital structure and dividend policy in emerging markets
such as the Jordanian market share the same set of suggested factors with
the developed markets.
Journal: International Review of Applied Economics
Pages: 209-224
Issue: 2
Volume: 25
Year: 2011
Keywords: capital structure, dividend policy, panel data, emerging markets, single equation, reduced form equations, joint determinants,
X-DOI: 10.1080/02692171.2010.483464
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:209-224
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Medeiros Garcia
Author-X-Name-First: Maria Teresa Medeiros
Author-X-Name-Last: Garcia
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Antonio Silvestre
Author-X-Name-First: Antonio
Author-X-Name-Last: Silvestre
Title: Saving behaviour: evidence from Portugal
Abstract:
This paper analyses the determinants of saving behaviour among Portuguese
households using a structural equation model with latent variables. It is
found that the main factors directly influencing households' saving
behaviour are their attitude towards saving and their level of income.
However, savers' behaviour is also indirectly influenced by their
perceptions of longevity, their feelings as savers, the replacement rate
and the age. The family size does not have any effect, either directly or
indirectly. Policy implications are derived from the study.
Journal: International Review of Applied Economics
Pages: 225-238
Issue: 2
Volume: 25
Year: 2011
Keywords: choice behaviour, structural equation model,
X-DOI: 10.1080/02692171.2010.483467
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:225-238
Template-Type: ReDIF-Article 1.0
Author-Name: Grazia Ietto-Gillies
Author-X-Name-First: Grazia
Author-X-Name-Last: Ietto-Gillies
Title: The internationalization of production systems. Implications for firms, labour and countries: The global environment of business
Abstract:
Journal: International Review of Applied Economics
Pages: 239-244
Issue: 2
Volume: 25
Year: 2011
X-DOI: 10.1080/02692171.2010.511466
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:239-244
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Cumulative causation: The foundations of non-equilibrium economics
Abstract:
Journal: International Review of Applied Economics
Pages: 245-248
Issue: 2
Volume: 25
Year: 2011
X-DOI: 10.1080/02692171.2010.529733
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Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:245-248
Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi Imai
Author-X-Name-First: Katsushi
Author-X-Name-Last: Imai
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Woojin Kang
Author-X-Name-First: Woojin
Author-X-Name-Last: Kang
Title: Poverty, inequality and ethnic minorities in Vietnam
Abstract:
The present study examines how and why ethnic minorities are poorer than
ethnic majorities in Vietnam using the Vietnam Household Living Standards
Survey data for 2002 and 2004. First, the analysis confirms that
households belonging to the ethnic minority groups are not only poorer but
also more vulnerable to various shocks than those in the ethnic majority
groups, namely the Kinh and the Chinese. Second, household composition
(e.g., dependency burden), education, land holding and location are
important determinants of expenditure and poverty, whilst there is some
diversity among different ethnic groups. Finally, the decomposition
analyses reveal that the ethnic minorities are poorer not necessarily
because they have more disadvantaged household characteristics (e.g.,
educational attainment or location), but, more importantly, because the
returns to the characteristics are much lower for ethnic minorities than
for the majorities. Government policies to reduce structural differences
between ethnic majorities and minorities are imperative to address the
disparities in returns to endowments between them.
Journal: International Review of Applied Economics
Pages: 249-282
Issue: 3
Volume: 25
Year: 2011
Keywords: Vietnam, ethnic minority, poverty, inequality, decomposition,
X-DOI: 10.1080/02692171.2010.483471
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:249-282
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Cowling
Author-X-Name-First: Keith
Author-X-Name-Last: Cowling
Author-Name: Rattanasuda Poolsombat
Author-X-Name-First: Rattanasuda
Author-X-Name-Last: Poolsombat
Author-Name: Philip Tomlinson
Author-X-Name-First: Philip
Author-X-Name-Last: Tomlinson
Title: Advertising and labour supply: why do Americans work such long hours?
Abstract:
This paper advances the view that the intensity of creation of wants
through advertising and marketing might be an influence on decisions made
by Americans about how much time they should devote to paid work and how
much time to leisure. In exploring this argument, we employ vector
auto-regression analysis to estimate long-run supply schedules for US
workers in the twentieth century. We find that advertising expenditure is
significant in determining US hours of work, thus providing support for
the hypothesis that preferences over work-leisure choices are malleable
and are manipulated by the marketing effort.
Journal: International Review of Applied Economics
Pages: 283-301
Issue: 3
Volume: 25
Year: 2011
Keywords: advertising, labour supply, work-leisure choices, consumption,
X-DOI: 10.1080/02692171.2010.483472
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:283-301
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: A directional analysis of Federal Reserve predictions of growth in unit labor costs and productivity
Abstract:
Existing evidence suggests that the Federal Reserve forecasts of
inflation imply asymmetric loss, as the Fed has significantly
over-predicted inflation for the post-Volcker period. Consistent with such
evidence, we show that the Federal Reserve forecasts of growth in both
unit labor costs and productivity, while directionally accurate for
1983-2003, imply asymmetric loss. That is, the forecasts of growth in unit
labor costs are more (less) accurate in predicting the upward (downward)
moves. The forecasts of growth in productivity, however, are less (more)
accurate in predicting the upward (downward) moves. The interpretation of
our findings may be that, in achieving long-term price stability, the Fed
is cautious not to incorrectly predict the upward (downward) moves in
growth in unit labor costs (productivity).
Journal: International Review of Applied Economics
Pages: 303-311
Issue: 3
Volume: 25
Year: 2011
Keywords: FOMC, Greenbook, inflation, directional accuracy, asymmetric loss,
X-DOI: 10.1080/02692171.2010.495110
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:303-311
Template-Type: ReDIF-Article 1.0
Author-Name: Gemechu Ayana Aga
Author-X-Name-First: Gemechu Ayana
Author-X-Name-Last: Aga
Author-Name: Barry Reilly
Author-X-Name-First: Barry
Author-X-Name-Last: Reilly
Title: Access to credit and informality among micro and small enterprises in Ethiopia
Abstract:
This paper examines the determinants of Micro and Small and Enterprises
(MSEs) access to credit in Ethiopia using detailed firm-level data
collected in 2003. Its basic purpose is to identify the various attributes
of a firm that determine its access to credit with an emphasis on the role
of firm formality. We find that informal firms are more credit constrained
compared to formal firms. A firm's location, membership of a business
association and maintaining an accounting record are found to be important
determinants of access to credit. Further, we find firms whose owners have
vocational training are more credit constrained than those who are not, as
are firms that are exclusively male owned. There is no systematic relation
between access to credit and a firm's age, size and the sector in which it
operates. The paper concludes with possible policy interventions designed
to improve access to credit for MSEs in Ethiopia.
Journal: International Review of Applied Economics
Pages: 313-329
Issue: 3
Volume: 25
Year: 2011
Keywords: micro and small enterprises, asymmetric information, credit market imperfections, informality,
X-DOI: 10.1080/02692171.2010.498417
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:313-329
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Author-Name: Simona Rasciute
Author-X-Name-First: Simona
Author-X-Name-Last: Rasciute
Title: Does sport make you happy? An analysis of the well-being derived from sports participation
Abstract:
This paper examines the impact of sports participation upon the
subjective well-being of individuals. Encouraging participation in sports
activity is now an important public policy issue, as it is argued that
there are benefits in terms of health and well-being to individuals as
well as to society through externalities. Controlling for personal and
socio-demographic characteristics affecting well-being, this paper
examines if participation in, and the frequency and duration of, 67 sports
activities affects well-being. The form in which sports participation
takes place is also investigated by examining if social-interaction sports
produce more well-being. This paper demonstrates that sports participation
has a positive affect upon the subjective well-being of the population
and, moreover, estimates its monetary value. The effects are larger if one
allows for social interactions.
Journal: International Review of Applied Economics
Pages: 331-348
Issue: 3
Volume: 25
Year: 2011
Keywords: ordered choice model, heterogeneous thresholds, happiness, sports, willingness to pay measures,
X-DOI: 10.1080/02692171.2010.511168
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:331-348
Template-Type: ReDIF-Article 1.0
Author-Name: Raghbendra Jha
Author-X-Name-First: Raghbendra
Author-X-Name-Last: Jha
Author-Name: Sambit Bhattacharyya
Author-X-Name-First: Sambit
Author-X-Name-Last: Bhattacharyya
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Title: Temporal variation of capture of anti-poverty programs: rural public works and food for work programs in rural India
Abstract:
Using National Sample Survey data for rural India we examine the
incidence of capture in two workfare programs in rural India: the Rural
Public Works and the Food for Work Programs for 1993-1994 and 2004-2005
respectively. We discover a high degree of program capture among the
general population. Among the traditionally backward groups in Indian
rural society - but with considerable variation in their living standards
- there appears to be a higher degree of capture among SC (Scheduled
Castes), than among ST (Scheduled Tribes). Targeting among SC worsened
over time. There was an increase in capture by the fourth quintile (of
household per capita expenditure) of SC, ST and landowners. This may be
reflective of a varying degree of collusion between the elite and the
program implementing agencies (e.g. village councils) over time. Thus,
potential benefits of workfare get undermined. We also provide evidence to
suggest that income-based targeting could outperform social group based
targeting.
Journal: International Review of Applied Economics
Pages: 349-362
Issue: 3
Volume: 25
Year: 2011
Keywords: capture, poverty, India,
X-DOI: 10.1080/02692171.2010.511169
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:349-362
Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman
Author-X-Name-First: Adnan
Author-X-Name-Last: Kasman
Author-Name: Evrim Turgutlu
Author-X-Name-First: Evrim
Author-X-Name-Last: Turgutlu
Title: Performance of European insurance firms in the single insurance market
Abstract:
The deregulation and liberalization process towards establishing a single
European financial market has some important implications for the
insurance industries. Due to the increased competition, insurance firms
have to adjust their costs and operate efficiently to survive in this new
environment. This paper attempts to analyze the cost efficiency and scale
economies in the single European insurance market. Considering the ongoing
enlargement process of the EU, our sample includes the insurance
industries of the major EU-15, four new members and a candidate country,
Turkey, over the period 1995-2005. We use the firm-level financial data
and estimate a stochastic cost frontier that controls for differences in
environmental conditions. All insurance systems display significant levels
of cost inefficiency. The results further indicate that there are
significant economies of scale, particularly for small- and medium-size
insurance firms. Finally, the analyses suggest similar results for major
EU countries, new members and the candidate.
Journal: International Review of Applied Economics
Pages: 363-378
Issue: 3
Volume: 25
Year: 2011
Keywords: insurance industry, cost efficiency, single European financial market, CEE countries,
X-DOI: 10.1080/02692171.2010.483470
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Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:363-378
Template-Type: ReDIF-Article 1.0
Author-Name: Altin Vejsiu
Author-X-Name-First: Altin
Author-X-Name-Last: Vejsiu
Title: Incentives to self-employment decision in Sweden
Abstract:
The objective of this paper is to empirically examine the determinants of
the self-employment decision, with a particular focus on gender
differences and occupational choice by using register-based individual
panel data for the period 2003 to 2006. Individuals choose to move into
self-employment out of three possible initial statuses: paid employment,
combiner or inactivity. These groups are of specific interest for the
Swedish political agenda. The question that we specifically pose is how a
set of socio-economic factors separately induce men and women in these
three statuses to enter self-employment.
Journal: International Review of Applied Economics
Pages: 379-403
Issue: 4
Volume: 25
Year: 2011
Keywords: self-employment, entry rate, gender differences, predicted earnings differential,
X-DOI: 10.1080/02692171.2010.511170
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Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:379-403
Template-Type: ReDIF-Article 1.0
Author-Name: Michał Brzozowski
Author-X-Name-First: Michał
Author-X-Name-Last: Brzozowski
Title: The interplay between labor market rigidity and volatility-growth nexus
Abstract:
Using a simple innovation-driven growth model I investigate to what
extent labor market regulations underlie the devastating effects of output
volatility on long-run growth trends. Empirical analysis conducted for 154
countries over the 1996-2005 period shows that an increase from low values
of the rigidity of employment index strengthens the influence of
volatility on growth. This effect weakens with further increases in
rigidity. Hence implementation of labor protection legislation is
recommended in economies frequently hit by shocks.
Journal: International Review of Applied Economics
Pages: 405-418
Issue: 4
Volume: 25
Year: 2011
Keywords: growth, labor market rigidity, volatility,
X-DOI: 10.1080/02692171.2010.529426
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Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:405-418
Template-Type: ReDIF-Article 1.0
Author-Name: Oliviero Carboni
Author-X-Name-First: Oliviero
Author-X-Name-Last: Carboni
Title: R&D subsidies and private R&D expenditures: evidence from Italian manufacturing data
Abstract:
This paper uses a comprehensive firm level data set for the manufacturing
sector in Italy to investigate the effect of government support on
privately financed R&D expenditure. Estimates from a non-parametric
matching procedure suggest that public assistance has a positive effect on
private R&D investment in the sense that the recipient firms achieve more
private R&D than they would have without public support. This indicates
that the possibility of perfect crowding out between private and public
funds can be rejected. Furthermore, in this sample of Italian firms, tax
incentives appear to be more effective than direct grants. The paper also
examines whether public funding affects the financial sources available
for R&D and finds that grants encourage the use of internal sources. The
results also show some evidence of positive effects on credit financing
for R&D.
Journal: International Review of Applied Economics
Pages: 419-439
Issue: 4
Volume: 25
Year: 2011
Keywords: non-parametric estimation, public subsidies, R&D investment,
X-DOI: 10.1080/02692171.2010.529427
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Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:419-439
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Maria Falzoni
Author-X-Name-First: Anna Maria
Author-X-Name-Last: Falzoni
Author-Name: Alessandra Venturini
Author-X-Name-First: Alessandra
Author-X-Name-Last: Venturini
Author-Name: Claudia Villosio
Author-X-Name-First: Claudia
Author-X-Name-Last: Villosio
Title: Skilled and unskilled wage dynamics in Italy in the 1990s: changes in individual characteristics, institutions, trade and technology
Abstract:
In this paper, we use individual micro data on workers combined with
industry and regional data to study the wage dynamics of skilled and
unskilled workers in Italy in the 1991-1998 period. In contrast to
previous empirical studies, our data make it possible to analyse, within a
single framework, the role of many of the factors indicated in the
literature as possible determinants of skilled and unskilled wage
dynamics: changes in the individual characteristics of workers, changes in
labour market institutions, increasing international integration, and
skill-biased technological progress. Our results show that international
integration, both in terms of trade in goods and in terms of international
labour mobility, plays a role in determining the wage dynamics of skilled
(white-collar) and unskilled (blue-collar) workers. Moreover, in line with
labour economics research, our findings show that the individual
characteristics of workers and the institutional variables are more
relevant in explaining skilled and unskilled wage dynamics than wage
differentials.
Journal: International Review of Applied Economics
Pages: 441-463
Issue: 4
Volume: 25
Year: 2011
Keywords: skilled and unskilled wages, individual characteristics, labour market institutions, international trade,
X-DOI: 10.1080/02692171.2010.529428
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Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:441-463
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Vaona
Author-X-Name-First: Andrea
Author-X-Name-Last: Vaona
Title: An empirical investigation into the gravitation and convergence of industry return rates in OECD countries
Abstract:
Tests are offered for the hypotheses that sectoral average profit rates
and incremental return rates are gravitating around or converging towards
a common value. We study data for various OECD countries relying on an
econometric method able to account for residual autocorrelation and
cross-sector correlation. Our null hypotheses receive only a mixed
empirical support. This is interpreted as the result of various kinds of
limitations to capital mobility. Policy implications are discussed.
Journal: International Review of Applied Economics
Pages: 465-502
Issue: 4
Volume: 25
Year: 2011
Keywords: capital mobility, gravitation of profit rates, convergence, SURE estimation, exactly median unbiased estimator, industrial average profit rates, incremental return rates,
X-DOI: 10.1080/02692171.2010.529429
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Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:465-502
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: David Sapsford
Author-X-Name-First: David
Author-X-Name-Last: Sapsford
Title: Terms of trade movements and the global economic crisis
Abstract:
Dramatic changes in the relative prices of goods in international trade
have accompanied, and indeed preceded, the recent global crisis. The
causes and effects of the relative price changes are analysed by applying
the analysis of business cycles developed by Joseph Schumpeter.
Schumpeter’s analysis emphasises innovation and structural change
(particularly creative destruction) which impart uneven development on the
economy and can foster financial crises. This puts the current crisis in
the context of long-wave development of the capitalist system and leads to
predictions about the likely path of price and output changes over the
next few decades.
Journal: International Review of Applied Economics
Pages: 503-517
Issue: 5
Volume: 25
Year: 2011
Month: 10
X-DOI: 10.1080/02692171.2010.534440
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Handle: RePEc:taf:irapec:v:25:y:2011:i:5:p:503-517
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Tavani
Author-X-Name-First: Daniele
Author-X-Name-Last: Tavani
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Author-Name: Lance Taylor
Author-X-Name-First: Lance
Author-X-Name-Last: Taylor
Title: Estimated non-linearities and multiple equilibria in a model of distributive-demand cycles
Abstract:
We introduce the results of a non-parametric estimate of the US
wage-Phillips Curve into a simplified version of the model of the
wage-price spiral by Flaschel and Krolzig (2008). Making use of
Okun’s law, the non-linearity in the wage inflation-employment
relation translates into a non-linearity in the so-called
‘distributive curve’ of the economy. Exploiting the observed
non-linearity in extending an otherwise standard demand-distribution model
(Taylor 2004), we provide a dynamical analysis both in wage-led and
profit-led effective demand regimes. In a profit-led scenario, shown to be
the empirically relevant case for the US economy, there are two stable
equilibria of Goodwin (1967) growth cycle type, identified as a stable
depression and a stable boom, and a saddle-path stable equilibrium in
between them. Both stable steady states are surrounded by trajectories
that cycle counterclockwise around their basins of attraction. The
obtained type of growth fluctuations can be verified by a long phase cycle
estimation for the US economy using a method developed by Kauermann,
Teuber and Flaschel (2008).
Journal: International Review of Applied Economics
Pages: 519-538
Issue: 5
Volume: 25
Year: 2011
Month: 10
X-DOI: 10.1080/02692171.2010.534441
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Handle: RePEc:taf:irapec:v:25:y:2011:i:5:p:519-538
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroaki Sasaki
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Sasaki
Title: Conflict, growth, distribution, and employment: a long-run Kaleckian model
Abstract:
This paper presents a Kaleckian growth model in which (i) the rate of
capacity utilization, the profit share, and the rate of employment are
adjusted in the medium run, and (ii) the normal rate of capacity
utilization and the expected rate of capital accumulation are adjusted in
the long run. The long-run equilibrium is a continuum of equilibria and is
characterized by hysteresis in that the long-run position of the economy
depends on where it starts. An increase in the bargaining power of workers
lowers the rate of unemployment in both the medium-run and the long-run
equilibrium.
Journal: International Review of Applied Economics
Pages: 539-557
Issue: 5
Volume: 25
Year: 2011
Month: 9
X-DOI: 10.1080/02692171.2011.557057
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Template-Type: ReDIF-Article 1.0
Author-Name: John Baffoe-Bonnie
Author-X-Name-First: John
Author-X-Name-Last: Baffoe-Bonnie
Author-Name: Anthony O. Gyapong
Author-X-Name-First: Anthony O.
Author-X-Name-Last: Gyapong
Title: Black--white wage differentials: duration and probability unemployment effects in a multiple of sample selection
bias model
Abstract:
The extent to which probability and duration of unemployment affect the
black--white wage differentials is examined in this paper. The paper
simultaneously incorporates in the wage equation the multiple sample
selection bias that occurs as a result of individuals’ propensity
to be in the labor force, and the firm’s hiring decisions. The
results reveal a substantial contribution of the duration of unemployment
variable to the black--white wage differential, but a small portion of the
differential is explained by the probability of unemployment. The results
also indicate a sizeable difference between the contribution of the
duration of unemployment variable to the male’s wage differentials
(26%) and to the female’s (35%). The study finds that an
individual’s labor force decision as well as a firm’s hiring
decision are important in the wage determination process and that failure
to account for the sample selectivity bias due to these two decisions will
result in either underestimating or overestimating the wage differentials
between black and white workers. At the macro level, the results seem to
suggest that promotion of racial wage equality should be associated with
policies that will minimize blacks’ incidence of unemployment and
duration of unemployment spells.
Journal: International Review of Applied Economics
Pages: 559-584
Issue: 5
Volume: 25
Year: 2011
Month: 9
X-DOI: 10.1080/02692171.2010.534439
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Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: Earnings inequality and unemployment in South Africa
Abstract:
Unemployment and earnings inequality have moved together remarkably
closely in South Africa in recent years. This article explores the
relationship between unemployment and earnings inequality in South Africa,
investigating the extent to which changes in unemployment can account for
changes in earnings inequality. Static and dynamic decompositions of
earnings inequality by employment status reveal the centrality of
unemployment in accounting for the both level and trend of earnings
inequality. The distribution of employment in the formal and informal
sectors is found to be of lesser importance in explaining earnings
inequality, as is wage dispersion within each of these categories. The
findings point to the central importance of reducing unemployment in South
Africa if the extremely high levels of inequality are to be reduced.
Journal: International Review of Applied Economics
Pages: 585-598
Issue: 5
Volume: 25
Year: 2011
Month: 9
X-DOI: 10.1080/02692171.2011.557053
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557053
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Handle: RePEc:taf:irapec:v:25:y:2011:i:5:p:585-598
Template-Type: ReDIF-Article 1.0
Author-Name: Scott W. Hegerty
Author-X-Name-First: Scott W.
Author-X-Name-Last: Hegerty
Title: Interest-rate volatility and volatility spillovers in emerging Europe
Abstract:
While many transition economies -- particularly those that hope to join
the Euro -- have seen their economies converge to Europe’s, this
process is by no means complete. Considerable macroeconomic volatility
persists. This study examines the variability of the short-term nominal
interest rates of ten transition economies, finding that eight of them
exhibit time-varying volatility that can be modeled as a GARCH or
Exponential GARCH process. Incorporating various measures of external
volatility into the models, we find that those economies with fixed or
managed exchange rates tend to experience more volatility spillovers,
particularly from the Eurozone, regardless of the degree of transition.
Only Estonia has a fixed exchange rate and remains free of international
contagion.
Journal: International Review of Applied Economics
Pages: 599-614
Issue: 5
Volume: 25
Year: 2011
Month: 10
X-DOI: 10.1080/02692171.2011.557049
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557049
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Handle: RePEc:taf:irapec:v:25:y:2011:i:5:p:599-614
Template-Type: ReDIF-Article 1.0
Author-Name: Juan de Lucio
Author-X-Name-First: Juan
Author-X-Name-Last: de Lucio
Author-Name: Raúl M�nguez-Fuentes
Author-X-Name-First: Raúl
Author-X-Name-Last: M�nguez-Fuentes
Author-Name: Asier Minondo
Author-X-Name-First: Asier
Author-X-Name-Last: Minondo
Author-Name: Francisco Requena-Silvente
Author-X-Name-First: Francisco
Author-X-Name-Last: Requena-Silvente
Title: The extensive and intensive margins of Spanish trade
Abstract:
Recent empirical research highlights that differences in trade flows
across countries, products and years are governed by two margins: the
intensive margin and the extensive margin. The analysis of the relative
contribution of each margin is very important to determine which policies
can be more efficient to foster trade at the aggregate, geographic,
product or firm level. We use the whole universe of firm level transaction
data to analyse the relative contribution of these margins to changes in
Spanish trade flows during the 1997--2007 period. We first apply the
methodology proposed by Bernard et al. (2009) to decompose trade variation
over time into three components: net entry of firms, product-country
switching and value growth by regular trading firms. The first two
components correspond to the extensive margin and the last one refers to
the intensive margin. We find that short-run changes in exports and
imports are governed by firms’ intensive margin; however, in the
long-run, both the extensive and the intensive margins are equally
important to foster trade. We also examine the importance of the trade
margins at the cross-sectional level for the year 2007. We find that large
differences in the Spanish trade flows across countries and products,
especially in the case of exports, are explained by the number of firms
that participate in trade, which is consistent with the fact that the
number of trading partners decline significantly with distance.
Journal: International Review of Applied Economics
Pages: 615-631
Issue: 5
Volume: 25
Year: 2011
Month: 1
X-DOI: 10.1080/02692171.2011.557051
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557051
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Template-Type: ReDIF-Article 1.0
Author-Name: Chandan Sharma
Author-X-Name-First: Chandan
Author-X-Name-Last: Sharma
Author-Name: Ritesh Kumar Mishra
Author-X-Name-First: Ritesh Kumar
Author-X-Name-Last: Mishra
Title: Does export and productivity growth linkage exist? Evidence from the Indian manufacturing industry
Abstract:
This paper examines the interrelation between exporting and productivity
performance by using a representative sample of Indian manufacturing firms
over the period 1994--2006. Specifically, we attempt to test the empirical
validity of the learning‐by‐exporting and the
self‐selection hypotheses for our sample firms. In order to
investigate the linkage, in the first step, we test for causality between
TFP and export intensity of firms. Although overall results are rather
mixed and provide some support for both hypotheses, still the empirical
results are more favorable for the self‐selection behavior of
firms. In the next stage, we attempt to provide evidence on export and
productivity linkage that occurs during various phases of transition in
the export market. Our results suggest that entering in the export market
does not improve productivity performance. However, the decision to exit
from the export market does have an adverse effect on the productivity. In
addition, our results indicate the presence of a high sunk cost of
exporting coupled with perhaps lesser information about foreign markets.
Finally, our results also lend some support to the significant role of
in‐house research activities and economies of scale in firms'
productivity performance.
Journal: International Review of Applied Economics
Pages: 633-652
Issue: 6
Volume: 25
Year: 2011
Month: 11
X-DOI: 10.1080/02692171.2011.557046
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557046
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Handle: RePEc:taf:irapec:v:25:y:2011:i:6:p:633-652
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Ibarra
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Ibarra
Title: Capital flows, real exchange rate, and growth constraints in Mexico
Abstract:
Besides its well‐known problem of slow economic growth,
Mexico’s recent evolution features both a sharp rise in the
import‐intensity of economic activity -- which may have tightened
an external constraint on growth -- and a persistent real appreciation of
the peso -- which may have created a profitability constraint. Adopting
the approach of gap models and growth diagnostics, the paper contrasts the
relevance of the external and the profitability constraints in Mexico
after trade liberalization in the mid‐1980s. Although the trade
deficit was pro‐cyclical, the three recent episodes of GDP growth
acceleration were not accompanied by pressures in the foreign exchange
market. Moreover, error correction models show that investment was highly
responsive to the real exchange rate but largely unresponsive to foreign
capital flows. The evidence supports the conclusion that investment was
deterred by the low profitability of an uncompetitive real exchange rate,
rather than by the external constraint.
Journal: International Review of Applied Economics
Pages: 653-668
Issue: 6
Volume: 25
Year: 2011
Month: 11
X-DOI: 10.1080/02692171.2011.557047
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557047
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Handle: RePEc:taf:irapec:v:25:y:2011:i:6:p:653-668
Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi S. Imai
Author-X-Name-First: Katsushi S.
Author-X-Name-Last: Imai
Title: Poverty, undernutrition and vulnerability in rural India: role of rural public works and food for work programmes
Abstract:
This paper analyses the effects of access to Rural Public Works (RPW) or
Food for Work programme (FFW) on consumption poverty, vulnerability and
undernutrition in India using the large household data sets constructed by
the National Sample Survey for 1993 and 2004. The treatment-effects model
is used to take account of sample selection bias in evaluating the effects
of RPW in 1993 or FFW in 2004 on poverty. We have found significant and
negative effects of participation in RPW and the Food for Work Programme
on poverty, undernutrition (e.g. protein) and vulnerability in 1993 and
2004.
Journal: International Review of Applied Economics
Pages: 669-691
Issue: 6
Volume: 25
Year: 2011
Month: 11
X-DOI: 10.1080/02692171.2011.557052
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557052
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Handle: RePEc:taf:irapec:v:25:y:2011:i:6:p:669-691
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Christian Schoder
Author-X-Name-First: Christian
Author-X-Name-Last: Schoder
Title: Interest rates, distribution and capital accumulation -- A post-Kaleckian perspective on the US and Germany
Abstract:
We analyse the effects of interest rate variations on the rates of
capacity utilisation, capital accumulation and profit in a simple
post-Kaleckian distribution and growth model. This model gives rise to
different potential accumulation regimes depending on the values of the
parameters in the investment, saving and distribution function. Estimating
these core behavioural equations for the US and Germany in the period
1960--2007, we find significant and robust effects of interest payments
with the expected sign in each of the equations. Our estimation results
imply, both for the US and for Germany, that the effects of changes in the
real long-term rate of interest on the equilibrium rates of capacity
utilisation, capital accumulation and profits, are characterised by the
‘normal regime’: rising long-term real rates of interest
cause falling rates of capacity utilisation, capital accumulation and
profits, as well as redistribution at the expense of labour income and
hence an increasing profit share in both countries.
Journal: International Review of Applied Economics
Pages: 693-723
Issue: 6
Volume: 25
Year: 2011
Month: 11
X-DOI: 10.1080/02692171.2011.557054
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557054
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Handle: RePEc:taf:irapec:v:25:y:2011:i:6:p:693-723
Template-Type: ReDIF-Article 1.0
Author-Name: Mirella Damiani
Author-X-Name-First: Mirella
Author-X-Name-Last: Damiani
Author-Name: Fabrizio Pompei
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Pompei
Title: The market for corporate control: do countries and technological regimes matter?
Abstract:
Using DATASTREAM and LexisNexis databases, we examine the experience from
1995 to 2005 for eight European countries and 21 sectors, and compute the
frequency of merger transactions at sectoral level, controlling for the
roles of country variables and focusing on distinct technological patterns
of innovation. We found that, even in market‐based countries, where
transfer of control is a frequent phenomenon, mergers are less frequent in
those sectors where innovation follows cumulative processes and where
takeovers represent a ‘breach of knowledge.’ This study
provides empirical support to the fruitful line of research of varieties
of capitalism (Hall and Soskice 2001) and shows that sectoral differences
in M&A (mergers and acquisitions) may be seen in their complementarities
with differences by country and their institutional frameworks. Results
confirm that acquisitions may occur even in those economies where
block‐holders are present, but where the good quality of
institutions leaves no space for defence against takeovers. It also
highlights the significant role played by takeover regulation, and
suggests that the recent reforms in European harmonization should be
implemented, so that the obstacles impeding takeovers can be removed.
However, policy‐makers should also try to identify for which
economies and sectoral fields of specialization, merger activities produce
more beneficial effects and which turn out to be detrimental.
Journal: International Review of Applied Economics
Pages: 725-751
Issue: 6
Volume: 25
Year: 2011
Month: 10
X-DOI: 10.1080/02692171.2011.557045
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557045
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Handle: RePEc:taf:irapec:v:25:y:2011:i:6:p:725-751
Template-Type: ReDIF-Article 1.0
Author-Name: Manoj K. Pandey
Author-X-Name-First: Manoj K.
Author-X-Name-Last: Pandey
Author-Name: Abhay Kumar Jha
Author-X-Name-First: Abhay Kumar
Author-X-Name-Last: Jha
Title: Widowhood and health of elderly in India: examining the role of economic factors using structural equation modeling
Abstract:
Evidence on the association between widowhood and health is widely
available in the literature. However, there is a dearth of analysis on the
mechanism through which widowhood affects the health status of an
individual, particularly in old age, specifically whether widowhood among
the elderly affects their health through their economic conditions. This
paper purports to establish both the direct and indirect effects of
widowhood on self-reported health status among aged Indians. We examine
the mediating effect of economic factors such as income, labor force
participation, extent of economic independence and other economic factors
in the relationship between widowhood and health status. Structural
Equation Modeling (SEM) is employed to test specific hypotheses. We use
unit level 60th round data for the year 2004 surveyed by the National
Sample Survey Organization (NSSO). The results confirm that poor economic
conditions have a mediating effect on the relationship between widowhood
and health and, therefore, any policy to reduce the effect of widowhood on
health must be based on economic factors.
Journal: International Review of Applied Economics
Pages: 111-124
Issue: 1
Volume: 26
Year: 2012
Month: 2
X-DOI: 10.1080/02692171.2011.587109
File-URL: http://hdl.handle.net/10.1080/02692171.2011.587109
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:111-124
Template-Type: ReDIF-Article 1.0
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Title: Does non-linearity help us understand, model and forecast UK stock and bond returns: evidence from the BEYR
Abstract:
The usefulness of non-linear models to provide accurate estimates and
forecasts remains an open empirical debate. This paper examines the nature
of the estimated relationships and forecasting power of smooth-transition
models for UK stock and bond returns using a range of financial and
macroeconomic variables as predictors. Notably, evidence of non-linearity
is stronger when the bond-equity yield ratio is used as the transition
variable. This ratio measures whether stocks are over (under)-valued
relative to bonds and can act as a signal for portfolio managers.
In-sample results reveal noticeable differences regarding the nature of
relationships between the linear and non-linear setting, while results of
a recursive forecasting exercise reveal both statistical and economic
improvement over a linear model. Overall, these results support the view
that non-linear estimates and forecasts can provide useful information for
stock market traders, portfolio managers and policy-makers.
Journal: International Review of Applied Economics
Pages: 125-143
Issue: 1
Volume: 26
Year: 2012
Month: 3
X-DOI: 10.1080/02692171.2011.580268
File-URL: http://hdl.handle.net/10.1080/02692171.2011.580268
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:125-143
Template-Type: ReDIF-Article 1.0
Author-Name: Nicola Limodio
Author-X-Name-First: Nicola
Author-X-Name-Last: Limodio
Title: The puzzle of aid and growth: any role for investment?
Abstract:
This paper explores the relationship between aid and growth, through the
explicit inclusion of the investment component. We construct a new
database, which adds to the previous papers’ variables (policy,
institutional quality and civil unrest) some capital accumulation
indicators. Partly based on the main literature, a simultaneous equations
model is constructed to account for endogeneity and different methods are
applied for a robustness check. Although in line with previous literature,
in this paper we find that the capital accumulation process is a
significant and fundamental channel to understand the link between
development assistance and growth. In low-income countries aid
effectiveness seems to be significantly lower.
Journal: International Review of Applied Economics
Pages: 1-26
Issue: 1
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2011.557050
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557050
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Template-Type: ReDIF-Article 1.0
Author-Name: Andres Frick
Author-X-Name-First: Andres
Author-X-Name-Last: Frick
Author-Name: Michael Graff
Author-X-Name-First: Michael
Author-X-Name-Last: Graff
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Are there free rides out of a recession? The case of Switzerland
Abstract:
During the 2008/2009 recession, most countries resorted to discretionary
fiscal policy measures. In this paper, we run two simulations with the KOF
Swiss Economic Institute’s macroeconomic model to assess how both
the Swiss stimulus measures, and the measures taken by
Switzerland’s major trading partners, have affected the Swiss
economy. The KOF baseline estimate incorporates fiscal stimulus packages
in Switzerland and abroad. We re-run the model, modifying the exogenous
variables to represent situations in which no fiscal action was taken (a)
in Switzerland and (b) elsewhere. We find that the spillover from the
foreign efforts to curb the recession dwarfs the effect of the domestic
stimulus packages. In addition to making its own (rather limited) efforts
to fight the recession, Switzerland also took a long free-ride that far
exceeded the short one it paid for.
Journal: International Review of Applied Economics
Pages: 27-45
Issue: 1
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2011.557055
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557055
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Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Bournakis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Bournakis
Title: Sources of TFP growth in a framework of convergence-evidence from Greece
Abstract:
The main hypothesis tested in the paper is whether technology is a
conduit of productivity growth for a country that falls behind the
frontier. Although the current analysis focuses on a country growth
narrative, the evidence represents a pair of countries (i.e. Greece and
Germany) that admittedly form the periphery and the core of Europe. The
first lesson taken from the study is that for more than two decades the
speed of productivity adjustment was rather low in Greece, underlying a
number of unobserved rigidities that exist both at the industry and the
institutional level. Even though the speed of technology transfer is low,
the adoption of foreign technology remains an important source of
productivity growth. Other key findings are that productivity gains from
trade exist but their full realization requires a substantial time lag.
Additionally, the degree of trade openness improves absorptive capacity,
confirming the dual role of trade as recently stressed in the productivity
literature. R&D activity is another productivity growth contributor but
only through higher rates of innovation.
Journal: International Review of Applied Economics
Pages: 47-72
Issue: 1
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2011.557056
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557056
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:47-72
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Abera Gelan
Author-X-Name-First: Abera
Author-X-Name-Last: Gelan
Title: Is there J-Curve effect in Africa?
Abstract:
The J-Curve is a term used to describe the post-devaluation behavior of
the trade balance, i.e., initial deterioration followed by an improvement.
Previous research has tested the phenomenon for many developed and
developing countries. However, African nations have not received any
attention on this regard. In this paper, we test the hypothesis for nine
African countries of Burundi, Egypt, Kenya, Mauritius, Morocco, Nigeria,
Sierra Leone, South Africa, and Tanzania for which quarterly trade data
were available. After using the bounds testing approach to cointegration
and error-correction modeling, we were unable to find any support for the
J-Curve.
Journal: International Review of Applied Economics
Pages: 73-81
Issue: 1
Volume: 26
Year: 2012
Month: 6
X-DOI: 10.1080/02692171.2011.619972
File-URL: http://hdl.handle.net/10.1080/02692171.2011.619972
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:73-81
Template-Type: ReDIF-Article 1.0
Author-Name: James P. Neelankavil
Author-X-Name-First: James P.
Author-X-Name-Last: Neelankavil
Author-Name: Lonnie K. Stevans
Author-X-Name-First: Lonnie K.
Author-X-Name-Last: Stevans
Author-Name: Francisco L. Roman
Author-X-Name-First: Francisco L.
Author-X-Name-Last: Roman
Title: Correlates of economic growth in developing countries: a panel cointegration approach
Abstract:
The inflow of foreign direct investment (FDI) has been found to play a
crucial role in the economic growth of receiving countries. Using panel
cointegration techniques, this perception was found to be mitigated by an
empirical approach that yields different results from previous studies.
While the growth in real FDI has an influence on real GDP growth across
developing countries in the short-run, year-to-year periods, it does not
explain real GDP in the long-run. Rather, it appears to be the economic
factors internal to a country that have the most influence on real GDP
over time: human capital (measured by literacy rates), export trade, and
monetary and fiscal policy.
Journal: International Review of Applied Economics
Pages: 83-96
Issue: 1
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2011.557048
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557048
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:83-96
Template-Type: ReDIF-Article 1.0
Author-Name: I. Biefang-Frisancho Mariscal
Author-X-Name-First: I.
Author-X-Name-Last: Biefang-Frisancho Mariscal
Author-Name: P.G.A. Howells
Author-X-Name-First: P.G.A.
Author-X-Name-Last: Howells
Title: Income velocity and non-GDP transactions in the UK
Abstract:
It is widely reported for many countries, including the UK, that
income velocity has been highly variable around a
declining trend in recent years. This paper advances the following
hypothesis. The demand for credit and hence the broad money stock are
influenced by total spending in the economy, rather than spending only on
newly produced goods and services. Since total spending in the economy has
generally increased relative to GDP (mainly because of asset transactions)
credit and money have expanded more rapidly than GDP, with the resulting
fall in income velocity. Using quarterly data from 1975 to 2008, we
estimate a vector error correction with income velocity as the dependent
variable and the ratio of total to GDP transactions as an explanatory
variable. The results show substantial support for the hypothesis and
raise (further) doubts about the information content of broad money
aggregates for inflation targeting central banks.
Journal: International Review of Applied Economics
Pages: 97-110
Issue: 1
Volume: 26
Year: 2012
Month: 3
X-DOI: 10.1080/02692171.2011.580270
File-URL: http://hdl.handle.net/10.1080/02692171.2011.580270
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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:97-110
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Introduction to the special issue: Economic policies of the new thinking in economics
Journal: International Review of Applied Economics
Pages: 145-146
Issue: 2
Volume: 26
Year: 2012
Month: 3
X-DOI: 10.1080/02692171.2012.641766
File-URL: http://hdl.handle.net/10.1080/02692171.2012.641766
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:145-146
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: The ‘new economics’ and policies for financial stability
Abstract:
The purpose of this paper is to consider the policy implications of the
‘new economics’. The focus will be on financial stability as
an objective of policy within a more general framework of policies. The
theoretical framework upon which we base our policy conclusions is
summarised to provide understandings of the operation of the economy and
the need for policy interventions, before the main policy implications,
the focus of this paper, are discussed. In doing so we argue that an
important policy dimension, which has been ignored in the past, is
financial stability, a new focus of monetary policy amongst other
implications. The theoretical framework upon which we base our policy
conclusions tries to avoid the problems encountered by the previously
dominant paradigm ‘New Consensus in Macroeconomics’. It
represents in this sense ‘new thinking in economics’.
Journal: International Review of Applied Economics
Pages: 147-160
Issue: 2
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.640314
File-URL: http://hdl.handle.net/10.1080/02692171.2011.640314
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:147-160
Template-Type: ReDIF-Article 1.0
Author-Name: Sheila C. Dow
Author-X-Name-First: Sheila C.
Author-X-Name-Last: Dow
Title: Policy in the wake of the banking crisis: taking pluralism seriously
Abstract:
This paper explores a pluralist approach to policy with respect to the
financial system in the wake of the crisis. We consider first what is
involved in a pluralist approach to policy more generally, and how this
may be justified. This includes a pluralist stance with respect to
different approaches to economic theory, pluralism in the sense of
interdisciplinary enquiry, pluralism in terms of the range of methods
employed, and pluralism with respect to recognition of the plurality of
culture and values in society. Implications are drawn for how the banking
crisis is framed, how it is explained by theory and thus how policy is
designed. In addressing these issues, current mainstream theory focuses on
a narrow definition of rational behaviour which, within competitive
markets, generates a socially-optimal outcome. This approach is governed
by a mathematical formalist methodology, and encourages policy to
incentivise this kind of rational behaviour, with respect, for example, to
inflation targeting and addressing moral hazard. Pluralist theory would
instead recognise the socio-psychological and institutional/evolutionary
foundations of money and banking, such that policy needs to focus on
rebuilding confidence and addressing moral (including distributional)
issues. The relevant analysis would require a range of methods and would
address pluralities within society.
Journal: International Review of Applied Economics
Pages: 161-175
Issue: 2
Volume: 26
Year: 2012
Month: 8
X-DOI: 10.1080/02692171.2011.624495
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624495
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:161-175
Template-Type: ReDIF-Article 1.0
Author-Name: Diane Elson
Author-X-Name-First: Diane
Author-X-Name-Last: Elson
Title: The reduction of the UK budget deficit: a human rights perspective
Abstract:
This paper contributes to new thinking in economics by employing a human
rights perspective to examine the budget deficit reduction strategy of the
UK coalition government, as set out in 2010 in the June budget and October
Spending Review. Focusing on economic and social rights, the paper
explains the human rights obligations of governments and key human rights
principles. As examples of how they should be applied to examine the
deficit reduction strategy, it examines the implications of the policy
changes for child poverty and gender equality, and finds that in both
cases there is evidence to suggest non-compliance with the human rights
obligations of the UK government.
Journal: International Review of Applied Economics
Pages: 177-190
Issue: 2
Volume: 26
Year: 2012
Month: 11
X-DOI: 10.1080/02692171.2011.640315
File-URL: http://hdl.handle.net/10.1080/02692171.2011.640315
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:177-190
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Özlem Onaran
Author-X-Name-First: Özlem
Author-X-Name-Last: Onaran
Title: Rethinking wage policy in the face of the Euro crisis. Implications of the wage-led demand regime
Abstract:
Ten years after its introduction, the Euro is in an existential crisis.
The crisis is the outcome of economic policies that have aimed at labour
market flexibility and financial integration. This paper argues, firstly,
that the aggregate demand regime in the Euro area is wage led. While an
increase in wages (other things equal) does have a negative effect on
investment and on net exports, it does have a positive effect on
consumption. As the Euro area is a relatively closed economy, the
consumption effect overpowers the investment effect and the export effect.
Secondly, we argue that in the Euro area two growth models have emerged: a
credit-led and an export-led model. These have given rise to the
imbalances that are at the heart of the Euro crisis. Wage flexibility has
proven insufficient to prevent these imbalances. Thirdly, we advocate a
system of coordinated wage bargaining that aims at wages rising in line
with productivity growth and a substantially upward-revised inflation
target. If the project of European economic integration is to survive, it
needs a drastic change in direction. An important building block of this
redirection is a rethinking of the role of wage policy.
Journal: International Review of Applied Economics
Pages: 191-203
Issue: 2
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.631903
File-URL: http://hdl.handle.net/10.1080/02692171.2011.631903
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:191-203
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Barker
Author-X-Name-First: Terry
Author-X-Name-Last: Barker
Author-Name: Annela Anger
Author-X-Name-First: Annela
Author-X-Name-Last: Anger
Author-Name: Unnada Chewpreecha
Author-X-Name-First: Unnada
Author-X-Name-Last: Chewpreecha
Author-Name: Hector Pollitt
Author-X-Name-First: Hector
Author-X-Name-Last: Pollitt
Title: A new economics approach to modelling policies to achieve global 2020 targets for climate stabilisation
Abstract:
This paper explores a Post Keynesian, ‘new economics’
approach to climate policy, assessing the opportunities for investment in
accelerated decarbonisation of the global economy to 2020 following the
Great Recession of 2008--2009. The risks associated with business-as-usual
growth in greenhouse gas (GHG) concentrations in the atmosphere suggest
that avoiding dangerous climate change will require that the
world’s energy-economy system is transformed through switching to
low-carbon technologies and lifestyles. Governments have agreed a target
to hold the increase in temperatures above pre-industrial levels to at
most 2°C and have offered reductions by 2020 in GHG emissions or the
carbon-intensity of GDP. The effects of policies proposed to achieve
pathways to 2020 towards this target are assessed using E3MG, an
Energy-Environment-Economy (E3) Model at the Global level. E3MG is an
annual simulation econometric model, estimated for 20 world regions over
1972--2006 adopting a new economics approach. Additional low-GHG
investment of some 0.7% of GDP, with carbon pricing and other policies, is
sufficient to achieve a pathway consistent with a medium chance of
achieving the long-term target. GDP is above reference levels because
decarbonisation reduces world oil prices and increases investment.
Employment is some 0.9% above reference levels by 2020 and public finances
are almost unaffected.
Journal: International Review of Applied Economics
Pages: 205-221
Issue: 2
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.631901
File-URL: http://hdl.handle.net/10.1080/02692171.2011.631901
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:205-221
Template-Type: ReDIF-Article 1.0
Author-Name: Robert H. Wade
Author-X-Name-First: Robert H.
Author-X-Name-Last: Wade
Title: Return of industrial policy?
Abstract:
For the sake of freedom, economic growth and poverty reduction the state
in market economies should limit itself to regulating markets and
(sometimes) correcting ‘market failures’. This neoliberal
conception has been the near-consensus for the past two to three decades
in the West and in western-led international organizations such as the
World Bank. But as of recently, the consensus has been challenged by
circumstances with which it cannot contend. This article spells out key
ideas behind the consensus -- in particular, its rejection of industrial
policy. It then argues that the US government has long practised -- to
good effect -- a hitherto little noticed type of industrial policy focused
neither on the individual firm nor on the geographic region but on
networks of firms, and that a (small) change in the American normative
climate has occurred post 2008 in favour of a government steering role in
markets. Moreover, some middle-income countries, with manufacturing
sectors shrinking in the face of East Asian competition, have recently
shown renewed interest in industrial policy. Finally, parts of the World
Bank have recently begun to operationalize industrial policy, under the
banner of ‘building competitive industries’ (industrial
policy by another name), as has not been the case since the mid 1980s. The
combination of these several forces may herald the emergence of new global
norms in favour of a more ‘developmental’ role of the state.
Journal: International Review of Applied Economics
Pages: 223-239
Issue: 2
Volume: 26
Year: 2012
Month: 11
X-DOI: 10.1080/02692171.2011.640312
File-URL: http://hdl.handle.net/10.1080/02692171.2011.640312
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:223-239
Template-Type: ReDIF-Article 1.0
Author-Name: Valpy FitzGerald
Author-X-Name-First: Valpy
Author-X-Name-Last: FitzGerald
Title: Global capital markets, direct taxation and the redistribution of income
Abstract:
Standard fiscal theory suggests that taxation should be heaviest on the
least mobile factors of production -- for both efficiency and revenue
reasons. A shift in tax burdens from capital to labour as economies become
globally integrated is thus justified. This theoretical tradition (founded
by Ramsay and continued by Mirrlees and Lucas) assumes by construction
that profit taxes reduce investment and growth; and while sensitive to
inter-generational equity, sidesteps the issue of income distribution
within generations. In contrast, starting from Keynes’ critique of
these assumptions and building on modern endogenous growth models, it can
be shown that profit taxation is not necessarily injurious to productive
investment. In practice, moreover, the effect of globalisation has not
been to reduce tax rates on capital, but rather to erode the tax base
itself (i.e. ‘tax evasion’). Improved information exchange
between tax authorities, which is now being driven by fiscal insolvency in
developed countries, would allow tax incidence to be shifted so as to
improve income distribution within OECD countries. Such cooperation could
also permit the replacement of the current discretionary system of fiscal
transfers from rich to poor countries (‘development aid’) by
equitable sharing of global capital tax revenue.
Journal: International Review of Applied Economics
Pages: 241-252
Issue: 2
Volume: 26
Year: 2012
Month: 11
X-DOI: 10.1080/02692171.2011.640313
File-URL: http://hdl.handle.net/10.1080/02692171.2011.640313
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:241-252
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Ferreiro
Author-X-Name-First: Jesus
Author-X-Name-Last: Ferreiro
Author-Name: Felipe Serrano
Author-X-Name-First: Felipe
Author-X-Name-Last: Serrano
Title: Expectations, uncertainty and institutions. An application to the analysis of social security reforms
Abstract:
The aging process that many developed economies will face in the
medium-term is leading to reforms in the public pensions systems in order
to solve the potential financial unsustainability generated by the
foreseeable increase in the expenditure in pension benefits (assuming that
the current social security contributions and the eligibility conditions
will remain unchanged). Neoclassical economics defends a radical reform of
these systems, substituting the current pay-as-you-go (PAYGO) systems by
funded systems. In this paper, using the Post-Keynesian theory as a
theoretical framework, we provide an alternative reflection to that
proposed by the neoclassical economics about the choice between the
alternative pension systems. The focus of the paper is the advantages of
the PAYGO pension systems to stabilize the expectations of future income.
Journal: International Review of Applied Economics
Pages: 253-266
Issue: 2
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.640666
File-URL: http://hdl.handle.net/10.1080/02692171.2011.640666
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:253-266
Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Palacio-Vera
Author-X-Name-First: Alfonso
Author-X-Name-Last: Palacio-Vera
Title: Debt monetization, inflation, and the ‘neutral’ interest rate
Abstract:
The main purpose of this study is to explore the potential expansionary
effect stemming from the monetization of debt. We develop a simple
macroeconomic model with Keynesian features and four sectors: creditor and
debtor households, businesses, and the public sector. We show that such
expansionary effect stems mainly from the reduction in the financial cost
to servicing the public debt. The efficacy of the channel that operates
allegedly through the compression of the risk/term premium on securities
is found to be ambiguous. Finally, we show that countries that issue their
own currency can avert getting stuck in a structural ‘liquidity
trap’ provided their central banks are willing to monetize the debt
created by a strong enough fiscal expansion.
Journal: International Review of Applied Economics
Pages: 267-285
Issue: 2
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.624497
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624497
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Handle: RePEc:taf:irapec:v:26:y:2012:i:2:p:267-285
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Peng Wang
Author-X-Name-First: Peng
Author-X-Name-Last: Wang
Title: The ‘compensation’ thesis, as exemplified by the case of the Chinese central bank
Abstract:
This paper extends the theory of demand-led money supply endogeneity to
the case of an open economy with a fixed exchange rate. This theory is
contrasted to the standard Mundell-Fleming view. In the compensation
approach advocated here, central banks are able to set interest rates,
even in a fixed exchange rate regime, either because there are automatic
market mechanisms that will induce the private sector to act in such a way
that changes in foreign reserves will be compensated by opposite changes
in central bank claims over the domestic economy, or because the central
bank will engage in endogenous sterilization operations in its efforts to
enforce its benchmark interest rate. Analyzing the balance sheet of the
Chinese central bank, we find that the large rise in foreign reserves on
the asset side is compensated by large positive changes in items of the
liability side, mainly bonds issued by the central bank. Foreign reserves
are not cointegrated with the monetary base, meaning that there is no
long-run relationship between foreign exchange reserves and the supply of
base money. We also find no long-run relation between foreign exchange
reserves and the consumer price index.
Journal: International Review of Applied Economics
Pages: 287-301
Issue: 3
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2011.587108
File-URL: http://hdl.handle.net/10.1080/02692171.2011.587108
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:287-301
Template-Type: ReDIF-Article 1.0
Author-Name: Sotirios Bellos
Author-X-Name-First: Sotirios
Author-X-Name-Last: Bellos
Author-Name: Turan Subasat
Author-X-Name-First: Turan
Author-X-Name-Last: Subasat
Title: Governance and foreign direct investment: a panel gravity model approach
Abstract:
This paper investigates the link between governance and foreign direct
investment in the case of 14 transition countries by using a panel gravity
model approach in two alternative ways. First, the level of governance in
the target country is studied. Second, the absolute difference in the
governance level between the source and target country is investigated. In
both cases the results suggest that the lack of good governance does not
deter, in fact it encourages, foreign direct investment.
Journal: International Review of Applied Economics
Pages: 303-328
Issue: 3
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2011.587110
File-URL: http://hdl.handle.net/10.1080/02692171.2011.587110
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:303-328
Template-Type: ReDIF-Article 1.0
Author-Name: Ashim Kumar Kar
Author-X-Name-First: Ashim Kumar
Author-X-Name-Last: Kar
Title: Does capital and financing structure have any relevance to the performance of microfinance institutions?
Abstract:
This paper aims to explore the impact of capital and financing structure
on the performance of microfinance institutions (MFIs) from an agency
theoretic standpoint. GMM and IV estimations with instruments have been
performed using a panel dataset of 782 MFIs in 92 countries for the period
2000--2007. Results confirm the agency theoretic claim that an increase in
leverage raises profit-efficiency in MFIs. The study also finds that cost
efficiency deteriorates with decreasing leverage. Likewise, the negative
significant impact of leverage on depth of outreach can also be explained.
However, the study finds that capital structure does not have any
noticeable impact on breadth of outreach and neither is it significantly
related with women’s participation as loan clients.
Journal: International Review of Applied Economics
Pages: 329-348
Issue: 3
Volume: 26
Year: 2012
Month: 3
X-DOI: 10.1080/02692171.2011.580267
File-URL: http://hdl.handle.net/10.1080/02692171.2011.580267
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:329-348
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas
Author-X-Name-First: Basil
Author-X-Name-Last: Dalamagas
Author-Name: Stelios Kotsios
Author-X-Name-First: Stelios
Author-X-Name-Last: Kotsios
Title: A macroeconomic approach to the income-tax work-effort relationship
Abstract:
In this paper, we analyse the dynamic relationship between hours worked
per employee (per self-employed) and marginal income tax-rate shocks in
terms of both a comparative-dynamics model and a stochastic general
equilibrium econometric model. The econometric model is estimated for
Germany, UK and USA over the post-1960 period using the GMM estimation
technique. Estimates in both models show that increases in the marginal
income-tax rate exert negative effects on hours worked by both employees
and the self-employed, but the response of the employees who are subject
to tax withholding is stronger than the response of the self-employed.
Journal: International Review of Applied Economics
Pages: 349-366
Issue: 3
Volume: 26
Year: 2012
Month: 2
X-DOI: 10.1080/02692171.2011.580269
File-URL: http://hdl.handle.net/10.1080/02692171.2011.580269
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:349-366
Template-Type: ReDIF-Article 1.0
Author-Name: John Beirne
Author-X-Name-First: John
Author-X-Name-Last: Beirne
Title: The long-run convergence of exchange rates and prices in the European Union
Abstract:
This paper provides tests of Purchasing Power Parity (PPP) for members of
the EU-27 not in the euro area, using multivariate and panel cointegration
techniques, for the period since the introduction of the euro currency in
1999 until the end of 2009. The results indicate that long-run PPP holds
in ten cases and that domestic prices or the nominal exchange rate is the
main driver of the short-run adjustment to stationarity. These results are
discussed in terms of monetary convergence in the long-run.
Journal: International Review of Applied Economics
Pages: 367-385
Issue: 3
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2011.580266
File-URL: http://hdl.handle.net/10.1080/02692171.2011.580266
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:367-385
Template-Type: ReDIF-Article 1.0
Author-Name: Mira Farka
Author-X-Name-First: Mira
Author-X-Name-Last: Farka
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Title: The effect of FOMC statements on asset prices
Abstract:
Given their increased importance during recent years, FOMC (Federal Open
Market Committee) statements can have a significant impact on asset
prices. To capture the effect of FOMC statements on asset prices, an
indicator variable is created that takes into account the information
content of policy statements. Results show that both ‘interest rate
surprises’ and ‘FOMC statements’ affect the mean and
the volatility of asset prices. The volatility impact is tent-shaped,
jumping within the policy announcement interval and declining before and
after the release. FOMC statements have a much more pronounced impact on
stock returns, intermediate and long-term yields, while short-term rates
are largely driven by target rate decisions. We also find that the
evolution of the language of the FOMC statements does matter to market
participants and, in particular, the ‘forward-looking’
language adopted in mid-2003 has reduced market volatility associated with
‘interest rate surprises’ on announcement days.
Journal: International Review of Applied Economics
Pages: 387-416
Issue: 3
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2011.587111
File-URL: http://hdl.handle.net/10.1080/02692171.2011.587111
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:387-416
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson
Author-X-Name-First: Stephen
Author-X-Name-Last: Dobson
Author-Name: Carlyn Ramlogan-Dobson
Author-X-Name-First: Carlyn
Author-X-Name-Last: Ramlogan-Dobson
Author-Name: Eric Strobl
Author-X-Name-First: Eric
Author-X-Name-Last: Strobl
Title: Convergence or divergence in cross-country growth?
Abstract:
In the traditional empirical convergence literature, a negative
coefficient on initial income in a cross-country growth regression is
interpreted as evidence of poor countries growing faster than richer ones.
A key assumption in this work is that the relationship between initial
income and income growth is linear. The linearity assumption is challenged
in some new growth theories, and studies adopting an alternative
(semi-parametric or nonlinear) econometric methodology provide support for
a nonlinear specification. This paper finds evidence for nonlinear
convergence. Using semi-parametric estimation we find that convergence
occurs among countries with very low and very high initial incomes,
suggesting that convergence clubs characterize the cross-country growth
process. Our results provide further evidence for multiple-regime steady
states.
Journal: International Review of Applied Economics
Pages: 417-424
Issue: 3
Volume: 26
Year: 2012
Month: 11
X-DOI: 10.1080/02692171.2011.557058
File-URL: http://hdl.handle.net/10.1080/02692171.2011.557058
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Handle: RePEc:taf:irapec:v:26:y:2012:i:3:p:417-424
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula
Author-X-Name-Last: Bali Swain
Author-Name: Fan Yang Wallentin
Author-X-Name-First: Fan Yang
Author-X-Name-Last: Wallentin
Title: Factors empowering women in Indian self-help group programs
Abstract:
We evaluate the impact of economic and non-economic factors on
women’s empowerment of Self-Help Group (SHG) members. We estimate a
structural equation model (SEM) and correct for ordinality in the data to
account for the impact of the latent factors on women’s
empowerment. Our SEM results reveal that for the SHG members, the economic
factor is the most effective in empowering women. Greater autonomy and
social attitudes also have a significant women empowerment impact.
Journal: International Review of Applied Economics
Pages: 425-444
Issue: 4
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2011.595398
File-URL: http://hdl.handle.net/10.1080/02692171.2011.595398
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:425-444
Template-Type: ReDIF-Article 1.0
Author-Name: Photis Lysandrou
Author-X-Name-First: Photis
Author-X-Name-Last: Lysandrou
Author-Name: Daniella Parker
Author-X-Name-First: Daniella
Author-X-Name-Last: Parker
Title: Commercial corporate governance ratings: an alternative view of their use and impact
Abstract:
The rise in the popularity of commercial corporate governance ratings is
at once a source of dismay and a cause for alarm: the former because they
do not appear to give accurate predictions of corporate performance and
the latter because they add to the pressure on corporations to adapt their
governance structures to a benchmark model that takes no account of the
conditions in which they operate. This paper gives an alternative view of
the potential use and impact of the commercially marketed governance
ratings. It argues that their importance to institutional investors lies
in providing them with information that accurately summarises corporate
loyalty to shareholders rather than accurately predicts corporate
performance. It goes on to argue that the commercial governance ratings
can bring benefits to an economy by contributing to a new type of
managerial control mechanism that is not only more efficient than hostile
takeovers and stock options but also helps to reduce the governance role
of these instruments.
Journal: International Review of Applied Economics
Pages: 445-463
Issue: 4
Volume: 26
Year: 2012
Month: 7
X-DOI: 10.1080/02692171.2011.619971
File-URL: http://hdl.handle.net/10.1080/02692171.2011.619971
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:445-463
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Duenhaupt
Author-X-Name-First: Petra
Author-X-Name-Last: Duenhaupt
Title: Financialization and the rentier income share -- evidence from the USA and Germany
Abstract:
During the past two decades, there has been a shift of significance from
the real to the financial sector. In the course of (financial)
globalization, measures of liberalization and deregulation have
contributed to a strengthening of financial capital. The concept of
shareholder value orientation has become more powerful, capital income has
increased tremendously, while real wages have stagnated. Most industrial
countries have experienced a decline in the share of labor income. Based
on a review of empirics and literature, this paper seeks to determine who
gained from the fall in the labor share of income in the USA and Germany,
respectively. If financialization is indeed responsible for the decline,
rentiers should be the beneficiaries. In order to identify the relevant
effects, the profit share of the two countries under observation is split
between the share of retained earnings and the share of net property
income (= rentiers’ income) using a modification of the approach
chosen by Epstein and Jayadev (2005). The evidence presented shows that
the development of the rentier income share indeed corresponds quite well
with the stages of development of financialization in the two different
countries: in the US, where the important shift towards financialization
occurred in the early 1980s, the rentiers’ share of income shows a
corresponding leap upwards exactly at that time and remains on a higher
level until the end of the observation period. In Germany, the process of
financialization started much later -- in the beginning of the 1990s --
and followed a much more gradual transition, which is perfectly mirrored
by the development of income shares: from the 1990s onwards, the
rentiers’ income share gradually increased over time.
Journal: International Review of Applied Economics
Pages: 465-487
Issue: 4
Volume: 26
Year: 2012
Month: 6
X-DOI: 10.1080/02692171.2011.595705
File-URL: http://hdl.handle.net/10.1080/02692171.2011.595705
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:465-487
Template-Type: ReDIF-Article 1.0
Author-Name: Larry L. Howard
Author-X-Name-First: Larry L.
Author-X-Name-Last: Howard
Author-Name: Nishith Prakash
Author-X-Name-First: Nishith
Author-X-Name-Last: Prakash
Title: Do employment quotas explain the occupational choices of disadvantaged minorities in India?
Abstract:
This article investigates the effects of a large-scale public sector
employment quota policy for disadvantaged minorities (Scheduled Castes and
Scheduled Tribes) in India on their occupational choices, as defined by
skill level, during the 1980s and 1990s. We find that, first, the
employment quota policy significantly affects the occupational structure
of both disadvantaged minority populations. In response to the employment
quotas, individuals belonging to the Scheduled Caste group are more likely
to choose high-skill occupations and less likely to choose low- and
middle-skill occupations, while individuals belonging to the Scheduled
Tribe group are less likely to choose high-skill occupations and more
likely to choose low- and middle-skill occupations. Second, the impact of
the employment quotas is significantly related with an individual’s
years of schooling. Overall, the results indicate that the employment
quota policy changes the occupational choices of individuals within the
targeted populations and contributes to their improved socio-economic
standing.
Journal: International Review of Applied Economics
Pages: 489-513
Issue: 4
Volume: 26
Year: 2012
Month: 8
X-DOI: 10.1080/02692171.2011.619969
File-URL: http://hdl.handle.net/10.1080/02692171.2011.619969
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:489-513
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Kaveepot Satawatananon
Author-X-Name-First: Kaveepot
Author-X-Name-Last: Satawatananon
Title: The impact of exchange rate volatility on commodity trade between the US and Thailand
Abstract:
The impact of exchange rate volatility on trade flows continues to occupy
the international finance literature. More recent studies have deviated
from the traditional approach of using aggregate trade flows and have
employed trade data at commodity level. This study investigates the impact
of exchange rate uncertainty on the trade flows of 118 US exporting
industries to Thailand and 41 US importing industries from Thailand. We
find that exchange rate uncertainty has short-run effects on the trade
flows of most industries. In the long-run, the main determinants of the
trade flows are the level of economic activity in both countries.
Journal: International Review of Applied Economics
Pages: 515-532
Issue: 4
Volume: 26
Year: 2012
Month: 8
X-DOI: 10.1080/02692171.2011.619968
File-URL: http://hdl.handle.net/10.1080/02692171.2011.619968
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:515-532
Template-Type: ReDIF-Article 1.0
Author-Name: Hailin Liao
Author-X-Name-First: Hailin
Author-X-Name-Last: Liao
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Author-Name: Chengang Wang
Author-X-Name-First: Chengang
Author-X-Name-Last: Wang
Title: Knowledge spillovers, absorptive capacity and total factor productivity in China’s manufacturing firms
Abstract:
Applying the stochastic frontier framework, this study explores the
diffusion and absorption of technological knowledge in China’s
manufacturing firms, based on a panel of more than 10,000 local and
foreign-invested firms over the period 1998--2001. Our empirical approach
allows us to distinguish between technological progress (TP) and technical
efficiency (TE) in analysing whether R&D, exports and the presence of
foreign direct investment simultaneously enhance TP through knowledge
spillovers in a single framework and whether different types of domestic
absorptive capacity moderate external knowledge spillovers in relation to
TE. The results show that there are positive inter-industry productivity
spillovers from R&D and foreign presence, whereas evidence of
intra-industry productivity spillovers from FDI to Chinese firms is less
robust. We find evidence that absorptive capacity is one of the key
determinants to quantitatively explain intra-industry differences in
productivity of local Chinese firms. The findings have important policy
implications.
Journal: International Review of Applied Economics
Pages: 533-547
Issue: 4
Volume: 26
Year: 2012
Month: 8
X-DOI: 10.1080/02692171.2011.619970
File-URL: http://hdl.handle.net/10.1080/02692171.2011.619970
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:533-547
Template-Type: ReDIF-Article 1.0
Author-Name: Ayşe Özden Birkan
Author-X-Name-First: Ayşe Özden
Author-X-Name-Last: Birkan
Title: Inflation targeting in an import dependent indebted economy
Abstract:
This paper develops a one-sector Kaleckian model of an import dependent
indebted small open economy; where the mark-up rate is sensitive to both
changes in the interest rate and the exchange rate and foreigners provide
part of the long-term finance. The short-run consequences of an inflation
targeting policy in the form of high interest rates and strong domestic
currency are explored. Among the possible short-run scenarios, the one
most relevant for developing countries involves a decline in the profit
rate, the capacity utilization rate and the rate of accumulation as well
as the employment rate and the real wage. Leverage ratio of the firms and
the extent of external indebtedness play an important role in bringing
about this result. Long-run analysis reveals that this scenario is
associated with instability in the long run and that, also in the long
run, the extent of foreign indebtedness and the responsiveness of capital
inflows to the return on existing portfolios are important in determining
the direction of the effects of inflation targeting on the equilibrium
debt--capital ratio.
Journal: International Review of Applied Economics
Pages: 549-564
Issue: 4
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.624496
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624496
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Handle: RePEc:taf:irapec:v:26:y:2012:i:4:p:549-564
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Bruce Philp
Author-X-Name-First: Bruce
Author-X-Name-Last: Philp
Title: Economic class and the distribution of income: a time-series analysis of the UK economy, 1955--2010
Abstract:
This paper contributes to our understanding of the determinants and
dynamics of surplus-value using quarterly UK data, 1955--2010, and the
Johansen (1988, 1991) cointegration and vector error correction model
(VECM). A model is introduced to define this Marxian concept, before we
explain distribution, paying attention to three forces that are
traditionally seen as drivers of power in this struggle: (i) working class
militancy; (ii) the size of the ‘reserve army’ of the
unemployed; and (iii) political party. Our results demonstrate the ongoing
relevance of Marxian economics in providing an alternative, robust and
significant explanation of distribution in the post-war UK economy.
Journal: International Review of Applied Economics
Pages: 565-578
Issue: 5
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.631902
File-URL: http://hdl.handle.net/10.1080/02692171.2011.631902
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:565-578
Template-Type: ReDIF-Article 1.0
Author-Name: Adem Y. Elveren
Author-X-Name-First: Adem Y.
Author-X-Name-Last: Elveren
Author-Name: Ibrahim Örnek
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Örnek
Author-Name: Günay Akel
Author-X-Name-First: Günay
Author-X-Name-Last: Akel
Title: Internationalisation, growth and pay inequality: a cointegration analysis for Turkey, 1970--2007
Abstract:
The nature of the internationalisation-growth-inequality nexus is very
complex; and therefore, not surprisingly, there is no consensus on whether
increasing openness to trade leads to higher inequality or not -- in fact,
there is even no full understanding on the impact of the openness on the
economic growth. In the case of Turkey it is observed that there is
relatively little empirical work that addresses the issue of inequality.
Considering this fact, the study aims to provide some more evidence on the
complex relationship between trade openness, foreign direct investment,
economic growth and pay inequality by utilising a combination of different
Theil Indices of pay inequality. The paper utilises the Johansen
Cointegration and Granger Causality methods. Our findings yield that
higher economic growth resulting from trade openness comes with higher pay
inequality.
Journal: International Review of Applied Economics
Pages: 579-595
Issue: 5
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.624499
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624499
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:579-595
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Chataghalala Munthali
Author-X-Name-First: Thomas Chataghalala
Author-X-Name-Last: Munthali
Title: Interaction of public and private investment in Southern Africa: a dynamic panel analysis
Abstract:
While the debate on the crowding-in-out effects of public investment on
private investment largely seems to point towards a crowding-in effect in
developing economies and the opposite in advanced economies, considerable
evidence exists on the inconclusiveness of such findings across countries
and regions. This study uses two investment models, Koyck’s
flexible accelerator and Jorgenson’s neoclassical with error
correction modified to empirically capture the structural and
institutional characteristics of the Southern African region, to
investigate crowding-in effects in one of the world’s most
underdeveloped regions, Southern Africa. The study’s models reject
the existence of crowding-in effects even when the public investment
component of transport and communication is used. However, the study
unveils macroeconomic uncertainty, market size, and capital availability
as binding constraints on private investment in Southern Africa.
Journal: International Review of Applied Economics
Pages: 597-622
Issue: 5
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.624500
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624500
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:597-622
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Saadi
Author-X-Name-First: Mohamed
Author-X-Name-Last: Saadi
Title: Export sophistication and the terms of trade of the developing and emerging countries
Abstract:
The question of the terms of trade has not yet been studied by the new
empirical literature on the export sophistication, which focuses only on
its effect on economic growth. The contribution of this paper is to
investigate whether the increase in the export sophistication is terms of
trade worsening or improving for the developing and emerging economies.
Importantly, we find that the increase in the sophistication of the
developing countries’ exports is accompanied by a deterioration of
their terms of trade.
Journal: International Review of Applied Economics
Pages: 623-642
Issue: 5
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.631899
File-URL: http://hdl.handle.net/10.1080/02692171.2011.631899
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:623-642
Template-Type: ReDIF-Article 1.0
Author-Name: Yanqing Jiang
Author-X-Name-First: Yanqing
Author-X-Name-Last: Jiang
Title: Technology diffusion, spatial effects and productivity growth in the Chinese provinces
Abstract:
This paper investigates spatial spillover effects of productivity in
China. We set up a model in which a Chinese province achieves productivity
growth by taking advantage of productivity spillovers from the world
frontier and from other Chinese provinces. By using fixed effects and GMM
panel data methods, we show that productivity growth in an inland province
in China can be partly attributed to productivity spillover effects of
other provinces. We also show that provincial human capital plays an
important role in determining the magnitude of these spillover effects.
Journal: International Review of Applied Economics
Pages: 643-656
Issue: 5
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2011.624498
File-URL: http://hdl.handle.net/10.1080/02692171.2011.624498
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:643-656
Template-Type: ReDIF-Article 1.0
Author-Name: Alp Eren Yurtseven
Author-X-Name-First: Alp Eren
Author-X-Name-Last: Yurtseven
Author-Name: Vedat Sinan Tandoğan
Author-X-Name-First: Vedat Sinan
Author-X-Name-Last: Tandoğan
Title: Patterns of innovation and intra-industry heterogeneity in Turkey
Abstract:
This study investigates the patterns of innovation in Turkey and its
primary aim is to examine the intra-industry heterogeneity in innovative
activities. For this purpose double-level factor analysis is performed and
the resulting factor scores are used in the subsequent cluster analyses.
Four distinct innovation patterns, which may be interpreted as ingredients
of different technological regimes, are identified. A taxonomy of
innovative firms is also constructed by grouping firms according to their
innovation characteristics and, to the authors’ knowledge, this is
the first empirical classification study in Turkey. These results indicate
that industries differ in terms of innovative activities. However,
industries are not dominated by a single technological regime. On the
contrary, five technological regimes were observed in almost all sectors.
Building upon these facts, it can be speculated that sector-specific
conditions determine the extent of intra-industry heterogeneity.
Journal: International Review of Applied Economics
Pages: 657-671
Issue: 5
Volume: 26
Year: 2012
Month: 10
X-DOI: 10.1080/02692171.2011.631900
File-URL: http://hdl.handle.net/10.1080/02692171.2011.631900
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:657-671
Template-Type: ReDIF-Article 1.0
Author-Name: Abm Nasir
Author-X-Name-First: Abm
Author-X-Name-Last: Nasir
Author-Name: Abdullah M. Noman
Author-X-Name-First: Abdullah M.
Author-X-Name-Last: Noman
Title: Sustainability of external debt: further evidence from non-linear framework
Abstract:
This study investigates sustainability of external debt under a two-step
non-linear framework. The first step uses a general linearity test
proposed by Harvey and Leybourne (2007) to determine the linearity
property of external debt. The second step applies a non-linear ADF unit
root test proposed by Kapetanios, Shin, and Snell (2003) on the non-liner
processes and the linear ADF test on the linear processes to examine the
sustainability of external debt. The analysis of 36 debt and 55 current
account ratios identifies strong evidence of non-linearity and
sustainability. The results indicate superior performance of the
non-linear unit root test over the ADF test in determining the stationary
property of the data.
Journal: International Review of Applied Economics
Pages: 673-685
Issue: 5
Volume: 26
Year: 2012
Month: 12
X-DOI: 10.1080/02692171.2012.665853
File-URL: http://hdl.handle.net/10.1080/02692171.2012.665853
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:673-685
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelia Desli
Author-X-Name-First: Evangelia
Author-X-Name-Last: Desli
Author-Name: Pavlos Gkasis
Author-X-Name-First: Pavlos
Author-X-Name-Last: Gkasis
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Title: An alternative approach to the monitoring of technological diffusion via foreign direct investment: evidence from the Greek manufacturing sector
Abstract:
The existing studies of foreign direct investment and the corresponding
technological diffusion process that they generate, focus either on
specific parameters of the production process in isolation, or they
combine certain parameters to construct indices that are not consistent
across studies. The present analysis proposes an alternative approach that
captures the entire production process and multinational firms are viewed
as the platform that transfers more advanced technologies to the host
countries. As multinational firms are able to utilise more efficiently the
available production process, an efficiency gap ensues between the
domestically owned firms of a country and the multinational firms that
operate in it. We capture and provide a measure and a monitoring mechanism
of the technological diffusion process via foreign direct investment
through the evolution of the efficiency gap between the two groups of
firms whilst controlling for other variables that might contribute to such
a gap. We apply our approach to the manufacturing sector of the Greek
economy that experiences a consistent presence of foreign direct
investment inflows over the time period 2001--2007.
Journal: International Review of Applied Economics
Pages: 687-707
Issue: 5
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2012.665854
File-URL: http://hdl.handle.net/10.1080/02692171.2012.665854
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:687-707
Template-Type: ReDIF-Article 1.0
Author-Name: David Bailey
Author-X-Name-First: David
Author-X-Name-Last: Bailey
Title: Globalization and varieties of capitalism. New Labour, economic policy and the abject state
Journal: International Review of Applied Economics
Pages: 709-710
Issue: 5
Volume: 26
Year: 2012
Month: 9
X-DOI: 10.1080/02692171.2012.703060
File-URL: http://hdl.handle.net/10.1080/02692171.2012.703060
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Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:709-710
Template-Type: ReDIF-Article 1.0
Author-Name: Andreia Tolciu
Author-X-Name-First: Andreia
Author-X-Name-Last: Tolciu
Author-Name: Ulrich Zierahn
Author-X-Name-First: Ulrich
Author-X-Name-Last: Zierahn
Title: Women and work: what role do social norms play?
Abstract:
Against the background of the current (economic) research which
concentrates particularly on individual and structural factors, this paper
examines if and to what extent social norms (in terms of attitudes towards
gender roles and work commitment) can make a complementary statement in
explaining women’s employment status and number of working hours.
The impact is presumed to be enhanced through norms shared by people
belonging to the same households, peer groups, and by residents of the
same region. The analysis relies on a rich German dataset and employs a
probit model with sample selection. The results highlight, among other
things, the importance of the ‘relevant others’
(particularly partners living in the same household and peers sharing
similar social and work characteristics, but not necessarily geographical
proximity) in explaining women’s employment status.
Journal: International Review of Applied Economics
Pages: 711-733
Issue: 6
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2012.686485
File-URL: http://hdl.handle.net/10.1080/02692171.2012.686485
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:711-733
Template-Type: ReDIF-Article 1.0
Author-Name: Mart�n Rapetti
Author-X-Name-First: Mart�n
Author-X-Name-Last: Rapetti
Author-Name: Peter Skott
Author-X-Name-First: Peter
Author-X-Name-Last: Skott
Author-Name: Arslan Razmi
Author-X-Name-First: Arslan
Author-X-Name-Last: Razmi
Title: The real exchange rate and economic growth: are developing countries different?
Abstract:
Recent research has found a positive relationship between real exchange
rate (RER) undervaluation and economic growth. Different rationales for
this association have been offered, but they all imply that the mechanisms
involved should be stronger in developing countries. Rodrik (2008)
explicitly analyzed and found evidence that the RER--growth relationship
is more prevalent in developing countries. We show that his finding is
sensitive to the criterion used to divide the sample between developed and
developing countries. Using alternative classification criteria and
empirical strategies to evaluate the existence of asymmetries between
groups of countries, we find that the effect of currency undervaluation on
growth is indeed larger and more robust for developing economies. However,
the relationship between RER undervaluation and per capita GDP is
non-monotonic, and is limited largely to the least developed and richest
countries. This discontinuity constitutes a puzzle that calls for closer
analysis.
Journal: International Review of Applied Economics
Pages: 735-753
Issue: 6
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2012.686483
File-URL: http://hdl.handle.net/10.1080/02692171.2012.686483
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:735-753
Template-Type: ReDIF-Article 1.0
Author-Name: Greg Hannsgen
Author-X-Name-First: Greg
Author-X-Name-Last: Hannsgen
Title: Infinite-variance, alpha-stable shocks in monetary SVAR
Abstract:
This paper outlines a theory of what might be going wrong in the monetary
SVAR (structural vector autoregression) literature and provides supporting
empirical evidence. The theory is that macroeconomists may be attempting
to identify structural forms that do not exist, given the true
distribution of the innovations in the reduced-form VAR. This paper shows
that this problem occurs whenever (1) some innovation in the VAR has an
infinite-variance distribution and (2) the matrix of coefficients on the
contemporaneous terms in the VAR's structural form is nonsingular. Since
(2) is almost always required for SVAR analysis, it is germane to test
hypothesis (1). Hence, in this paper, we fit
α-stable distributions to the residuals from 3-lag
and 12-lag monetary VARs, and, using a parametric-bootstrap method, we
reject the null hypotheses of finite variance (or equivalently,
α = 2) for all 12 error terms in the two VARs.
These results are mostly robust to a sample break at the February 1984
observations. Moreover, ARCH tests suggest that the shocks from the
subperiod VARs are homoskedastic in seven of 24 instances. Next, we
compare the fits of the α-stable distributions with
those of t distributions and a GARCH(1,1) shock model. This analysis
suggests that the time-invariant α-stable
distributions provide the best fits for two of six shocks in the VAR(12)
specification and three of six shocks in the VAR(3). Finally, we use the
GARCH model as a filter to obtain homoskedastic shocks, which also prove
to have α > 2, according to ML estimates.
Journal: International Review of Applied Economics
Pages: 755-786
Issue: 6
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2012.686484
File-URL: http://hdl.handle.net/10.1080/02692171.2012.686484
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:755-786
Template-Type: ReDIF-Article 1.0
Author-Name: Eleonora Bartoloni
Author-X-Name-First: Eleonora
Author-X-Name-Last: Bartoloni
Title: The persistence of innovation: a panel data investigation on manufacturing firms
Abstract:
This paper represents a contribution to empirical debate on the
persistence of innovation in the firm, by exploiting an innovative panel
database that, for the first time, links three waves of the Italian
Community Innovation Survey with an administrative data source providing
economic and financial information for firms in the Italian manufacturing
sector, 1996--2003. By using both a dynamic logistic model and a Granger
causality approach, we show that in order to innovate successfully it is
much more important to have an adequate flow of profits during an
appropriate time span rather than high profits only during one period
before innovation. Our causality tests prove the existence of a dynamic
interaction between innovation and profitability: successful innovation
can, in the short run, generate the profitability conditions that can then
enhance the financial resources needed to reinvest in new technological
opportunities, thus causing the firm to persist in its innovative
behaviour. We have also shown that another important source of persistence
is represented by past innovative experience. A firm with consolidated
innovative behaviour would have a higher probability of future successful
innovation with respect to a firm that occasionally (or accidentally)
innovates. Persistence in innovation enables a firm to take advantage of
substantial technological and organizational learning effects, which
improve with time.
Journal: International Review of Applied Economics
Pages: 787-810
Issue: 6
Volume: 26
Year: 2012
Month: 4
X-DOI: 10.1080/02692171.2012.686486
File-URL: http://hdl.handle.net/10.1080/02692171.2012.686486
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:787-810
Template-Type: ReDIF-Article 1.0
Author-Name: João C. Lopes
Author-X-Name-First: João C.
Author-X-Name-Last: Lopes
Author-Name: João Dias
Author-X-Name-First: João
Author-X-Name-Last: Dias
Author-Name: João F. Amaral
Author-X-Name-First: João F.
Author-X-Name-Last: Amaral
Title: Assessing economic complexity as interindustry connectedness in nine OECD countries
Abstract:
Economic complexity can be defined as the level of interdependence
between the component parts of an economy. In input--output systems
interindustry connectedness is a crucial feature of analysis, and there
are many different methods of measuring it. Most of the measures however,
have important drawbacks to be used as a good indicator of economic
complexity, because they were not explicitly made with this purpose in
mind. In this paper, we present, discuss and compare empirically different
indexes of economic complexity as intersectoral connectedness, using the
inter-industry tables of nine OECD countries. According to most of the
measures of connectedness large economies (USA, Japan) tend to be more
complex than small economies (for example, Denmark). But if another type
of measures is considered, the opposite conclusion is drawn, signalling a
hidden characteristic of interdependence that so far has not been detected
by conventional measures. This result should qualify the widespread idea
that more interconnected productive structures propagate more intensely
exogenous shocks and/or economic policy measures.
Journal: International Review of Applied Economics
Pages: 811-827
Issue: 6
Volume: 26
Year: 2012
Month: 1
X-DOI: 10.1080/02692171.2012.665852
File-URL: http://hdl.handle.net/10.1080/02692171.2012.665852
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Template-Type: ReDIF-Article 1.0
Author-Name: C. Charles Okeahalam
Author-X-Name-First: C. Charles
Author-X-Name-Last: Okeahalam
Title: Legacy and credit scores in South Africa
Abstract:
This paper assesses the impact of legacy and credit scores on access to
bank credit in South Africa. Typically, credit data focuses on
socio-economic information. However legacy variables, factors beyond the
control of individuals, have not been well considered. We find that
although credit scores clearly influence access to credit, legacy has a
statistically significant impact on credit scores and on the amount of
credit granted. While these results can be interpreted as bias against
those with negative legacy, they can also be explained in terms of
information asymmetry and the relative ability to enforce contracts with
clients who have positive legacy.
Journal: International Review of Applied Economics
Pages: 829-841
Issue: 6
Volume: 26
Year: 2012
Month: 5
X-DOI: 10.1080/02692171.2012.696591
File-URL: http://hdl.handle.net/10.1080/02692171.2012.696591
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:829-841
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Private sector involvement in delivering public goods and services Collaborative governance: Private roles for public goals in turbulent times, by John D. Donahue and Richard J. Zeckhauser. Princeton University Press, 2011, 305 pp., US$27.95 (hardback), ISBN 978-0-691-14979-0
Journal: International Review of Applied Economics
Pages: 843-846
Issue: 6
Volume: 26
Year: 2012
Month: 11
X-DOI: 10.1080/02692171.2012.721643
File-URL: http://hdl.handle.net/10.1080/02692171.2012.721643
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Handle: RePEc:taf:irapec:v:26:y:2012:i:6:p:843-846
Template-Type: ReDIF-Article 1.0
Author-Name: Yannis Dafermos
Author-X-Name-First: Yannis
Author-X-Name-Last: Dafermos
Author-Name: Christos Papatheodorou
Author-X-Name-First: Christos
Author-X-Name-Last: Papatheodorou
Title: What drives inequality and poverty in the EU? Exploring the impact of macroeconomic and institutional factors
Abstract:
Employing panel data techniques, we investigate the macroeconomic and
institutional determinants of inequality and poverty in the EU over the
period 1994--2008. We pay particular attention to the effects of
macroeconomic environment, social protection and labour market
institutions. The empirical analysis shows that the social transfers in
cash, and principally the transfers that do not include pensions, exert a
prominent impact on inequality and poverty. Also significant is the effect
of the GDP per capita. The impact of employment on inequality and poverty
is not empirically sound. The same holds for the labour market
institutions; an exception is the union density, which appears conducive
to a less dispersed personal income distribution. Importantly, the results
support the view that the social protection system acts as a catalyst in
determining the effectiveness of social spending and the distributive role
of economic growth and employment.
Journal: International Review of Applied Economics
Pages: 1-22
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.696590
File-URL: http://hdl.handle.net/10.1080/02692171.2012.696590
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: D.P. Chaudhri
Author-X-Name-First: D.P.
Author-X-Name-Last: Chaudhri
Author-Name: Raghbendra Jha
Author-X-Name-First: Raghbendra
Author-X-Name-Last: Jha
Title: India's gender bias in child population, female education and growing prosperity: 1951--2011
Abstract:
-super-1Using Census and National Sample Survey (NSS) data, this paper
studies the evolution of Gender Bias (GB) in the age group 0--6 in India
and its association with education and higher prosperity. GB is pervasive
and has grown over time with higher prosperity and resultant demographic
transition and enhanced education. Large household size (associated with
high fertility rates and low Monthly Per Capita Expenditure (MPCE)) are
linked with low GB. However, with higher prosperity and lower Total
Fertility Rate (TFR) GB rises sharply. Hence, the outlook for GB in the
age group 0--6 appears bleak at least until 2026. There are wide
variations in GB across various states, even districts. Both improved
education of females in the age group 15--49 and higher prosperity lead to
worsening of GB. However, at high values of the interaction of these two
variables there is a turnaround in the trend of worsening GB. Policy
conclusions are discussed.
Journal: International Review of Applied Economics
Pages: 23-43
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.696592
File-URL: http://hdl.handle.net/10.1080/02692171.2012.696592
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:23-43
Template-Type: ReDIF-Article 1.0
Author-Name: Ashim Kumar Kar
Author-X-Name-First: Ashim Kumar
Author-X-Name-Last: Kar
Title: Mission drift in microfinance: are the concerns really worrying? Recent cross-country results
Abstract:
This paper explores the impact of profitability on depth of outreach in
microfinance institutions, a trade-off between which is commonly known as
‘mission drift', using a unique panel database containing 4--6
years' observations from 409 MFIs in 71 countries. The concerns for
‘mission drift' seemed invalid, although several countervailing
results also emerged when scaling up indicators of size and age are
included. The positive significant association between MFI-size and
average loan amount suggests some extent of mission drift. Similar results
were found when female borrowers' participation was the measure for
outreach. However, the study largely fails to validate that the concerns
for mission drift were true if it is defined as a distinctive trade-off
between increased profit-motivation and depth of outreach of MFIs.
Journal: International Review of Applied Economics
Pages: 44-60
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.700701
File-URL: http://hdl.handle.net/10.1080/02692171.2012.700701
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:44-60
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin S. Wong
Author-X-Name-First: Edwin S.
Author-X-Name-Last: Wong
Title: Gender preference and transfers from parents to children: an inter-regional comparison
Abstract:
This paper examines whether parents exhibit gender preference in the
allocation of family resources to their adult children. Gender preference
is defined in the context of an altruistic model for inter-vivos transfer
from parents to children extended to include educational investment. Data
from the Health and Retirement Study (United States) and the Korean
Longitudinal Study of Ageing are used to show that the degree of gender
preference differs across these culturally distinct regions. Among Korean
families, empirical results point to male preference as sons receive
larger inter-vivos transfers and attain higher levels of education
compared with daughters. In contrast, the evidence pertaining to gender
preference among American families points to daughter preference as
inter-vivos transfers and educational investment is generally higher among
female adult children.
Journal: International Review of Applied Economics
Pages: 61-80
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.700702
File-URL: http://hdl.handle.net/10.1080/02692171.2012.700702
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:61-80
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Jia Xu
Author-X-Name-First: Jia
Author-X-Name-Last: Xu
Title: Impact of exchange rate volatility on commodity trade between US and Hong Kong
Abstract:
The impact of exchange rate uncertainty on trade flows is still the
center of attention in international economics. A few studies that have
looked at this effect in Hong Kong have used either aggregate data between
Hong Kong and the rest of the world or between Hong Kong and several of
her major trading partners. They have been unable to locate any
significant effect. Suspecting that existing studies could suffer from
aggregation bias, we concentrate on the trade between Hong Kong and the US
and disaggregate their trade flows further by commodity. Out of 140 Hong
Kong importing industries and 104 exporting industries considered, we find
short-run effects in the majority of the industries. The short-run effects
translated into the long run in 81 of Hong Kong import industries and 51
of her export industries, a finding that contradicts previous research.
Journal: International Review of Applied Economics
Pages: 81-109
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.700703
File-URL: http://hdl.handle.net/10.1080/02692171.2012.700703
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:81-109
Template-Type: ReDIF-Article 1.0
Author-Name: Saibal Ghosh
Author-X-Name-First: Saibal
Author-X-Name-Last: Ghosh
Title: The economics and politics of output volatility: evidence from Indian states
Abstract:
Employing data for 1981--2009, this paper examines the factors
influencing the volatility of state output, using India as a case study.
The analysis appears to suggest that high income states exhibit relatively
higher output volatility. At the state-level, the proximate determinants
of a decline in output volatility can be traced to financial deepening,
government expenditures and institutional quality. Also, state-level
political factors are also found to play an important role. In addition,
at the macroeconomic level, monetary policy considerations are observed to
be the most important factor impacting output volatility.
Journal: International Review of Applied Economics
Pages: 110-134
Issue: 1
Volume: 27
Year: 2013
Month: 1
X-DOI: 10.1080/02692171.2012.721753
File-URL: http://hdl.handle.net/10.1080/02692171.2012.721753
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Handle: RePEc:taf:irapec:v:27:y:2013:i:1:p:110-134
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Title: Rethinking on public enterprise: editorial introduction and some personal remarks on the research agenda
Abstract:
This editorial introduction of the Special Issue of the
International Review of Applied Economics on
‘Public enterprises and quality of institutions: alternatives to
privatisation’ suggests some topics for a research agenda, and
discusses how the papers included in the Special Issue contribute to the
literature. The topics discussed in the Special Issue include new models
of public ownership in energy industries, new trends of
re-municipalisation of local public services (energy and water),
regulation and public ownership, particularly in water supply, empirical
evidence on productivity of public firms in electricity generation when
the quality of government is good, internationalisation of government
owned corporations in the telecommunication industry, the social benefits
of public monopoly versus unbundling in network industries, and the role
of intrinsic public service motivation of employees in governmental
organisations at large. Some of these research issues are still in their
infancy and potentially are important ingredients of a wider debate aiming
at reviving public enterprise economics.
Journal: International Review of Applied Economics
Pages: 135-149
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2013.785664
File-URL: http://hdl.handle.net/10.1080/02692171.2013.785664
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:135-149
Template-Type: ReDIF-Article 1.0
Author-Name: Janice A. Beecher
Author-X-Name-First: Janice A.
Author-X-Name-Last: Beecher
Title: What matters to performance? Structural and institutional dimensions of water utility governance
Abstract:
A prolific theoretical and empirical literature has examined
the relevance of structures and institutions to public utility
performance, with a particular emphasis on the discrete role of ownership.
The empirical findings are inconsistent and mostly indeterminate. A narrow
emphasis on ownership deflects attention from the inextricable role of
governance. The impact of privatization may be marginal compared with
alternative governance reforms. Offered here is an informal, practical,
and parsimonious conceptual model that distinguishes between structural
(endogenous) and institutional (exogenous) governance. Three structural
dimensions (ownership form, practice standards, and enterprise autonomy)
are juxtaposed against three institutional dimensions (market
contestability, external review, and economic regulation). Each dimension
may be complementary or substitutive. Given persistent monopoly,
privatization may be unnecessary and will be insufficient for ensuring
performance. Economic regulation is a prerequisite for privatization but
privatization is not a prerequisite for reform. Focusing on the US water
sector, this paper offers a descriptive analysis for understanding why
this is the case. A pragmatic approach is to strengthen core governance
capacities in relation to performance priorities, which ultimately matter
most of all.
Journal: International Review of Applied Economics
Pages: 150-173
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.752447
File-URL: http://hdl.handle.net/10.1080/02692171.2012.752447
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:150-173
Template-Type: ReDIF-Article 1.0
Author-Name: Aoife Brophy Haney
Author-X-Name-First: Aoife Brophy
Author-X-Name-Last: Haney
Author-Name: Michael G. Pollitt
Author-X-Name-First: Michael G.
Author-X-Name-Last: Pollitt
Title: New models of public ownership in energy
Abstract:
The current challenges facing the energy sector cast doubt on
the universal applicability of a wholly privately-owned, competitive and
independently-regulated energy industry. In this paper, we discuss these
challenges and ask why it is that they have led to the emergence of new
forms of public ownership and involvement. We then explore six case
studies to illustrate the variety of ownership models that have developed
in response to the challenges of climate change, energy security, energy
poverty and the uncertainty around electricity market reform. Our case
studies show that public involvement can coexist with generally
liberalised electricity markets, including at the retail market level.
They also demonstrate that ‘public’ ownership can take a
number of forms, including mutual ownership, consumer trusts, state
ownership and municipal ownership. Public organisation is on its way back
in but in many new forms with many different structures. The choice is no
longer between full state ownership and full private ownership. The
challenge is to maintain the benefits of both and to encourage innovation
in new organisational forms.
Journal: International Review of Applied Economics
Pages: 174-192
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.734790
File-URL: http://hdl.handle.net/10.1080/02692171.2012.734790
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:174-192
Template-Type: ReDIF-Article 1.0
Author-Name: David Hall
Author-X-Name-First: David
Author-X-Name-Last: Hall
Author-Name: Emanuele Lobina
Author-X-Name-First: Emanuele
Author-X-Name-Last: Lobina
Author-Name: Philipp Terhorst
Author-X-Name-First: Philipp
Author-X-Name-Last: Terhorst
Title: Re-municipalisation in the early twenty-first century: water in France and energy in Germany
Abstract:
Changes between state and market production of public
services can be analysed as ‘pendulum’ swings, reflecting
political struggles. The extensive re-municipalisations in the water
sector and France and the energy sector in Germany provide evidence on
this question. This is not the result of a coordinated institutional
initiative, but a reflection of common political and economic factors. The
most important of these are the greater efficiency of public sector
provision, and the greater degree of control over the effective
achievement of public policy objectives. These are closely related to the
historic factors driving public ownership in the nineteenth and twentieth
centuries. A distinctive feature of this twenty-first century tendency is
the prominent role of green parties and environmental policies. The public
sector paradigm has historically shown a remarkable resilience,
underpinning the development of European public services for almost a
century, compared with the three decades of domination by the market
paradigm and its currently vacillating foundations.
Journal: International Review of Applied Economics
Pages: 193-214
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.754844
File-URL: http://hdl.handle.net/10.1080/02692171.2012.754844
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:193-214
Template-Type: ReDIF-Article 1.0
Author-Name: Jos� M. Alonso
Author-X-Name-First: Jos� M.
Author-X-Name-Last: Alonso
Author-Name: Judith Clifton
Author-X-Name-First: Judith
Author-X-Name-Last: Clifton
Author-Name: Daniel Díaz-Fuentes
Author-X-Name-First: Daniel
Author-X-Name-Last: Díaz-Fuentes
Author-Name: Marcos Fernández-Guti�rrez
Author-X-Name-First: Marcos
Author-X-Name-Last: Fernández-Guti�rrez
Author-Name: Julio Revuelta
Author-X-Name-First: Julio
Author-X-Name-Last: Revuelta
Title: The race for international markets: Were privatized telecommunications incumbents more successful than their public counterparts?
Abstract:
Selling off formerly state-owned telecommunications
incumbents played a major role in governments’ privatization
programmes from the 1980s. One major consequence was that, from the late
1990s, a number of incumbents emerged as the world’s largest
Multinational Corporations (MNCs). Despite the importance of this
transformation, the determinants of telecommunications
internationalization have not been fully analysed. We contribute to the
emerging literature on this topic by testing the importance of ownership
on the extent of telecommunications internationalization through an
analysis of the uneven path to privatization and internationalization of
the 22 major incumbents in the OECD. Our results demonstrate that
privatization was not a significant factor when explaining
internationalization patterns. Using cluster analysis, we show how
telecommunications incumbents characterized by diverse ownership
arrangements (public, private and mixed) were able to transform themselves
into world-class operators.
Journal: International Review of Applied Economics
Pages: 215-236
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.734791
File-URL: http://hdl.handle.net/10.1080/02692171.2012.734791
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:215-236
Template-Type: ReDIF-Article 1.0
Author-Name: Chiara F. Del Bo
Author-X-Name-First: Chiara F.
Author-X-Name-Last: Del Bo
Title: Productivity in electricity generation: The role of firm ownership and regional institutional quality
Abstract:
The electricity generation sector is considered the most
competitive segment of the industry and has undergone significant reforms
in recent years. Liberalization, market opening and privatizations have
characterized, with country-specific variations, the European electricity
supply market. This paper examines the links between possible outcomes of
these reforms, in particular firm ownership, and total factor
productivity, while also controlling for regional characteristics. Results
of the estimation of quantile regressions show that foreign ownership is
associated with higher total factor productivity (TFP) levels, while
public ownership exhibits a different behavior in different quantiles.
Regional institutional quality is positively related to TFP. Results are
robust to alternative TFP measures.
Journal: International Review of Applied Economics
Pages: 237-264
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.734792
File-URL: http://hdl.handle.net/10.1080/02692171.2012.734792
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:237-264
Template-Type: ReDIF-Article 1.0
Author-Name: Johan Willner
Author-X-Name-First: Johan
Author-X-Name-Last: Willner
Author-Name: Sonja Grönblom
Author-X-Name-First: Sonja
Author-X-Name-Last: Grönblom
Title: Reforming a network industry: consequences for cost efficiency and welfare
Abstract:
Competition in an industry with an upstream natural monopoly
infrastructure requires vertical separation. However, this cannot increase
welfare unless marginal costs are reduced, given the advantages of
vertical integration. It turns out that entry increases marginal costs and
has ambiguous welfare effects if there is a downstream agency problem, and
reduces marginal costs and increases welfare if it occurs upstream. While
vertical separation and competition are outperformed even by a
profit-maximising monopoly, a welfare-maximising vertically integrated
monopoly yields, in both cases, superior cost efficiency and welfare.
Journal: International Review of Applied Economics
Pages: 265-284
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.734789
File-URL: http://hdl.handle.net/10.1080/02692171.2012.734789
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:265-284
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Polidori
Author-X-Name-First: Paolo
Author-X-Name-Last: Polidori
Author-Name: D�sir�e Teobaldelli
Author-X-Name-First: D�sir�e
Author-X-Name-Last: Teobaldelli
Title: Prosocial behavior in the production of publicly provided goods and services: an overview
Abstract:
This paper offers a selective review of research on the
existence and effects of prosocial behavior among individuals who work in
public organizations. We first present evidence from the empirical
literature documenting the importance of such phenomena and their
features. We then discuss theoretical works that analyze the implications
of prosocial behavior for the optimal design of incentive schemes and for
organizing production in public firms. Some policy recommendations from
the literature are also discussed.
Journal: International Review of Applied Economics
Pages: 285-296
Issue: 2
Volume: 27
Year: 2013
Month: 3
X-DOI: 10.1080/02692171.2012.736481
File-URL: http://hdl.handle.net/10.1080/02692171.2012.736481
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Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:285-296
Template-Type: ReDIF-Article 1.0
Author-Name: Ipek Ilkkaracan
Author-X-Name-First: Ipek
Author-X-Name-Last: Ilkkaracan
Author-Name: Haluk Levent
Author-X-Name-First: Haluk
Author-X-Name-Last: Levent
Author-Name: Sezgin Polat
Author-X-Name-First: Sezgin
Author-X-Name-Last: Polat
Title: Exploring different measures of wage flexibility in a developing economy context: the case for Turkey
Abstract:
In this paper we use Turkish household labor force data to
address a number of conceptual issues pertaining to the wage curve, an
empirically derived negative relationship between the real wage level and
the local unemployment rate. First, we show that in developing economies
where labor markets are prone to high degree of segmentation by skill
level, local unemployment rates disaggregated by education provide more
accurate measures of the degree of group-specific wage competition and
hence yield more robust results of the wage curve analyses. Second, we
estimate the wage curve using various definitions of the unemployment
rate, including discouraged and marginally attached workers, and the
long-term unemployment rate to explore the most relevant measure of local
labor market tension in the wage setting process. We find that broader
definitions of unemployment serve as a more effective reference point in
measuring wage flexibility for women, whose attachment to the labor market
is substantially weak in the Turkish context; while for men the official
and long-term unemployment rates perform well. Finally, using quantile
regression we show that wage responsiveness to unemployment cannot be
assumed to be constant along the wage distribution. In the Turkish case,
we find a higher unemployment elasticity of wages around the median
segment of wage distribution. This effect is more pronounced for women.
Journal: International Review of Applied Economics
Pages: 297-315
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.721754
File-URL: http://hdl.handle.net/10.1080/02692171.2012.721754
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:297-315
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo L. dos Santos
Author-X-Name-First: Paulo L.
Author-X-Name-Last: dos Santos
Title: A cause for policy concern: the expansion of household credit in middle-income economies
Abstract:
This article discusses the significance of the recent growth
in household credit across a range of middle-income economies. This growth
is understood primarily as a result of policy, including the promotion of
individual borrowing as a means to fund access to housing, education and
health. A formal model of credit extension and allocation is developed,
establishing that consumption lending makes a comparatively stronger
contribution to aggregate profitability as well as financial fragility
than production lending. Consumption lending may be understood to create
distinctive endogenous tendencies to credit-market instability. The
findings point to the need for a critical reconsideration of reliance on
this lending for social and macroeconomic policy.
Journal: International Review of Applied Economics
Pages: 316-338
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.721755
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:316-338
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony N. Rezitis
Author-X-Name-First: Anthony N.
Author-X-Name-Last: Rezitis
Author-Name: Maria A. Kalantzi
Author-X-Name-First: Maria A.
Author-X-Name-Last: Kalantzi
Title: Measuring the degree of market power in the Greek manufacturing industry
Abstract:
This paper investigates the competitive conditions in the
Greek manufacturing industry, estimates the net and the total welfare
losses due to the possible existence of market power and investigates
factors affecting the market power at sectoral level and over time. The
bootstrap method is applied to assign measures of accuracy to the
statistical estimates. The empirical results imply the presence of
imperfect competition in the Greek manufacturing industry and the
existence of welfare losses. Furthermore, the findings indicate that labor
intensity, the sector size and the openness influence the market power at
the sectoral level and labor intensity, while the number of firms and the
openness affect the market power over time.
Journal: International Review of Applied Economics
Pages: 339-359
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.721756
File-URL: http://hdl.handle.net/10.1080/02692171.2012.721756
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:339-359
Template-Type: ReDIF-Article 1.0
Author-Name: J�rg Bibow
Author-X-Name-First: J�rg
Author-X-Name-Last: Bibow
Title: The Euroland crisis and Germany's euro trilemma
Abstract:
This paper investigates the causes behind the Euroland
crisis, particularly Germany's role in it. It is argued that the crisis is
not primarily a 'sovereign debt crisis', but rather a (twin) banking and
balance of payments crisis. Intra-area competitiveness and current account
imbalances, and the corresponding debt flows that such imbalances give
rise to, are at the heart of the matter, and they ultimately go back to
competitive wage restraint on Germany's part since the late 1990s. Germany
broke the golden rule of a monetary union: commitment to a common
inflation rate. As a result, the country faces a trilemma of its own
making and must make a critical choice, since it cannot have it all *-
perpetual export surpluses, a no transfer/no bailout monetary union, and a
'clean' independent central bank. Misdiagnosis and the wrongly prescribed
medication of austerity have made the situation worse by adding a growth
crisis to the potpourri of internal stresses that threaten the euro's
survival. The crisis in Euroland poses a global 'too big to fail' threat,
and presents a moral hazard of perhaps unprecedented scale to the global
community.
Journal: International Review of Applied Economics
Pages: 360-385
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.721757
File-URL: http://hdl.handle.net/10.1080/02692171.2012.721757
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:360-385
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Coelho
Author-X-Name-First: Bruno
Author-X-Name-Last: Coelho
Author-Name: Kevin P. Gallagher
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Gallagher
Title: The effectiveness of capital controls: evidence from Colombia and Thailand
Abstract:
In the run up to the financial crisis of 2007--2009 many
developing nations were subject to massive inflows of capital, capital
that their financial systems found difficult to absorb. One of a number of
policy options to respond to such inflows is unremunerated reserve
requirements (URR). Two countries, Colombia and Thailand, deployed URR in
the second half of the decade. This paper analyses the effectiveness of
the URR in those two instances. We find that URRs were modestly successful
in Colombia and Thailand. In Colombia, the controls were able stem an
asset bubble in the stock market. In Thailand, the URR reduced the overall
volume of flows, and the announcement of the URR caused a sharp drop in
asset prices. However, some of the other goals of capital controls were
not fulfilled. The results in this paper demonstrate that there is still a
role for capital controls in the twenty-first century, but such controls
should be more sophisticated than in years past.
Journal: International Review of Applied Economics
Pages: 386-403
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.734793
File-URL: http://hdl.handle.net/10.1080/02692171.2012.734793
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:386-403
Template-Type: ReDIF-Article 1.0
Author-Name: Malick Souare
Author-X-Name-First: Malick
Author-X-Name-Last: Souare
Title: Canada--US productivity gap: The role of competition intensity differential
Abstract:
The relative lack of competitive pressure in product markets
and lower investment in both fundamental and applied innovation are among
the potential factors that have been put forward to explain Canada's weak
productivity performance with respect to the US. Since competition is
generally seen as the single leading catalyst for fundamental and applied
innovation, this paper analyzes the role of product market competition in
the Canada--US productivity level gap. We develop an empirical framework
in which competition exerts both direct and indirect effects on
productivity, with the indirect impact coming through fundamental and
applied innovation. We find statistically significant evidence that the
competition intensity differential (between Canada and the US) has
contributed to the Canada--US productivity level gap directly, as well as
indirectly through lower investment in both R&D activities and M&E
(including ICT) investment. We also find statistically significant
evidence that Canada's relatively poor performance in both productivity
and M&E (including ICT) investment have acted as a self-reinforcing
mechanism, which further causes detriment to the country's productivity.
Journal: International Review of Applied Economics
Pages: 404-428
Issue: 3
Volume: 27
Year: 2013
Month: 5
X-DOI: 10.1080/02692171.2012.736479
File-URL: http://hdl.handle.net/10.1080/02692171.2012.736479
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Handle: RePEc:taf:irapec:v:27:y:2013:i:3:p:404-428
Template-Type: ReDIF-Article 1.0
Author-Name: Özlem Onaran
Author-X-Name-First: Özlem
Author-X-Name-Last: Onaran
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Klara Zwickl
Author-X-Name-First: Klara
Author-X-Name-Last: Zwickl
Title: FDI and domestic investment in Germany: crowding in or out?
Abstract:
This paper estimates the effects of outward FDI on domestic
business investment in Germany at the industry level for a panel of 19
industry and 10 services sectors. We pay particular attention to the
different motivations behind FDI, and distinguish between FDI to
high-versus low-wage countries, to Europe versus the rest of the world,
and FDI in services and industry sectors.We find that, in industry, FDI to
low-wage countries crowds out domestic investment, whereas FDI to
high-wage countries outside Europe crowds in domestic investment. In
services, FDI to Western Europe crowds in domestic investment.
Journal: International Review of Applied Economics
Pages: 429-448
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.752444
File-URL: http://hdl.handle.net/10.1080/02692171.2012.752444
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:429-448
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Grinberg
Author-X-Name-First: Nicolas
Author-X-Name-Last: Grinberg
Title: Capital accumulation and ground-rent in Brazil: 1953--2008
Abstract:
The paper measures the size of primary-sector surpluses in
the form of ground-rent appropriated by social subjects other than
landowners in Brazil, and assesses their weight in supporting the process
of capital accumulation during the period 1953--2008. For that purpose,
the paper identifies the mechanisms through which state policies
channelled a portion of ground-rent to capital, especially in the
industrial sector, assessing their individual impact. The paper finds that
transferred ground-rent has complemented surplus-value normally available
for appropriation by capital and thus helped sustain its process of
accumulation throughout most the period analysed here, including the
post-1990 'neoliberal' era.
Journal: International Review of Applied Economics
Pages: 449-471
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.736478
File-URL: http://hdl.handle.net/10.1080/02692171.2012.736478
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:449-471
Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann
Author-X-Name-First: Joscha
Author-X-Name-Last: Beckmann
Author-Name: Robert Czudaj
Author-X-Name-First: Robert
Author-X-Name-Last: Czudaj
Title: The forward pricing function of industrial metal futures -- evidence from cointegration and smooth transition regression analysis
Abstract:
The prices of internationally traded metals have experienced
wild swings and increased volatility in recent years. The relationship
between spot and futures prices is an important topic in this context, as
the current period's price of a futures contract should be an unbiased
estimator of next period's spot price under the joint assumption of risk
neutrality and rationality. Taking as a basis data from the Dow Jones UBS
Commodity Index, which uses metals traded on the London Metal Exchange and
US exchanges, this study adopts nonlinear smooth transition models to
analyze whether the forward spread is a leading indicator of future spot
price movements. Our findings suggest that such a price discovery function
can in most cases only be identified in periods of low volatility or small
previous spreads. Moreover, the underlying dynamics are captured best by
the use of a logistic transition function.
Journal: International Review of Applied Economics
Pages: 472-490
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.736480
File-URL: http://hdl.handle.net/10.1080/02692171.2012.736480
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:472-490
Template-Type: ReDIF-Article 1.0
Author-Name: Heba E. Helmy
Author-X-Name-First: Heba E.
Author-X-Name-Last: Helmy
Title: The impact of corruption on FDI: is MENA an exception?
Abstract:
The eruption of the Arab Spring in Tunisia and Egypt was
ensued by deterioration in FDI inflows. Whether a new Middle East free of
corruption accompanying previous dictatorships will offset the negative
ramifications of the uprisings and enhance FDI in the long run remains
debatable. Since the evidence on the causal relationship between
corruption and FDI is inconclusive, this study attempts to take another
step. The paper investigates the link between corruption and FDI flows to
the Middle East and North Africa (MENA) and assesses whether or not
corruption has more importance than other FDI determinants. By employing
several panel settings with various econometric specifications on 21 MENA
countries over the period 2003 to 2009, it is demonstrated that FDI varies
positively with corruption. Additionally, FDI in MENA was found to vary
positively with per capita income, openness, freedom and security of
investments and negatively with the tax and homicide rates. Since
corruption was not found to hinder FDI inflows, treating corruption should
be based on sound legal procedures that infringe neither on the rights,
freedom and security of FDI nor on the degree of openness and freedom of
the economy, which are the real stimulants of FDI in MENA.
Journal: International Review of Applied Economics
Pages: 491-514
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.752445
File-URL: http://hdl.handle.net/10.1080/02692171.2012.752445
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:491-514
Template-Type: ReDIF-Article 1.0
Author-Name: Azmat Gani
Author-X-Name-First: Azmat
Author-X-Name-Last: Gani
Author-Name: Almukhtar Saif Al-Abri
Author-X-Name-First: Almukhtar Saif
Author-X-Name-Last: Al-Abri
Title: Indicators of business environment, institutional quality and foreign direct investment in Gulf Cooperation Council (GCC) countries
Abstract:
This paper empirically investigates the effect of five
business environment indicators and four measures of institutional quality
on FDI inflows in GCC countries. The empirical results reveal that the
time required to start a business, the time required to enforce a
contract, the time required to register a property and the time required
to resolve insolvency are negatively and statistically significantly
correlated with FDI inflows. Our findings also confirm that political
instability and absence of democracy, in fact, encourages FDI inflows. We
conclude that the business environment strongly matters for FDI inflows
into the GCC countries.
Journal: International Review of Applied Economics
Pages: 515-530
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.760066
File-URL: http://hdl.handle.net/10.1080/02692171.2012.760066
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:515-530
Template-Type: ReDIF-Article 1.0
Author-Name: Rudiger von Arnim
Author-X-Name-First: Rudiger
Author-X-Name-Last: von Arnim
Author-Name: K.P. Prabheesh
Author-X-Name-First: K.P.
Author-X-Name-Last: Prabheesh
Title: Rebalancing through expenditure and price changes
Abstract:
This paper puts forth a Neo-Kaleckian open economy model of
two countries in order to investigate adjustment of US--China external
imbalances. First, a stylized fixed mark-up model is presented, and
discussed based on graphical analysis. Second, we present estimates of
bilateral income and price elasticities of imports. Third, we employ the
model for simulation analysis. Specifically, we randomly distribute
expenditure change across government, investment and imports and calculate
the exchange rate change necessary to lead to an equal change in the
bilateral external imbalance. Doing so repeatedly allows us to estimate
probability distributions of endogenous variable changes.
Journal: International Review of Applied Economics
Pages: 531-556
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.760067
File-URL: http://hdl.handle.net/10.1080/02692171.2012.760067
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:531-556
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Jiang
Author-X-Name-First: Xiao
Author-X-Name-Last: Jiang
Title: Trade expansion and employment generation: how mercantilist does China have to be?
Abstract:
We conduct an input--output analysis of China's employment
changes due to changes in trade structure on a sectoral level. We find
that between 2002 and 2007 China generated about 71 million jobs due to
trade expansion. We also estimate the additional amount of trade that
would be needed if China were using its trade surplus as the main tool to
absorb its excess labour. Given the magnitude of this estimated amount, we
conclude that this 'mercantilist' approach to excess labour absorption is
not feasible. Finally, using Spearman rank correlation analysis, we find
that the ranking of China's sectors' employment generation capacities is
inversely related to the ranking of these sectors' trade performances.
This suggests that the 'mercantilist' approach to excess labour absorption
is not only infeasible but also inefficient. We end the paper by
suggesting a more balanced growth path for China.
Journal: International Review of Applied Economics
Pages: 557-573
Issue: 4
Volume: 27
Year: 2013
Month: 7
X-DOI: 10.1080/02692171.2012.760068
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Handle: RePEc:taf:irapec:v:27:y:2013:i:4:p:557-573
Template-Type: ReDIF-Article 1.0
Author-Name: Deepankar Basu
Author-X-Name-First: Deepankar
Author-X-Name-Last: Basu
Author-Name: Ying Chen
Author-X-Name-First: Ying
Author-X-Name-Last: Chen
Author-Name: Jong-seok Oh
Author-X-Name-First: Jong-seok
Author-X-Name-Last: Oh
Title: Class struggle and economic fluctuations: VAR analysis of the post-war US economy
Abstract:
Building on Marx's insights in Chapter 25,
Volume I of Capital, an augmented version of the cyclical profit squeeze
(CPS) theory offers a plausible explanation of macroeconomic fluctuations
under capitalism. The pattern of dynamic interactions that emerges from a
3-variable (profit share, unemployment rate and nonresidential fixed
investment) vector autoregression estimated with quarterly data for the
postwar U.S. economy is consistent with the CPS theory for the regulated
(1949Q4--1975Q1) as well as for the neoliberal periods (starting in 1980
or in 1985). Hence, the CPS mechanism seems to be in operation even under
neoliberalism.
Journal: International Review of Applied Economics
Pages: 575-596
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2012.760065
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:575-596
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Vaona
Author-X-Name-First: Andrea
Author-X-Name-Last: Vaona
Title: Twenty-two econometric tests on the gravitation and convergence of industrial rates of return in New Zealand and Taiwan
Abstract:
We test the hypotheses of industry return
rates either gravitating around or converging towards a common value in
Taiwan and New Zealand. We adopt various econometric approaches. The
results are then nested in a meta-analytic framework together with those
of the past literature. Various kinds of limitations to capital mobility
can hamper the tendential equalization of return rates. Focusing on those
arising from different innovation capabilities across industries can pave
the way to collaboration between evolutionary and radical political
economics.
Journal: International Review of Applied Economics
Pages: 597-611
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2013.778820
File-URL: http://hdl.handle.net/10.1080/02692171.2013.778820
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:597-611
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald H. Lange
Author-X-Name-First: Ronald H.
Author-X-Name-Last: Lange
Title: Monetary policy reactions and the exchange rate: a regime-switching structural VAR for Canada
Abstract:
The objective of this study is to identify
monetary policy reactions in a nonlinear, structural vector autoregression
(VAR) framework, with regime-switching contemporaneous policy responses in
a small open economy. The key finding is that monetary policy in Canada
responds contemporaneously to disturbances in the real exchange rate, as
well as the output gap and inflation. The Bank of Canada is found to have
much larger responses to exchange rate fluctuations during volatile
periods than more stable periods. However, the Bank is found statistically
to have a relatively linear reaction function with symmetric responses to
output and inflation shocks across interest rate regimes. The estimates
for the contemporaneous responses to the output gap in both regimes are
found to be virtually identical to the 0.5 weights in the original Taylor
rule for the United States, while the responses to inflation surprises are
slightly smaller. Overall, the Bank of Canada is found to have operated
within the range of optimal responses suggested by small-scale structural
models in the normative literature on monetary policy rules.
Journal: International Review of Applied Economics
Pages: 612-632
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2012.752446
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:612-632
Template-Type: ReDIF-Article 1.0
Author-Name: Gaston A. Giordana
Author-X-Name-First: Gaston A.
Author-X-Name-Last: Giordana
Author-Name: Ingmar Schumacher
Author-X-Name-First: Ingmar
Author-X-Name-Last: Schumacher
Title: Bank liquidity risk and monetary policy. Empirical evidence on the impact of Basel III liquidity standards
Abstract:
We extend the literature on the bank
lending channel in two aspects. First, rather than following the
literature by analyzing the impact of banks'liquidity (measured via their
asset portfolio) on monetary policy transmission, we study the role of
banks' actual liquidity risk, as measured by the Basel III liquidity
regulations. Second, we investigate the effect of complying with the Basel
III liquidity standards on monetary policy transmission. We use highly
detailed bank-level data from Luxembourg for the period 2003q1--2010q4.
Our findings are that monetary policy transmission works its way through
small banks that also have a large maturity mismatch, as measured by the
Net Stable Funding Ratio. In contrast, large banks with a small maturity
mismatch increase their lending following a monetary policy shock, which
confirms existing results that Luxembourg’s banks are liquidity
providers to the European market. Based upon in-sample predictions and
upon simulated data from an optimization model that takes the banks'
business models into account, we conclude that the bank lending channel
will no longer be effective once banks adhere to the new Basel III
liquidity regulations.
Journal: International Review of Applied Economics
Pages: 633-655
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2013.778821
File-URL: http://hdl.handle.net/10.1080/02692171.2013.778821
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:633-655
Template-Type: ReDIF-Article 1.0
Author-Name: George E. Halkos
Author-X-Name-First: George E.
Author-X-Name-Last: Halkos
Author-Name: Nickolaos G. Tzeremes
Author-X-Name-First: Nickolaos G.
Author-X-Name-Last: Tzeremes
Title: Modelling the effect of national culture on countries' innovation performances: A conditional full frontier approach
Abstract:
This paper provides empirical evidence of
the link between countries' cultural factors and innovation performance.
By defining innovation process in a knowledge production framework it uses
conditional and unconditional Data Envelopment Analysis (DEA) models
together with data from the European Innovation Scoreboard for the year
2007 and Hofstede's cultural indexes. In this way it models and measures
the effect of cultural values on 25 European countries' innovation
efficiency levels. The empirical results reveal that national culture can
impact countries' innovation performance. Specifically, we find
significant negative effects on countries' innovation efficiency levels
for countries with higher power distance and uncertainty avoidance values.
Journal: International Review of Applied Economics
Pages: 656-678
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2013.778819
File-URL: http://hdl.handle.net/10.1080/02692171.2013.778819
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:656-678
Template-Type: ReDIF-Article 1.0
Author-Name: Elisa Fusco
Author-X-Name-First: Elisa
Author-X-Name-Last: Fusco
Author-Name: Francesco Vidoli
Author-X-Name-First: Francesco
Author-X-Name-Last: Vidoli
Title: Spatial stochastic frontier models: controlling spatial global and local heterogeneity
Abstract:
In the last decade special attention has
been focused on estimating a firm's efficiency and productivity;
Stochastic Frontier Analysis (SFA) has been one of the most used
techniques that allows the separation of inefficiency from stochastic
noise, assuming homogeneous technology is available to all producers and
that there is independence between observations. However, this second
assumption is violated data are spatial auto-correlated, thus biasing
statistical inference. Attention has, therefore, shifted to models that
allow the controlling of heterogeneity introducing, in the model or in the
error term, contextual variables correlated with inefficiency. In our
paper we propose viewing the spatial external factors (natural or
artificial) in a new way: instead of identifying ex-ante a multitude of
determinants, often statistically and economically difficult to detect, we
suggested using an original methodology that, following a classical SFA
approach, splits efficiency into three components: the first one is linked
to the spatial lag, the second one to the DMU's specificities, and the
third to the error term. Finally, we tested our method using simulated
data and examined the Italian wine sector, testing the ability to control
spatial, global and local heterogeneity.
Journal: International Review of Applied Economics
Pages: 679-694
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2013.804493
File-URL: http://hdl.handle.net/10.1080/02692171.2013.804493
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:679-694
Template-Type: ReDIF-Article 1.0
Author-Name: Pekka Mannonen
Author-X-Name-First: Pekka
Author-X-Name-Last: Mannonen
Author-Name: Elias Oikarinen
Author-X-Name-First: Elias
Author-X-Name-Last: Oikarinen
Title: Risk premium, macroeconomic shocks, and information technology: an empirical analysis
Abstract:
This study empirically identifies the
impact of various macroeconomic factors on the default risk premium. Using
monthly data for the period 1970--2010 for the US, our estimations
indicate that the monetary policy aggregates, risk-free interest rate,
term structure of interest rates, inflation, and the state of the business
cycle influence the risk premium. The results also provide some evidence
in support of the hypothesis that the development of information
technology has had a decreasing impact on the risk premium. As expected,
various financial crises have had substantial and long-lasting effects on
the premium. The results suggest that the direct impact of the subprime
crisis and Lehman's collapse on the risk premium was as large as two and a
half percentage-points for a sustainable period. Foreign financial crises,
in turn, have lowered the risk premium in the US market, suggesting a
flight-to-safety phenomenon.
Journal: International Review of Applied Economics
Pages: 695-705
Issue: 5
Volume: 27
Year: 2013
Month: 9
X-DOI: 10.1080/02692171.2013.804494
File-URL: http://hdl.handle.net/10.1080/02692171.2013.804494
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Handle: RePEc:taf:irapec:v:27:y:2013:i:5:p:695-705
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy P. Sharpe
Author-X-Name-First: Timothy P.
Author-X-Name-Last: Sharpe
Title: Institutional arrangements and public debt threshold limits
Abstract:
Inter-governmental Organisations, such as
the IMF and OECD, advocate a medium-term reduction in deficit spending and
public debt accumulation among advanced economies to satisfy conditions of
fiscal sustainability. Buttressing the need for fiscal austerity, Reinhart
and Rogoff claim to have identified a so-called tipping
point, beyond which public debt accumulation negatively affects
economic growth. While recent data seem to indicate that some Eurozone
(non-sovereign) economies have reached a tipping point, for other advanced
(sovereign) economies, such as the US, UK and Japan, this is not clear.
The mainstream tipping point literature however does not recognise the
importance of institutional arrangements for the conduct of fiscal and
monetary policy. Furthermore, the literature sheds little light on the
transmission mechanism between high public debt and low economic growth.
This article draws on the principles of Modern Monetary Theory to discuss
institutional arrangements and to justify the theoretical and empirical
focus on Eurozone economies. The empirical analysis unpacks the
transmission mechanism(s) to reveal that Eurozone economies have reached a
public debt threshold limit with respect to long-term interest rates.
Journal: International Review of Applied Economics
Pages: 707-728
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.804496
File-URL: http://hdl.handle.net/10.1080/02692171.2013.804496
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:707-728
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Nishi
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Nishi
Title: On the short-run relationship between the income distribution-growth and debt-growth regimes
Abstract:
This paper examines the short-run
relationship between the income distribution-growth and debt-growth
regimes using a simple, post-Keynesian, demand-driven model. While
mechanisms of wage-led and profit-led growth have been revealed, their
relationship with debt-led and debt-burdened growth is yet to be
clarified, because arguments on these growth regimes were developed
separately. This paper shows that the growth regimes transform as the
regime-switching parameters in the IS balance change. By way of
theoretical analysis, this paper presents some important implications for
(i) the possibility of the combination of growth regimes; (ii) the
features of post-Keynesian economic analysis of income distribution, debt,
and demand-led growth, which sharply contrast with the basic neo-classical
theory; and (iii) theoretical validation of recent empirical results.
Moreover, this paper also suggests some policy implications or lessons for
the combination of economic growth regimes.
Journal: International Review of Applied Economics
Pages: 729-749
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.819840
File-URL: http://hdl.handle.net/10.1080/02692171.2013.819840
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:729-749
Template-Type: ReDIF-Article 1.0
Author-Name: Scott W. Hegerty
Author-X-Name-First: Scott W.
Author-X-Name-Last: Hegerty
Title: Exchange market pressure, stock prices, and commodity prices in West Africa
Abstract:
As Africa continues its decade of rapid
economic growth, the continent also faces the risk of becoming more
susceptible to financial 'contagion.' Capital flows and trade linkages
might cause one country's currency market to influence those of its
neighbors. Likewise, shocks to global commodity or asset markets might
induce a crisis in one or more countries in the region. This study
generates monthly measures of exchange market pressure (EMP) for four
individual West African countries, as well as for the WAEMU franc zone,
from 2002 to 2012. Vector Autoregressive (VAR) methods are then used to
test for linkages among them, as well as to analyze the effects of various
external price shocks. A number of spillovers are uncovered. More
importantly, local connections dominate global ones in the case of stock-
and commodity-price declines. Ghana, for example, is shown to be a
'commodity currency' when West African commodity prices are included in
the VAR, but not when a global index is used.
Journal: International Review of Applied Economics
Pages: 750-765
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.819841
File-URL: http://hdl.handle.net/10.1080/02692171.2013.819841
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:750-765
Template-Type: ReDIF-Article 1.0
Author-Name: Fragkiskos Filippaios
Author-X-Name-First: Fragkiskos
Author-X-Name-Last: Filippaios
Author-Name: Constantina Kottaridi
Author-X-Name-First: Constantina
Author-X-Name-Last: Kottaridi
Title: Complements or substitutes? New theoretical considerations and empirical evidence on the imports and FDI relationship in Central and Eastern European Countries
Abstract:
This paper addresses the imperative need
to understand the relationship between inward FDI and trade by developing
a new conceptual approach and providing empirical evidence. We use an
expanded time dataset, from 1992 to 2008 and an enriched dataset of
countries, sectors and location factors. In regards to the inward FDI
versus imports relationship, results comply with our theoretical
formulation and strongly indicate an overall complementarity with each
other. In the case of FDI we find strong locational characteristics such
as the large market size, the gradual improvement of the macro-environment
and finally the quality of labour force to play a positive role.
Journal: International Review of Applied Economics
Pages: 766-797
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.826633
File-URL: http://hdl.handle.net/10.1080/02692171.2013.826633
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:766-797
Template-Type: ReDIF-Article 1.0
Author-Name: Mazhar Mughal
Author-X-Name-First: Mazhar
Author-X-Name-Last: Mughal
Author-Name: Farid Makhlouf
Author-X-Name-First: Farid
Author-X-Name-Last: Makhlouf
Title: Labour effects of foreign and domestic remittances -- evidence from Pakistan
Abstract:
Remittances are playing an increasingly
important role in the economies of developing countries. In this paper, we
study the effects of these flows on Pakistan's labour market. We employ
the 2007--2008 Household Integrated Economic Survey and Probit as well as
Propensity Score Matching techniques to examine the impact on labour
participation, quantity of work and activities of working as well as
non-active members of remittance-receiving households. We find that both
foreign and domestic remittances tend to lower labour supply of the
recipient households. This impact is higher among women and among the
young. The impact is more pronounced in the rural areas. In addition,
foreign remittances increase the likelihood of household members attending
middle school. We also examine the quantity of labour supplied by the
remittance-recipient households. Results show little difference in the
number of months and days worked between the households receiving and not
receiving remittances. Furthermore, we find that the likelihood of being
self-employed and cultivating one's own land is higher among remittance
recipients. In sum, our analysis highlights a higher role of foreign
remittances in the labour market as compared to internal remittances.
Journal: International Review of Applied Economics
Pages: 798-821
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.804495
File-URL: http://hdl.handle.net/10.1080/02692171.2013.804495
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:798-821
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Author-Name: Bradley Bordiss
Author-X-Name-First: Bradley
Author-X-Name-Last: Bordiss
Title: Barbaric gold and civilised banking: Keynes’s Indian Currency and Finance. A view from the South after 100 years
Journal: International Review of Applied Economics
Pages: 822-833
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.839501
File-URL: http://hdl.handle.net/10.1080/02692171.2013.839501
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:822-833
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: Lost and found: the South African transition through a Stellenbosch lens. Willie Esterhuyse, Endgame: secret talks and the end of apartheid. Sampie Terreblanche, Lost in transformation
Journal: International Review of Applied Economics
Pages: 834-841
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.839500
File-URL: http://hdl.handle.net/10.1080/02692171.2013.839500
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:834-841
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Coffey
Author-X-Name-First: Dan
Author-X-Name-Last: Coffey
Title: Future imperfect: a review of Andrew Gamble. Andrew Gamble, The spectre at the feast: capitalist crisis and the politics of recession
Journal: International Review of Applied Economics
Pages: 842-847
Issue: 6
Volume: 27
Year: 2013
Month: 11
X-DOI: 10.1080/02692171.2013.839503
File-URL: http://hdl.handle.net/10.1080/02692171.2013.839503
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Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:842-847
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Bacchiocchi
Author-X-Name-First: Emanuele
Author-X-Name-Last: Bacchiocchi
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Author-Name: Anna Giunta
Author-X-Name-First: Anna
Author-X-Name-Last: Giunta
Title: Internationalization and industrial districts: evidence from the Italian automotive supply chain
Abstract:
In this paper we focus on the determinants
of internationalization and, in particular, on the specific role played by
the agglomeration of small and medium sized enterprises (SMEs) through
their proximity to a large firm. We study the characteristics of the
internationalization process in a representative sample of 786 firms in
the Italian automotive supply chain. After building an
Internationalization Strategy Index (ISI), we perform a multinomial logit
econometric analysis. The main findings of the empirical analysis are: (a)
Italian automotive supplier firms mainly go in the foreign markets through
export, i.e. the simplest internationalization mode; (b) as predicted in
the literature, individual firm characteristics play a significant role in
the probability of internationalization; (c) firms located in the province
of Turin, where the dominant car assembler (Fiat) in Italy has its
headquarters, or more generally, in large automotive industry districts,
enjoy a clear localization advantage; (d) interestingly, we also find that
internationalization is negatively correlated with the share of Fiat in
suppliers' sales, and that suppliers located in a district and less
dependent on Fiat are also those adopting the most advanced
internationalization strategies.
Journal: International Review of Applied Economics
Pages: 1-21
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.826634
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Template-Type: ReDIF-Article 1.0
Author-Name: Tuomo Suhonen
Author-X-Name-First: Tuomo
Author-X-Name-Last: Suhonen
Title: Quality of higher education and earnings: evidence from Finland using field-of-study-level quality measures
Abstract:
Using administrative data from Finland,
this paper empirically examines the relationship between university
graduates' early career earnings and three measures of university quality:
the number of teachers per student, the number of publications per
researcher and the number of applicants per admitted student. A
distinction to previous studies is made by paying special attention to
field-of-study heterogeneity: the quality measures are allowed to vary by
a student's field, while the heterogeneity of earnings and individuals
across fields is accounted for in the analysis. For the most part, the
results indicate that the relationship between institution quality and
earnings is rather weak; however, certain significant quality effects are
also found. In particular, the teachers/student ratio is found to be
positively associated with the earnings of women and graduates from the
humanities. Overall, the results indicate considerable heterogeneity in
quality effects across genders and fields.
Journal: International Review of Applied Economics
Pages: 22-44
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.826635
File-URL: http://hdl.handle.net/10.1080/02692171.2013.826635
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Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:22-44
Template-Type: ReDIF-Article 1.0
Author-Name: Banu Simmons-Sueer
Author-X-Name-First: Banu
Author-X-Name-Last: Simmons-Sueer
Title: The bank lending channel and Swiss banking: a survey-based approach
Abstract:
This paper investigates the issue of the
bank-lending channel in Switzerland. Using survey data to reflect loan
supply and demand factors, we investigate the dynamic behaviour of
aggregate loans in a VAR setting. Our findings indicate that higher
interest rates lead to tightened loan approvals, and liquidity is a
binding constraint as the contraction in deposits exceeds the reduction in
loan growth following a monetary shock. Thus, banks' actions seem to
aggravate (ameliorate) the initial effects of higher (lower) interest
rates on aggregate demand.
Journal: International Review of Applied Economics
Pages: 45-63
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.826636
File-URL: http://hdl.handle.net/10.1080/02692171.2013.826636
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Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:45-63
Template-Type: ReDIF-Article 1.0
Author-Name: Julien Chevallier
Author-X-Name-First: Julien
Author-X-Name-Last: Chevallier
Author-Name: Florian Ielpo
Author-X-Name-First: Florian
Author-X-Name-Last: Ielpo
Title: Twenty years of jumps in commodity markets
Abstract:
In this article, we provide statistical
evidence around jumps affecting commodity returns. Using nearly 20 years
of daily data, we use Laurent, Lecourt, and Palm's (2011) methodology to
jump extraction, and discuss various aspects of the estimated jump
activity. On average across various commodity markets, we find a high
number of days for which returns exhibit the presence of jumps,
consistently with the intuition that commodities are affected by large
price fluctuations. We emphasize that the post-jump average return depends
on the commodity sector considered (e.g. agriculture, energy, or metals).
We also show evidence of a jump-to-volatility channel for commodities
(similar to the effect usually found for equities). Finally, we diagnose
around 40 dates during which commodity indices, stocks, bonds and
currencies `co-jump', revealing a tail dependence between standard and
alternative assets.
Journal: International Review of Applied Economics
Pages: 64-82
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.826637
File-URL: http://hdl.handle.net/10.1080/02692171.2013.826637
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Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:64-82
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Financial systems and economic growth in South Africa: a dynamic complementarity test
Abstract:
This study examines the relationship
between banks, stock markets and economic growth in South Africa. The
study attempts to answer one critical question: are stock markets and
banks complementary to one another in the process of enhancing economic
growth? The complementarity between the stock markets and banks is
examined by including a set of interactive terms in a standard growth
model, alongside bank development and stock market development proxies. In
order to test the robustness of the results, three proxies of stock market
development have been used, namely stock market capitalization, stock
market traded value and stock market turnover -- against the ratio of bank
credit to the private sector, a proxy for bank-based financial
development. The economic growth is, however, proxied by real GDP per
capita. Using the ARDL-Bounds testing procedure, the study finds that the
complementarity between stock market development and bank-based financial
development is weak and sensitive to the proxy used to measure stock
market development.
Journal: International Review of Applied Economics
Pages: 83-101
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.828681
File-URL: http://hdl.handle.net/10.1080/02692171.2013.828681
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Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:83-101
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Kravtsova
Author-X-Name-First: Victoria
Author-X-Name-Last: Kravtsova
Title: Productivity change and externalities: empirical evidence from Hungary
Abstract:
This paper contributes to the analysis of
the impact of externalities on the host country's total factor
productivity by taking into account different dimensions of spillover
effects. Namely, engagement in exporting and foreign ownership is
generally perceived as being beneficial to individual firms and the
economy as a whole. The approach used in the current research accounts for
different internal as well as external factors that individual firms face
and evaluates the effect on changes in productivity, technology as well as
the efficiency of domestic firms. The empirical analysis focuses on
Hungary. While the country leads the group of post-socialist countries in
the amount of attracted foreign direct investments (FDI) the effect of
this policy on the economy remains unclear. The research finds that
different externalities play a different role in productivity,
technological and efficiency change in different types of firms and
sectors of the economy.
Journal: International Review of Applied Economics
Pages: 102-125
Issue: 1
Volume: 28
Year: 2014
Month: 1
X-DOI: 10.1080/02692171.2013.828682
File-URL: http://hdl.handle.net/10.1080/02692171.2013.828682
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Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:102-125
Template-Type: ReDIF-Article 1.0
Author-Name: P. Arestis
Author-X-Name-First: P.
Author-X-Name-Last: Arestis
Author-Name: A.R. Gonz�lez
Author-X-Name-First: A.R.
Author-X-Name-Last: Gonz�lez
Title: Modelling the housing market in OECD countries
Abstract:
Recent episodes of housing bubbles, which
occurred in several economies after the burst of the United States housing
market, suggest studying the evolution of housing prices from a global
perspective. We utilise a theoretical model for the purposes of this
contribution, which identifies the main drivers of housing price
appreciation, such as, for example, income, residential investment,
financial elements, fiscal policy and demographics. In a second stage of
our analysis, we test our theoretical hypothesis by means of a sample of
18 OECD countries from 1970 to 2011. We employ the vector error correction
econometric technique in terms of our empirical analysis, which permits us
to model the long-run equilibrium relationship and the short-run dynamics,
which also helps to account for endogeneity and reverse causality
problems.
Journal: International Review of Applied Economics
Pages: 131-153
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.828683
File-URL: http://hdl.handle.net/10.1080/02692171.2013.828683
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:131-153
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Clementi
Author-X-Name-First: Fabio
Author-X-Name-Last: Clementi
Author-Name: Michele Giammatteo
Author-X-Name-First: Michele
Author-X-Name-Last: Giammatteo
Title: The labour market and the distribution of earnings: an empirical analysis for Italy
Abstract:
Using four waves of data from the
Participation Labour Unemployment Survey, a database of information on the
Italian labour market supply, we address the question of earnings
dispersion by applying a 'nested' decomposition procedure of the Theil
inequality measure, which combines into a unified framework the standard
decompositions by population subgroups and income sources. The empirical
evidence obtained points to the key role played by the self-employees in
shaping labour income inequality, especially at the upper extreme of the
earnings distribution, and the emergence of non-standard forms of
employment as an important feature of the contemporary workplace.
Journal: International Review of Applied Economics
Pages: 154-180
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.838544
File-URL: http://hdl.handle.net/10.1080/02692171.2013.838544
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:154-180
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Gius
Author-X-Name-First: Mark
Author-X-Name-Last: Gius
Title: The impact of job mobility on earnings: using occupational and industrial classifications to identify job changes
Abstract:
According to the Bureau of Labor
Statistics, the median number of years that a US worker has been with
their current employer is 4.4 years. Although many job changes may
not be classified as 'career changes,' any type of job change may have an
impact on a person's future earnings. In the present study, the following
three types of job changes are examined in order to determine which ones
result in higher incomes: a change in occupational status; a change in
industry; or a change in both. Using data from the National Longitudinal
Survey of Youth (NLSY), a log-linear wage regression with a correction for
self-selection is estimated. Results suggest that changing jobs within the
same industry or within the same occupation both increase a person's
income. However, a job change that is characterized by both a change in
industry and occupation reduces a person's income. The present study is
one of the few studies to examine the effects of job mobility on earnings
when mobility is defined in the context of changes in occupational and/or
industrial classification.
Journal: International Review of Applied Economics
Pages: 181-190
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.838545
File-URL: http://hdl.handle.net/10.1080/02692171.2013.838545
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:181-190
Template-Type: ReDIF-Article 1.0
Author-Name: Abdorreza Soleymani
Author-X-Name-First: Abdorreza
Author-X-Name-Last: Soleymani
Author-Name: Soo Y. Chua
Author-X-Name-First: Soo Y.
Author-X-Name-Last: Chua
Title: How responsive are trade flows between Malaysia and China to the exchange rate? Evidence from industry data
Abstract:
This paper investigates the impact of
currency depreciation on bilateral trade between Malaysia and China,
especially how a real depreciation of ringgit against the yuan on each
industry's inpayments and outpayments affect the trade balance. We employ
disaggregated quarterly data on import and export for 52 industries over
the period 1993Q1 to 2012Q4. The results from the bounds testing approach
to the cointegration and error-correction model reveal that the real
bilateral exchange rate has short and long-run effects on the inpayments
and outpayments of the industries. However, the short-run effects shift
into the long run in 14 out of 35 industries in the inpayment models and
17 out of 44 industries in the outpayments models. Most of these are small
industries producing intermediate goods. According to the ML condition,
the depreciation of ringgit against yuan improves Malaysia's trade balance
with China in these industries.
Journal: International Review of Applied Economics
Pages: 191-209
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.858666
File-URL: http://hdl.handle.net/10.1080/02692171.2013.858666
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:191-209
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Fritz
Author-X-Name-First: Barbara
Author-X-Name-Last: Fritz
Author-Name: Daniela Prates
Author-X-Name-First: Daniela
Author-X-Name-Last: Prates
Title: The new IMF approach to capital account management and its blind spots: lessons from Brazil and South Korea
Abstract:
As emerging economies experience a boom in
capital inflows, governments are increasingly concerned about their
downsides. Even the IMF (International Monetary Fund), long a stalwart
proponent of financial liberalization, has engaged in a new debate on
capital flow management. Drawing lessons from empirical case studies on
Brazil and South Korea, this paper finds that the new IMF framework
remains insufficient in two main aspects. First, by defining 'capital flow
management measures' (CFMs) as a temporary instrument embedded in an
overall strategy of financial opening, the organization insists on the
general advantages of financial liberalization, which poses serious limits
to emerging economies' policy space. Second, the Fund keeps on stressing a
separation of prudential financial regulation, which should be permanent,
and temporary CFMs. Yet, the case studies presented here show that,
especially for emerging markets with rather open and sophisticated
domestic financial markets, both types of measures are interdependent and
overlapping. Additionally, we demonstrate the relevance of a third type of
regulation, lying on foreign exchange (FX) derivatives instruments, which
may also be required to effectively manage foreign investors' portfolio
reallocations and their impact.
Journal: International Review of Applied Economics
Pages: 210-239
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.858668
File-URL: http://hdl.handle.net/10.1080/02692171.2013.858668
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:210-239
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Bournakis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Bournakis
Title: Costs, knowledge and market structure: understanding the puzzle of international competitiveness with Greek export data
Abstract:
This is an analysis of the sources of
international competitiveness with Greek export data for the period
1987--2007. The framework used in the study incorporates factors that do
not only represent cost competitiveness but also shed light on the
determinants of economic complexity. Economic complexity is the amount of
knowledge capabilities embodied in exports that indicates -- as a source
of comparative advantage -- the ability for product differentiation and
product variety. The empirical analysis shows that industries benefit
substantially from their own R&D activity but, owing to weak economic
complexity in the country, there are no cross-industry knowledge
spillovers (both at national and international level) that can benefit
export activity. Greek exports were found to be sensitive to relative unit
labour costs (RULC) but the most important export component of this index
is relative labour productivity and not labour cost. Not all institutional
arrangements have the same impact on exports, for example high trade union
density might harm competitiveness but this factor is uncorrelated with
R&D investment. In the view of these findings, Greece's route to
international competitiveness should be primarily by improving its
economic complexity, making sure that the country specialises in
productive activities that enrich its knowledge capabilities as well as
increase the potential of knowledge transfer.
Journal: International Review of Applied Economics
Pages: 240-269
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.858669
File-URL: http://hdl.handle.net/10.1080/02692171.2013.858669
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:240-269
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Nacvalovaite
Author-X-Name-First: Ana
Author-X-Name-Last: Nacvalovaite
Title: Developments in global finance. Review of Sovereign wealth funds: legitimacy, governance and global power, by Gordon L. Clark, Adam D. Dixon, and Ashby H. B. Monk
Journal: International Review of Applied Economics
Pages: 270-272
Issue: 2
Volume: 28
Year: 2014
Month: 3
X-DOI: 10.1080/02692171.2013.839504
File-URL: http://hdl.handle.net/10.1080/02692171.2013.839504
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Handle: RePEc:taf:irapec:v:28:y:2014:i:2:p:270-272
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Argitis
Author-X-Name-First: Georgios
Author-X-Name-Last: Argitis
Author-Name: Maria Nikolaidi
Author-X-Name-First: Maria
Author-X-Name-Last: Nikolaidi
Title: The financial fragility and the crisis of the Greek government sector
Abstract:
The purpose of this paper is to develop
Minskyan financial fragility indices for the government sector and to
examine the financial structure of the Greek government before and after
the onset of the sovereign debt crisis in 2009. We provide empirical
evidence that clearly shows the growing financial fragility of the Greek
public sector in the 2000s. We also assess the effectiveness of the
implemented bailout adjustment programmes in Greece and claim that the
conducted austerity measures and fiscal consolidation have not
significantly improved the financial posture of the Greek government
sector. We argue that the implementation of fiscal and wage austerity in
an economy that lacks structural competitiveness produces prolonged
recession and unemployment with adverse feedback effects on the financial
fragility of the government.
Journal: International Review of Applied Economics
Pages: 274-292
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.858667
File-URL: http://hdl.handle.net/10.1080/02692171.2013.858667
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:274-292
Template-Type: ReDIF-Article 1.0
Author-Name: David Shepherd
Author-X-Name-First: David
Author-X-Name-Last: Shepherd
Author-Name: Rebeca I. Mu�oz Torres
Author-X-Name-First: Rebeca I.
Author-X-Name-Last: Mu�oz Torres
Author-Name: Miguel A. Mendoza
Author-X-Name-First: Miguel A.
Author-X-Name-Last: Mendoza
Title: Regional output growth and the impact of macroeconomic shocks in Mexico
Abstract:
This paper presents an empirical analysis
of the relationship between national and regional output growth in Mexico,
and the impact of domestic and international shocks on national, regional
and state output movements. Our results suggest that there are
similarities, but also significant differences, in real output dynamics
across the regions and states of Mexico and that it would be wrong to
regard the Mexican economy as a homogeneous entity. The results show that
real output growth in Mexico and the United States are linked, but there
is no common output trend for the two countries. At the regional level, it
appears that North and Central Mexico share similar features, but the path
of output growth is more distinctive in South Mexico. Overall, our results
suggest that assessments of macroeconomic performance, and related
discussions of policy, should pay greater attention to the potential
diversity in regional performance.
Journal: International Review of Applied Economics
Pages: 293-310
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872083
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872083
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:293-310
Template-Type: ReDIF-Article 1.0
Author-Name: Chor Foon Tang
Author-X-Name-First: Chor Foon
Author-X-Name-Last: Tang
Title: The effect of real wages and inflation on labour productivity in Malaysia
Abstract:
This study examines the relationship
between labour productivity, real wages and inflation in Malaysia using
the bounds testing approach to cointegration and also the Granger
causality test. The findings of this study suggest that inflation is
negatively related to labour productivity. However, the effect of real
wages on labour productivity is non-linear and the two have an inverted-U
shape relationship. From a policy viewpoint, the Granger causality test
shows that real wages Granger-cause labour productivity, but there is no
evidence of reversal causation. Hence, the Malaysian dataset supports the
claims by the efficiency wage theory. Moreover, we find that inflation and
labour productivity in Malaysia have bilateral causality in the short- and
the long-run.
Journal: International Review of Applied Economics
Pages: 311-322
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872084
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872084
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:311-322
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: George Chen
Author-X-Name-First: George
Author-X-Name-Last: Chen
Title: An empirical analysis of the US stock market and output growth volatility spillover effects on three Anglo-Saxon countries
Abstract:
This paper examines the dynamic and
switching effects of volatility spillovers arising from US stock market
returns and GDP growth on those of Australia, Canada and the UK. For this
purpose, we use quarterly data (1961q1--2013q1) and a constant probability
Markov regime switching model. We found that the US stock market
volatility significantly affects the stock market volatility of all three
countries at least in one of the two specified regimes over time. However,
the stock market volatilities in none of the three countries are
contemporaneously influenced by the US output volatility even after
allowing for two distinct regimes. On the other hand, the US stock market
volatility exerts significant influences on the output volatilities of
both Australia and the UK. Compared with Australia and the UK, Canada and
the US show substantial output volatility co-movements, thereby confirming
the close association between the two neighbouring economies through the
NAFTA (North American Free Trade Agreement). We conclude that shocks
emanating from the US stock market have unequivocal flow-on effects on the
output and return volatilities of the other economies.
Journal: International Review of Applied Economics
Pages: 323-335
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872085
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872085
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:323-335
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Garbellini
Author-X-Name-First: Nadia
Author-X-Name-Last: Garbellini
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Ariel Luis Wirkierman
Author-X-Name-First: Ariel Luis
Author-X-Name-Last: Wirkierman
Title: Domestic demand and global production in the Eurozone: A multi-regional input-output assessment of the global crisis
Abstract:
This paper studies the effects of domestic
and foreign demand impulses in euro area economies following the Great
Recession of 2008--2009 and the Eurozone crisis of 2011--2012. Using a
global Input--Output framework we apply a set of metrics to assess
spillover effects of international trade in intermediates triggered by the
dynamics of final demand. Our findings suggest that while cross-country
trade spillovers have played a crucial role during the Great Recession,
they have had a moderate impact when compared with the role of domestic
sources of final demand during the Eurozone crisis. Hence, a strategy of
coordinated fiscal austerity cannot be sustained by empirical evidence.
Journal: International Review of Applied Economics
Pages: 336-364
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872086
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872086
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:336-364
Template-Type: ReDIF-Article 1.0
Author-Name: Yanqing Jiang
Author-X-Name-First: Yanqing
Author-X-Name-Last: Jiang
Title: Understanding TFP growth in inland regions of China: an empirical study of the effects of three factors
Abstract:
In this paper, we empirically examine the
potential effects of international openness, domestic coastal-inland
market integration, and human capital accumulation on TFP growth in inland
provinces in China. By using a nonlinear technique as our main regression
approach as well as an extended GMM method as robustness checks, we show
that human capital accumulation plays an important role in promoting TFP
growth in the inland provinces. Our results support the argument that the
most important contribution of human capital to income growth lies not in
its static, direct effect as an accumulable factor in the production
function, but in its dynamic role in promoting TFP growth. Our regression
results also provide evidence for the positive roles international
openness and domestic coastal-inland market integration play in promoting
TFP growth in inland provinces in China.
Journal: International Review of Applied Economics
Pages: 365-382
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872087
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872087
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:365-382
Template-Type: ReDIF-Article 1.0
Author-Name: John Grahl
Author-X-Name-First: John
Author-X-Name-Last: Grahl
Title: The professors and the banks: US views on the subprime crisis
Abstract:
This review article surveys accounts of
the recent global financial crisis by ten leading economists -- nine in
the US and one, Martin Wolf, in the UK -- all of whom are critical of
mainstream economic thinking. Since their explanations of the crisis are
very similar, the review concentrates on their differing views on three
questions: the reform of the financial sector; the state of academic
macroeconomics; and the global economic imbalances. Some of the writers
have also considered recent austerity policies and their opinions on this
topic are also discussed. The article closes by referring to some of the
gaps in these accounts.
Journal: International Review of Applied Economics
Pages: 383-400
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.872088
File-URL: http://hdl.handle.net/10.1080/02692171.2013.872088
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:383-400
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Stubbs
Author-X-Name-First: Thomas
Author-X-Name-Last: Stubbs
Author-Name: Lawrence King
Author-X-Name-First: Lawrence
Author-X-Name-Last: King
Author-Name: David Stuckler
Author-X-Name-First: David
Author-X-Name-Last: Stuckler
Title: Economic growth, financial crisis, and property rights: observer bias in perception-based measures
Abstract:
Recent years have seen an increasing
number of empirical papers using subjective indicators in cross-country
quantitative analyses of growth. We evaluate potential observer biases in
the three most commonly employed subjective measures of property rights --
taken from the Heritage Foundation, Fraser Institute, and World Economic
Forum. Drawing on cross-national data for 156 countries during the years
2000 -- 2010, we use Granger causality tests to assess whether exposure to
recent information on economic performance introduces bias to coding of
property rights scores. Further, we evaluate whether the Great Recession
led observers to change property rights scores in advanced nations. We
find consistent evidence that observers who provide subjective coding of
property rights scores rated nations more positively when their economic
performance was positive, and more negatively during the recent global
financial crisis. Taken together, our findings suggest that coding of
commonly employed property rights measures are subject to substantial
observer bias.
Journal: International Review of Applied Economics
Pages: 401-418
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2014.884549
File-URL: http://hdl.handle.net/10.1080/02692171.2014.884549
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:401-418
Template-Type: ReDIF-Article 1.0
Author-Name: B. Coelho
Author-X-Name-First: B.
Author-X-Name-Last: Coelho
Author-Name: Kevin P. Gallagher
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Gallagher
Title: Corrigendum
Journal: International Review of Applied Economics
Pages: 418-418
Issue: 3
Volume: 28
Year: 2014
Month: 05
X-DOI: 10.1080/02692171.2013.791073
File-URL: http://hdl.handle.net/10.1080/02692171.2013.791073
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Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:418-418
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Testing the Bhaduri-Marglin model with OECD panel data
Abstract:
The Bhaduri-Marglin model is a post-Kaleckian model that allows one to
study the impact of a functional income distribution on the growth in
demand. Over recent years, a number of empirical studies based on this
model have aimed at determining whether a redistribution towards profits
harms or fosters demand growth. The focus so far has been on a very
limited number of countries. This paper is the first to test the
Bhaduri-Marglin model with panel data. It finds that demand growth is
reduced by a redistribution towards profits in the average OECD country.
Productivity growth is also impaired.
Journal: International Review of Applied Economics
Pages: 419-435
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.896881
File-URL: http://hdl.handle.net/10.1080/02692171.2014.896881
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:419-435
Template-Type: ReDIF-Article 1.0
Author-Name: Marika Karanassou
Author-X-Name-First: Marika
Author-X-Name-Last: Karanassou
Author-Name: Hector Sala
Author-X-Name-First: Hector
Author-X-Name-Last: Sala
Title: The role of the wage-productivity gap in economic activity
Abstract:
This paper argues that wages lagging behind productivity is a long-run
structural phenomenon due to the interplay of wage dynamics and
productivity growth. We call this interplay frictional growth, a term that
can only be nullified in the utopian case of zero growth and/or no
dynamics. In that vein, we challenge the prevailing view of the neutrality
of the labour income share and investigate its impact on the evolution of
employment. We thus estimate wage setting and labour demand equation
systems - for France, Germany, Italy, Japan, Spain, the UK, and the US
over the 1960-2008 period - and find that the labour share is negatively
associated with employment even when the conventional assumption of a
unitary long-run elasticity of wages with respect to productivity holds.
Acknowledging the presence of the wage-productivity gap in both the short
and long run, this work stands as the building block for assessing the
effect of the falling labour share on economic activity. As recent work
has shown that the widening wage gap is also an important factor prompting
inequality, it can be argued that by supporting employment the falling
labour share 'sweetens' the impact of rising income inequality, and, as
such, deserves the attention of policy makers.
Journal: International Review of Applied Economics
Pages: 436-459
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.884547
File-URL: http://hdl.handle.net/10.1080/02692171.2014.884547
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:436-459
Template-Type: ReDIF-Article 1.0
Author-Name: Nuno Crespo
Author-X-Name-First: Nuno
Author-X-Name-Last: Crespo
Author-Name: Nadia Simoes
Author-X-Name-First: Nadia
Author-X-Name-Last: Simoes
Author-Name: Sandrina B. Moreira
Author-X-Name-First: Sandrina B.
Author-X-Name-Last: Moreira
Title: Gender differences in occupational mobility - evidence from Portugal
Abstract:
In this paper we evaluate if gender influences the pattern of upward and
downward occupational mobility. With data for Portugal in the period
1998-2009, we find that women have a lower probability of upward mobility
and a higher probability of downward mobility. The results also reveal the
importance of some other determinant factors, especially education and
initial occupation. Additionally, considering an analysis in which we
group occupations into four ranked categories (low,
medium-low, medium-high, and
high level occupations), we confirm that the determinants
of occupational mobility depend on the ranking of the initial occupation.
This analysis allows us to conclude that the unfavorable pattern of
occupational mobility in the case of women is due, essentially, to the
disadvantage they have at the bottom of the distribution. On the contrary,
in the top occupations, the results suggest the existence of equality
between genders.
Journal: International Review of Applied Economics
Pages: 460-481
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.884548
File-URL: http://hdl.handle.net/10.1080/02692171.2014.884548
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:460-481
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Saadi
Author-X-Name-First: Mohamed
Author-X-Name-Last: Saadi
Title: Does foreign direct investment increase exports' productivity? Evidence from developing and emerging countries
Abstract:
Raising the productivity content of exports is an important issue for
developing and emerging countries. What role do foreign firms play in this
process? This question has not been adequately studied. We contribute to
the literature by generalizing the role of foreign direct investment (FDI)
in the host country's export productivity level. Using panel data, we
present new empirical evidence suggesting that FDI boosts the overall
productivity level of the developing and emerging countries' exports.
Journal: International Review of Applied Economics
Pages: 482-506
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.896879
File-URL: http://hdl.handle.net/10.1080/02692171.2014.896879
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:482-506
Template-Type: ReDIF-Article 1.0
Author-Name: Munshi Naser Ibne Afzal
Author-X-Name-First: Munshi Naser Ibne
Author-X-Name-Last: Afzal
Title: An empirical investigation of the National Innovation System (NIS) using Data Envelopment Analysis (DEA) and the TOBIT model
Abstract:
The goal of this paper is to investigate national innovation systems'
input-output components and to model a robust efficiency measurement using
the DEA Bootstrap technique. Most of the previous NIS studies are
descriptive and little emphasis is given to complex analysis. In our
previous study, we evaluated the innovation performance of 20 emerging and
developed countries, from the point of view of technical efficiency. This
study makes an important contribution using the DEA Bootstrap technique,
whereby we rank the countries based on bias-corrected estimation parallel
to conventional DEA efficiency. The efficiency scores obtained from this
technique show which countries are considered to be innovation leaders
because their innovation performance is efficient under both constant and
variable returns to scale in the process of transforming innovation inputs
into innovation outputs. We suggest some key policy implications that can
be learned from these innovation leaders. Subsequently, we apply the Tobit
model to explain inefficiency. Based on the Tobit regression model, the
DEA CRS technical efficient score of inefficient countries could be
improved through three main variables: the secondary school enrolment
ratio; the labour force (ages 15-65), as a percentage of the total
population; and domestic credit expansion by the business sector, as a
percentage of GDP.
Journal: International Review of Applied Economics
Pages: 507-523
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.896880
File-URL: http://hdl.handle.net/10.1080/02692171.2014.896880
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:507-523
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Al-Najjar
Author-X-Name-First: Basil
Author-X-Name-Last: Al-Najjar
Author-Name: Yacine Belghitar
Author-X-Name-First: Yacine
Author-X-Name-Last: Belghitar
Title: Do corporate governance mechanisms affect cash dividends? An empirical investigation of UK firms
Abstract:
The study examines whether corporate governance mechanisms and the
compliance with good governance practice are related to cash dividends. In
particular, the study assesses the effect of institutional ownership and
board structure on the decision to pay cash dividends. A study on UK firms
is interesting because firms are expected to voluntarily structure
governance mechanisms based on their own needs. We find that institutional
owners positively affect cash dividend payments, suggesting that UK
institutions are effective in forcing firms to disgorge cash. There is
limited evidence that independent directors affect the cash dividends. The
results also show that firm specifics affect the cash dividends, namely,
business risk, firm size, and leverage ratio. The results are consistent
across several robustness checks.
Journal: International Review of Applied Economics
Pages: 524-538
Issue: 4
Volume: 28
Year: 2014
Month: 7
X-DOI: 10.1080/02692171.2014.884546
File-URL: http://hdl.handle.net/10.1080/02692171.2014.884546
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Handle: RePEc:taf:irapec:v:28:y:2014:i:4:p:524-538
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula
Author-X-Name-Last: Bali Swain
Author-Name: Maria Floro
Author-X-Name-First: Maria
Author-X-Name-Last: Floro
Title: Microfinance, vulnerability and risk in low income households
Abstract:
We investigate if participation in the Indian Self Help Group (SHG)
program results in reducing poverty and vulnerability. The theoretical
framework examines the mechanisms through which the pecuniary and
non-pecuniary effects of the SHG impacts the households' ability to manage
risk. We use a vulnerability measure that quantifies the welfare loss
associated with poverty and different types of risks, on an Indian panel
survey data. Our results show that SHG members are less vulnerable
compared with a group of non-SHG (control) members. About 80% of the
vulnerability faced by the households is poverty related.
Journal: International Review of Applied Economics
Pages: 539-561
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.918937
File-URL: http://hdl.handle.net/10.1080/02692171.2014.918937
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:539-561
Template-Type: ReDIF-Article 1.0
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Title: Unproductive labour, capital accumulation and profitability crisis in the Greek economy
Abstract:
The focus of this paper is on the evolution of the major macroeconomic
variables of classical political economy and the contrast with their
orthodox counterparts in the quest to identify the causes of the current
crisis in the Greek economy. Our analysis shows that declining
profitability past a certain point leads to a stagnant mass of real net
profits that discourage investment and increase unemployment. More
specifically, for the period 1970-2007 for which we have detailed data, we
identify the so-called silent depression of the 1970s and early 1980s, the
new golden age of accumulation during which the capitalization of the
production process led to a rapidly growing productivity and with stagnant
or slowly rising real wages increased the rate of surplus value to new
heights. As a consequence, the rate of profit from the mid-1980s onwards
displayed a mildly rising trend and remained at a much lower level than
that of the early 1970s. The rate of profit starts to fall after 2007, the
year of the onset of the (world) economic crisis, and this continues up to
2014. Our econometric analysis based on an ARDL model further shows that
the incremental rate of return, a variable derived from, and therefore
strictly related to the average rate of profit, constitutes a by far more
concrete measure of profitability and, in combination with the real
interest rate, shapes the process of capital accumulation.
Journal: International Review of Applied Economics
Pages: 562-585
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.918939
File-URL: http://hdl.handle.net/10.1080/02692171.2014.918939
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:562-585
Template-Type: ReDIF-Article 1.0
Author-Name: Bartosz Gębka
Author-X-Name-First: Bartosz
Author-X-Name-Last: Gębka
Title: Ownership structure, monitoring, and market value of companies: evidence from an unusual privatization mode
Abstract:
This study analyses the impact of ownership structure and market liquidity
on company value. We investigate different aspects of ownership: the risk
of political interference, private investors vs. the state acting as
influential blockholders, and preferential political treatment of
companies. Using a unique dataset of Polish partial privatizations
initiated by shares transfers to entities under limited government
influence, we find that government divestments can enhance company value,
due to reduction in risk of political interference. A potential increase
in the liquidity of trades in transferred companies' shares also boosts
their market value. On the other hand, an increased likelihood of the
emergence of private blockholders able to expropriate minority
shareholders reduces the firm's market value. Our results support the
political view of privatization: governments have objectives different to
profit maximization, which leads to suboptimal investment from this point
of view and lower market value of companies. We also develop a model to
empirically distinguish between different aspects of ownership on company
value.
Journal: International Review of Applied Economics
Pages: 586-610
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.918938
File-URL: http://hdl.handle.net/10.1080/02692171.2014.918938
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:586-610
Template-Type: ReDIF-Article 1.0
Author-Name: Amirul Islam
Author-X-Name-First: Amirul
Author-X-Name-Last: Islam
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: How effective is the Free Trade Agreement in South Asia? An empirical investigation
Abstract:
We investigate the efficacy of preferential trade liberalization in
changing the observed trade pattern among the South Asian countries that
have entered into the South Asian Free Trade Agreement (SAFTA). Although
in its nascent stage, some data are now available to provide an ex-post
evaluation of the performance of this bloc. Using these data, we find no
empirical evidence of trade creation among SAFTA members, which is not
surprising given that tariff concessions in SAFTA are small and are offset
by complicated rules of origin procedure. However, a substantial and
statistically significant increase in exports from SAFTA members to the
rest of the world is found. Several panel strategies are used to check the
sensitivity of the results against the assumptions of the estimation
strategies. As some key coefficient estimates are found to differ across
estimation methods, policymakers in South Asia need to use care in relying
on the results from empirical studies, including our own, in formulating
their trade policies.
Journal: International Review of Applied Economics
Pages: 611-627
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.918940
File-URL: http://hdl.handle.net/10.1080/02692171.2014.918940
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:611-627
Template-Type: ReDIF-Article 1.0
Author-Name: Marilena Furno
Author-X-Name-First: Marilena
Author-X-Name-Last: Furno
Title: Returns to education and gender gap
Abstract:
The Italian gender wage gap is related to a gap in returns to education
which causes a sizable glass ceiling effect. The gap is detected by
quantile regressions implemented in different subsets. Quantile
regressions allow computation of both the average gap and the divergence
in the tails of the wage distribution. Comparison of the equations
estimated separately for men and women, reveals a divergence in wage
determinants for the average and for all quantiles. The statistical
relevance of this divergence is verified by a test of changing
coefficients. By repeatedly implementing this test to compare subsets of
different regions, cohorts, and education levels, it is possible to rank
the factors affecting the gap and to pinpoint at which quantile their
impact is greater. Gender turns out to be a relevant source of changes to
the coefficients, particularly for the top quantiles, and the regional
variable interacts with the returns to education gap, determining a
sizeable glass ceiling on southern women's careers.
Journal: International Review of Applied Economics
Pages: 628-649
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.907243
File-URL: http://hdl.handle.net/10.1080/02692171.2014.907243
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:628-649
Template-Type: ReDIF-Article 1.0
Author-Name: Theo Nichols
Author-X-Name-First: Theo
Author-X-Name-Last: Nichols
Author-Name: Ali C. Tasiran
Author-X-Name-First: Ali C.
Author-X-Name-Last: Tasiran
Title: Turkish trade unionists and Turkey's membership of the European Union
Abstract:
In all the discussions regarding Turkey's accession to the EU, little
attention has been paid to the views of workers. This paper provides a
statistical analysis of the views of over 6000 Turkish trade union members
on Turkey's EU membership. Parameters are estimated using multilevel
probit models where the nested structures of workers into trade unions and
federations were taken into account since they shared some joint
characteristics because of belonging to these organisations. It confirms
the extensive disillusion with the EU found elsewhere in Turkish society
but more interestingly it disconfirms an idea that those inside the EU may
too easily assume to be the case: that it is those with what might be
considered modernist characteristics among the Turkish population who are
most likely to be in favour of EU entry. The idea seems to chime well with
assumptions that the EU is a progressive, modern force. But whatever the
validity of such a view, EU entry is not in fact found to be the favoured
goal of the young and the best educated: it is older workers who are the
most likely to support entry and those who are educated to the highest
level the most likely to oppose it. Amongst the main three trade union
federations there is also a greater propensity of members of trade unions
affiliated to Hak Is (the Islamic federation) to support entry than those
in Turk Is (centre right) or DISK (historically the most militant).
Journal: International Review of Applied Economics
Pages: 650-668
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.918936
File-URL: http://hdl.handle.net/10.1080/02692171.2014.918936
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:650-668
Template-Type: ReDIF-Article 1.0
Author-Name: Hrushikesh Mallick
Author-X-Name-First: Hrushikesh
Author-X-Name-Last: Mallick
Title: Role of technological infrastructures in exports: evidence from a cross-country analysis
Abstract:
Using panel data for 48 heterogeneous countries for the period 2000-2010,
we explore the impact of a wide set of determinants along with the
technological infrastructures on goods and services exports in gravity
models. We find that along with the usual basic factors such as incomes,
distance, exchange rate depreciation, exchange rate regimes, common
language, contiguity, free trade areas, colonial links, the technological
infrastructures and complementarity between services and goods exports are
quite crucial determinants for both types of exports. Among the
technological infrastructures, internet use plays a significant role in
promoting service exports rather than promoting goods exports.
Journal: International Review of Applied Economics
Pages: 669-694
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.907244
File-URL: http://hdl.handle.net/10.1080/02692171.2014.907244
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:669-694
Template-Type: ReDIF-Article 1.0
Author-Name: Najma R. Sharif
Author-X-Name-First: Najma R.
Author-X-Name-Last: Sharif
Title: Occupational skill attainment in Canada: the role of gender, nativity status and ethnic origin
Abstract:
This paper examines how ethnic origin and gender interact to shape the
occupational skills attainment of native and foreign born workers in
Canada. Of special interest is how the occupational profile of the
foreign-born evolves over time relative to that of the native-born, by
gender and ethnic origin. We estimate multinomial logit models from 1991
and 2006 census data, and then simulate occupational profiles of the
native and foreign-born of different ethnic origin, controlling for human
capital characteristics. We find that native and foreign-born women
display the 'glass-ceiling' and 'sticky-floor' syndrome in that they are
significantly underrepresented in management positions and overrepresented
in clerical positions relative to men, more significantly if their
education was not acquired in Canada. There is variation by ethnic origin,
and all groups display significant occupational mobility over time. But
even after 15 years, foreign-born occupational distributions differ
substantially from those of the native-born.
Journal: International Review of Applied Economics
Pages: 695-712
Issue: 5
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.907245
File-URL: http://hdl.handle.net/10.1080/02692171.2014.907245
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Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:695-712
Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Hern�ndez Jim�nez
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Hern�ndez Jim�nez
Author-Name: Arslan Razmi
Author-X-Name-First: Arslan
Author-X-Name-Last: Razmi
Title: Latin America after the global crisis: the role of export-led and tradable-led growth regimes
Abstract:
Is the ongoing economic slowdown in industrialized countries likely to
impact Latin American growth negatively in the medium- to long-run? This
paper considers various transmission channels that work through trade in
goods and services, and finds econometric evidence suggesting that
shrinking global imbalances may create problems for Latin America.
Specifically, using panel data analysis, we find that the trade balance as
a proportion of GDP is positively associated with Latin American economic
growth over the period 1953-2009. We then develop a simple dynamic model
to help explain our main finding through investment and saving behaviour.
Journal: International Review of Applied Economics
Pages: 713-741
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.933785
File-URL: http://hdl.handle.net/10.1080/02692171.2014.933785
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:713-741
Template-Type: ReDIF-Article 1.0
Author-Name: Michael L. Polemis
Author-X-Name-First: Michael L.
Author-X-Name-Last: Polemis
Title: Measuring market power in the Greek manufacturing and services industries
Abstract:
This paper investigates the level of market power in the Greek
manufacturing and services industry over the period 1970-2007. Based on
the Roeger methodology, we investigate the competitive conditions in the
examined industries at a disaggregated level (two and three digit ISIC
codes). The empirical results indicate that the Greek manufacturing and
services industries operate in non-competitive conditions. Moreover,
average mark-up ratios are heterogeneous across sectors, with
manufacturing having higher mark ups on average than services. In contrast
to other related studies, we provide sufficient evidence about the
movements of mark-up ratios over time. According to our findings, the
mark-up ratios in the manufacturing sectors are, on average, higher in the
post European Union (EU) accession period (1982-1992), as a result of the
merger wave in the manufacturing industry. However, this upward trend
stopped within the period (1993-2007), and the relevant ratios have
decreased substantially. The econometric results are quite robust when the
Two Stage Least Squares (2SLS) and the bootstrap method are applied.
Lastly, the results of our analysis have a number of interesting
implications for policy makers and government officials in light of the
recent financial crisis that hit Greece.
Journal: International Review of Applied Economics
Pages: 742-766
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.923386
File-URL: http://hdl.handle.net/10.1080/02692171.2014.923386
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:742-766
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas H.W. Ziesemer
Author-X-Name-First: Thomas H.W.
Author-X-Name-Last: Ziesemer
Title: Country terms of trade: trends, unit roots, over-differencing, endogeneity, time dummies, and heterogeneity
Abstract:
The debate about the Prebisch-Singer thesis has focused on primary
commodities with some extensions to manufactures. We analyse trends in
country terms-of-trade for goods and services rather than those for
commodities according to the World Bank income classification. We find
that the natural logarithm of the terms of trade for all groups except for
the poorest has common unit roots, but none has individual unit roots. As
low-income countries have no unit roots over-differencing is inefficient
and biases significance levels in first differences against the fall in
the terms of trade. For the low-income countries the terms of trade of
goods and services are falling at a rate that is significantly negative
without and with endogeneity treatment by system GMM. A comprehensive
analysis of the effects of time dummies supports the result of falling
terms of trade for low-income countries. When all coefficients are
country-specific 50% of all low-income countries have falling terms of
trade in a simultaneous equation estimation using the SUR method. Food and
financial crisis have no effect on the number of countries with falling
terms of trade, but (dis-)improve the terms of trade or the significance
of the results for a very small number of countries.
Journal: International Review of Applied Economics
Pages: 767-796
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.923385
File-URL: http://hdl.handle.net/10.1080/02692171.2014.923385
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:767-796
Template-Type: ReDIF-Article 1.0
Author-Name: Sophia P. Dimelis
Author-X-Name-First: Sophia P.
Author-X-Name-Last: Dimelis
Author-Name: Sotiris K. Papaioannou
Author-X-Name-First: Sotiris K.
Author-X-Name-Last: Papaioannou
Title: Human capital effects on technical inefficiency: a stochastic frontier analysis across industries of the Greek economy
Abstract:
In this paper we examine the impact of human capital on technical
inefficiency. A stochastic production frontier is simultaneously estimated
with a technical inefficiency model using data from one-digit industries
of the Greek economy, for the period 2000-2005. The results indicate a
significantly negative impact of human capital on technical inefficiency,
which is comparatively lower in magnitude for the sector of public
services. The most efficient industries of the Greek economy are those of
Education, Financial intermediation and Real estate, renting & business
activities. The highest contribution of human capital on technical
efficiency is observed in the industries of Health, Education and Real
estate, renting & business activities.
Journal: International Review of Applied Economics
Pages: 797-812
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.907246
File-URL: http://hdl.handle.net/10.1080/02692171.2014.907246
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:797-812
Template-Type: ReDIF-Article 1.0
Author-Name: Abubakr Saeed
Author-X-Name-First: Abubakr
Author-X-Name-Last: Saeed
Author-Name: Yacine Belghitar
Author-X-Name-First: Yacine
Author-X-Name-Last: Belghitar
Author-Name: Ephraim Clark
Author-X-Name-First: Ephraim
Author-X-Name-Last: Clark
Title: Theoretical motives of corporate cash holdings and political connections: firms level evidence from a developing economy
Abstract:
In this paper, we revisit the theoretical motives of corporate cash
holdings while concentrating on the effect of political connections. In
particular, we postulate two competing hypotheses for the effects that
political connections can have on cash holdings: 'substitution effect
hypothesis' and 'complementary effect hypothesis'. Using the data on
Pakistani firms over the period 2002-2010, we find that connected firms
hold significantly larger cash reserves than their non-connected
counterparts, thus confirming the 'complementary hypothesis', which
suggests that agency problems lead connected firms to accumulate large
amount of cash. Further, this effect is found to be more pronounced in
dictatorial as opposed to democratic regimes indicating the presence of
higher degrees of political patronage in that period. Finally, we also
find differences in the complementary effect based on firm
characteristics. Our results suggest that the firm size and leverage have
increasing effects on the cash holdings of connected firms, contrary to
the mainstream literature standpoint.
Journal: International Review of Applied Economics
Pages: 813-831
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.923387
File-URL: http://hdl.handle.net/10.1080/02692171.2014.923387
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:813-831
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberto Alonso Gonzalez
Author-X-Name-First: Luis Alberto
Author-X-Name-Last: Alonso Gonzalez
Author-Name: Bruno Sovilla
Author-X-Name-First: Bruno
Author-X-Name-Last: Sovilla
Title: A Kaleckian model for understanding and responding to the economic policy challenges of remittances
Abstract:
In this work we construct a Kaleckian model for analyzing the impacts of
remittances upon economies of receiving countries. The arrival of
remittances has two harmful effects: contraction of income, and the
so-called Dutch Disease (DD). We use our model to formulate an economic
policy with two objective variables and two instrumental variables, to
solve or attenuate these problems.
Journal: International Review of Applied Economics
Pages: 832-848
Issue: 6
Volume: 28
Year: 2014
Month: 9
X-DOI: 10.1080/02692171.2014.933784
File-URL: http://hdl.handle.net/10.1080/02692171.2014.933784
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Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:832-848
Template-Type: ReDIF-Article 1.0
Author-Name: Babajide Fowowe
Author-X-Name-First: Babajide
Author-X-Name-Last: Fowowe
Title: The relationship between stock prices and exchange rates in South Africa and Nigeria: structural breaks analysis
Abstract:
The relationship between stock prices and exchange rates has continued to
generate interest from both the academia and financial industry players
for many years. This study conducts an empirical investigation into the
relationship between stock prices and exchange rates for the two largest
economies in Sub-Saharan Africa - South Africa and Nigeria. Our
methodology accounts for structural breaks in the data and the long-run
relationship between stock and foreign exchange markets. The results of
multivariate causality tests with structural breaks showed that causality
runs from exchange rates to domestic stock prices in Nigeria (flow
channel) while in South Africa, no causality exists between domestic stock
prices and exchange rates. The results also reveal that there is causality
from the London stock market to both countries' stock markets, thus
showing that international stock markets are driving both the Nigerian and
South African stock markets.
Journal: International Review of Applied Economics
Pages: 1-14
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.933786
File-URL: http://hdl.handle.net/10.1080/02692171.2014.933786
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Template-Type: ReDIF-Article 1.0
Author-Name: Carmem Aparecida Feij�
Author-X-Name-First: Carmem Aparecida
Author-X-Name-Last: Feij�
Author-Name: Marcos Tostes Lamonica
Author-X-Name-First: Marcos Tostes
Author-X-Name-Last: Lamonica
Author-Name: Julio Cesar Albuquerque Bastos
Author-X-Name-First: Julio Cesar Albuquerque
Author-X-Name-Last: Bastos
Title: Accumulation pattern of the Brazilian economy in the 1990s and 2000s
Abstract:
This paper investigates the dynamic relationships among income
distribution, debt ratio and capital accumulation in the Brazilian economy
in the 1990s and 2000s. One explanation for the relatively slow growth of
the Brazilian economy is the relatively low rate of investment. The paper
presents an econometric model, based on Nishi, to investigate the causes
of instability in investment in the period. It concludes that the
Brazilian economy since the economic opening presents a debt-burdened
pattern of capital accumulation.
Journal: International Review of Applied Economics
Pages: 15-31
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.933787
File-URL: http://hdl.handle.net/10.1080/02692171.2014.933787
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Author-Name: Amr S. Hosny
Author-X-Name-First: Amr S.
Author-X-Name-Last: Hosny
Author-Name: N. Kundan Kishor
Author-X-Name-First: N. Kundan
Author-X-Name-Last: Kishor
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Title: Understanding the dynamics of the macroeconomic trilemma
Abstract:
This paper tests the autonomy of domestic monetary policy in the context
of the macroeconomic policy trilemma for a large data-set of developing
and developed countries covering three different time periods
characterized with different exchange rate regimes and capital controls.
The existing literature uses fixed coefficient methodologies to examine
monetary policy independence; whereas we show that the coefficients of
interest are unstable as countries switch between different exchange rate
regimes and/or capital controls over time. The contribution is in using a
time-varying parameter model that better captures the effects of the
heterogeneity in different exchange rate regimes and capital mobility
restrictions on monetary policy independence over time, allowing a more
accurate test of the macroeconomic trilemma.
Journal: International Review of Applied Economics
Pages: 32-64
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.933788
File-URL: http://hdl.handle.net/10.1080/02692171.2014.933788
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Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:32-64
Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Author-Name: Laura Lamb
Author-X-Name-First: Laura
Author-X-Name-Last: Lamb
Title: An assessment of the impact of tax incentives relative to socio-economic characteristics on charitable giving in Canada
Abstract:
This research examines the effectiveness of the Canadian tax incentive
system for charitable giving while attempting to deal with two persistent
methodological problems in past research. The Heckman selection model and
the ordered probit model are used to examine the Canadian tax incentive
system with 2010 survey data. The results imply that the effect of the tax
credit systematically increases with an increase in donation expenditure
suggesting that the higher tax credit for larger donations is more
effective than the lower tax credit for smaller donations. While the
results suggest that the current tax policy is effective, socio-economic
characteristics, such as wealth, household income, and university
education, appear to have a greater impact on donations.
Journal: International Review of Applied Economics
Pages: 65-80
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.945992
File-URL: http://hdl.handle.net/10.1080/02692171.2014.945992
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Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:65-80
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Guerrazzi
Author-X-Name-First: Marco
Author-X-Name-Last: Guerrazzi
Author-Name: Paolo Gelain
Author-X-Name-First: Paolo
Author-X-Name-Last: Gelain
Title: A demand-driven search model with self-fulfilling expectations: the new 'Farmerian' framework under scrutiny
Abstract:
In this paper, we implement Bayesian econometric techniques to analyze a
theoretical framework built along the lines of Farmer's micro-foundation
of the General Theory. Specifically, we test the ability
of a demand-driven search model with self-fulfilling expectations to match
the behaviour of the US economy over the last 30 years. The main findings
of our empirical investigation are the following. First, all over the
period, our model fits data very well. Second, demand shocks are the most
relevant in explaining the variability of concerned variables. In
addition, our estimates reveal that a large negative demand shock caused
the Great Recession via a sudden drop of confidence. Overall, those
results are consistent with the main features of the New `Farmerian'
Economics as well as to latest demand-side explanations of the
finance-induced recession.
Journal: International Review of Applied Economics
Pages: 81-104
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.945993
File-URL: http://hdl.handle.net/10.1080/02692171.2014.945993
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Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:81-104
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanos Papadamou
Author-X-Name-First: Stephanos
Author-X-Name-Last: Papadamou
Author-Name: Vangelis Arvanitis
Author-X-Name-First: Vangelis
Author-X-Name-Last: Arvanitis
Title: The effect of the market-based monetary policy transparency index on inflation and output variability
Abstract:
This paper examines empirically the effectiveness of the Federal Reserve's
policy under different levels of transparency by using a dynamic and
continuous market-based index proposed by Kia (2011) on inflation
volatility and output volatility. In theory, the more transparent the
monetary policy, the less volatile the money market will be with fewer
disturbances and thus the more stable will be the economy. First, a
bivariate VAR-BEKK-GARCH(1,1) model is estimated for inflation and output
variables in the US economy in order to produce conditional variances and
covariance over the period October 1982 to December 2011. Second, by
incorporating conditional variances and transparency in a VAR model,
impulse response functions reveal that after a positive shock in the
Federal Reserve's transparency (i.e. market participants consider the
Federal Reserve's actions to be more transparent), there is a
statistically significant decrease in both inflation volatility and output
volatility. Our results reveal the dynamic and crucial role that a central
bank's transparency plays in retaining economic stability and assuring the
forecasts concerning inflation and economic growth made by the economic
units.
Journal: International Review of Applied Economics
Pages: 105-124
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.945994
File-URL: http://hdl.handle.net/10.1080/02692171.2014.945994
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Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:105-124
Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Dow
Author-X-Name-First: Sheila
Author-X-Name-Last: Dow
Title: The economist's oath: a review Essay
Abstract:
George DeMartino's 2011 monograph, The Economist's Oath: On the Need for
and Content of Professional Economic Ethics, provides an excellent basis
for the development of a discourse on the ethics of economists. This
review focuses on the way in which mainstream economists' arguments
against consideration of ethics follow from their presentation of
economics as a purely technical subject, and the implication that this
pretense itself is unethical. The complexity of ethical issues within a
pluralist approach to economics is explored, ranging from the
institutional environment within which economists practice to
epistemological questions.
Journal: International Review of Applied Economics
Pages: 125-128
Issue: 1
Volume: 29
Year: 2015
Month: 1
X-DOI: 10.1080/02692171.2014.983732
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983732
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Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:125-128
Template-Type: ReDIF-Article 1.0
Author-Name: Annina Kaltenbrunner
Author-X-Name-First: Annina
Author-X-Name-Last: Kaltenbrunner
Title: Financial integration and exchange rate determination: a Brazilian case study
Abstract:
This paper investigates the impact on exchange rate determination of two
recent changes in developing and emerging countries' financial
integration: first, the rising volume and heterogeneity of short-term
portfolio flows; second, foreign investors' increased exposure to domestic
rather than foreign currency assets. In its analysis of Brazil, the paper
shows that both changes have potentially destabilizing implications for
the exchange rate and may create the risk of self-feeding bubble dynamics
leading to large and sudden swings in exchange rates. The results have
important implications for the regulation of international capital
movements and choice of exchange rate regime.
Journal: International Review of Applied Economics
Pages: 129-149
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.956703
File-URL: http://hdl.handle.net/10.1080/02692171.2014.956703
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:129-149
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Mariolis
Author-X-Name-First: Theodore
Author-X-Name-Last: Mariolis
Author-Name: Nikolaos Rodousakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Rodousakis
Author-Name: Antonia Christodoulaki
Author-X-Name-First: Antonia
Author-X-Name-Last: Christodoulaki
Title: Input-output evidence on the relative price effects of total productivity shift
Abstract:
This paper provides empirical evidence on the relative price effects of a
notional shift in total productivity using data from ten Symmetric
Input-Output Tables of five European economies. The results suggest that
the direction of the price-movements is, more often than not, governed by
the (traditional) labour cost condition and this could be connected to the
effective ranks of the matrices of the relative shares of the capital
goods.
Journal: International Review of Applied Economics
Pages: 150-163
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.956702
File-URL: http://hdl.handle.net/10.1080/02692171.2014.956702
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:150-163
Template-Type: ReDIF-Article 1.0
Author-Name: Pasquale Tridico
Author-X-Name-First: Pasquale
Author-X-Name-Last: Tridico
Title: From economic decline to the current crisis in Italy
Abstract:
The objective of this paper is to show that the current global economic
crisis, into which Italy also fell in 2008, represents just the last step
of a long declining path for the Italian economy which began in the 1990s,
or to be more precise in 1992 and 1993. It is argued that the reasons that
explain the long Italian decline, and partly also the deeper recession
today, as well as the lack of recovery from the current crisis, can be
found in the past reforms of the labour market. In particular, the labour
flexibility introduced in the last 15 years had, along with other policies
introduced in parallel, cumulative negative consequences on the
inequality, on the consumption, on the aggregate demand, on the labour
productivity and on the GDP dynamics.
Journal: International Review of Applied Economics
Pages: 164-193
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.983049
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983049
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:164-193
Template-Type: ReDIF-Article 1.0
Author-Name: Collins G. Ntim
Author-X-Name-First: Collins G.
Author-X-Name-Last: Ntim
Author-Name: Kwaku K. Opong
Author-X-Name-First: Kwaku K.
Author-X-Name-Last: Opong
Author-Name: Jo Danbolt
Author-X-Name-First: Jo
Author-X-Name-Last: Danbolt
Title: Board size, corporate regulations and firm valuation in an emerging market: a simultaneous equation approach
Abstract:
We investigate the association between board size and firm valuation for a
sample of 169 firms from 2002 to 2011 in South Africa (SA). The SA
corporate context is interestingly and uniquely characterised by an
urgency to meet affirmative action regulations, such as black empowerment
in board appointments, limited qualified and experienced directors,
especially black directors, concentrated ownership, weak enforcement of
corporate regulations and greater government ownership. These features
make SA corporate boards perform a weaker agency (advisory, monitoring and
disciplining) role than Western European and US boards, but a stronger
resource dependence role, by providing access to resources, such as
business contacts and contracts. This suggests that any positive impact of
board size on firm valuation is likely to depend on the effective
execution of the resource dependence role more than the agency role. Our
results suggest that board size has a positive association with firm
valuation, consistent with larger boards providing better access to
resources. Overall, our results support the resource dependence role of
boards more than their agency role. The results are robust across a raft
of econometric models that control for different types of endogeneity, as
well as different types of accounting and market-based firm valuation
measures.
Journal: International Review of Applied Economics
Pages: 194-220
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.983048
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983048
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:194-220
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Shen
Author-X-Name-First: Xin
Author-X-Name-Last: Shen
Author-Name: Mark J. Holmes
Author-X-Name-First: Mark J.
Author-X-Name-Last: Holmes
Author-Name: Steven Lim
Author-X-Name-First: Steven
Author-X-Name-Last: Lim
Title: Wealth Effects and Consumption: A Panel VAR Approach
Abstract:
We provide new evidence on the comparison between the stock and housing
wealth effects on consumption. Using a panel VAR approach applied to OECD
data, we find evidence that the stock market wealth effect is generally
the larger. However, with regard to the evolution of asset wealth effects
over time, our findings show that the housing wealth effect has outweighed
the share market wealth effect in the last decade. We further find that
asset wealth has asymmetric effects on consumption, with stronger and more
persistent effects from positive asset wealth shocks. Our results have
important monetary policy implications for both stock and real estate
markets, and offer timely insights into the desirability of current
proposals to reduce house price volatility, such as through macro
prudential regulations.
Journal: International Review of Applied Economics
Pages: 221-237
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.983050
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983050
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:221-237
Template-Type: ReDIF-Article 1.0
Author-Name: W. Qazizada
Author-X-Name-First: W.
Author-X-Name-Last: Qazizada
Author-Name: E. Stockhammer
Author-X-Name-First: E.
Author-X-Name-Last: Stockhammer
Title: Government spending multipliers in contraction and expansion
Abstract:
This paper investigates the impact of government spending on output and
the size of the spending multiplier during periods of output contraction
and expansion. It also investigates the impact of spending when the
economy hits the nominal zero lower bound. It uses a panel of 21 advanced
countries over the period of 1979-2011, applying a TSLS estimation
technique. We find a spending multiplier of close to 1 during expansion
and values of up to 3 during contractions. However, our results do not
indicate a difference in the impact of spending during nominal zero lower
bound periods.
Journal: International Review of Applied Economics
Pages: 238-258
Issue: 2
Volume: 29
Year: 2015
Month: 3
X-DOI: 10.1080/02692171.2014.983053
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983053
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Handle: RePEc:taf:irapec:v:29:y:2015:i:2:p:238-258
Template-Type: ReDIF-Article 1.0
Author-Name: Nabamita Dutta
Author-X-Name-First: Nabamita
Author-X-Name-Last: Dutta
Author-Name: Deepraj Mukherjee
Author-X-Name-First: Deepraj
Author-X-Name-Last: Mukherjee
Author-Name: Sanjukta Roy
Author-X-Name-First: Sanjukta
Author-X-Name-Last: Roy
Title: Re-examining the relationship between domestic investment and foreign aid: does political stability matter?
Abstract:
While past studies had conflicting conclusions regarding the impact of
foreign aid on growth and development of a nation, recent studies have
tried to delve deeper into the question, 'what makes aid work?' (see,
Dutta, Leeson, and Williamson, 2013; Burnside and Dollar, 2000, 2004;
Svensson, 1999). This paper tests how political stability (vis-�-vis
political instability) affects the relationship between domestic
investment and foreign aid. Applying dynamic panel estimators, our results
show that political stability affects aid's effectiveness on domestic
capital formation. The paper considers alternative measures of political
stability (vis-�-vis instability), focusing on the political
characteristics of a system that have the potential to make a nation
stable. Political stability affects policy selection by the government
positively and, thus, public resources such as foreign aid are put to the
desired use. The estimated marginal impacts show that foreign aid enhances
domestic investment in the presence of a stable political climate, but
there is a diminishing return to aid.
Journal: International Review of Applied Economics
Pages: 259-286
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.945991
File-URL: http://hdl.handle.net/10.1080/02692171.2014.945991
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:259-286
Template-Type: ReDIF-Article 1.0
Author-Name: Smruti Ranjan Behera
Author-X-Name-First: Smruti Ranjan
Author-X-Name-Last: Behera
Title: International Capital Mobility and Saving-Investment Relationship in the Newly Industrialized Countries
Abstract:
This paper investigates the Feldstein-Horioka coefficients and evaluates
the degree of international capital mobility for ten newly industrialized
countries (NICs) over the different sub-periods from 1970 to 2010. By
applying the Pedroni and Westerlund cointegration tests, we find that
saving and investment are indeed cointegrated. The estimated FH
coefficients using FMOLS and DOLS are 0.24 and 0.33, respectively, for the
period 1970-1980. Furthermore, the estimated FH coefficients reduce from
0.80 (FMOLS) in 1991-2000 to 0.36 (FMOLS) in 1970-1980. The small FH
coefficients suggest that international capital mobility increased in the
NICs during the sub-periods 1970-1980 and 2001-2010.
Journal: International Review of Applied Economics
Pages: 287-308
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.983051
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983051
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:287-308
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Martorano
Author-X-Name-First: Bruno
Author-X-Name-Last: Martorano
Title: Lessons from the recent economic crisis: the Australian household stimulus package
Abstract:
This paper provides an impact evaluation analysis of the 2009 Australian
Household Stimulus Package, which was composed by three main cash
payments: the Back to School Bonus, the Single Income Family Bonus and the
Tax Bonus for Working Australians. Using panel data from the 2008 and 2009
HILDA surveys, the results show that these cash payments reduced the risk
of poverty and stimulated consumption expenditure. Nonetheless, only the
Back to School Bonus and the Single Income Family Bonus were really
important in achieving these goals, while the Tax Bonus for Working
Australians did not contribute to stimulate consumption and failed to
reduce the risk of poverty. Thus, the analysis confirms the crucial role
of governments to protect the most vulnerable groups avoiding a dramatic
deterioration of social outcomes and favoring a fast economic recovery
when interventions are timely and well-targeted.
Journal: International Review of Applied Economics
Pages: 309-327
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.983052
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983052
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:309-327
Template-Type: ReDIF-Article 1.0
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Author-Name: Oreste Napolitano
Author-X-Name-First: Oreste
Author-X-Name-Last: Napolitano
Title: National disparities and cyclical dynamics in Italy (1892-2007): was the Mezzogiorno a sheltered economy?
Abstract:
The paper presents the evolution of national disparities in Italy in a
cyclical perspective, comparing GDP per capita growth rates in the
Centre-North and South from 1892 to 2007. The aim is to evaluate the
pro-cyclical pattern of macro-area divergences and to measure, with a
non-parametric analysis, the degree of the Southern regions (Mezzogiorno)
dependence on the whole country. A performance indicator for national
growth is used to determine whether the South can be defined as a
sheltered economy. Our results show that peripheral regions as a whole had
different degrees of dynamism during the period considered and that the
South can be defined as unequivocally sheltered only when national
policies switched from industrialization and investments into simple
transfers. In other periods, including recent times, national disparities
do not show pro-cyclical patterns, supporting the conclusion that the
Mezzogiorno has been exposed to market conditions and its economy has not
always been dependent on external factors.
Journal: International Review of Applied Economics
Pages: 328-348
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.983054
File-URL: http://hdl.handle.net/10.1080/02692171.2014.983054
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:328-348
Template-Type: ReDIF-Article 1.0
Author-Name: Vlad Manole
Author-X-Name-First: Vlad
Author-X-Name-Last: Manole
Author-Name: Mariana Spatareanu
Author-X-Name-First: Mariana
Author-X-Name-Last: Spatareanu
Title: Investment climate, foreign networks and exporting - evidence from Africa
Abstract:
This paper investigates the impact of investment climate variables and
foreign networks on the exporting decisions of African firms. We use data
from the World Bank Investment Climate Surveys for over 7000 firms in 24
Sub-Saharan African countries. The results highlight the crucial role of
the access to, and the quality of, investment climate characteristics -
infrastructure, external finance and telecommunications for Sub-Saharan
African firms' exporting propensities. Our results show that improving the
investment climate to the level of best performers in the sample will
considerably increase the propensity of domestic firms to export. The
paper also finds that foreign networks have a significantly positive
impact on firms' export propensities.
Journal: International Review of Applied Economics
Pages: 349-373
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.1001323
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:349-373
Template-Type: ReDIF-Article 1.0
Author-Name: Amit Basole
Author-X-Name-First: Amit
Author-X-Name-Last: Basole
Author-Name: Deepankar Basu
Author-X-Name-First: Deepankar
Author-X-Name-Last: Basu
Author-Name: Rajesh Bhattacharya
Author-X-Name-First: Rajesh
Author-X-Name-Last: Bhattacharya
Title: Determinants and impacts of subcontracting: evidence from India's unorganized manufacturing sector
Abstract:
There are two divergent perspectives on the impact of subcontracting on
firms in the informal sector. According to the benign view, formal sector
firms prefer linkages with relatively modern firms in the informal sector,
and subcontracting enables capital accumulation and technological
improvement in the latter. According to the exploitation view, formal
sector firms extract surplus from stagnant, asset-poor informal sector
firms that use cheap family labour in home-based production. However,
direct, firm-level evidence on the determinants and impact of
subcontracting is thus far lacking in the literature. We apply a modified
Heckman selection model to Indian National Sample Survey data on informal
manufacturing enterprises (2005-2006). We find that home-based, relatively
asset-poor, and female-owned firms are more likely to be in a
subcontracting relationship. Further, we perform selectivity-corrected
Oaxaca-Blinder Decomposition and calculate treatment effects to show that
subcontracting benefits smaller firms, firms in industrially backward
states and rural firms; it is harmful for larger firms, firms in
industrially advanced states, and urban firms. Our results suggest that
the effects of subcontracting are more complex than those predicted by the
divergent perspectives. Policy-makers need to engage with this complexity.
Journal: International Review of Applied Economics
Pages: 374-402
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.1001324
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:374-402
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony N. Rezitis
Author-X-Name-First: Anthony N.
Author-X-Name-Last: Rezitis
Title: The relationship between agricultural commodity prices, crude oil prices and US dollar exchange rates: a panel VAR approach and causality analysis
Abstract:
This study examines the relationship between crude oil prices, US dollar
exchange rates and 30 selected international agricultural prices and five
international fertilizer prices in a panel framework. The study uses panel
VAR methods and Granger causality tests on panel data sets of agricultural
commodity prices (as well as specific agricultural commodity sub-groups)
and fertilizer prices with monthly observations of the period from June
1983 to June 2013. The empirical results of the present study indicate
that crude oil prices as well as US dollar exchange rates affect
international agricultural commodity and fertilizer prices. Furthermore,
contrary to the findings of several studies in the literature, the present
study supports bidirectional panel causality effects between crude oil
prices and international agricultural prices as well as between US
exchange rates and international agricultural prices.
Journal: International Review of Applied Economics
Pages: 403-434
Issue: 3
Volume: 29
Year: 2015
Month: 5
X-DOI: 10.1080/02692171.2014.1001325
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Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:403-434
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Molero-Simarro
Author-X-Name-First: Ricardo
Author-X-Name-Last: Molero-Simarro
Title: Functional distribution of income, aggregate demand, and economic growth in the Chinese economy, 1978-2007
Abstract:
This paper seeks to analyse the relationship between the functional
distribution of income, aggregate demand and growth in the Chinese reform
economy. For this purpose, the Bhaduri-Marglin Model is used to indicate
the theoretical possibility of both profit-led and wage-led growth
regimes. Previously, the principal literature on the evolution of factor
shares in China was reviewed. The statistical series for the period
1978-2007 are reconstructed to carry out our analysis of the relations
between capital share and investment, on one hand, and labour share and
consumption, on the other. Supported by empirical analysis and the model
estimations, it is argued that Chinese growth has been profit-driven.
Finally, the implications are presented concerning Chinese economic
prospects.
Journal: International Review of Applied Economics
Pages: 435-454
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016404
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Handle: RePEc:taf:irapec:v:29:y:2015:i:4:p:435-454
Template-Type: ReDIF-Article 1.0
Author-Name: Ronny Manos
Author-X-Name-First: Ronny
Author-X-Name-Last: Manos
Author-Name: Israel Drori
Author-X-Name-First: Israel
Author-X-Name-Last: Drori
Author-Name: Amir Shoham
Author-X-Name-First: Amir
Author-X-Name-Last: Shoham
Author-Name: Barak S. Aharonson
Author-X-Name-First: Barak S.
Author-X-Name-Last: Aharonson
Title: National culture and national savings: is there a link?
Abstract:
We study the effect of national culture on economic decisions, focusing on
GLOBE cultural dimensions of uncertainty avoidance and future orientation.
Specifically, we study the effect of divergence between cultural values
and practices (societal aspirations), on the aggregate savings decision.
Using the life-cycle model of savings as our basic model, we find that
societal aspirations are important in explaining national savings
behavior. In particular, we show that societal aspirations relating to
future orientation and uncertainty avoidance have a positive effect on the
rate of savings. We interpret our findings to indicate that such societal
aspirations lead to mistrust in the societal arrangements and
institutions, and induce savings as a means of securing the future and
reducing uncertainty. To substantiate this interpretation, we utilize the
microfinance industry; showing that high societal aspirations are
associated with preference for savings through member-owned microfinance
institutions (MFIs) over savings through non-member-owned MFIs.
Journal: International Review of Applied Economics
Pages: 455-481
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016405
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Handle: RePEc:taf:irapec:v:29:y:2015:i:4:p:455-481
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Girardi
Author-X-Name-First: Daniele
Author-X-Name-Last: Girardi
Title: Financialization of food. Modelling the time-varying relation between agricultural prices and stock market dynamics
Abstract:
This article studies the correlation of agricultural prices with stock
market dynamics. We discuss the possible role of financial and
macroeconomic factors in driving this time-varying relation, with the aim
of understanding what caused positive correlation between agricultural
commodities and stocks in recent years. While previous works on
commodity-equity correlation have focused on broad commodity indices, we
study 16 agricultural prices, in order to assess patterns that are
specific to agricultural commodities but also differences across markets.
We show that an explanation based on a combination of financialization and
financial crisis is consistent with the empirical evidence in most
markets, while global demand factors don't appear to play a significant
role. The correlation between agricultural prices and stock market returns
tends to increase during periods of financial turmoil. The impact of
financial turmoil on the correlation gets stronger as the share of
financial investors in agricultural derivatives markets rises. Our
findings suggest that the influence of financial shocks on agricultural
prices should decrease as global financial tensions settle down but also
that, as long as agricultural markets are 'financialized', it might rise
again when it is less needed, i.e. in the presence of new financial
turmoil.
Journal: International Review of Applied Economics
Pages: 482-505
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016406
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Handle: RePEc:taf:irapec:v:29:y:2015:i:4:p:482-505
Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Kabderian Dreyer
Author-X-Name-First: Johannes Kabderian
Author-X-Name-Last: Dreyer
Author-Name: Peter Alfons Schmid
Author-X-Name-First: Peter Alfons
Author-X-Name-Last: Schmid
Title: Fiscal federalism in monetary unions: hypothetical fiscal transfers within the Euro-zone
Abstract:
Net fiscal transfers are commonly seen as a possible means to ensure the
well-functioning of a currency area. We show that US net fiscal transfers,
measured as the difference between gross federal revenues and federal
expenditures per state, are enormous. Moreover, we run panel regressions
that suggest their dependence on relative GDP and relative GDP growth
during crisis periods, evidence of net fiscal transfers from relatively
rich to relatively poor states (redistributive effect) and to states with
an underperforming economic development (stabilization effect). The
Euro-zone (EZ) lacks a system of fiscal federalism, which raises the
question of whether it should be established in the medium- and long-run.
If so, which should be the magnitude of net fiscal transfers? We calculate
these transfers hypothetically for 1999-2010, using a relative volume
comparable to the one in the USA.
Journal: International Review of Applied Economics
Pages: 506-532
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016407
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1016407
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Handle: RePEc:taf:irapec:v:29:y:2015:i:4:p:506-532
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas E. Lambert
Author-X-Name-First: Thomas E.
Author-X-Name-Last: Lambert
Author-Name: Edward Kwon
Author-X-Name-First: Edward
Author-X-Name-Last: Kwon
Title: Monopoly capital and capitalist inefficiency
Abstract:
This paper examines the arguments and assertions of Baran's and Sweezy's
Monopoly Capital: An Essay on the American Economic and Social
Order (1966) by assessing the degree of economic efficiency or
inefficiency in how surplus value and economic surplus were created by 16
major capitalist economies during the 2000s using data envelopment
analysis (DEA). After assigning a score to the degree of economic
efficiency/inefficiency for each country, one can then assess which
factors influence the degree of efficiency/inefficiency. This paper finds
empirical support for many of the arguments put forth by the authors,
Baran and Sweezy, as well as others regarding the inefficiency of the use
of some forms of economic activity to help absorb economic surplus and to
create surplus value.
Journal: International Review of Applied Economics
Pages: 533-552
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016409
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1016409
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Template-Type: ReDIF-Article 1.0
Author-Name: Vineet Kohli
Author-X-Name-First: Vineet
Author-X-Name-Last: Kohli
Title: Macroeconomics of directed credit reforms in India
Abstract:
This paper develops a theoretical framework to evaluate directed credit
reforms in India. It formulates a post-Keynesian/structuralist macro model
that incorporates key features of the Indian banking system. The model
divides the economy into a demand constrained industrial sector and a
credit constrained agricultural sector. The model shows that directed
credit reforms tighten agricultural credit and output, erode real wages by
increasing the agricultural price and reduce industrial demand. Inflation
also picks up on account of real wage resistance. This paper, therefore,
has a close affinity with existing accounts that warn against the
stagflationary consequences of financial liberalisation.
Journal: International Review of Applied Economics
Pages: 553-578
Issue: 4
Volume: 29
Year: 2015
Month: 7
X-DOI: 10.1080/02692171.2015.1016403
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Handle: RePEc:taf:irapec:v:29:y:2015:i:4:p:553-578
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Author-Name: Valeria Pupo
Author-X-Name-First: Valeria
Author-X-Name-Last: Pupo
Author-Name: Fernanda Ricotta
Author-X-Name-First: Fernanda
Author-X-Name-Last: Ricotta
Title: Firm heterogeneity in TFP, sectoral innovation and location. Evidence from Italy
Abstract:
Sectoral and territorial specificities affect a firm's capabilities of
being productive. While there is a wide consensus on this, a quantitative
measure of these effects has been lacking. To this end, we combine a
data-set of Italian firms with some meso regional and
sectoral variables and apply a cross-classified model that allows for a
clear distinction between firm, region-specific and sector-specific
effects. After observing a marked TFP heterogeneity across firms, the
paper addresses the issue of understanding how much differences in firms'
productivity depend on regional localisation and sector specificities.
Results refer to 2004-2006 and have three aspects. First, they confirm
that the main source of firm variety is mostly due to differences revealed
at individual level. Secondly, we find that the sector is more important
than location in explaining firms' TFP. Lastly, the results show that firm
TFP increases when it belongs to more innovative sectors. Similarly,
companies get benefits from belonging to sectors where there is a high
proportion of firms using R&D public support and a high propensity to
collaborate in innovative projects.
Journal: International Review of Applied Economics
Pages: 579-607
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1016408
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter A. Riach
Author-X-Name-First: Peter A.
Author-X-Name-Last: Riach
Title: A field experiment investigating age discrimination in four European labour markets
Abstract:
In a field experiment investigating age discrimination, pairs of men, aged
27 and 47, inquired about employment as waiters in towns across England,
France, Germany and Spain. Statistically significant discrimination
against the older waiter was found in all four countries, but it was
considerably higher in France and Spain than in England and Germany.
Journal: International Review of Applied Economics
Pages: 608-619
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1021667
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:608-619
Template-Type: ReDIF-Article 1.0
Author-Name: Zeynep Ozkok
Author-X-Name-First: Zeynep
Author-X-Name-Last: Ozkok
Title: Financial openness and financial development: an analysis using indices
Abstract:
This paper examines the link between financial openness and financial
development through panel data analysis on advanced and emerging market
countries. Using indices, financial openness together with institutional
and educational variables explains a large part of the variation in
financial development across countries and over time. Our analysis
demonstrates that different indexing strategies serve to find better
measures for financial openness and financial development in comparison
with the individual indicators used in the literature. Our
principal-component-type financial openness index conveys a positive
effect on financial development independent from the lag structure or
specifications used.
Journal: International Review of Applied Economics
Pages: 620-649
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1054366
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:620-649
Template-Type: ReDIF-Article 1.0
Author-Name: Ihsen Abid
Author-X-Name-First: Ihsen
Author-X-Name-Last: Abid
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: Consideration of technological and environmental heterogeneity in cost efficiency analysis
Abstract:
In order to evaluate and compare the efficiency levels across banking
industries, we adopt the meta-frontier model that can assess the
technological difference among countries. Given the importance of country
specific conditions, we include in our analysis the different
specificities of each country to incorporate the technological as the
environmental differences in the evaluation of banking efficiencies. Using
data on the banking industries of several countries in the MENA region,
over the period 1991-2011, the results of the efficiency scores corrected
by the technological and environmental gap led us to conclude that
Egyptian banks are the most efficient in terms of cost compared with banks
in other countries. Egyptian banks enjoy a very favourable banking
technology. Our results support the hypothesis that traditional techniques
of efficiency analysis based on the efficiency scores of a specific and
pooled frontier tend to mystify efficiency levels and may incorrectly
identify efficient banks. This paper contributes to the efficiency
literature by incorporating technological and environmental
heterogeneities in the evaluation of efficiency. This helps to
characterize the production process of a bank and provides common
standards by which the efficiencies of banks in different countries can be
compared in a meaningful way with each other.
Journal: International Review of Applied Economics
Pages: 650-676
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1054368
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1054368
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:650-676
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Beccaria
Author-X-Name-First: Luis
Author-X-Name-Last: Beccaria
Author-Name: Roxana Maurizio
Author-X-Name-First: Roxana
Author-X-Name-Last: Maurizio
Author-Name: Gustavo V�zquez
Author-X-Name-First: Gustavo
Author-X-Name-Last: V�zquez
Title: Recent decline in wage inequality and formalization of the labour market in Argentina
Abstract:
Labour market conditions improved during the 2000s in Latin America, a
process that included a reduction in the magnitude of informal employment.
A decline of wage inequality was another feature of this period. Both
dynamics were particularly intense in Argentina. The purpose of this study
is to evaluate the role played by the process of formalization of the
labour market that occurred in Argentina during that period on the
reduction of income inequality, while additionally taking into account
other factors that might have also contributed to such dynamics of income
inequality. The method employed is a decomposition proposed by Firpo,
Fortin and Lemieux, which allows extending the Oaxaca-Blinder approach to
decompose some distributive statistics of income between a 'composition
effect' and a 'returns effect'. The study concludes that the process of
increasing labour market formalization had an equalizing effect over the
period, a finding that had not been emphasized in previous studies.
Journal: International Review of Applied Economics
Pages: 677-700
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1054369
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:677-700
Template-Type: ReDIF-Article 1.0
Author-Name: Domenico Sarno
Author-X-Name-First: Domenico
Author-X-Name-Last: Sarno
Title: Does dependence on internal finance help explain the prevailing pattern of manufacturing? The case of the Italian Mezzogiorno
Abstract:
The purpose of the paper is to ascertain a possible relationship between
sectorial financial dependence and the regional industrialization pattern
in the backward areas of Southern Italy, the so-called Italian
Mezzogiorno. The analysis is based on a definition of financial dependence
different to that of Rajan-Zingales in that it is determined as the
contribution of internal resources to the financing of firm growth and is
measured through the estimation of the LPE standard model augmented by the
cash flow variable on a large sample of Italian SMEs observed from
2001-2008. The relationship between sectorial measures of financial
dependence and composition of manufacturing in Italian Southern regions is
then tested; the analysis shows that firms' shares of the low financial
dependence sectors tend to prevail in manufacturing in the Southern
regions.
Journal: International Review of Applied Economics
Pages: 701-715
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1054370
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1054370
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:701-715
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Ibarra
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Ibarra
Title: Investment and the real exchange rate's profitability channel in Mexico
Abstract:
The paper estimates different versions of an equation for private
investment in Mexico during the post-liberalization period 1988-2013, with
the aim of studying the operation of the recently discussed real exchange
rate's profitability channel. During this period, the real exchange rate
(RER) was broadly positively correlated with the Mexican price/wage ratio
and the Mexican/US relative profit margin in the manufacturing sector,
particularly so when the RER experienced large fluctuations, before the
end of disinflation in the early 2000s. In the estimations, the effect of
the profit margin appears to be 'deeper', wiping out the effect of the RER
when the two variables are included together in the investment equation.
From this, the paper argues that the positive effect of the RER on
investment, observed in previous studies that omitted the profit margin,
reflects indirectly the positive link of the RER with the profit margin,
supporting the existence of a profitability channel in Mexico.
Journal: International Review of Applied Economics
Pages: 716-739
Issue: 5
Volume: 29
Year: 2015
Month: 9
X-DOI: 10.1080/02692171.2015.1054371
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1054371
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Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:716-739
Template-Type: ReDIF-Article 1.0
Author-Name: Edward N. Wolff
Author-X-Name-First: Edward N.
Author-X-Name-Last: Wolff
Title: Inequality and rising profitability in the United States, 1947-2012
Abstract:
The last 40 years has seen slow growing earnings and income for the middle
class, as well as rising overall inequality. In contrast, the early
postwar period witnessed rapid gains in wages and family income for the
middle class and a moderate fall in inequality. The 'booming' 1990s and
the first decade of the 2000s did not bring much relief to the middle
class, with median income growing by only 2% (in total) between 1989 and
2012. The stagnation of middle class living standards since 1973 or so is
attributable to the slow growth in earnings. While average earnings almost
doubled between 1947 and 1973, it advanced by only 22% from 1973 to 2012.
The main reason for the stagnation of labor earnings derives from a clear
shift in national income away from labor towards capital, with overall
profitability rising either back to previous postwar highs or to new highs
by 2012. Based on regression analysis, a positive and significant
connection is found between top income shares and the profit share. The
unionization rate, computer investment per worker, the minimum wage, and
the unemployment rate are also significantly related to top income shares.
Journal: International Review of Applied Economics
Pages: 741-769
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2014.956704
File-URL: http://hdl.handle.net/10.1080/02692171.2014.956704
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Template-Type: ReDIF-Article 1.0
Author-Name: Christina Anselmann
Author-X-Name-First: Christina
Author-X-Name-Last: Anselmann
Author-Name: Hagen M. Kr�mer
Author-X-Name-First: Hagen M.
Author-X-Name-Last: Kr�mer
Title: Income inequality and top incomes: some recent empirical developments with a focus on Germany
Abstract:
During the few last years, several studies have revealed that income
differences have increased in a number of OECD countries. While most of
the corresponding empirical analyses have focused on general trends and
poverty in the past, this paper emphasizes the highest income groups. A
strong increase in top income shares has recently been well documented for
several English-speaking countries, especially for the United States. The
present paper is mainly concerned with the developments in Germany in the
past years. Using a mixture of different data, the evolution of gross and
net income differences is analysed and compared with the developments in
other countries. It is shown that top incomes and top income shares in
Germany have increased in the recent past. Finally, some possible
explanations for these developments are discussed.
Journal: International Review of Applied Economics
Pages: 770-786
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2015.1078780
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1078780
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Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:770-786
Template-Type: ReDIF-Article 1.0
Author-Name: Yannis Dafermos
Author-X-Name-First: Yannis
Author-X-Name-Last: Dafermos
Author-Name: Christos Papatheodorou
Author-X-Name-First: Christos
Author-X-Name-Last: Papatheodorou
Title: Linking functional with personal income distribution: a stock-flow consistent approach
Abstract:
This paper develops a benchmark stock-flow consistent model that links
functional with personal income distribution. The model consists of
various household groups that receive income from different sources or
from the same sources in different proportions. The dynamic linkage
between functional and personal income distribution is formulated as part
of a complete macroeconomic system. Inequality decomposition techniques
are employed to associate income sources with personal income
distribution. Simulation exercises are conducted to reveal the various
ways through which functional and personal income distribution interact.
In the simulations, a rise in the exogenous component of low-skilled
workers' wage share reduces inequality in the short run; in the medium to
long run inequality starts increasing due to certain macroeconomic
developments, but remains lower than its initial level in almost all
cases. A change in functional income distribution due to a rise in the
dividend payout ratio of firms increases inequality both in the short run
and the long run.
Journal: International Review of Applied Economics
Pages: 787-815
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2015.1054365
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1054365
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Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:787-815
Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Willis
Author-X-Name-First: Geoff
Author-X-Name-Last: Willis
Title: Income distribution and income shares: wealth and income distributions explained using generalised Lotka-Volterra SFC ABM models
Abstract:
This paper combines a classical approach to economics with standard
finance theory in a Lotka-Volterra framework. The models are agent-based,
general Lotka-Volterra (GLV) models, using very simple homogeneous or
heterogeneous agents. The agents are owners of capital, they receive wages
and returns on their capital, and spend a portion of their wealth on
consumption. As such the models use realistic economic variables. The
models give simple outputs of 'log-normal'-like bodies and power tail
distributions for both wealth and income. These distributions match those
seen in real economies. The models are unique in giving real world
distributions from a statistical mechanical model that uses absolutely
identical agents. The models demonstrate that wealth and income inequality
is driven by the economic force of concentration of capital through a
statistical-mechanical wealth condensation process. The models also show a
direct relationship between the macroeconomic labour share of income and
the distributions of personal wealth and income. In addition, the models
give a proposed 'compulsory saving' regime that appears highly effective
for the reduction of poverty.
Journal: International Review of Applied Economics
Pages: 816-842
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2015.1065225
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1065225
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Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:816-842
Template-Type: ReDIF-Article 1.0
Author-Name: Servaas Storm
Author-X-Name-First: Servaas
Author-X-Name-Last: Storm
Author-Name: C.W.M. Naastepad
Author-X-Name-First: C.W.M.
Author-X-Name-Last: Naastepad
Title: NAIRU economics and the Eurozone crisis
Abstract:
Intra-Eurozone current-account imbalances (and divergent external debt
positions) cannot be attributed to the deterioration of cost (or price)
competitiveness in Europe's periphery vis-�-vis its core. Imbalances were
driven by high domestic demand growth in the periphery, which was financed
by capital flows from the core. The external finance - following
capitalist logic - ended up in non-traded medium-low-tech activities (e.g.
construction). This points to a structural problem in pan-European
financial integration - which we locate in the economic ideology guiding
the EMU: NAIRU economics. We zoom in on the reasons why NAIRU-based
monetary policy deepened the already existing structural heterogeneity in
the Eurozone, locking the Southern-European economies up in low- and
medium-technology activities often in direct competition with China. The
only way out is a rethink of Eurozone macroeconomic and industrial
policies which - going beyond often-made calls for broad-based fiscal
stimulus or a clearing arrangement - fundamentally reconsiders the role of
the ECB in light of what needs to be done to create Europe's non-price
comparative advantage of tomorrow.
Journal: International Review of Applied Economics
Pages: 843-877
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2015.1054367
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1054367
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Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:843-877
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Confronting inequality: review article on Thomas Piketty on 'Capital in the 2st Century'
Abstract:
This review article on Thomas Piketty's 'Capital in the twenty-first
century' opens with a discussion of the trends in income and wealth
inequality reported by Piketty and his co-workers. The significance of the
rising trends of inequality after 1980 in contrast to the pre-1980 trends
is elaborated. It is noted that rising inequality has been accompanied by
slower growth. Piketty identifies the relationship between the rate of
return on wealth and the rate of growth as a major issue. It is argued
here that an excess of savings out of return on wealth over the rate of
output growth is unsustainable. It may lead, following Piketty, to rising
wealth inequality, but we argue the difference would be deflationary and
cause high levels of unemployment. While Piketty favours high income and
wealth taxation to address that difference (from which we do not differ),
there are additional ways such as enhanced worker power, corporation tax
on a coordinated basis to reduce tax competition.
Journal: International Review of Applied Economics
Pages: 878-889
Issue: 6
Volume: 29
Year: 2015
Month: 11
X-DOI: 10.1080/02692171.2015.1065227
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1065227
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Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:878-889
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Bagnai
Author-X-Name-First: Alberto
Author-X-Name-Last: Bagnai
Title: Italy’s decline and the balance-of-payments constraint: a multicountry analysis
Abstract:
According to the literature, the decline experienced by the Italian
economy in the last two decades depends on a slowdown of its labour
productivity, starting in the 1990s. The supply-side explanations of this
slowdown are inconsistent with the major stylised facts. In this paper, we
verify whether a better explanation is provided by the effect of a
negative demand shock, through Italy’s external constraints, in the
framework of Kaldor-Dixon-Thirlwall’s cumulative growth model. To
this end, we use a multi-country generalisation of Thirlwall’s
balance-of-payments-constrained growth model, which allows us to
investigate the contribution of Italy’s main trade partners to
Italy’s long-run growth from 1970 to 2010. The trade partners are
disaggregated into seven groups: Eurozone core, Eurozone periphery, United
States, other European countries, OPEC countries, BRIC, and the rest of
the world. The results show that Italy’s long-run growth has been
consistent with the Bop-constraint, that its decline can be explained by a
progressive tightening of this constraint, that the sudden slowdown of
labour productivity in the 1990s corresponds to a major shock on
Italy’s external constraint, and that the major contributions to
this shock came, through different channels of transmission, from the core
Eurozone countries and from OPEC countries.
Journal: International Review of Applied Economics
Pages: 1-26
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1065226
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1065226
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:1-26
Template-Type: ReDIF-Article 1.0
Author-Name: Sónia Cabral
Author-X-Name-First: Sónia
Author-X-Name-Last: Cabral
Author-Name: Cláudia Duarte
Author-X-Name-First: Cláudia
Author-X-Name-Last: Duarte
Title: Lost in translation? The relative wages of immigrants in the Portuguese labour market
Abstract:
This article examines the wage gaps between immigrant and Portuguese
workers using matched employer--employee data for the 2002--2008 period.
We found that most of the wage gap is not due to the worst endowments of
the immigrants but to differences in the returns to those characteristics
and to the immigrant status effect. In particular, immigrants’
education and foreign experience are significantly less valued in the
Portuguese labour market. Overall, the wages of immigrants do not fully
converge to those of comparable natives as domestic experience increases.
The assimilation rates tend to be stronger in the first years after
migration and for immigrants with higher levels of foreign experience.
Total immigrants are a heterogeneous group of different nationalities,
with immigrants from the EU15 and China starring as the two extreme cases.
Journal: International Review of Applied Economics
Pages: 27-47
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1070129
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1070129
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:27-47
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Title: Cost structure, productivity and efficiency of the Italian public higher education industry 2001--2011
Abstract:
In this paper, I analyze the cost structure of the Italian higher
education system for the decade between 2001 and 2011, by means of a
stochastic translog cost function. I suggest that the judgment about the
optimal configuration of the sector is strongly dependent upon the policy
priorities set by decision makers. When assuming that the
universities’ output is the number of students, scale economies are
exhausted, and marginal costs are relatively low; when considering
graduates as outputs instead, there is opportunity for increasing the
scale of operations. Inefficiency affects production in a sensible manner,
especially when assuming that the target output is the number of
graduates. Moreover, efficiency contributes to explaining a relevant
portion of the productivity increases in the period. No significant scope
economies between teaching and research emerge, suggesting that a higher
degree of universities’ specialization can be a direction for
improving the sector’s efficiency and productivity.
Journal: International Review of Applied Economics
Pages: 48-68
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1070130
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1070130
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:48-68
Template-Type: ReDIF-Article 1.0
Author-Name: Simplice A. Asongu
Author-X-Name-First: Simplice A.
Author-X-Name-Last: Asongu
Author-Name: Jacinta C. Nwachukwu
Author-X-Name-First: Jacinta C.
Author-X-Name-Last: Nwachukwu
Title: Foreign aid and governance in Africa
Abstract:
This paper investigates the effect of foreign aid on governance in order
to extend the debate on foreign aid and to verify common positions from
Moyo’s ‘Dead Aid’, Collier’s ‘Bottom
Billion’ and Eubank’s ‘Somaliland’. The
empirical evidence is based on updated data from 52 African countries for
the period 1996--2010. An endogeneity robust instrumental variable
Two-Stage-Least Squares empirical strategy is employed. The findings
reveal that development assistance deteriorates economic (regulation
quality and government effectiveness) and institutional
(corruption-control and rule of law) governance, but has an insignificant
effect on political (political stability, voice and accountability)
governance. While, these findings are broadly in accordance with Moyo and
Collier on weak governance, they neither confirm the Eubank position on
political governance nor the Asongu stance on the aid-corruption nexus in
a debate with Okada and Samreth. The use of foreign aid as an instrument
to influence the election and replacement of political leaders in Africa
may have insignificant results. It is time to solve the second tragedy of
foreign aid and that economists and policy makers start rethinking the
models and theories on which foreign aid is used to influence economic,
institutional and political governance in recipient countries.
Journal: International Review of Applied Economics
Pages: 69-88
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1074164
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1074164
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:69-88
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Gumpert
Author-X-Name-First: Marcus
Author-X-Name-Last: Gumpert
Title: Rational underdevelopment: regional economic disparities under the Heckscher-Ohlin Theorem
Abstract:
This paper analyzes how differences in regional development arise through
technological variations and changes. Previous Ricardian-model-based
considerations of this phenomenon, known as rational underdevelopment,
have ignored migration, elasticities, multidimensional factors and inputs.
This study thus re-examines rational underdevelopment in light of the
Heckscher-Ohlin Theorem, considering two regions, with two sectors, in two
periods. The regions have different factor and technology endowments. The
first region has a technology sector, and the second is a technology
laggard. Once a new technology that can potentially benefit both regions
is introduced, the technology-endowed region offers financial transfers to
the technologically lagging region. This equalizes regional incomes but
also reduces the possibility that the laggard will adopt the new
technology and decrease its developmental disadvantage. We also discuss
the influence of mobile factors, which reduce regional inequality. The
results show that rational underdevelopment extends beyond wage subsidies
to mobile factors and capital. The analysis has implications for economic
policies aimed at reducing inter-regional inequality.
Journal: International Review of Applied Economics
Pages: 89-111
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1074165
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1074165
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:89-111
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Author-Name: Graziella Bonanno
Author-X-Name-First: Graziella
Author-X-Name-Last: Bonanno
Title: Efficiency in banking: a meta-regression analysis
Abstract:
One learns two main lessons from studying the great quantity of banking
efficiency literature. These lessons regard the heterogeneity in results
and the absence of a comprehensive review aimed at understanding the
reasons for this variability. Surprisingly, although this issue is
well-known, it has not been systematically analyzed before. In order to
fill this gap, we perform a Meta-Regression-Analysis (MRA) by examining
1661 efficiency scores retrieved from 120 papers published over the period
2000--2014. The meta-regression is estimated by using the Random Effects
Multilevel Model (REML) because it controls for within- and between-study
heterogeneity. The analysis yields four main results. First, parametric
methods yield lower levels of banking efficiency than nonparametric
studies. This holds true even after controlling for the approach used in
selecting the inputs and outputs of the frontier. Secondly, we show that
banking efficiency is highest when using the value-added approach,
followed by estimates from studies based on the intermediation method,
whereas those based on the hybrid approach are the lowest. Thirdly,
efficiency scores are also determined by the quality of studies and the
number of observations and variables used in the primary papers. As far as
the effects of sample size, dimension and quality of papers are concerned,
there are significant differences in sign and magnitude between parametric
and nonparametric studies. Finally, cost efficiency is found to be higher
than profit efficiency. Interestingly, MRA results are robust to the
potential outliers in efficiency and sample size distributions.
Journal: International Review of Applied Economics
Pages: 112-149
Issue: 1
Volume: 30
Year: 2016
Month: 1
X-DOI: 10.1080/02692171.2015.1070131
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1070131
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Handle: RePEc:taf:irapec:v:30:y:2016:i:1:p:112-149
Template-Type: ReDIF-Article 1.0
Author-Name: Edsel L. Beja
Author-X-Name-First: Edsel L.
Author-X-Name-Last: Beja
Title: Measuring economic ill-being using objective and subjective indicators: evidence for the Philippines
Abstract:
The mismatch between a country’s macroeconomic performance and the
people’s economic well-being represents the overall economic
ill-being in a society. This mismatch is measurable using objective
indicators such as the inflation rate and the joblessness rate as well as
subjective indicators such as personal evaluations on the inflation and
joblessness rates. That is, the inflation rate shows the affordability of
goods and services; and the subjective evaluation indicates whether people
see the goods and services as affordable or not. In addition, the
joblessness rate indicates the portion of the labor force that does not
enjoy gainful employment; and the subjective evaluation indicates whether
people see themselves as jobless or not. The results for the Philippines
show a high-level of overall economic ill-being especially in the decade
covering 2005 to 2014. This finding unveils a different scene from what
the mainstream discourses are portraying as the current state of the
Philippine society.
Journal: International Review of Applied Economics
Pages: 151-166
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1074166
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1074166
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:151-166
Template-Type: ReDIF-Article 1.0
Author-Name: Mona Ali
Author-X-Name-First: Mona
Author-X-Name-Last: Ali
Title: Global imbalances and asymmetric returns to US foreign assets: fitting the missing pieces of the US balance of payments puzzle
Abstract:
The issue of whether the US earns a persistently higher return on its
foreign direct investment (relative to returns to foreign-owned direct
investment in the US) has received considerable attention but little
closure in the ‘global imbalances’ debate. Measuring the
rate of returns to US direct investment abroad and foreign direct
investment in the US we find higher returns to US foreign direct
investment relative to its foreign counterparts in the US. Given the
evidence indicating higher returns to US direct investment overseas, we
link the irresolution in the contemporary literature regarding the
existence of these returns to the unsettled debate over the origin of
global imbalances. Reviewing the macro-financial literature on global
imbalances, we find a failure to acknowledge that the US current account
deficit is, in part, the outcome of transnational production networks in a
global economy under-pinned by dollar hegemony. Given the growth in US
multinational supply chains, we argue that the US trade deficit is
consistent with asymmetric returns to US direct investment and that the
sustainability of these return differentials rests on the stability of the
status quo.
Journal: International Review of Applied Economics
Pages: 167-187
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1085002
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1085002
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:167-187
Template-Type: ReDIF-Article 1.0
Author-Name: Marilena Furno
Author-X-Name-First: Marilena
Author-X-Name-Last: Furno
Title: Decomposition and wage inequality
Abstract:
Earning differentials are investigated by a quantile regressions based
decomposition, which disentangles the inequalities linked to the
covariates and coefficients at various quantiles. Gender and region are
considered the main sources of inequality. The unexplained gender and
regional differences decrease at the highest wages. Their combination at
the lower wages’ level affects women more, causing a so-called
sticky floor. Gender and regional covariate effects show a prevalence of
women covariates compared with the men’s group, and a prevalence of
southern women covariates within the women’s group, particularly at
the higher quantiles. This can be interpreted as a glass ceiling hindering
southern women at higher wages.
Journal: International Review of Applied Economics
Pages: 188-209
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1085004
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1085004
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:188-209
Template-Type: ReDIF-Article 1.0
Author-Name: Bernardina Algieri
Author-X-Name-First: Bernardina
Author-X-Name-Last: Algieri
Title: Conditional price volatility, speculation, and excessive speculation in commodity markets: sheep or shepherd behaviour?
Abstract:
The present study aims to investigate the dynamics of primary commodity
spot prices and the role of speculation for the period 1995--2012. Using a
linear and nonlinear Granger causality analysis, the relationship between
speculation and GARCH conditional price volatility on the one side, and
the linkage between excessive speculation and GARCH conditional price
volatility on the other side, is carefully examined with the scope to
establish whether volatility drives speculation or speculation drives
price volatility, or whether there are no linkages between the two
variables. The results show that excessive speculation leads conditional
price volatility, and that bilateral relationships often exist between
price volatility and speculation. In addition, the lead-lag relationships
are not found for the entire sample period, but rather when small
sub-periods are taken into account. It turns out, in fact, that excessive
speculation has driven price volatility for maize, rice, soybeans, and
wheat in particular time frames, but the relationships are not always
overlapping for all considered commodities. Generally, the results under
linear causality tests are in agreement with those obtained under
nonlinear counterparts.
Journal: International Review of Applied Economics
Pages: 210-237
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1102204
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1102204
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:210-237
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Marco Sanfilippo
Author-X-Name-First: Marco
Author-X-Name-Last: Sanfilippo
Title: China’s competition and the export price strategies of developed countries
Abstract:
This paper analyzes the impact of Chinese competition on developed
countries’ export prices. The empirical application is on Italy,
one of the main European manufacturing exporters with exports at high risk
of competition from China. Our results show that, following China’s
entry into the WTO, the price strategies of Italian firms has been
affected. While in general the increasing Chinese export competition
resulted in an upgrading of products exported, the impact has been
different according to the sector and technological level. The incentives
to upgrade have been stronger for low technology sectors, where
competition is tougher and varieties of products sold lower. To highlight
quality differentials, and isolate the effects on the different segments
of the distribution of Italy’s export prices, we run quantile
regressions. We find that are mainly those products sold at low prices to
face a strong pressure to upgrade.
Journal: International Review of Applied Economics
Pages: 238-254
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1102205
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1102205
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:238-254
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Aguiar do Monte
Author-X-Name-First: Paulo
Author-X-Name-Last: Aguiar do Monte
Author-Name: Hélio de Sousa Ramos Filho
Author-X-Name-First: Hélio de Sousa
Author-X-Name-Last: Ramos Filho
Title: The Brazilian cash transfer programme, regional effects, and its impact on the labour market
Abstract:
The aim of this paper is to discuss the effects of the Bolsa
Família Programme on the Brazilian labour market. The data
analysed derive from a sample from the Family Budget Survey, 2008--2009.
The descriptive analysis highlights the importance of Bolsa
Família in the composition of families’ income,
especially in the case of those families that live in less economically
developed regions of Brazil such as North and Northeast, as well as rural
areas. The empirical analysis carries out econometric models (Seemingly
Unrelated Bivariate Probit model and Instrumental Variables (IV)), and
demonstrates both a strong and negative effect of the cash transfer
provided by Bolsa Família on the Brazilian labour
market.
Journal: International Review of Applied Economics
Pages: 255-271
Issue: 2
Volume: 30
Year: 2016
Month: 3
X-DOI: 10.1080/02692171.2015.1085003
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1085003
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Handle: RePEc:taf:irapec:v:30:y:2016:i:2:p:255-271
Template-Type: ReDIF-Article 1.0
Author-Name: Anuradha Guru
Author-X-Name-First: Anuradha
Author-X-Name-Last: Guru
Title: Early warning system of finance stress for India
Abstract:
This paper develops a composite Financial Sector Stress Index (FSSI) for
the Indian financial system as a whole by combining three sub-indices for
currency markets, the banking sector and the stock market, to gauge the
level of financial stress in the Indian financial system. Such a
continuous-valued index can be used to track the varying magnitude and
dynamics of financial stress in the country over time. The FSSI provides
an ordinal measure of stress in the financial system. Changes in the FSSI
are useful in assessing whether financial stress is rising or falling, and
in ascertaining extreme events in the financial system. The paper, then,
objectively identifies extreme stress periods in the financial system
based on movements of the index. We recognise that such extreme/tail
events pose special econometric challenges as they are rare events but
with a big impact. Hence, we use a more robust and analytically sound
technique of Extreme Value Theory (EVT) to identify extreme events in the
financial system. Once the extreme stress events are identified, we use a
binary dependent variable model (logit model) to estimate the impact of
various macroeconomic and financial variables on the probability of
extreme stress in the financial system.
Journal: International Review of Applied Economics
Pages: 273-300
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1102206
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1102206
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:273-300
Template-Type: ReDIF-Article 1.0
Author-Name: João P. Romero
Author-X-Name-First: João P.
Author-X-Name-Last: Romero
Author-Name: John S. L. McCombie
Author-X-Name-First: John S. L.
Author-X-Name-Last: McCombie
Title: The Multi-Sectoral Thirlwall’s Law: evidence from 14 developed European countries using product-level data
Abstract:
The paper reports estimates of import and export functions for five
technological sectors in 14 developed European countries. These functions
have never before been estimated for developed countries adopting a
technological classification of sectors. The paper compares estimates of
income elasticities found using vector error-correction models employing
aggregate deflators, with estimates found using cross-product panels
employing product-specific quality-adjusted price indexes recently
calculated by Feenstra and Romalis. The results indicate that the income
elasticities of imports and exports are higher for medium- and high-tech
manufactures, which suggests the importance of moving from the production
of simple goods to the production of goods with high technological
content. The estimates also suggest that the Multi-Sectoral
Thirlwall’s Law holds for the countries analysed, while comparing
the estimates revealed that cross-product panels with quality-adjusted
prices generate considerably more robust results. The investigation
reveals that using a more recent time period generates estimates of income
elasticities of demand for primary products and resource-based
manufactures that tend to be higher than the estimates found by studies
that have used longer time periods, while the opposite holds for low-,
medium-, and high-tech manufactures.
Journal: International Review of Applied Economics
Pages: 301-325
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1102207
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1102207
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:301-325
Template-Type: ReDIF-Article 1.0
Author-Name: Ayça Akarçay Gürbüz
Author-X-Name-First: Ayça
Author-X-Name-Last: Akarçay Gürbüz
Author-Name: Sezgin Polat
Author-X-Name-First: Sezgin
Author-X-Name-Last: Polat
Title: Public--private wage differentials in Turkey: public policy or market dynamics?
Abstract:
We evaluate public--private sector wage differentials by gender in Turkey
between the years 2005 and 2013. Using micro data from Household Labor
Force Surveys we find a positive premium for low wage earners and a
penalty of working in the public sector at the higher end of the
distribution. Although the penalty has not disappeared, the price effect
has increased at both ends of the distribution. The increase at the lower
tail is attributed to a higher price effect in the public sector, whereas
at the higher tail it has been a result of a relatively uneven wage
increase in the private sector along the distribution, rather than an
explicit public wage policy.
Journal: International Review of Applied Economics
Pages: 326-356
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1102208
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1102208
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:326-356
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: The Spanish Textile Industry Sans ATC Quota Protection
Abstract:
The Spanish textile and apparel manufacturing sectors have been badly
impacted by the global recession as well as the removal of quotas that
were in place with the Agreement on Textiles and Clothing (ATC). This
study employs a cost function to investigate the presence of scale
economies and the interrelationships among inputs of domestic capital,
labor, and intermediate goods as well as outsourced (imported)
intermediate products for the Spanish textile industry in a global
environment that has become increasingly competitive. While there is
evidence of scale economies at low output levels, there is also some
evidence consistent with diseconomies of scale at the highest output
levels. All of the inputs appear to be substitutes for one another except
for domestic capital and outsourced intermediate goods. An important
finding is that the demands for both labor and domestic intermediate goods
have become increasingly sensitive to the prices of outsourced inputs. The
estimated coefficients of dummy variables indicate that reduced
international trade restrictions have put downward pressure on unit cost
for the industry in recent years. These results suggest that the Spanish
textile industry and its domestic suppliers will be increasingly
challenged by international competitive pressures.
Journal: International Review of Applied Economics
Pages: 357-376
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1105936
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1105936
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:357-376
Template-Type: ReDIF-Article 1.0
Author-Name: Kamil Galuščák
Author-X-Name-First: Kamil
Author-X-Name-Last: Galuščák
Author-Name: Petr Hlaváč
Author-X-Name-First: Petr
Author-X-Name-Last: Hlaváč
Author-Name: Petr Jakubík
Author-X-Name-First: Petr
Author-X-Name-Last: Jakubík
Title: Household resilience to adverse macroeconomic shocks: evidence from Czech microdata
Abstract:
We develop a methodology for identifying financially distressed households
and use it for testing the responses to shocks to the unemployment rate,
the interest rate and prices of essential expenditure in the Czech
Republic. We extend the approach of Johansson and Persson (2006) for
Sweden and Albacete and Fessler (2010) for Austria in the literature to
allow for full labour market transitions between employment and
unemployment, and, due to data availability, to account for heads and
spouses within households. This improvement may lead to a higher response
of household distress incidence, due to the unemployment rate shock, than
in both Sweden and Austria, while the effects due to the interest rate
shock are of similar size as in Austria. We illustrate the use of our
approach for stress testing households’ ability to pay their debts
using macroeconomic scenarios from the CNB’s official forecast and
from the CNB’s Financial Stability Report. The results highlight
the importance of using micro-level datasets in the analysis of household
distress incidence, as the impact of shocks is more pronounced among
lower-income households.
Journal: International Review of Applied Economics
Pages: 377-402
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1105937
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1105937
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:377-402
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Al-Najjar
Author-X-Name-First: Basil
Author-X-Name-Last: Al-Najjar
Author-Name: Rong Ding
Author-X-Name-First: Rong
Author-X-Name-Last: Ding
Author-Name: Khaled Hussainey
Author-X-Name-First: Khaled
Author-X-Name-Last: Hussainey
Title: Determinants and value relevance of UK CEO pay slice
Abstract:
This paper studies the CEO pay slice (CPS) of UK listed firms during the
period 2003 to 2009. We investigate the determinants of CPS. We study the
links between CPS and measures of firm performance. We find that firms
with higher levels of corporate governance ratings and those with more
independent boards tend to have higher CPS. In addition, we find that CEOs
are more likely to receive lower compensation when they chair the board
and when they work in firms with large board size. We also find that
higher CPS is positively associated with firm performance after
controlling for the firm-specific characteristics and corporate governance
variables. We get compatible results when we examine the association
between equity-based CPS and firm performance. Our results remain robust
to alternative accounting measures of firm performance. Our results
suggest that high UK CPS levels do indeed reflect top managerial talent
rather than managerial power.
Journal: International Review of Applied Economics
Pages: 403-421
Issue: 3
Volume: 30
Year: 2016
Month: 5
X-DOI: 10.1080/02692171.2015.1105938
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1105938
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Handle: RePEc:taf:irapec:v:30:y:2016:i:3:p:403-421
Template-Type: ReDIF-Article 1.0
Author-Name: Ashim Kumar Kar
Author-X-Name-First: Ashim Kumar
Author-X-Name-Last: Kar
Title: Measuring competition in microfinance markets: a new approach
Abstract:
This paper employs a relatively new method of competition measurement, the
Boone indicator, for data on 521 microfinance institutions (MFIs) in ten
vibrant microfinance markets: Bangladesh, India, Nepal, Indonesia, the
Philippines, Bolivia, Ecuador, Nicaragua, Mexico and Peru. This approach
is able to measure competition on a yearly basis in market segments
without considering the entire market, as other well-known methods -- for
instance, the Panzar-Rosse model -- require. Stochastic frontier (SF)
models have been employed to estimate the translog cost function (TCF) and
then marginal costs are computed. The potential endogeneity of performance
and costs are overcome by utilising a two-step GMM estimator. Results show
that competition levels vary from country to country, and over the period
2003--2010 India and Nicaragua had the most competitive microfinance loan
markets. Competition among the microfinance institutions in Bangladesh and
Bolivia declined significantly over time, which may be due to the partial
reconstitution of market power by the giant MFIs in these countries.
Competition in other countries remained mostly unchanged over the years,
in line with the consolidation and revitalisation of respective
microfinance markets.
Journal: International Review of Applied Economics
Pages: 423-440
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1106445
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1106445
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:423-440
Template-Type: ReDIF-Article 1.0
Author-Name: Smruti Ranjan Behera
Author-X-Name-First: Smruti Ranjan
Author-X-Name-Last: Behera
Title: Current account dynamics and capital mobility in the newly industrialized countries
Abstract:
This paper examines the current account dynamics in a group of ten newly
industrialized countries (NICs) during the period 1980--2012 using a panel
error-correction model. The model is also used to empirically test whether
the degree of capital mobility is positively related to financial
openness. The Chin-Ito (2006, 2008) financial openness index is used to
classify the countries into different groups, and we place the countries
in one group that are similar to each other in terms of their financial
openness. Furthermore, to evaluate the extent of capital mobility over the
different period from 1980 to 2012, the total period under study is
divided into three sub-periods. The estimation results indicate that there
exist long-run equilibrium relationships between domestic saving,
investment, and current account in all groups regardless of their degree
of financial openness. We find that more openness in terms of the capital
account is associated with a higher degree of capital mobility in the case
of NICs. The empirical result also indicates that the degree of capital
mobility is higher in the first and third sub-period.
Journal: International Review of Applied Economics
Pages: 441-461
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1122744
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1122744
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:441-461
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Ederer
Author-X-Name-First: Stefan
Author-X-Name-Last: Ederer
Author-Name: Christine Heumesser
Author-X-Name-First: Christine
Author-X-Name-Last: Heumesser
Author-Name: Cornelia Staritz
Author-X-Name-First: Cornelia
Author-X-Name-Last: Staritz
Title: Financialization and commodity prices -- an empirical analysis for coffee, cotton, wheat and oil
Abstract:
Commodity prices have crucial implications for developing countries. The
question whether the financialization of commodity derivative markets has
contributed to high and volatile commodity prices has been controversially
debated. Building on limitations in the empirical literature, we estimate
a multivariate Vector Autoregressive (VAR) model to assess the effect of
different groups of financial investors (index investors and money
managers) as well as fundamental and macroeconomic variables on the prices
of coffee, cotton, wheat and oil. We find that, in contrast to index
investors, money managers’ net long positions have a large
statistically significant effect on commodity prices. This calls for
policy interventions as commodity derivative markets may cease to perform
their fundamental developmental roles.
Journal: International Review of Applied Economics
Pages: 462-487
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1122745
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1122745
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:462-487
Template-Type: ReDIF-Article 1.0
Author-Name: João Sousa Andrade
Author-X-Name-First: João Sousa
Author-X-Name-Last: Andrade
Author-Name: António Portugal Duarte
Author-X-Name-First: António Portugal
Author-X-Name-Last: Duarte
Title: Crowding-in and crowding-out effects of public investments in the Portuguese economy
Abstract:
This study analyses the effects of public and private investment on
Portuguese GDP in the period 1960--2013. After a review of the literature
based on works developed in the context of VAR analyses, an alternative
econometric strategy is proposed. We opt for ADL models using the
methodology of Krolzig-Hendry-Doornik. We estimate direct effects of
public and private investments on themselves and also a system of
simultaneous equations and calculate the multipliers of the exogenous
variables, represented by the current external transfers, the short-run
nominal interest rate and public debt ratio. Additionally, we tested a
model with the first three equations of the system, using beyond those
variables the real exchange rate as an exogenous variable. The results
point to the existence of a complementarity between private investment and
public investment rather than any idea of substitutability. We find that
public debt has important negative effects on public and private
investments and consequently on output. Public investment has positive
effects on output and on private investment. The appreciation of the real
exchange rate has an important and long-lasting negative effect upon
output, confirming the presence of a mechanism associated with a
Dutch-disease phenomenon in the Portuguese economy.
Journal: International Review of Applied Economics
Pages: 488-506
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1122746
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1122746
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:488-506
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Author-Name: Graziella Bonanno
Author-X-Name-First: Graziella
Author-X-Name-Last: Bonanno
Title: Looking at the determinants of efficiency in banking: evidence from Italian mutual-cooperatives
Abstract:
AbtractItaly has experienced a restructuring and
consolidation process in the banking industry since the 1990s that is
expected to foster efficiency and competition. Despite the reforms, a
peculiarity of the industry is the persistence of small mutual-cooperative
banks (Banche di Credito Cooperativo, BCCs) active in narrow markets. The
scope of this paper is to analyze the determinants of BCCs’
efficiency in the 2006--2011 period. In the first step of the study, a
stochastic cost frontier is used to yield bank efficiency. Then the cost
efficiency becomes the dependent variable of fixed and random effect
models. The reference market of BCCs is the province (NUTS3). We find that
BCC cost efficiency is positively affected by market concentration and
demand density and inversely related to branching. Importantly, these
results are robust to any sample restriction anchored to the distribution
of efficiency. While the evidence regarding the credit quality is
inconclusive for all BCCs, the sensitivity analysis shows that the risk in
local markets is a source of BCC cost inefficiency.
Journal: International Review of Applied Economics
Pages: 507-526
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1122747
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1122747
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:507-526
Template-Type: ReDIF-Article 1.0
Author-Name: Noemi Levy-Orlik
Author-X-Name-First: Noemi
Author-X-Name-Last: Levy-Orlik
Author-Name: Christian Dominguez-Blancas
Author-X-Name-First: Christian
Author-X-Name-Last: Dominguez-Blancas
Title: The operation of the Mexican banking system under foreign multinational corporations’ control: new activities and traditional income
Abstract:
This paper discusses the operation of banks in developing economies
dominated by foreign multinational corporations (FMCs), and argues that
banks have acquired new activities without drastically modifying the
composition of their income. This discussion takes place in the light of
the profound changes in financial systems that have modified the linkages
between banks, capital markets, businesses and households, during the
period of globalization and financialization. The main argument of this
paper is that although foreign multinational corporations have become
dominant in developing countries, and bank activities have diversified,
the multinational corporations of the banking sector still rely on
interest margins, particularly from consumer credit. This is explained in
terms of specific bank credit activities that operate under oligopolistic
structures, a condition that has not being modified by foreign
multinational corporations’ dominance in developing banking
markets.
Journal: International Review of Applied Economics
Pages: 527-546
Issue: 4
Volume: 30
Year: 2016
Month: 7
X-DOI: 10.1080/02692171.2015.1106444
File-URL: http://hdl.handle.net/10.1080/02692171.2015.1106444
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Handle: RePEc:taf:irapec:v:30:y:2016:i:4:p:527-546
Template-Type: ReDIF-Article 1.0
Author-Name: Manisha Pradhananga
Author-X-Name-First: Manisha
Author-X-Name-Last: Pradhananga
Title: Financialization and the rise in co-movement of commodity prices
Abstract:
Between January 2000 and June 2008, the FAO food price index rose by 96%.
Besides the magnitude, the price rise was remarkable for the broad range
of commodities affected; prices of agriculture commodities, energy, and
metals all rose and fell together. These dramatic developments coincided
with a massive inflow of investment in the commodities futures market, and
the rise of commodities as an investment class. In this paper, I study
causal links between the increase in the co-movement between commodity
prices and financialization of the commodities futures market. I extract
common factors from a group of 40 commodities using the PANIC method and
include it in a factor-augment VEC model along with a proxy of
financialization. Results show that financialization of the commodities
futures markets can explain the recent rise in co-movement between
commodity prices, after accounting for macroeconomic variables.
Journal: International Review of Applied Economics
Pages: 547-566
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1146875
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1146875
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:547-566
Template-Type: ReDIF-Article 1.0
Author-Name: Rosalia Castellano
Author-X-Name-First: Rosalia
Author-X-Name-Last: Castellano
Author-Name: Rosalba Manna
Author-X-Name-First: Rosalba
Author-X-Name-Last: Manna
Author-Name: Gennaro Punzo
Author-X-Name-First: Gennaro
Author-X-Name-Last: Punzo
Title: Income inequality between overlapping and stratification: a longitudinal analysis of personal earnings in France and Italy
Abstract:
The aim of this paper is to gain new insights into the generation process
of personal income in France and Italy, two countries that are in close
geographical proximity but have a large disparity in terms of income
growth and distribution. In the first step, the potential of EU-SILC
balanced panel (2004--2007) is exploited by random effects models, which
also make it possible to explore the primary factors that are likely to
explain differences in generating personal labour earnings. In the second
step, the ANOGI (Analysis of Gini) decomposition enables one to assess the
contribution of each sub-population to overall income inequality and the
degree to which each subgroup is stratified. A joint evaluation of income
determinants gives evidence of the high complexity of inequality process
and throws light on the role of gender, skill levels and job
characteristics in determining different degrees of income stratification.
Indeed, although the high heterogeneity among members of a same subgroup
(within-group inequality) explains a large share of overall income
inequality, the between-group inequality becomes significant in explaining
the income differentials between employment status and occupation types.
Journal: International Review of Applied Economics
Pages: 567-590
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1165653
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1165653
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:567-590
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppina Autiero
Author-X-Name-First: Giuseppina
Author-X-Name-Last: Autiero
Author-Name: Niall O’Higgins
Author-X-Name-First: Niall
Author-X-Name-Last: O’Higgins
Title: Jailer of freedom and enemy of growth? The role of personal and social identities in educational choices
Abstract:
This paper develops a theoretical and empirical model on the influence of
identity on educational choices which extends the existing literature in
several directions. The theoretical model proposed here allows schooling
choices to be independently influenced by both personal and social
identities and, in contrast to previous work, the proposed empirical
counterpart is derived directly from the theoretical model. The use of
UK’s British Cohort Study on individuals born in 1970 allows us to
identify with precision the relevant explanatory factors and to
appropriately control for potentially confounding factors. Both social and
personal identities are found to have substantial and statistically
significant effects on educational participation decisions and these
impacts are robust to a variety of specifications. The key implication is
that socio-psychological factors play an important role in
children’s school performance through their direct influence on the
utility derived from studying.
Journal: International Review of Applied Economics
Pages: 591-604
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1146874
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1146874
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:591-604
Template-Type: ReDIF-Article 1.0
Author-Name: Terhi Maczulskij
Author-X-Name-First: Terhi
Author-X-Name-Last: Maczulskij
Title: Higher education and public sector employment: evidence from Finnish data on twins
Abstract:
Using data from Finland on twins, this paper examines the effect of labour
quality, as measured by education, on the choice to work in the public
sector. A distinction to previous studies is made by allowing controls of
family background and genetics effects that could drive the positive
relationship between higher education and public sector employment. The
conditional (fixed effects) logit regression estimates indicate that
highly qualified employees are more likely to seek public sector
employment. The paper also utilizes the longitudinal structure of the data
to examine whether the results vary over time. These results indicate that
the association between public sector work and higher education is
counter-cyclical. In other words, highly qualified workers are more likely
to hold public service positions and to have greater access to public
sector jobs during economic downturns.
Journal: International Review of Applied Economics
Pages: 605-619
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1165655
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1165655
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:605-619
Template-Type: ReDIF-Article 1.0
Author-Name: Rossella Bardazzi
Author-X-Name-First: Rossella
Author-X-Name-Last: Bardazzi
Author-Name: Silvia Duranti
Author-X-Name-First: Silvia
Author-X-Name-Last: Duranti
Title: Atypical work: a threat to labour productivity growth? Some evidence from Italy
Abstract:
Various theories suggest the existence of a negative relationship between
the use of atypical employment contracts and productivity growth, arguing
that firms’ utilisation of atypical contracts may reduce the
incentive to innovate and internal training, inducing firms to follow a
‘low-road’ to competitiveness, based upon cost-cutting
strategies.This paper aims to provide new evidence on the occurrence of
these effects in the Italian economy, where changes in labour legislation
from the mid-Nineties onwards, associated with an
‘institutional’ wage moderation period, have brought about a
significant process of job creation, but also an appreciable slowdown in
labour productivity.This issue is investigated using a microeconomic
approach, taking a rich source of microdata for firms and estimating a
dynamic model for labour productivity on a pseudo-panel of firms for the
period 2003-2008.The results support the hypothesis of a negative impact
of external labour flexibility on labour productivity growth at firm
level, such effect proving stronger for small and medium than for large
enterprises and of varying magnitude for the different atypical contracts.
Journal: International Review of Applied Economics
Pages: 620-643
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1165656
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1165656
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:620-643
Template-Type: ReDIF-Article 1.0
Author-Name: Mekki Hamdaoui
Author-X-Name-First: Mekki
Author-X-Name-Last: Hamdaoui
Author-Name: Abir Zouari
Author-X-Name-First: Abir
Author-X-Name-Last: Zouari
Author-Name: Samir Maktouf
Author-X-Name-First: Samir
Author-X-Name-Last: Maktouf
Title: The effect of financial liberalization on banking sector stability
Abstract:
Several studies indicate that financial liberalization increases
likelihood of a financial crisis without distinguishing between a normal
period, unstable period preceding the onset of banking panics and
crisis/post period. We explain in this paper the relationship between
financial liberalization and banking sector vulnerability. Then, we argue
that banking sector turmoil is most likely to occur after an intermediate
degree of liberalization. Using a recently updated dataset for financial
reforms, we find an inverted U-shaped relationship between liberalization
and the likelihood of banking crisis for a sample of 49 countries between
1980 and 2010. We used a multinomial logit model in order to take into
account what is called the ‘post crisis bias’. We ask
whether the relationship remains when institutional characteristics of
countries and dynamic effects of liberalization are considered. The
empirical results indicate that the relationship between liberalization
and banking sector stability depends strongly on the strength of capital
regulation and supervision. With very weak regulation and supervision, the
probability of banking crises is increasing with liberalization but this
relationship is reversed as regulation and supervision become significant.
The most important type of liberalization in relation to banking crises
seems to be operational. A policy implication is that positive growth
effects of liberalization can be achieved without increasing the risk of a
banking fragility if appropriate institutions are developed.
Journal: International Review of Applied Economics
Pages: 644-667
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1165654
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1165654
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:644-667
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Author-Name: Bradley Bordiss
Author-X-Name-First: Bradley
Author-X-Name-Last: Bordiss
Title: Empires of inequality
Journal: International Review of Applied Economics
Pages: 668-676
Issue: 5
Volume: 30
Year: 2016
Month: 9
X-DOI: 10.1080/02692171.2016.1148293
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1148293
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Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:668-676
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Edith Penrose’s contribution to real world economics
Journal: International Review of Applied Economics
Pages: 599-600
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2019.1643120
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1643120
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:599-600
Template-Type: ReDIF-Article 1.0
Author-Name: Diana Gabrielyan
Author-X-Name-First: Diana
Author-X-Name-Last: Gabrielyan
Title: Forecasting inflation using the Phillips curve in inflation targeting countries
Abstract:
This paper studies the forecasting ability of various Phillips curve specifications for 1 year ahead headline and underlying core inflation measures for three open currently inflation targeting (IT) countries: Sweden, Canada and New Zealand. The changes of the monetary policy regime in these countries are discussed for periods of fixed exchange rate regime, early years of IT and later periods in the light of inflation forecasting accuracy. The paper finds evidence that Phillips curve models can improve inflation forecasts against the random walk benchmark in the periods when the central bank is explicitly targeting the inflation. Yet, the results from earlier periods indicate heterogeneity in individual model performance across various econometric specifications and different sample periods.
Journal: International Review of Applied Economics
Pages: 601-623
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1516740
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1516740
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:601-623
Template-Type: ReDIF-Article 1.0
Author-Name: Mathias Manguzvane
Author-X-Name-First: Mathias
Author-X-Name-Last: Manguzvane
Author-Name: John Weirstrass Muteba Mwamba
Author-X-Name-First: John Weirstrass
Author-X-Name-Last: Muteba Mwamba
Title: Modelling systemic risk in the South African banking sector using CoVaR
Abstract:
In this paper, we model systemic risk by making use of the conditional quantile regression to identify the most systemically important and vulnerable banks in South Africa (SA). We measure the marginal contributions of each bank to systemic risk by computing the difference between system risk of individual banks when they are in a normal state and when they are in distress. Using daily stock market prices of six SA commercial banks1 from June 2007 to April 2016; Our results show a considerable increase in the market risk of all the six banks during the 2008 global financial crisis with African Bank being the riskiest bank in the country. Our systemic risk ranking shows that First Rand Bank was the largest contributor to systemic risk followed by Standard Bank, Barclays Africa, Nedbank, Capitec and lastly African Bank. These results suggest that the largest banks pose a bigger threat to the banking system than the smaller banks. These findings clearly indicate that different banks pose different threats to the banking system and the economy at large. Hence, specific actions that go beyond limiting idiosyncratic risk are needed if stability is to be attained through macro prudential regulation.
Journal: International Review of Applied Economics
Pages: 624-641
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1516741
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1516741
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:624-641
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Nikas
Author-X-Name-First: Christos
Author-X-Name-Last: Nikas
Author-Name: Nikolaos Stoupos
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Stoupos
Author-Name: Apostolos Kiohos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Kiohos
Title: The Euro Area: Does one currency fit all?
Abstract:
The sovereign debt crisis since the late 2000s in the Euro Area revealed that, in reality, there are two monetary unions in Europe: the core and the periphery. The core-north countries have sounder fiscal balances and lower inflation rates, whereas the periphery-south ones are more prone to higher inflation and public deficits. The principal aim of this paper is to explore which countries handle the nominal exchange rate of the euro. By doing this we will effectively challenge the statement ‘.one size fits all’ upon which the euro project was built. We used the real exchange rates of the initial 12 Eurozone members as an empirical instrument. Our evidence is based on the bivariate regression analysis and the Asymmetric Component GARCH (AC-GARCH) model. We discovered that the countries of the Eurozone core influence more the euro nominal exchange rate than the periphery ones. In addition, the euro is more vulnerable to the volatility shocks of the German and the French real exchange rates.
Journal: International Review of Applied Economics
Pages: 642-658
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1516742
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1516742
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:642-658
Template-Type: ReDIF-Article 1.0
Author-Name: Ruolz Ariste
Author-X-Name-First: Ruolz
Author-X-Name-Last: Ariste
Author-Name: Ali Béjaoui
Author-X-Name-First: Ali
Author-X-Name-Last: Béjaoui
Title: Impact of individual and institutional factors on wage rate for nurses in Canada: is there a monopsony market?
Abstract:
Previous studies on Canadian nurse wages were limited to individual factors and did not take into account contextual factors such as hospital market share, labour market size or unionization. Based on market share, some refer to the nursing labour market as a monopsony, which depresses wages and might explain the shortage. However, this has not yet been tested empirically in the Canadian Registered Nurse (RN) labour market. This article aims to fill this gap by using the microdata files of the Labour Force Survey for the years 2010–2012 and the multilevel analysis to shed light on this issue. The contribution of this work is that it takes into account both individual and contextual variables to try to explain nurses’ hourly wage. In accordance with the monopsony model, we hypothesize a negative correlation between hourly wage and level of market share; i.e. monopsony employers would pay a lower wage rate. The results do not support the monopsony model to explain nursing labour shortage: there is no statistically significant relation between RN wages and market share; no relation was found for market size either. This suggests that an explanation for RN labour shortage must be investigated elsewhere.
Journal: International Review of Applied Economics
Pages: 659-681
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1518410
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1518410
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:659-681
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood ul Hasan Khan
Author-X-Name-First: Mahmood ul Hasan
Author-X-Name-Last: Khan
Author-Name: Muhammad Nadim Hanif
Author-X-Name-First: Muhammad Nadim
Author-X-Name-Last: Hanif
Title: Empirical evaluation of ‘structure-conduct-performance’ and ‘efficient-structure’ paradigms in banking sector of Pakistan
Abstract:
Historically, the banking sector of Pakistan has been characterized by credit ceilings, directed and subsidized credit, controlled interest rates and lacking competition. This scenario prevailed till the financial sector reforms in 1990. However, after 1990, the banking sector changed significantly and the reforms led to notable improvement in the indicators of market structure of the banking industry of the country. In literature, the changes in indicators of market structure are interpreted in the context of either structure-conduct-performance (SCP) or relative market power (RMP) paradigm, and/or in relation to the efficient structure (ES) hypothesis. This paper studies relevance of SCP, RMP and ES paradigms for banking industry of Pakistan. This study uses (balanced) panel data, spanning 1996 to 2015, of 24 commercial banks to estimate banks’ profit function by using fixed effects model. Findings suggest that: (a) there is a weak association between the indicators of market structure and banks’ performance; (b) there is no empirical evidence to support SCP or RMP paradigms; and (c) the ES paradigm is relevant in the case of banking sector of Pakistan. Thus, the focus of policymakers should be to improve the efficiency of the banking sector in Pakistan. Focus on improving indicators of market structure, like concentration ratios, to encourage competition in the banking sector may not be productive.
Journal: International Review of Applied Economics
Pages: 682-696
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1518411
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1518411
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:682-696
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Borgoni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Borgoni
Author-Name: Giacomo Degli Antoni
Author-X-Name-First: Giacomo
Author-X-Name-Last: Degli Antoni
Author-Name: Marco Faillo
Author-X-Name-First: Marco
Author-X-Name-Last: Faillo
Author-Name: Alessandra Michelangeli
Author-X-Name-First: Alessandra
Author-X-Name-Last: Michelangeli
Title: Natives, immigrants and social cohesion: intra-city analysis combining the hedonic approach and a framed field experiment
Abstract:
The literature on the hedonic price approach applied to housing highlights the existence of natives’ preferences against living in urban areas with high foreign-born population. At the same time, empirical and experimental evidence show that ethnic fragmentation reduces social cohesion in society. Mainly because of the difficulty to measure social cohesion at the neighborhood level, the correlation between these two phenomena is still largely unexplored. In this paper, we investigate natives’ preferences for immigrants following an original approach that combines the hedonic price approach and a framed field experiment. The latter allows us to collect a measure of cooperation at the neighborhood level. We apply this methodology to the city of Milan. Our findings show that natives prefer to not live in dense immigrants neighborhoods. However, this preference is not attributable to an erosion of social cohesion in those areas.
Journal: International Review of Applied Economics
Pages: 697-711
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2018.1518412
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1518412
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:697-711
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin W. Capehart
Author-X-Name-First: Kevin W.
Author-X-Name-Last: Capehart
Title: What’s the natural rate of unemployment? Answers from forecasters
Abstract:
For its panel survey of professional macroeconomic forecasters, the US Federal Reserve asks panelists whether they use the ‘natural rate of unemployment’ (NRU) or ‘non-accelerating inflation rate of unemployment’ (NAIRU) in formulating their forecasts and, also, to estimate the NRU/NAIRU. This paper studies responses and non-responses to those questions in order to interrogate forecasters’ views of the NRU/NAIRU. We find that most panelists in most years say they do not use the NRU/NAIRU, and they do not provide an estimate of it. Among those who do, their NRU/NAIRU estimates differ but usually do not differ significantly from the average of recent unemployment rates. We fail to find much evidence – in either their inflation and unemployment forecasts, NRU/NAIRU estimates, or revisions to those estimates over time – that panelists who use the NRU/NAIRU treat it as an unemployment rate below which inflation rises and above which inflation falls. Finally, we find that the NRU/NAIRU has no informational value for panelists who say they use it; they are no better at accurately forecasting inflation or unemployment.
Journal: International Review of Applied Economics
Pages: 712-732
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2019.1566446
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1566446
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:712-732
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Special Issue of the International Review of Applied Economics on Edith Penrose’s Legacy to Economics, Management and Political Economy
Journal: International Review of Applied Economics
Pages: 733-733
Issue: 5
Volume: 33
Year: 2019
Month: 9
X-DOI: 10.1080/02692171.2019.1643122
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1643122
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Handle: RePEc:taf:irapec:v:33:y:2019:i:5:p:733-733
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Filippetti
Author-X-Name-First: Andrea
Author-X-Name-Last: Filippetti
Author-Name: Antonio Peyrache
Author-X-Name-First: Antonio
Author-X-Name-Last: Peyrache
Title: Productivity growth and catching up: a technology gap explanation
Abstract:
This paper seeks to explain why some countries have managed to catch up in terms of labor productivity over the period 1993–2007 in 76 countries. By integrating the technology gap research within the standard growth-accounting approach, we introduce a methodology which allows us to split total factor productivity (TFP) change into two components: conditional technical inefficiency and the magnitude of the technology gap. We find that labor productivity growth depends both on investment in fixed capital and TFP. Fast emerging economies exhibit patterns of growth based in particular on the reduction of the technology gap, confirming the role of investment in technological capabilities to spur productivity catch-up. Looking at change in the distribution of labor productivity, emerging countries managed to shift from low productivity toward a medium level of productivity thanks to technology accumulation. Less advanced countries cannot rely only on technology diffusion and learning by doing, policies for technological capabilities accumulation are necessary.
Journal: International Review of Applied Economics
Pages: 283-303
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1249831
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1249831
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:283-303
Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Author-Name: George Joseph
Author-X-Name-First: George
Author-X-Name-Last: Joseph
Title: Legal systems and performance of microfinance institutions
Abstract:
The paper investigates the impact of institutional environment resulting from the legal systems, on the financial performance of microfinance institutions (MFIs). Broadly categorized into common law and code law, the legal systems are found to significantly influence the efficiency of MFIs. We use an unbalanced panel of 1272 MFIs over a period of 16 years to analyze the effect of legal systems on their financial performance. In contrast to the accepted notion that common law systems are more conducive to effective market systems, our results show that MFIs operating under code law systems exhibit better financial performance than in common law systems.
Journal: International Review of Applied Economics
Pages: 304-317
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1249832
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1249832
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:304-317
Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi S. Imai
Author-X-Name-First: Katsushi S.
Author-X-Name-Last: Imai
Author-Name: Wenya Cheng
Author-X-Name-First: Wenya
Author-X-Name-Last: Cheng
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Title: Dynamic and long-term linkages among agricultural and non-agricultural growth, inequality and poverty in developing countries
Abstract:
Drawing upon cross-country panel data for developing countries, the present study examines the role of agricultural growth in reducing inequality and poverty by modelling the dynamic linkage between agricultural and non-agricultural sectors. For this purpose, we have compared the roles of agricultural and non-agricultural growth and have found that agricultural growth is more important in reducing poverty, while the negative effect of agricultural growth on inequality is found in a few cases where specific definitions of inequality are adopted. Our analysis generally reinforces the case for revival of agriculture in the post-2015 discourse, contrary to much-emphasised roles of rural–urban migration and urbanisation as main drivers of growth and elimination of extreme poverty.
Journal: International Review of Applied Economics
Pages: 318-338
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1249833
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1249833
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:318-338
Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Agostino
Author-X-Name-First: Mariarosaria
Author-X-Name-Last: Agostino
Author-Name: Francesco Trivieri
Author-X-Name-First: Francesco
Author-X-Name-Last: Trivieri
Title: Collateral in lending relationships. A study on European SMEs microdata
Abstract:
This work empirically investigates the role played by collateralizable assets in helping SMEs to access bank credit, assuming that such a role might be affected by the (balancing between) benefits and costs related to enduring lending relationships. Using an exclusive data-set on European firms, we find that longer lending relationships amplify the beneficial effect of collateral on SMEs’ financing, suggesting that the advantages of longer bank-firm ties might prevail over the disadvantages. This finding holds for both more and less informationally transparent firms, as well as at the outset of the last financial crisis. Combined to the positive influence that the duration of bank relations seems to exert per se, our results provide (further) evidence in support of the valuable role of close lending relationships for SMEs’ financing.
Journal: International Review of Applied Economics
Pages: 339-356
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1257580
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1257580
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:339-356
Template-Type: ReDIF-Article 1.0
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Title: Stock return predictability: the role of inflation and threshold dynamics
Abstract:
This paper argues that the nature of stock return predictability varies with the level of inflation. We contend that the nature of relations between economic variables and returns differs according to the level of inflation, due to different economic risk implications. An increase in low level inflation may signal improving economic conditions and lower expected returns, while the opposite is true with an equal rise in high level inflation. Linear estimation provides contradictory coefficient values, which we argue arises from mixing coefficient values across regimes. We test for and estimate threshold models with inflation and the term structure as the threshold variable. These models reveal a change in either the sign or magnitude of the parameter values across the regimes such that the relation between stock returns and economic variables is not constant. Measures of in-sample fit and a forecast exercise support the threshold models. They produce a higher adjusted R2, lower MAE and RMSE and higher trading related measures. These results help explain the lack of consistent empirical evidence in favour of stock return predictability and should be of interest to those engaged in stock market modelling as well as trading and portfolio management.
Journal: International Review of Applied Economics
Pages: 357-375
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1257581
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1257581
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:357-375
Template-Type: ReDIF-Article 1.0
Author-Name: Larry L. Howard
Author-X-Name-First: Larry L.
Author-X-Name-Last: Howard
Author-Name: Denise L. Stanley
Author-X-Name-First: Denise L.
Author-X-Name-Last: Stanley
Title: Remittances channels and the physical growth of Honduran children
Abstract:
Ensuring the availability of food and other resources for young children is important for sustaining physical growth. We examine the role of remittances and its associated implications in determining heights and weights of 4459 children aged 0–5 years in Honduras in 2004. To address the endogeneity problem with household remittance receipt, we take advantage of the timing of Hurricane Mitch in 1998 to construct instrumental variables that are exogenously related to migration decisions made before children included in the later survey were conceived. We find that children are significantly taller and heavier for their age and gender in households receiving remittances. Further investigation of household spending indicates significant changes in food purchases and dietary diversity. Households receiving remittances are more likely to include fish, fruits, and meats in their diets. Additional findings also indicate that households receiving remittances spend absolutely more on food, health care, education, and durable goods. Overall, the findings provide strong evidence that remittances change household consumption and increase children’s body sizes.
Journal: International Review of Applied Economics
Pages: 376-397
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1257582
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1257582
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:376-397
Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse
Author-X-Name-First: Bedassa
Author-X-Name-Last: Tadesse
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Author-Name: Huang Zhongwen
Author-X-Name-First: Huang
Author-X-Name-Last: Zhongwen
Title: Does China’s trade defy cultural barriers?
Abstract:
Using annual data for China and 88 trading partners that span the period 1995–2011, we estimate whether cross-societal cultural differences influence China’s external trade flows. Our results, obtained from the estimation of a series of multi-level mixed effect random intercepts and coefficients models, indicate that China’s aggregate exports and imports are largely unaffected by the cultural distance between China and its trading partners. Examination of disaggregate trade measures and consideration of the underlying dimensions of our composite cultural distance variable produces a largely similar result. Taken collectively, our results suggest that China’s trade is less affected by cultural distance than has been reported for other countries in similar studies.
Journal: International Review of Applied Economics
Pages: 398-428
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2016.1257583
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1257583
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:398-428
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: Inequality, macroeconomics and financial instability. A South African perspective
Journal: International Review of Applied Economics
Pages: 429-436
Issue: 3
Volume: 31
Year: 2017
Month: 5
X-DOI: 10.1080/02692171.2017.1297345
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1297345
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Handle: RePEc:taf:irapec:v:31:y:2017:i:3:p:429-436
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Vidal
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Vidal
Title: The political economy of Ecuador’s external debt default
Abstract:
The default of the 2012 and 2030 Global Bonds during the early stages of the Alianza PAIS government in Ecuador is best understood in the context of the social conflicts that characterized the exhaustion of neoliberalism in the country and the struggle between different fractions of capital for the direction of the process of accumulation. The restructuring of external debt and the new wave of public borrowing facilitated a boost in public spending that spurred economic growth and provided a ‘fiscal pacification’ of social unrest and political instability. The movements in public debt have also been a lever for State and geopolitical repositioning that reflects a new moment in the correlation of social forces and hegemony in the world economy. In this new scenario, however, Ecuador has not overcome the structural imbalances and contradictions that underpin its external debt problematic.
Journal: International Review of Applied Economics
Pages: 821-843
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2017.1375463
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1375463
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:821-843
Template-Type: ReDIF-Article 1.0
Author-Name: Kalim Siddiqui
Author-X-Name-First: Kalim
Author-X-Name-Last: Siddiqui
Author-Name: Phil Armstrong
Author-X-Name-First: Phil
Author-X-Name-Last: Armstrong
Title: Capital control reconsidered: financialisation and economic policy
Abstract:
We consider capital controls and their impact on selected countries, providing a critique of IMF policy. We show how the warning signs of the 1970s were ignored and the consequences became apparent during the ensuing period of neoliberal hegemony. We contend that promoting increased capital mobility is counterproductive as it reduces macroeconomic ‘policy space’. We introduce a development of the international policy ‘trilemma’ in the form of a variant of the idea of the ‘quadrilemma’. We suggest that, in most cases, the key policy driving economic growth is fiscal policy but it may be that its unconstrained use (and that of monetary policy) is not possible either under fixed exchange rates or when free capital mobility exists; a nation may face a ‘demi-quadrilemma’. We contend that, in practice, a country can only adopt ‘two from four’; if it chooses to retain free use of monetary and fiscal policy, it must sacrifice both fixed exchange rates and capital mobility. We advocate the rejection of fixed exchange rates and free capital mobility allowing the retention of requisite monetary and fiscal policy space, and that a multinational approach to the capital control policy would effectively contribute to a growth and development strategy.
Journal: International Review of Applied Economics
Pages: 713-731
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2017.1375464
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1375464
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:713-731
Template-Type: ReDIF-Article 1.0
Author-Name: Ngozi Adeleye
Author-X-Name-First: Ngozi
Author-X-Name-Last: Adeleye
Author-Name: Evans Osabuohien
Author-X-Name-First: Evans
Author-X-Name-Last: Osabuohien
Author-Name: Ebenezer Bowale
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Bowale
Author-Name: Oluwatoyin Matthew
Author-X-Name-First: Oluwatoyin
Author-X-Name-Last: Matthew
Author-Name: Emmanuel Oduntan
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Oduntan
Title: Financial reforms and credit growth in Nigeria: empirical insights from ARDL and ECM techniques
Abstract:
In the last 37 years, Nigeria has undergone several stages of financial reforms with different impacts on the economy. This paper analyses the impact of these financial reforms on credit growth in Nigeria using annual data from 1980 to 2016. The research work hinges on the theoretical underpinning of McKinnon-Shaw hypothesis on the relevance of financial reforms in a lagging economy. Analysing the data with autoregressive distributed lag error correction representation and bounds testing techniques, we find evidence supporting this hypothesis, and specifically that at higher real interest rates there is increased financial intermediation evidenced by credit growth. Other findings are that in the long-run, financial system deposits, inflation rate and per capita GDP are strong asymmetrical predictors of credit growth and real interest rates (the financial reform indicator), while the short-run relationships are indicator-specific. We further show that a long-run cointegration relationship exists between domestic credit and other covariates and likewise between the real interest rate and its regressors.
Journal: International Review of Applied Economics
Pages: 807-820
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2017.1375466
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1375466
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:807-820
Template-Type: ReDIF-Article 1.0
Author-Name: Syeda Tamkeen Fatima
Author-X-Name-First: Syeda Tamkeen
Author-X-Name-Last: Fatima
Author-Name: Abdul Qayyum Khan
Author-X-Name-First: Abdul Qayyum
Author-X-Name-Last: Khan
Title: Foreign direct investment and its impact on real wages: evidence from Turkish micro-level data
Abstract:
This paper analyzes the role of foreign direct investment (FDI) on wages, using Turkish firm-level data from 2003 to 2010, a period which coincides with significant FDI inflows both in manufacturing and service sector firms in the region. We explore the possibility of increased foreign presence translating into shifts in either labor demand or supply curves thereby resulting in changing the total wage bill or wage per worker in the host country. To empirically test this relationship we employ a dynamic specification of the wage equation. After addressing endogeneity concerns, the results reveal that foreign presence measured in terms of intra- and inter-sectoral linkages is related to higher wage bills in the host economy, hence strengthening the argument for attracting greater foreign investment to enhance labor welfare.
Journal: International Review of Applied Economics
Pages: 732-749
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2017.1375467
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1375467
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:732-749
Template-Type: ReDIF-Article 1.0
Author-Name: Sofia N. Andreou
Author-X-Name-First: Sofia N.
Author-X-Name-Last: Andreou
Author-Name: Panos Pashardes
Author-X-Name-First: Panos
Author-X-Name-Last: Pashardes
Author-Name: Nicoletta Pashourtidou
Author-X-Name-First: Nicoletta
Author-X-Name-Last: Pashourtidou
Title: The value of state education to consumers in the UK
Abstract:
This paper considers the value of state schooling, as perceived by consumers, taking into account that many households supplement the minimum education provided free of charge with out-of-pocket payments through acquiring accommodation in the catchment area of a high-quality state school. It suggests ways to circumvent difficulties in modelling household behaviour arising from joint housing-education consumption in the context of a two-stage demand system, where the proposed money metric of state schooling can be estimated from data readily available in household expenditure surveys. The empirical analysis, based on UK data, estimates this money metric as the amount households with school-age children would be willing to accept in order to opt out of the state education system. The efficiency and distributional implications of the empirical findings are discussed.
Journal: International Review of Applied Economics
Pages: 750-771
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2017.1389861
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1389861
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:750-771
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Pollin
Author-X-Name-First: Robert
Author-X-Name-Last: Pollin
Author-Name: James Heintz
Author-X-Name-First: James
Author-X-Name-Last: Heintz
Author-Name: Thomas Herndon
Author-X-Name-First: Thomas
Author-X-Name-Last: Herndon
Title: The revenue potential of a financial transaction tax for US financial markets
Abstract:
This paper estimates the revenue potential of a financial transaction tax (FTT) for US financial markets. We focus on analyzing the revenue potential of the Inclusive Prosperity Act that was introduced in the US House of Representatives in 2012 and the US Senate in 2015. The tax rates stipulated in this Act include 0.5% (50 basis points (bps)) for all stock transactions, 0.1% (10 bps) for all bond transactions and 0.005% (0.5 bps) on the notional value of all derivative trades. We examine three sets of evidence to generate potential revenue estimates: 1) the levels of transaction costs in US financial markets over time and within the range of financial market segments; 2) the extent of trading elasticities under various trading conditions; and 3) the current level of trading activity in US financial markets. Based on this evidence, we conclude that a US FTT operating at the tax rates stated above would generate about $220 billion per year, equal to about 1.2% of the current US GDP.
Journal: International Review of Applied Economics
Pages: 772-806
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2018.1485634
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1485634
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:772-806
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: ‘Sand in the wheels’ to stabilise markets would generate significant revenues
Journal: International Review of Applied Economics
Pages: 711-712
Issue: 6
Volume: 32
Year: 2018
Month: 11
X-DOI: 10.1080/02692171.2018.1522740
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1522740
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Handle: RePEc:taf:irapec:v:32:y:2018:i:6:p:711-712
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: ‘Social capital’ is neither social nor capital
Journal: International Review of Applied Economics
Pages: 475-476
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2019.1636475
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1636475
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:475-476
Template-Type: ReDIF-Article 1.0
Author-Name: Dmitry Lysenko
Author-X-Name-First: Dmitry
Author-X-Name-Last: Lysenko
Title: The long-run effects of the real exchange rate on employment and wages in Canadian manufacturing
Abstract:
The literature on real exchange rate effects on the labour market is dominated by short-run analysis showing that there is heterogeneity in the responses of firms or industries to a real exchange rate shock. Analysing data on Canadian manufacturing industries, I conclude that there is a common long-run equilibrium across all manufacturing industries controlling for their openness to trade after varying adjustments to a real exchange rate shock have taken place. This conclusion is important from the perspective of policy making because it helps to form expectations about the effects of a real exchange rate movement on the labour market. The results suggest that real appreciation leads to economically significant reductions in employment in manufacturing in the long run. Real wages decrease in industries that are highly engaged in international trade and somewhat increase in industries that are relatively closed to international trade. Both employment and real wages converge quickly to the long-run equilibrium.
Journal: International Review of Applied Economics
Pages: 477-504
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2018.1513457
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1513457
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:477-504
Template-Type: ReDIF-Article 1.0
Author-Name: Aloisio Campelo
Author-X-Name-First: Aloisio
Author-X-Name-Last: Campelo
Author-Name: Marco Malgarini
Author-X-Name-First: Marco
Author-X-Name-Last: Malgarini
Author-Name: Viviane Seda Bittencourt
Author-X-Name-First: Viviane Seda
Author-X-Name-Last: Bittencourt
Author-Name: Vitor Vidal Velho
Author-X-Name-First: Vitor Vidal
Author-X-Name-Last: Velho
Title: Inflation expectations of Brazilian consumers: an analysis based on the FGV survey
Abstract:
An accurate assessment of inflation expectations is crucial for the management of monetary policies. However, expectations are not directly observed and are hence normally inferred either from the interest rate structure or from surveys of professional forecasters. Alternatively, a direct measure may be obtained from consumer surveys. The aim of this paper is to study the formation of inflation expectations in Brazil, using a novel dataset based on the FGV/IBRE consumer survey. Basing our model on the rational inattention hypothesis, we find that individual heterogeneity plays a very significant role in shaping individual expectations; also, Brazilians adjust expectations to current inflation and to a fixed reference value, while professional forecasts do not play a very relevant role.
Journal: International Review of Applied Economics
Pages: 505-522
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2018.1515897
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1515897
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:505-522
Template-Type: ReDIF-Article 1.0
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Author-Name: Min Hua Jen
Author-X-Name-First: Min Hua
Author-X-Name-Last: Jen
Author-Name: Eoin O’Leary
Author-X-Name-First: Eoin
Author-X-Name-Last: O’Leary
Title: European regional productivity: does country affiliation matter?
Abstract:
We assess the importance of country affiliation for European regional productivity growth between 1980 and 2012 and reveal that 93% of regional variation in gross domestic product (GDP) per worker is explained at the national level, regional divergence was experienced throughout the period after 1983 and country divergence occurred throughout the period until a reversal around the beginning of the recent recession. Distinct groups of regions have been growing together and although regional groups are generally confined to national borders, there are notable exceptions. The results rehabilitate the importance of national borders for understanding the productivity performance of regions, implying that regional policy-makers should take cognizance of national effects.
Journal: International Review of Applied Economics
Pages: 523-541
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2018.1515899
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1515899
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:523-541
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Fine
Author-X-Name-First: Ben
Author-X-Name-Last: Fine
Title: Post-truth: an alumni economist’s perspective
Abstract:
Drawing upon 50 years as an academic economist, this lecture to alumni of SOAS’s Department of Economics reflects upon the continual ‘post-truth’ aspects of mainstream economics, ranging over its substantive, if shifting, content, and its treatment of methodology and interdisciplinarity. It draws upon a wide range of theory, empirical analysis, policy and anecdote to highlight both the need for alternatives and the continuing, even increased, failure of the mainstream to engage with criticism and alternatives.
Journal: International Review of Applied Economics
Pages: 542-567
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2019.1617252
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1617252
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:542-567
Template-Type: ReDIF-Article 1.0
Author-Name: Mekki Hamdaoui
Author-X-Name-First: Mekki
Author-X-Name-Last: Hamdaoui
Author-Name: Samir Maktouf
Author-X-Name-First: Samir
Author-X-Name-Last: Maktouf
Title: Overall effects of financial liberalization: financial crisis versus economic growth
Abstract:
The contribution of this work consists firstly in decomposing the effect of financial liberalization into a global direct positive effect on growth and an indirect negative effect via financial fragility and crisis. We show that the aggregate positive effect of financial liberalization outweighs the negative partial or temporary effect. Secondly, contrary to previous works, we distinguish many types of financial reforms. We found that equity market liberalization is the most important component in reducing economical costs associated with financial crisis. Thus, equity market liberalization is the most important favoring growth. Interest rate liberalization enhances significantly the probability of crisis leading to a short-run indirect effect more important than other financial reforms. Thirdly, we improved our work by addressing model uncertainty using Bayesian Model Averaging techniques to choose appropriate indicators for model crisis specification.
Journal: International Review of Applied Economics
Pages: 568-595
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2018.1515898
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1515898
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:568-595
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Special issue of the International Review of Applied Economics on Edith Penrose’s legacy to economics, management and political economy
Journal: International Review of Applied Economics
Pages: 596-597
Issue: 4
Volume: 33
Year: 2019
Month: 7
X-DOI: 10.1080/02692171.2019.1626083
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1626083
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Handle: RePEc:taf:irapec:v:33:y:2019:i:4:p:596-597
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Analysing economic crises, and creating a new era of sustainable development
Journal: International Review of Applied Economics
Pages: 1-3
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2020.1672985
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1672985
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:1-3
Template-Type: ReDIF-Article 1.0
Author-Name: Cem Oyvat
Author-X-Name-First: Cem
Author-X-Name-Last: Oyvat
Author-Name: Mwangi wa Gĩthĩnji
Author-X-Name-First: Mwangi
Author-X-Name-Last: wa Gĩthĩnji
Title: Migration in Kenya: beyond Harris-Todaro
Abstract:
This paper examines the impact of agrarian structures on the migration behavior and destination of rural household heads and individuals in Kenya. To explore the complexity of migration we extend the standard Harris-Todaro framework to account for land inequality and size as well as type of destination. Using probit regressions, we show that Kenyan household heads born in districts with higher land inequality, smaller per capita land and lower per capita rural income are more likely to migrate. We show that for individuals whose incomes are squeezed by larger land inequality, migration from villages to smaller cities, and villages in different districts could be a preferable strategy to migrating to Greater Nairobi. The impact of land inequality is larger for male than female migration and insignificant for females’ rural-to-rural migration. Moreover, the level of education, age, marital status, gender, religion and distance to Nairobi play a role in migration behavior.
Journal: International Review of Applied Economics
Pages: 4-35
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1620702
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1620702
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:4-35
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas E. Lambert
Author-X-Name-First: Thomas E.
Author-X-Name-Last: Lambert
Title: Monopoly capital and innovation: an exploratory assessment of R&D effectiveness
Abstract:
This research note performs some limited empirical assessments of the monopoly capital school of thought contention that most research and development (R&D) efforts in the US are ‘wasted’ at the macroeconomic level in that as R&D succeeds by absorbing a little of the excess economic surplus generated by a capitalist system, it still fails to generate a lot of innovation of a transformative nature. At an aggregate level, greater R&D efforts are correlated with higher worker productivity and standards of living, which is to be expected according to mainstream economic theory and literature. Yet, R&D efforts regarding job creation, new firm creation, and net business investment show either mixed results or even negative connections. There is some preliminary empirical support in this paper for many aspects of the Baran and Sweezy point of view on R&D, and these findings also hint that R&D is used in a monopoly capital system to further monopolization. The findings of this note also may help to explain how productivity gains and innovation over the last few decades may not be benefitting the typical worker or the creation of small businesses as well.
Journal: International Review of Applied Economics
Pages: 36-49
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1620703
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1620703
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:36-49
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Pierros
Author-X-Name-First: Christos
Author-X-Name-Last: Pierros
Title: Income distribution, structural competitiveness and financial fragility of the Greek economy
Abstract:
The aim of this paper is to examine the growth prospects of the Greek economy, after the implementation of the Economic Adjustment Programs (EAPs). The main focus is on the impact of investment, and the structural competitiveness of the productive sector, on effective demand and the financial fragility of corporations. For this purpose, a Post-Keynesian SVAR model is developed which connects functional income distribution and the regime of accumulation, with the structural competitiveness and the non-performing loans of corporations. The findings indicate that the distribution of income and fiscal consolidation as established after the implementation of the EAPs have destabilized the economy both in macroeconomic and financial terms. The structural competitiveness of the Greek economy is particularly weak, the regime of accumulation is not profit-led, while the non-performing loans are in a negative relation with the capacity utilization ratio. In this respect, policies that aim to increase the capacity utilization ratio will determine the sustainability of the macro-financial system of Greece.
Journal: International Review of Applied Economics
Pages: 50-74
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1620704
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1620704
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:50-74
Template-Type: ReDIF-Article 1.0
Author-Name: Guillermo Acuña
Author-X-Name-First: Guillermo
Author-X-Name-Last: Acuña
Author-Name: Cristián Echeverría
Author-X-Name-First: Cristián
Author-X-Name-Last: Echeverría
Author-Name: Cristian Pinto-Gutiérrez
Author-X-Name-First: Cristian
Author-X-Name-Last: Pinto-Gutiérrez
Title: Consumer confidence and consumption: empirical evidence from Chile
Abstract:
This paper examines whether consumer confidence forecasts future consumption in Chile. The results show that consumer confidence indicators are positively related to later consumption growth, suggesting that consumption increases after periods of high consumer confidence. This result contradicts the theoretical predictions of consumption expenditures (for instance, the Precautionary Saving Hypothesis). Furthermore, the results show that consumer confidence measures can be good predictors of consumption, even after controlling for the information contained in other economic fundamentals. This evidence suggests that consumer confidence in Chile also reflect a component of consumer sentiment that is unrelated to macroeconomic conditions. Finally, additional results show that predictive models that include consumer confidence produce more accurate predictions for positive, rather than for negative, changes in consumption over the next month.
Journal: International Review of Applied Economics
Pages: 75-93
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1645816
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1645816
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:75-93
Template-Type: ReDIF-Article 1.0
Author-Name: Simplice A. Asongu
Author-X-Name-First: Simplice A.
Author-X-Name-Last: Asongu
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Inequality thresholds, governance and gender economic inclusion in sub-Saharan Africa
Abstract:
Inequality and gender economic exclusion are major policy concerns facing sub-Saharan Africa in the post-2015 development agenda. This paper identifies ‘thresholds’ of inequality that should not be exceeded if governance is to promote gender economic participation. The research focuses on 42 countries in sub-Saharan Africa using annual data from 2004 to 2014. The empirical work utilises the Generalized Method of Moments. The following findings are established. First, inequality (i.e. the Gini coefficient) levels that completely nullify the positive effect of governance on female labour force participation are 0.708 for political stability, 0.601 for voice & accountability, 0.588 for government effectiveness, 0.631 for regulatory quality, 0.612 for the rule of law, and 0.550 for corruption-control. Second, inequality thresholds at which female unemployment can no longer be mitigated by governance channels include: 0.561 for political stability and 0.465 for the rule of law. Third, inequality levels that completely dampen the positive impact of governance on female employment are 0.608 for political stability, 0.580 for voice & accountability, 0.581 for government effectiveness, and 0.557 for the rule of law. As the main policy implication, for good governance to promote gender economic inclusion, inequality levels should not exceed such thresholds.
Journal: International Review of Applied Economics
Pages: 94-114
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1645817
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1645817
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:94-114
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Borraz
Author-X-Name-First: Fernando
Author-X-Name-Last: Borraz
Author-Name: Ignacio Munyo
Author-X-Name-First: Ignacio
Author-X-Name-Last: Munyo
Title: Conditional cash transfers, women’s income and domestic violence
Abstract:
We analyze the impact of conditional cash transfer programs on domestic violence. We present evidence that welfare payments that reduce gender income gap significantly decrease aggression against women. We exploit an exogenous increase in women’s income given by a major reformulation of a welfare program in Uruguay to analyze causes of domestic violence. In line with the models of household bargaining, our findings suggest that fostering women economic independence contribute to reduce domestic violence.
Journal: International Review of Applied Economics
Pages: 115-125
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1649641
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1649641
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:115-125
Template-Type: ReDIF-Article 1.0
Author-Name: Henriette Neumann
Author-X-Name-First: Henriette
Author-X-Name-Last: Neumann
Title: The determinants of German exports – an analysis of intra- and extra-EMU trade
Abstract:
Since the early 2000s German net exports have grown persistently, generating huge current account surpluses. These surpluses have added to current account imbalances within and outside the European Monetary Union (EMU). Contributing to the economic policy debate of whether it is foreign demand or ‘world-beating’ price competitiveness driving German exports, the paper investigates econometrically the determinants of German intra- and extra-EMU exports for 1995 to 2014. The long-term relationship between exports, foreign activity and the real effective exchange rate is estimated in an error correction framework. The results show that German exports are sensitive to foreign activity. Germany has benefited from growth of trading partners and high income elasticities of demand for exports, indicating non-price competitiveness. With regard to exchange rate effects, we do not detect a significant impact of the real exchange rate on intra-EMU exports. However, our estimations provide a stable relationship between the real exchange rate and extra-EMU exports. We calculate that the real exchange rate explains 12% to 17% of export growth. Moreover, taking into account quantity and price effects caused by changes in the real exchange rate, we observe contrary effects on real and nominal exports.
Journal: International Review of Applied Economics
Pages: 126-145
Issue: 1
Volume: 34
Year: 2020
Month: 1
X-DOI: 10.1080/02692171.2019.1654983
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1654983
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Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:126-145
Template-Type: ReDIF-Article 1.0
Author-Name: Joao Paulo A. de Souza
Author-X-Name-First: Joao Paulo A.
Author-X-Name-Last: de Souza
Title: Real wages and labor-saving technical change: evidence from a panel of manufacturing industries in mature and labor-surplus economies
Abstract:
Recent theories have provided a persuasive account of a key stylized fact of mature economies: the common long-run trends of average real wages and labor productivity, and the ensuing stationarity of functional distribution. Central to these theories is the notion of directed technical change, which claims that a rise in labor costs sparks the adoption of labor-saving innovations. This paper empirically examines a core prediction of these theories, namely that shocks to functional distribution elicit compensatory adjustments in real product wages and labor productivity. Using two disaggregated data-sets of manufacturing industries (EU-Klems and Unido), I find evidence of cointegration and two-way, long-run Granger causality between these two variables. These findings suggest that directed technical change is indeed key for producing stationarity in functional distribution, and they complement the recent empirical literature on distributive cycles and productivity growth. Preliminary evidence from the Unido data-set also suggests the importance of directed technical change in developing countries. To illuminate the empirical procedure, I present a theoretical model of growth and distribution with directed technical change.
Journal: International Review of Applied Economics
Pages: 151-172
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1225017
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1225017
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:151-172
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Baussola
Author-X-Name-First: Maurizio
Author-X-Name-Last: Baussola
Author-Name: Chiara Mussida
Author-X-Name-First: Chiara
Author-X-Name-Last: Mussida
Title: Regional and gender differentials in the persistence of unemployment in Europe
Abstract:
The persistence of unemployment increased during the recent great recession in many European countries, although with diversified impacts. We therefore analyse such impacts in four European countries – Italy, Spain, France and the UK – which represent different institutional frameworks and may reflect the so-called continental European and Anglo-Saxon frameworks. We analyse the determinants of unemployment persistence using individual-level data from the European Union Statistics on Income and Living Conditions (EU-SILC) panel for the period 2007–2013. These data enable us to take into account initial conditions and state dependence in addition to individual and household characteristics. We focus on gender and regional effects, which have a strong impact on the persistence in the state of unemployment. We find that gender gap is significant in Italy and the UK, implying that male workers show a higher probability of remaining unemployed. In Italy, such a pattern is due to the worsening of male workers’ conditions during the crisis, whereas in the UK, male workers show higher unemployment rates than women. Regional effects are significant in all countries analysed and underline a relevant structural factor that should be addressed on policy grounds in Europe. Such effects are greater in Spain and Italy.
Journal: International Review of Applied Economics
Pages: 173-190
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1231801
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1231801
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:173-190
Template-Type: ReDIF-Article 1.0
Author-Name: Simone Gitto
Author-X-Name-First: Simone
Author-X-Name-Last: Gitto
Title: Efficiency change, technological change and capital accumulation in Italian regions: a sectoral study
Abstract:
This paper examines the sources of labour productivity in the Italian regions during the period 1980–2004. Five economic sectors are investigated using data envelopment analysis (DEA) and taking into account productive specialisation and sector inefficiencies. Labour productivity change is decomposed into five components by means of Malmquist productivity indices: intra-sector efficiency change, composition efficiency change, input-biased technical change, magnitude component technical change and capital accumulation. Using bootstrap procedure, the components of labour productivity changes are statistically tested. Efficiency analysis shows that productive specialisation is not a source of inefficiency and efficiency gains can be obtained by sector-specific policies. Thus, it is possible to obtain improvements in efficiency in each sector of activity rather than reallocating resources among sectors. The results of the decomposition by sectors reveal heterogeneous sources of growth. The total economy has shown evidence of non-neutral technical change and, it has been found that agriculture, industry and construction experienced capital using technical change. The analysis of the decomposition of the labour productivity growth is complemented by an analysis of β-convergence.
Journal: International Review of Applied Economics
Pages: 191-207
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1240152
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1240152
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:191-207
Template-Type: ReDIF-Article 1.0
Author-Name: Reiner Franke
Author-X-Name-First: Reiner
Author-X-Name-Last: Franke
Title: What output-capital ratio to adopt for macroeconomic calibrations?
Abstract:
Regarding the output-capital ratio in heterodox macroeconomic simulation studies, a surprisingly wide range of numerical values can be found. The paper discusses quarterly US data that are publicly available where, in order to capture depreciation, the construction of the capital stock by the perpetual inventory method relies on detailed estimates of its lifetime. Subsequently the paper builds up a capital stock series by alternatively having recourse to the statistics about capital consumption and furthermore determining an initial level by an assumption about the long-term growth of capital. This procedure leads to somewhat different results. In addition, the rates of depreciation and profit are studied that are implied by the two approaches. The paper closes with two numerical proposals for the steady state values of these variables and the output-capital ratio that could be readily employed for macrodynamic modelling, and that are quite different from many of the aforementioned examples.
Journal: International Review of Applied Economics
Pages: 208-224
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1240153
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1240153
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:208-224
Template-Type: ReDIF-Article 1.0
Author-Name: A. Erinc Yeldan
Author-X-Name-First: A. Erinc
Author-X-Name-Last: Yeldan
Title: Turkey’s employment subsidy program under the great recession: a general equilibrium assessment
Abstract:
The objective of this paper is to provide an impact analysis of the macroeconomic consequences of the employment subsidization programs in Turkey implemented under the post-2008 crisis period. To this end, an applied general equilibrium model (of the computable general equilibrium – CGE variety) is utilized to investigate the production, incomes generation, and aggregate demand components of the domestic economy. The analysis highlights the rather limited returns to the subsidization package, and argues that much of this was due to the dis-equilibriating and fragile macroeconomic environment under the neoliberal policy framework. The massive drop of domestic savings; a severe mis-alignment in the real exchange rate causing significant appreciation of the domestic currency; rise of the external deficit and of foreign indebtedness along with a severe fall in the total productivity effort were different facets of this poor macroeconomic performance. Thus, an important message of the study is that, had the macroeconomic balances were maintained at their historical averages, and a more competitive exchange rate could have been pursued, as much as threefolds of a gain in aggregate employment could have been generated with the same intensity of the employment subsidization package, in comparison to the historically realized levels.
Journal: International Review of Applied Economics
Pages: 225-254
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1240154
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1240154
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:225-254
Template-Type: ReDIF-Article 1.0
Author-Name: Hasan Engin Duran
Author-X-Name-First: Hasan Engin
Author-X-Name-Last: Duran
Author-Name: Alexandra Ferreira-Lopes
Author-X-Name-First: Alexandra
Author-X-Name-Last: Ferreira-Lopes
Title: Determinants of co-movement and of lead and lag behavior of business cycles in the Eurozone
Abstract:
In this paper we study business cycle correlations in the Eurozone and its determinants. Additionally, we also analyze the determinants of the lead and lag behavior of business cycles in the Eurozone. We explore the relevance, in the Eurozone context, using GDP and employment as the business cycle measures, of the determinants of business cycle synchronization identified in the literature, namely bilateral trade intensity, dissimilarity of labor market rigidity, dissimilarity in industrial structures, financial openness, and foreign direct investment relations. We estimate a simultaneous 4-equations model by Ordinary Least Squares (OLS) and three-stage least square to investigate empirically the above-mentioned determinants of business cycle correlation. Bilateral trade relations present a positive influence on business cycle correlations, while the dissimilarity of labor market rigidity presents a negative influence. The rest of the above-mentioned variables are non-significant. These results are robust to the use of the Hodrick–Prescott-filter and first differences as the de-trending methods, as well as the use of GDP as the business cycle measure, excluding the financial crisis years (2008 and 2009). Results for employment as the business cycle measure are in contrast with the previous ones, and found industrial dissimilarity to be the relevant variable to determine business cycles synchronization. In what concerns the determinants of the lead and lag behavior, results show that the member states of the Eurozone that usually lead the cycle are the ones that are wealthier, with strict employment legislation, more specialized in construction and finance sectors, and more prone to international capital movements. Differences in the determinants between contemporaneous business cycles and lead and lag behavior of business cycles are especially important for policy-makers in the Eurozone to know about, in particular if asymmetric shocks between countries are set in place.
Journal: International Review of Applied Economics
Pages: 255-282
Issue: 2
Volume: 31
Year: 2017
Month: 3
X-DOI: 10.1080/02692171.2016.1249830
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1249830
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Handle: RePEc:taf:irapec:v:31:y:2017:i:2:p:255-282
Template-Type: ReDIF-Article 1.0
Author-Name: Cleiton Silva de Jesus
Author-X-Name-First: Cleiton Silva
Author-X-Name-Last: de Jesus
Author-Name: Ricardo Azevedo Araujo
Author-X-Name-First: Ricardo Azevedo
Author-X-Name-Last: Araujo
Author-Name: Carlos Eduardo Drumond
Author-X-Name-First: Carlos Eduardo
Author-X-Name-Last: Drumond
Title: An empirical test of the Post-Keynesian growth model applied to functional income distribution and the growth regime in Brazil
Abstract:
The main purpose of this paper is to empirically investigate whether, between 1970 and 2008, the Brazilian economy was profit-led or wage-led. To this end, we approach a canonical post-Keynesian growth model (PKGM) to estimate certain vector autoregressive (VAR) models and perform Granger non-causality tests. Three main results are extracted from the generalized impulse-response functions provided by the VAR models. First, a positive profit-share innovation affects economic growth and capacity utilization rate, both in the same direction, suggesting a profit-led pattern. Second, a profit share shock positively affects both the ratio actual/potential output, and capital accumulation, reinforcing the previous result. Third, a capacity utilization shock is shown to positively affect both output growth and capital accumulation via the accelerator effect. On the one hand, the pairwise Granger non-causality test does not provide any evidence of causality running from profit share to economic growth or capacity utilization. On the other hand, there is some evidence of Granger causality running from profit share to capital accumulation.
Journal: International Review of Applied Economics
Pages: 428-449
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1351528
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351528
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:428-449
Template-Type: ReDIF-Article 1.0
Author-Name: John S. L. McCombie
Author-X-Name-First: John S. L.
Author-X-Name-Last: McCombie
Author-Name: Marta R. M. Spreafico
Author-X-Name-First: Marta R. M.
Author-X-Name-Last: Spreafico
Author-Name: Sixiang Xu
Author-X-Name-First: Sixiang
Author-X-Name-Last: Xu
Title: Productivity growth of the cities of Jiangsu province, China: a Kaldorian approach
Abstract:
This paper considers the determinants of economic growth of the cities of Jiangsu province, China, adopting a Kaldorian approach. It is found that there is a close correlation between the growth of non-industry and industry (Kaldor’s first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldor’s second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the static–dynamic Verdoorn law paradox. This arises from the fact that estimating the Verdoorn law in log-levels often gives statistically insignificant estimates of the Verdoorn coefficient while the use of growth rates gives significant values of around one half. The results show that this does not occur when data for the cities are used. A plausible explanation for the paradox is that it results from spatial aggregation bias. It is also found that inter-province urban productivity disparities first increase, but subsequently decrease over the period considered.
Journal: International Review of Applied Economics
Pages: 450-471
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1351529
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351529
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:450-471
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Evans
Author-X-Name-First: Andrew
Author-X-Name-Last: Evans
Title: Evidence of the added-worker and discouraged-worker effects in Australia
Abstract:
Gross flow data for workers moving between the states of employment, unemployment and non-participation in Australia can be used to analyse the likelihood of workers transitioning between the three states in different phases of the business cycle. We use correlation analysis and a SVAR model to determine the cyclicality of state transition rates and use these results to characterise labour force inflows and outflows as being consistent in aggregate with either the discouraged-worker effect (DWE) or the added-worker effect (AWE). We find evidence that the AWE is dominant in transitions in both directions between unemployment and non-participation which contributes to a rise in unemployment during economic contractions. We also find that the DWE is dominant in transitions from non-participation to employment and that this drives the overall result that non-participation rises during a contraction. This means that the overall participation rate is procyclical. It is important to understand the cyclical influences on labour force participation and its interaction with unemployment before framing policy responses which seek to reduce labour market slack.
Journal: International Review of Applied Economics
Pages: 472-488
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1351530
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351530
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:472-488
Template-Type: ReDIF-Article 1.0
Author-Name: André Roncaglia de Carvalho
Author-X-Name-First: André
Author-X-Name-Last: Roncaglia de Carvalho
Author-Name: Rafael S. M. Ribeiro
Author-X-Name-First: Rafael S. M.
Author-X-Name-Last: Ribeiro
Author-Name: André M. Marques
Author-X-Name-First: André M.
Author-X-Name-Last: Marques
Title: Economic development and inflation: a theoretical and empirical analysis
Abstract:
This paper studies the relation between inflation and economic development. The literature is largely silent regarding both the theoretical and empirical perspectives that undeveloped countries endure higher average inflation than developed economies. We present a simple theoretical model linking the inflation phenomenon to the tradition of development economics. Empirical evidence is garnered to test the hypothesis that economic development engenders a downward bias to inflation rates. Through the feasible-GLS estimator in a panel of 65 countries from 2001 to 2011, we aim at listing a number of variables most commonly used to explain differences in the stage of economic development across countries and identifying the most statistically relevant ones to account for differences in inflationary patterns. While our results show that inflation is inversely correlated with the level of the technological content of the economy (measured by share of high-tech exports), human capital and cyclical unemployment, it is directly related to the degree of inflation persistence and terms of trade growth. However, our findings still present an inverse and low correlation between inflation persistence and economic development, implying that development-sensitive variables allowed into the model can only partially account for the differences in inflation at different levels of economic development.
Journal: International Review of Applied Economics
Pages: 546-565
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1351531
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351531
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:546-565
Template-Type: ReDIF-Article 1.0
Author-Name: Laurel Adams
Author-X-Name-First: Laurel
Author-X-Name-Last: Adams
Author-Name: Rebecca Neumann
Author-X-Name-First: Rebecca
Author-X-Name-Last: Neumann
Author-Name: Saleh S. Tabrizy
Author-X-Name-First: Saleh S.
Author-X-Name-Last: Tabrizy
Title: Is ‘no news’ really ‘good news’? Country visibility and FDI location choice
Abstract:
In choosing where to invest, firms seek out information on a set of possible locations. Information asymmetries may make country visibility particularly important in decisions to locate investment abroad. We develop a country visibility index based on international news stories in The Economist, and show that broad country visibility is at least as important in attracting foreign direct investment (FDI) as other specific investment promotion activities or proxies for information frictions. Controlling for standard gravity model determinants of FDI, we find that greater visibility of developing countries, in particular lower middle- and low-income countries, increases the investment that they receive from US multinational corporations.
Journal: International Review of Applied Economics
Pages: 489-524
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1351925
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351925
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:489-524
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Carbonari
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Carbonari
Author-Name: Vincenzo Atella
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Atella
Author-Name: Paola Samà
Author-X-Name-First: Paola
Author-X-Name-Last: Samà
Title: Hours worked in selected OECD countries: an empirical assessment
Abstract:
In this paper, we empirically assess the evolution of the aggregate hours worked, with a particular emphasis on their age structure, in a sample of OECD countries, along the period 1970–2007. We show that the age composition of the workforce has a large and statistically significant effect on hours worked volatility. To exploit the multilevel structure of our data, we use a Mixed Linear Model to investigate the consequences of (i) demographic change, (ii) sector-specific, and (iii) country-specific factors on hours worked by ‘young’ (aged 15–29) and ‘prime-aged’ (29+) individuals. We show that changes in workforce demographics, captured by the ratio between population older than 29 and population younger than 29, are strongly and significantly correlated with the amount of hours worked by ‘young’ individuals. We also document the impact of sectoral capital intensity and profitability on the dynamics of (aggregate) hours worked. Finally, we show that productive public expenditure, here proxied by the public investment in ICT, is beneficial for the hours worked both by young and prime-aged individuals.
Journal: International Review of Applied Economics
Pages: 525-545
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2017.1353593
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1353593
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:525-545
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Alternative economic policies for Europe – but with global significance
Journal: International Review of Applied Economics
Pages: 423-424
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2018.1479255
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1479255
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:423-424
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: European Economists for an Alternative Economic Policy in Europe
Journal: International Review of Applied Economics
Pages: 425-427
Issue: 4
Volume: 32
Year: 2018
Month: 7
X-DOI: 10.1080/02692171.2018.1479332
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1479332
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Handle: RePEc:taf:irapec:v:32:y:2018:i:4:p:425-427
Template-Type: ReDIF-Article 1.0
Author-Name: Salah A. Nusair
Author-X-Name-First: Salah A.
Author-X-Name-Last: Nusair
Title: The J-Curve phenomenon in European transition economies: A nonlinear ARDL approach
Abstract:
This article examines the J-curve phenomenon for 16 European transition economies. While previous studies assume a linear relationship between the exchange rate and the trade balance, this paper allows for nonlinearity. Following Bahmani-Oskooee and Fariditavana (2015, 2016), the empirical method used is the nonlinear cointegrating autoregressive distributed lag (NARDL) model of Shin et al. (2013) in which short-run and long-run nonlinearities are introduced via positive (appreciation) and negative (depreciation) partial sum decompositions of the real exchange rate. We argue that the lack of support for the J-curve phenomenon could be due to the linearity assumption. This issue is examined by utilizing the linear and the NARDL models. Using the linear autoregressive distributed lag (ARDL) model, we are unable to find support for the J-curve phenomenon in any case. However, when the NARDL model is used, we are able to find evidence for the J-curve in 12 out of the 16 countries. This suggests that allowing for nonlinearity in the adjustment process is important when studying the J-curve phenomenon.
Journal: International Review of Applied Economics
Pages: 1-27
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1214109
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1214109
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:1-27
Template-Type: ReDIF-Article 1.0
Author-Name: Ryunosuke Sonoda
Author-X-Name-First: Ryunosuke
Author-X-Name-Last: Sonoda
Title: Price and nominal wage Phillips curves and the dynamics of distribution in Japan
Abstract:
This study estimates two types of Phillips curves – the price Phillips curve and nominal wage Phillips curve – for the Japanese economy and analyses the institutional structure of the dynamics of effective demand and income distribution in each period from 1977 to 2007. The estimated results allow us to make the following three findings. First, the Japanese economy was a profit-led regime and a counter-cyclical wage share regime. The combination of regimes can make the dynamics of effective demand and income distribution unstable. Second, the dynamics of price and nominal wage do not reflect each other in Japan by labour–management cooperation. Finally, after 1997, the distributive regime in Japan switched from a counter-cyclical wage share to a pro-cyclical wage share regime because Japanese firms quickened their speeds of employment adjustment. As a result, the dynamics of effective demand and income distribution were stabilised.
Journal: International Review of Applied Economics
Pages: 28-44
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1221387
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1221387
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:28-44
Template-Type: ReDIF-Article 1.0
Author-Name: Verónica Escudero
Author-X-Name-First: Verónica
Author-X-Name-Last: Escudero
Author-Name: Elva López Mourelo
Author-X-Name-First: Elva
Author-X-Name-Last: López Mourelo
Title: The employment effect of changes in the composition of fiscal consolidations
Abstract:
This paper assesses the magnitude and nature of fiscal consolidation policies and their impact on employment. In particular, in an attempt to address fiscal imbalances in the near term, countries have been faced with the delicate challenge of doing so without damaging recovery prospects and thus, counter to their original aim, worsening further public finances. In this regard, the paper reviews recent austerity measures adopted by governments and discusses how prolonging fiscal consolidation measures in their current form could be counterproductive for guaranteeing debt sustainability. Moreover, the article shows how poorly designed fiscal cuts – directly or indirectly affecting labour – seem to have been dampening job prospects. The paper sheds light on how fiscal and employment goals can be achieved together. More specifically, it finds that a fiscally-neutral change in the expenditure and revenue composition of fiscal consolidation can boost job creation. In this sense, the paper shows that it is imperative to find the right policy mix and recommends countries to be mindful of the nature and pace of consolidation.
Journal: International Review of Applied Economics
Pages: 45-68
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1221388
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1221388
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:45-68
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Medeiros Garcia
Author-X-Name-First: Maria Teresa Medeiros
Author-X-Name-Last: Garcia
Author-Name: Pedro Deslandes Correia Vasconcelos Marques
Author-X-Name-First: Pedro Deslandes Correia Vasconcelos
Author-X-Name-Last: Marques
Title: Ownership of individual retirement accounts – an empirical analysis based on SHARE
Abstract:
This paper examines the household retirement saving decisions in what concerns to the ownership of Individual Retirement Accounts (IRAs) in eight European Union (EU) countries. IRAs are more and more seen as an alternative to public pension benefits, which are decreasing. Therefore, understanding the enrolment in IRAs, both the socio-economic factors and over time, is most important. Detailed empirical analysis of the factors that might influence the ownership of IRAs is presented based on Survey of Health Ageing and Retirement in Europe (SHARE), using data from Wave 2 (2006–2007) and Wave 4 (2010–2011). Further, to analyse the impact of legal retirement age in the ownership of IRAs, two subsamples are considered: people aged between 50 and 64 years old (50–64 years) and people aged 65 or over (≥ 65 years). The results suggest that age, years of education, income and ownership of dwelling influence positively and significantly household saving, while number of children, marital status and risk aversion have a negative effect. Marital status and income are not statistically significant for retired people. Policy implications are derived.
Journal: International Review of Applied Economics
Pages: 69-82
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1221389
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1221389
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:69-82
Template-Type: ReDIF-Article 1.0
Author-Name: Branimir Jovanovic
Author-X-Name-First: Branimir
Author-X-Name-Last: Jovanovic
Title: Growth forecast errors and government investment and consumption multipliers
Abstract:
We compare government investment and consumption multipliers in developed economies during the initial years of the ongoing fiscal consolidation. We find that, in countries with high public debt, the investment multiplier is likely to be higher than what has been assumed by policy-makers and higher than the consumption multiplier. This leads to the conclusion that the consolidation should be accompanied by increased public investment.
Journal: International Review of Applied Economics
Pages: 83-107
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1221390
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1221390
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:83-107
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Saifur Rahman
Author-X-Name-First: Md. Saifur
Author-X-Name-Last: Rahman
Author-Name: Farihana Shahari
Author-X-Name-First: Farihana
Author-X-Name-Last: Shahari
Title: Does financial cooperation agreement improve the cointegration among ASEAN+3 money markets?
Abstract:
This paper aims to empirically examine the degree of cointegration among ASEAN+3 money markets in order to determine and adopt remedial actions pursuant to vulnerabilities in the region’s money markets that indicate an inability to prevent possible financial crises. In order to validate vulnerabilities, this paper investigates the degree to which money markets are integrated. Inter-bank lending rates are divided based on agreement periods as well as on income levels of regional economies. The VAR-based Cointegration test and the VECM have been applied in the investigation process. The findings are: (1) weak integration during the pre-agreement period; (2) substantial progress toward the post-agreement period; (3) both high- and low-income markets integrate in a cooperative way; and (4) the agreement produces an impact that is incomplete in so far as integrating the region’s money markets. The finding of this study offers implications for the regional makers.
Journal: International Review of Applied Economics
Pages: 108-125
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1221391
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1221391
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:108-125
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Magrini
Author-X-Name-First: Emiliano
Author-X-Name-Last: Magrini
Author-Name: Pierluigi Montalbano
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Montalbano
Author-Name: Silvia Nenci
Author-X-Name-First: Silvia
Author-X-Name-Last: Nenci
Title: Are EU trade preferences really effective? An impact evaluation assessment of the Southern Mediterranean Countries’ case
Abstract:
This work assesses the causal impact of the EU trade preferences granted to the Southern Mediterranean Countries (SMCs) in agriculture and fishery products over the period 2004–2014. It overcomes some of the weaknesses of previous assessments and presents several methodological improvements. Firstly, it relies on a continuous treatment – i.e. preferential margins – to capture the ‘average treatment effect’ of trade preferences, rather than on a binary treatment based on dummy variables. Secondly, it uses highly disaggregated data at sectoral level in order to evaluate properly the preferential treatment. Thirdly, it applies a non-parametric matching technique for continuous treatment – specifically, a generalized propensity score matching. The results show, on the one hand, that the impact of the EU preferences is positive and significant on SMCs trade and is better evaluated using impact evaluation techniques. On the other hand, they demonstrate that the relationship between preferences and trade flows is asymmetric and warn against the risk of providing too much of a good thing. These results raise important issues for policy-making. First, they demonstrate that raising the level of preferences is not the solution to foster the SMCs trade towards EU. Second, that the policy-makers should put more emphasis on complementary factors other than trade barriers.
Journal: International Review of Applied Economics
Pages: 126-144
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1222355
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1222355
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:126-144
Template-Type: ReDIF-Article 1.0
Author-Name: Marta R. M. Spreafico
Author-X-Name-First: Marta R. M.
Author-X-Name-Last: Spreafico
Title: Explaining inequality
Journal: International Review of Applied Economics
Pages: 145-149
Issue: 1
Volume: 31
Year: 2017
Month: 1
X-DOI: 10.1080/02692171.2016.1231379
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1231379
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Handle: RePEc:taf:irapec:v:31:y:2017:i:1:p:145-149
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Theory, economic policy, and evidence
Journal: International Review of Applied Economics
Pages: 735-736
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1649858
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1649858
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:735-736
Template-Type: ReDIF-Article 1.0
Author-Name: David Shepherd
Author-X-Name-First: David
Author-X-Name-Last: Shepherd
Author-Name: Rebeca I. Muñoz Torres
Author-X-Name-First: Rebeca I.
Author-X-Name-Last: Muñoz Torres
Author-Name: George Saridakis
Author-X-Name-First: George
Author-X-Name-Last: Saridakis
Title: Monetary policy rules with PID control features: evidence from the UK, USA and EU
Abstract:
This paper considers the extent to which the monetary policy operations of three major central banks can be regarded as an application of Proportional-Integral-Derivative (PID) control rules. The paper outlines the general PID framework and estimates a series of dynamic models to identify how interest rate policy adjustments are affected by the rate of inflation and the level of macroeconomic activity. The paper examines data for the UK, the USA and the Eurozone. The results suggest that the PID rules can provide a useful theoretical and empirical framework for estimating central bank responses to the inflation and macroeconomic activity variables by improving the explanatory power of the Taylor rule model and determining the effect of the parameters.
Journal: International Review of Applied Economics
Pages: 737-755
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1585766
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1585766
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:737-755
Template-Type: ReDIF-Article 1.0
Author-Name: Lilian Nogueira Rolim
Author-X-Name-First: Lilian
Author-X-Name-Last: Nogueira Rolim
Title: Overhead labour and feedback effects between capacity utilization and income distribution: estimations for the USA economy
Abstract:
Empirical studies on the USA have not reached a consensus on whether its demand is wage- or profit-led, leading many scholars to scrutinize what drives the empirical results. This article tests two possible explanations for profit-led results which are related to the presence of overhead labour. To do so, a vector autoregression model is estimated for the USA from 1964 to 2010 and the wage share is split between supervisors/managers and direct workers. The results support the argument that the income redistribution away from workers and towards managers increased the likelihood of profit-led demand and suggest that an increase in the workers’ share of income would stimulate the economy. Also, increases in capacity utilization negatively affect the supervisors’ share, so that short-run profit-led results may be capturing the cyclical behaviour of the profit share, but the effect becomes positive as time goes by, suggesting a complex determination of functional income distribution, as capacity utilization affects it in ambiguous ways.
Journal: International Review of Applied Economics
Pages: 756-773
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1595544
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1595544
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:756-773
Template-Type: ReDIF-Article 1.0
Author-Name: Maman Setiawan
Author-X-Name-First: Maman
Author-X-Name-Last: Setiawan
Title: Dynamic productivity growth and its determinants in the Indonesian food and beverages industry
Abstract:
This research investigates dynamic productivity growth and its determinants in the Indonesian food and beverages industry decomposing dynamic productivity growth into the contributions of dynamic technical inefficiency change, dynamic technical change, and dynamic scale inefficiency change. The empirical application employs unbalanced panel data of 44 subsectors in the Indonesian food and beverages industry over 1990–2014. To estimate dynamic productivity growth, this research uses a Luenberger indicator accounting for the presence of adjustment costs. The results show that dynamic productivity growth exhibits a decreasing trend. Dynamic technical inefficiency change and dynamic scale inefficiency change contribute positively to dynamic productivity growth, while dynamic technical change contributes negatively. Dynamic productivity growth is affected by the change in industrial concentration, the growth rate of capital intensity, the growth rate of exports, the growth rate of foreign direct investment, and location.
Journal: International Review of Applied Economics
Pages: 774-788
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1606900
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1606900
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:774-788
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Evans Osei Opoku
Author-X-Name-First: Eric Evans Osei
Author-X-Name-Last: Opoku
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Author-Name: Yakubu Awudu Sare
Author-X-Name-First: Yakubu Awudu
Author-X-Name-Last: Sare
Title: The causal relationship between financial development and economic growth in Africa
Abstract:
Previous empirical studies on the causal relationship between financial development and economic growth are not instructive given their failure to unearth the causality trend across the different time periods. Using a more recently developed and robust indicator of financial development, we revisit the causal relationship between financial development and economic growth within the framework of a frequency-domain spectral causality technique which allows the causality to vary across time. Using data from 47 African countries over the period 1980–2016, our findings largely suggest that, even though there is some evidence of demand-following, supply-leading and feedback hypotheses, for most part, we find strong support of neutrality hypothesis. Thus, financial development and economic growth at most frequency levels evolve independently. We infer that caution must be exercised in making general conclusions about the causal nexus between financial development and economic growth.
Journal: International Review of Applied Economics
Pages: 789-812
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1607264
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1607264
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:789-812
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Author-Name: Paola Cardamone
Author-X-Name-First: Paola
Author-X-Name-Last: Cardamone
Author-Name: Valeria Pupo
Author-X-Name-First: Valeria
Author-X-Name-Last: Pupo
Title: New evidence on the firm-university linkages in Europe. The role of meritocratic management practices
Abstract:
This paper investigates the determinants of university-industry links in five European countries (France, Germany, Italy, Spain and the UK), using internationally comparable firm-level data for the period 2007–2009. Besides the usual firm-specific variables, it examines the role of meritocratic management practices in firms’ decisions to collaborate in R&D. Firm innovative efforts, the export status and the R&D government support are positively related to business-university links in almost all countries, human capital and firms’ size in two out of five countries under scrutiny, while belonging to science-based sectors does not seem to play a significant role in all countries but Italy. Importantly, we find that meritocratic managerial practices positively affect the firm-university nexus in Germany, France and the UK, while meritocracy does not appear to enhance businesses’ R&D collaboration in Italy and in Spain.
Journal: International Review of Applied Economics
Pages: 813-828
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1608917
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1608917
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:813-828
Template-Type: ReDIF-Article 1.0
Author-Name: André Moreira Cunha
Author-X-Name-First: André Moreira
Author-X-Name-Last: Cunha
Author-Name: Andrés Ernesto Ferrari Haines
Author-X-Name-First: Andrés Ernesto Ferrari
Author-X-Name-Last: Haines
Author-Name: Pedro Perfeito Da Silva
Author-X-Name-First: Pedro Perfeito
Author-X-Name-Last: Da Silva
Title: Global financial cycle and Brazil’s financial integration
Abstract:
Recent studies have discussed the influence of the global financial cycle on capital flows to emerging and developing countries. This paper evaluates the relationship between the greater degree of financial integration, and macroeconomic performance over the last two decades in Brazil. The literature has highlighted the Brazilian experience as being paradigmatic among emerging countries regarding the relationship between financial integration and regulation of capital flows to deal with boom and bust cycles. Methodologically, we employ a vector autoregressive model with error correction that allows us to evaluate the cointegration between the variables. Our main hypothesis is that a greater degree of financial integration is associated with negative developments in variables such as gross domestic product, country risk, interest rates, and exchange rate volatility. In addition, this study presents a further contribution by observing the existence of the interaction between the consequences of financial integration and the global financial cycle. More specifically, we found that: (i) an increase in the degree of financial integration generates deeper effects in downward periods of the global financial cycle; and (ii) a decline in that cycle generates greater impacts when a higher degree of financial integration is present.
Journal: International Review of Applied Economics
Pages: 829-851
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1620701
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1620701
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:829-851
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Baussola
Author-X-Name-First: Maurizio
Author-X-Name-Last: Baussola
Author-Name: Camilla Ferretti
Author-X-Name-First: Camilla
Author-X-Name-Last: Ferretti
Author-Name: Chiara Mussida
Author-X-Name-First: Chiara
Author-X-Name-Last: Mussida
Title: Pitfalls in the modeling of labor market flows: a reappraisal
Abstract:
We discuss the relevance of the internationally adopted methodology for modelling labour market flows and comparing labour market flexibility. This is based on a two-state labour market model that neglects inactivity and uses aggregate stock data to derive transition rates. Traditionally, the results suggest that continental European labour markets are inflexible and unable to adjust quickly to aggregate demand or supply shocks compared with their Anglo-Saxon counterparts. This evidence has driven us to gain a better understanding of the relevance of such a modelling approach and critically discuss its main methodological hypothesis. We relax its assumptions by including inactivity and by using flow data for the period 2010–2017. We compare the results thus obtained with transition rates derived using a three-state labour market model for France, Italy, Spain and the United Kingdom. These countries represent the institutional settings of continental Europe on the one hand and Anglo-Saxon nations on the other. The implied transition rates are much higher, even in continental Europe, when inactivity is considered, thus suggesting that conclusions derived using an incomplete representation of the labour market are misleading. Inactivity therefore plays a crucial role and its inclusion provides a more exhaustive picture of labour mobility.
Journal: International Review of Applied Economics
Pages: 852-877
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1585765
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1585765
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:852-877
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Tackling economic crises
Journal: International Review of Applied Economics
Pages: 878-881
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1647661
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1647661
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:878-881
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Special issue of the International Review of Applied Economics on Edith Penrose’s legacy to economics, management and political economy
Journal: International Review of Applied Economics
Pages: 882-883
Issue: 6
Volume: 33
Year: 2019
Month: 11
X-DOI: 10.1080/02692171.2019.1656900
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1656900
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Handle: RePEc:taf:irapec:v:33:y:2019:i:6:p:882-883
Template-Type: ReDIF-Article 1.0
Author-Name: Chengete Chakamera
Author-X-Name-First: Chengete
Author-X-Name-Last: Chakamera
Author-Name: Paul Alagidede
Author-X-Name-First: Paul
Author-X-Name-Last: Alagidede
Title: The nexus between infrastructure (quantity and quality) and economic growth in Sub Saharan Africa
Abstract:
This paper examines the growth effects of infrastructure stock and quality in Sub Saharan Africa (SSA). While previous studies established that the poor state of infrastructure in SSA slows economic growth, there is little evidence on infrastructure quality and a robust analysis on the causal links between infrastructure and economic growth. Using principal components analysis to cluster different infrastructure measures and examining the infrastructure-growth nexus in a Generalised Method of Moments while accounting for heterogeneity in a panel setting, our results reveal strong evidence of a positive effect of infrastructure development on economic growth with most contribution coming from infrastructure stock. The quality-growth effect is weak, thus giving credence to the combined effects of infrastructure stock and quality on growth, especially in regions with moderately high quality, and smaller in those with poorer quality. However, the long-term quality effect is higher than the short-term. Among the disaggregated infrastructure components, electricity supply exerted the greatest downward pressure on growth in SSA. Lastly, we find evidence for a unidirectional causality from aggregate infrastructure to growth. A number of policy implications are discussed.
Journal: International Review of Applied Economics
Pages: 641-672
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1355356
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1355356
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:641-672
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Adams
Author-X-Name-First: Samuel
Author-X-Name-Last: Adams
Author-Name: Edem Kwame Mensah Klobodu
Author-X-Name-First: Edem Kwame Mensah
Author-X-Name-Last: Klobodu
Title: Capital flows and economic growth revisited: evidence from five Sub-Saharan African countries
Abstract:
The study examines the differential effects of capital flows on economic growth in five Sub-Saharan African (SSA) countries over the period 1970–2014. Using the autoregressive distributed lag methodology, the findings show that in the long-run capital flows (i.e. foreign direct investment (FDI), aid, external debt, and remittances) have different effects on economic growth. FDI has a significant positive effect in Burkina Faso and negative effects in Gabon and Niger whereas the impact of debt is negative in all countries. Aid, however, promotes growth in Niger and Gabon whiles it deters growth in Ghana. Remittances, on the other hand, have a significant positive effect in Senegal. Finally, gross capital formation is significant in most of the countries and the impact of trade is mixed. These results suggest that the benefits of capital flows in SSA have been overemphasized.
Journal: International Review of Applied Economics
Pages: 620-640
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1355357
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1355357
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:620-640
Template-Type: ReDIF-Article 1.0
Author-Name: Paola Cardamone
Author-X-Name-First: Paola
Author-X-Name-Last: Cardamone
Author-Name: Valeria Pupo
Author-X-Name-First: Valeria
Author-X-Name-Last: Pupo
Author-Name: Fernanda Ricotta
Author-X-Name-First: Fernanda
Author-X-Name-Last: Ricotta
Title: Exploring the relationship between university and innovation: evidence from the Italian food industry
Abstract:
This study provides empirical evidence on the role of universities’ technological transfer (TT) activities in the Italian manufacturing sector, with particular attention to the food industry. Using the UniCredit-Capitalia database (2008) for firms and data from the Ministry of Education, University and Research (MIUR) to obtain the university TT indicator, we estimate a probit model to assess the effect of universities’ TT activities on a firm’s likelihood to innovate. The role of proximity in knowledge spillovers from TT activities is also investigated. Results show that university TT activities seem to stimulate food industry firms innovation and the impact appears significantly higher than for the manufacturing sector. Moreover, the effect of TT activities on innovation appears to be geographically bounded. As regards policy implications, this study provides two insights which may help promote innovation in the food sector. First, the factors that influence innovative capability in the food sector are different from those in other sectors, suggesting the need for sector specific instruments for promoting innovation. Second, science is important in the food industry and this raises questions about the policy of mainly considering high-tech industries when promoting a closer relationship between firms and universities.
Journal: International Review of Applied Economics
Pages: 673-696
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1357681
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1357681
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:673-696
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Boďa
Author-X-Name-First: Martin
Author-X-Name-Last: Boďa
Title: Market power and efficiency as the source of performance in banking: a case study of the Slovak banking sector
Abstract:
In an attempt to explain the sources of performance in the Slovak banking sector, the paper inquiries whether performance of Slovak banking institutions can be traced to market structure (as suggested by two market-power hypotheses) or should rather be attributed to efficiency (as postulated by two efficient-structure hypotheses). The empirical investigation is conducted with respect to two measures of banking performance and for a period of 11 years from 2005 to 2015 with some novel features in comparison to the state of the art in the field. First, the model of banking production accounts for both the intermediation and production aspects of banking operations and adapts the network slacks-based measure model in order to obtain trustworthy estimates of X-efficiencies and scale efficiencies. Second, the used simultaneous equations model involving all the four hypotheses of interest accommodates both performance measures at a time and avoids thus separate estimation. Third, the method of hypothesis verification hinges on testing composite hypotheses and refrains from step-wise estimation of nested models and significance testing of isolated parameters. A variant of the efficient-structure hypothesis in which both X-efficiency and scale efficiency exert its influence upon performance is established as descriptive for major Slovak commercial banking institutions.
Journal: International Review of Applied Economics
Pages: 589-619
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1360845
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1360845
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:589-619
Template-Type: ReDIF-Article 1.0
Author-Name: Jörg Bibow
Author-X-Name-First: Jörg
Author-X-Name-Last: Bibow
Title: How Germany’s anti-Keynesianism has brought Europe to its knees
Abstract:
This paper investigates the (lack of any lasting) impact of John Maynard Keynes’s General Theory on economic policy-making in Germany. The analysis highlights the interplay between economic history and the history of ideas in shaping policy-making in postwar (West) Germany. The paper argues that Germany learned the wrong lessons from its own history and misread the true sources of its postwar success. Monetary mythology and the Bundesbank, with its distinctive anti-inflationary bias, feature prominently in this collective odyssey. The analysis shows that the crisis of the euro today is largely the consequence of Germany’s peculiar anti-Keynesianism.
Journal: International Review of Applied Economics
Pages: 569-588
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1369938
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1369938
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:569-588
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Dolapo Raheem
Author-X-Name-First: Ibrahim Dolapo
Author-X-Name-Last: Raheem
Title: Dollarization: asymmetry and breaks
Abstract:
This paper examines the role of asymmetry and breaks in the dollarization-exchange rate nexus. The paper considers how countries respond differently to changes in macroeconomic fundamentals (exchange rate dynamics), which is contrary to theoretical argument. The study’s estimation is based on both symmetric (linear) ARDL and asymmetric (nonlinear) NARDL models. We also account for multiple structural breaks, which are determined endogenously and also included in the (N)ARDL models. Indeed, we found that there is a short-run asymmetric effect of dollarization in Sierra Leone, South Africa, and Burundi. In the case of Ghana, we found a symmetric effect. However, when breaks are accounted for, asymmetry became evident in both the short- and long-run. These results are sensitive to changes in data frequency and the inclusion of various control variables. Policy implications are considered based on the obtained results.
Journal: International Review of Applied Economics
Pages: 697-710
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2017.1375465
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1375465
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:697-710
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Keynesian theory and policy
Journal: International Review of Applied Economics
Pages: 567-568
Issue: 5
Volume: 32
Year: 2018
Month: 9
X-DOI: 10.1080/02692171.2018.1497829
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1497829
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Handle: RePEc:taf:irapec:v:32:y:2018:i:5:p:567-568
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin R. Auer
Author-X-Name-First: Benjamin R.
Author-X-Name-Last: Auer
Title: Green, greener, greenest: Identifying ecological trends and leading entities by means of environmental ratings
Abstract:
In this article, we analyse whether industries worldwide significantly react to the changing environmental demands of their stakeholders. Specifically, we test the hypothesis of increasing environmentally responsible company behaviour in recent years. We do this by constructing environmental industry ratings based on a novel data-set covering three geographic regions and 42 industries from 2009 to 2015 and by fitting robust trend regression models to these ratings. Interestingly, we cannot observe a general upward trend in all industries and regions. In other words, the ‘green wave’ does not appear to carry all business sectors. This becomes particularly clear when looking at rankings derived from estimated trends. Industries in Europe show especially significant downward trends. Even though most European industries are currently rated higher than their counterparts in the Asia-Pacific region and North America, these trends indicate that Europe may lose this leading position in the future. Besides delivering such general tendencies, our estimated trends combined with the current rating levels provide important decision support. They show which industry sectors and regions are particularly (un)interesting for socially responsible investment products, ecologically conscious applicants or environmentally responsible consumers.
Journal: International Review of Applied Economics
Pages: 139-162
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1332015
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332015
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:139-162
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin S. Nell
Author-X-Name-First: Kevin S.
Author-X-Name-Last: Nell
Author-Name: A. P. Thirlwall
Author-X-Name-First: A. P.
Author-X-Name-Last: Thirlwall
Title: Explaining differences in the productivity of investment across countries in the context of ‘new growth theory’
Abstract:
The purpose of this paper is to explain differences in the productivity of investment across 84 rich and poor countries over the period 1980–2011, and to test the orthodox neoclassical assumption of diminishing returns to capital. The productivity of investment is measured as the ratio of the long-run growth of GDP to a country’s gross investment ratio. Twenty potential determinants are considered using a general-to-specific model selection algorithm. Education, government consumption, geography, export growth, openness, political rights and macroeconomic instability are the most important variables. The data also suggest constant returns to capital, so investment and the determinants of productivity of investment differences matter for long-run growth.
Journal: International Review of Applied Economics
Pages: 163-194
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1333089
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1333089
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:163-194
Template-Type: ReDIF-Article 1.0
Author-Name: Kami Richmond
Author-X-Name-First: Kami
Author-X-Name-Last: Richmond
Author-Name: Russell E. Triplett
Author-X-Name-First: Russell E.
Author-X-Name-Last: Triplett
Title: ICT and income inequality: a cross-national perspective
Abstract:
The importance of information and communications technology (ICT) for economic growth and development is widely researched and seemingly well understood, but the effect of such investments on income inequality is less well documented. On the one hand, improvements in infrastructure are expected to expand economic opportunities for previously underserved populations. On the other hand, ICT growth may exacerbate inequality due to differential access and skill premiums. We use panel data from 109 countries during the period 2001–2014 to examine the empirical connection between ICT and income inequality in a cross-national context. Our results suggest that the effect of ICT on income inequality depends both on the specific type of ICT and on the measure of income inequality. In addition, the magnitude of ICT’s effect on income inequality is comparable to that of more traditional forms of economic infrastructure. Finally, we find that the association between ICT and income inequality is conditional on other economic and political characteristics.
Journal: International Review of Applied Economics
Pages: 195-214
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1338677
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1338677
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:195-214
Template-Type: ReDIF-Article 1.0
Author-Name: Elias Soukiazis
Author-X-Name-First: Elias
Author-X-Name-Last: Soukiazis
Author-Name: Micaela Antunes
Author-X-Name-First: Micaela
Author-X-Name-Last: Antunes
Author-Name: Ioannis Kostakis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Kostakis
Title: The Greek economy under the twin-deficit pressure: a demand orientated growth approach
Abstract:
This paper uses an alternative growth approach in line with Thirlwall’s model in order to predict economic growth in Greece taking into account internal and external imbalances caused by public deficit/debt and lack of trade competitiveness. It is shown that the simple Thirlwall’s Law (given by the product of the ratio of the income elasticities of demand for exports and imports, and the growth of foreign demand) over-predicts real growth in Greece while the more complete extended model, makes a closer prediction which is consistent with the high deficit/debt and current account deficit experienced in this country. The simulation approach shows that the most efficient policy to attain higher growth is to reduce external imbalances while policies to reduce internal imbalances are low growth enhancing.
Journal: International Review of Applied Economics
Pages: 215-236
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1338678
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1338678
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:215-236
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-seok Oh
Author-X-Name-First: Jong-seok
Author-X-Name-Last: Oh
Title: Changes in cyclical patterns of the USA labor market: from the perspective of nonlinear Okun’s law
Abstract:
The validity of Okun’s law has been debated because of the increase in cyclicality in aggregate hours after 1985. To investigate this, I measure Okun’s coefficients in three phases of the business cycle – recession, early, and late expansions. I found that an increased coefficient for aggregate hours is due to the increased responsiveness of the employment rate during late expansions and to the increased responsiveness of hours per employee during early expansions. These findings question the flexible labor market hypothesis focusing on firms’ firing behaviors during recessions. Rather, working hours’ flexibility represents a more prominent feature of the post-1985 USA labor market.
Journal: International Review of Applied Economics
Pages: 237-258
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1339023
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1339023
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:237-258
Template-Type: ReDIF-Article 1.0
Author-Name: John Baffoe-Bonnie
Author-X-Name-First: John
Author-X-Name-Last: Baffoe-Bonnie
Author-Name: Anthony O. Gyapong
Author-X-Name-First: Anthony O.
Author-X-Name-Last: Gyapong
Title: Definition of full-time and part-time employment, and distributional assumptions: the implications for the estimated full-time and part-time wage equations
Abstract:
This paper demonstrates that rejecting the standard definition of full-time and part-time workers, the estimated number of hours that an individual is likely to work as a full-time worker is a function of the type of distribution one assumes about the error term in the wage equation. Adopting a switching regression model with unknown sample selection, we have found that the normality assumption generates higher hours for full-timers in comparison with the non-normal distributions. We also noted that regardless of the distribution assumed, the hours differ from one industry to another. The implication is that the standard definition of full-time and part-time worker may not be appropriate for all firms irrespective of the distribution assumed. The paper also shows the sensitivity of parameter estimates to the distributional assumptions about the error term in the wage equation. The results indicate that the normal distribution wage equation estimates are relatively larger than the Weibull and exponential distributions. This finding is particularly important because such differences in estimated coefficients may have a direct wage influence on the wage gap between full-time and part-time workers across distributions.
Journal: International Review of Applied Economics
Pages: 259-279
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2017.1340436
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1340436
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:259-279
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Productivity, inequality, and the environment
Journal: International Review of Applied Economics
Pages: 137-138
Issue: 2
Volume: 32
Year: 2018
Month: 3
X-DOI: 10.1080/02692171.2018.1425189
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1425189
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Handle: RePEc:taf:irapec:v:32:y:2018:i:2:p:137-138
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: South African business in the transition to democracy
Abstract:
The transition to democracy in South Africa represents one of the most celebrated political moments of the late 20th C. While much has been said about the narrowly political and constitutional aspects of this period in South African and world history, little has been said about economic policy choices made in the transition years, or about the role of business in the transition or indeed about how business of all kinds responded to the changes. This collection of essays written by some of the leading scholars of South African business represents one of the first attempts to cover this lacunae in the literature. In the Introductory essay we review the context for these changes in politics and business relations, and summarise the findings of the papers that follow.
Journal: International Review of Applied Economics
Pages: 1-10
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524044
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524044
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:1-10
Template-Type: ReDIF-Article 1.0
Author-Name: Pamela Mondliwa
Author-X-Name-First: Pamela
Author-X-Name-Last: Mondliwa
Author-Name: Simon Roberts
Author-X-Name-First: Simon
Author-X-Name-Last: Roberts
Title: From a developmental to a regulatory state? Sasol and the conundrum of continued state support
Abstract:
Sasol was established and supported by the apartheid state in South Africa for its strategic position as a liquid fuel and chemical producer. The evolving government treatment of Sasol through various policy measures, and Sasol’s changing corporate strategy under a liberalised economy, represents a key part of South Africa’s transition under democracy from 1994. The article takes Sasol as a case study of industrial policy, regulation and business strategy. We analyse the terms on which the post-apartheid government continued to support Sasol along with the decisions to release Sasol from obligations to repay subsidies it had received and not to impose a tax on windfall gains. We then evaluate the regulatory regime for fuel and gases, the advantages that it bestowed on Sasol, and the ability of competition authorities as regulators of last resort to address Sasol’s entrenched market position. Sasol’s impact on downstream diversified industrial sectors, which rely on it for inputs, is assessed as part of the bigger questions about the failure of South Africa to develop diversified manufacturing capabilities over the last 25 years. The article draws conclusions relating to the political economy of industrial policy, regulation and competition law in addressing Sasol’s entrenched position.
Journal: International Review of Applied Economics
Pages: 11-29
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1523845
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1523845
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:11-29
Template-Type: ReDIF-Article 1.0
Author-Name: Reena Das Nair
Author-X-Name-First: Reena
Author-X-Name-Last: Das Nair
Title: The spread and internationalisation of South African retail chains and the implications of market power
Abstract:
The retail space has seen significant changes in post-apartheid business. Spurred by the end of apartheid urban laws, rising urbanisation and increased per capita income, large South African retailers, especially supermarkets, have increased their footprint, diversified their formats and started targeting low-income segments of the population. The large chains have made substantial investments in distribution and procurement systems and in retail space in shopping malls to realise economies of scale and scope. They have also grown in southern Africa, shaping markets across countries.This paper assesses the drivers of these changes and the extent to which substantial market power in retail lies with the main groups. It evaluates the ways in which market power has been exerted and the impact supermarket growth has had on the competitive landscape including on independent rivals. The implications on suppliers, as supermarkets are increasingly important routes to market for processed food and household consumable products, are evaluated, in addition to the impact of buyer power. The paper explores the implications for regulation, competition policy and industrial policy.
Journal: International Review of Applied Economics
Pages: 30-50
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1523855
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1523855
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:30-50
Template-Type: ReDIF-Article 1.0
Author-Name: N. Wenzel
Author-X-Name-First: N.
Author-X-Name-Last: Wenzel
Author-Name: B. Freund
Author-X-Name-First: B.
Author-X-Name-Last: Freund
Author-Name: O. Graefe
Author-X-Name-First: O.
Author-X-Name-Last: Graefe
Title: Surviving in the BRICS: the struggle of South African business in coping with new partners and investors
Abstract:
The purpose of this paper is to improve our understanding of how South African economic actors react to the gradual entry of non-South African BRICS firms in their established business areas. Throughout the twentieth century, South Africa’s trade and investment activities were conducted overwhelmingly with Western countries. However, the end of apartheid coincided with significant shifts as new players had a wider and growing presence. South Africa entering the BRICS alliance is symbolic of the change. Ease of entry into the South African economy has increased greatly. South African businesses in key subsectors in the mining and capital equipment industry have had to adapt to new players, and find space in new structures, value chains and initiatives. This paper presents the results of this research activity from the perspective of the South African political economy. Practice-oriented research investigated how six local companies forge new partnerships and how well South African firms adapt and cope with an altered and often unstable environment. It assumed that entrepreneurial activity is not autonomous but takes place within a larger organisational framework. Entrepreneurial activity facilitates the effective exploitation of particular niches and relationships with service providers.
Journal: International Review of Applied Economics
Pages: 51-70
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524038
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524038
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:51-70
Template-Type: ReDIF-Article 1.0
Author-Name: David Francis
Author-X-Name-First: David
Author-X-Name-Last: Francis
Author-Name: Gareth Roberts
Author-X-Name-First: Gareth
Author-X-Name-Last: Roberts
Author-Name: Imraan Valodia
Author-X-Name-First: Imraan
Author-X-Name-Last: Valodia
Title: South African manufacturing firms in transition
Abstract:
We seek to provide a more detailed understanding the dynamics of change of firms in the post-apartheid era through the examination of the results of two firm-level surveys in the eThekwini Metro area. This paper aims to fill a gap in the South African labour market literature: our understanding of the demand side of the labour market. We examine the characteristics of firms which have grown their employment in order to test the local application of firm and labour market theory. An important finding is that subcontracting matters for employment growth. Those firms in the sample that outsource aspects of production to subcontractors are more likely to have grown employment. The flexibility that subcontracting provides, in terms of responding to changes in workload, is one of the key reasons that firms engage in subcontracting. There are some plausible hypotheses as to how this relationship works. First, subcontracting allows firms to outsource lower-skilled work, and achieve the scale necessary to employ high-skilled full-time staff. Second, subcontracting allows the firms to access high-skilled individuals that they would otherwise not have the operational scale to retain on a full-time basis. We also examine the role of exporting and value chain integration in employment creation.
Journal: International Review of Applied Economics
Pages: 71-92
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524013
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524013
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:71-92
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Breckenridge
Author-X-Name-First: Keith
Author-X-Name-Last: Breckenridge
Title: The global ambitions of the biometric anti-bank: Net1, lockin and the technologies of African financialisation
Abstract:
This paper follows the development of Net1 UEPS—the firm that, until recently, delivered social grants to a third of the South African population—from its origins in the precocious interbank networking systems that developed here in the early 1980s to its position as the outstanding international agent of biometric banking for the world’s poor. The paper shows that an unrelenting engineering effort lay behind the company’s growing infrastructural dominance. Two decades ago Shapiro and Varian labelled this strategy lockin, and the paper shows that Net1 followed their suggestions to the letter until the very recent public debacle that shattered the company’s control over its South African market. The paper also suggests that networked financialisation should be understood as the product of carefully and consistently engineered technological interventions designed to address political and economic interests in the face of political and legal constraints and regulation. This is to argue for a return to the idea of soft determinism in the study of financialisation: that key technological changes are motivated by and support political interests.
Journal: International Review of Applied Economics
Pages: 93-118
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1523836
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1523836
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:93-118
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Klaaren
Author-X-Name-First: Jonathan
Author-X-Name-Last: Klaaren
Title: Laying the table: the role of business in establishing competition law and policy in South Africa
Abstract:
Organised business played a significant role in the formal policy processes developing the competition regime after apartheid up to and including the drafting of South Africa’s competition law. The social organisation of business and its participation in formal policy processes were shifting and changing rapidly. Exploring several published accounts of the drafters of South Africa’s first democratic competition law and policy framework reveals the narrative context for the politics of the regime. The process of negotiating and drafting this legislation took place both in National Economic Development and Labour Council (a formal tripartite negotiating organisation) where business was influential, and in Parliament. Big business pursued its interests in competition policy and achieved significant results during this time. The current period differs from the post-apartheid period in light of the much less prominent role of conglomerates in the South African economy, the rise of organised black business structures, and the increasing importance of Parliament as opposed to the NEDLAC.
Journal: International Review of Applied Economics
Pages: 119-133
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524034
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524034
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:119-133
Template-Type: ReDIF-Article 1.0
Author-Name: Nobantu L. Mbeki
Author-X-Name-First: Nobantu L.
Author-X-Name-Last: Mbeki
Title: Collective counterveilence as a deterrent to entry: A reconsideration of the factors limiting competition in post-Apartheid South Africa
Abstract:
This paper argues first, that competition in post-Apartheid South Africa has to be viewed in the context of its history. If that is the case, second, the proliferation of firms in post-Apartheid South Africa is only nominally entry. It is on the one hand the result of a longer-term trend to create holding companies that emerged post-war and as a shortcut to accelerate ownership as part of the indigenisation imperative of Apartheid. What has changed more recently is that rather than in some cases acquiring part ownership of fixed assets, on the whole these entities hold more liquid and speculative assets. It is on the other hand, the result of the unwinding and in the process de-scaling of the larger and more dominant firms’ fixed assets. This means that there is remarkable causal continuity in the evolution of firm behaviour and so competition, as a first approximation, roughly over the past century and a half. We coin and apply the term ‘collective counterveilence’ to explain this phenomenon.
Journal: International Review of Applied Economics
Pages: 134-149
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524025
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524025
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:134-149
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Author-Name: Jannie Rossouw
Author-X-Name-First: Jannie
Author-X-Name-Last: Rossouw
Title: “Volkskapitalisme” in the transition to democracy and beyond
Abstract:
In an assessment of the transition of the Afrikaans business sector to the post-democracy period in South Africa since 1994, the growth or the PSG Group since 1995 is remarkable. We use a biography or Jannie Mouton, the founder and Chairperson of PSG, as a basis for this analysis. His story is quintessentially a narrative of Afrikaner business adjustment in the new democratic South Africa. The success of PSG after democratic elections in 1994 shows some similarities to other Afrikaner business interests developed in the period between the First and Second World Wars. This business development was not overly dependent on the state and can be viewed as a form of “volkskapitalisme”. In contract, the ANC government has taken an active role in attempts to develop black business in South Africa through a policy of black economic empowerment (BEE). The assessment of the success of the PSG Group under the leadership of Mouton shows that the company developed the ability to identify and use opportunities for growth. This ability makes Mouton arguably the most influential South African businessman (black or white) of this current generation. Mouton’s personal success and the success of the PSG Group serve as an example for South Africans.
Journal: International Review of Applied Economics
Pages: 150-162
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524040
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524040
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:150-162
Template-Type: ReDIF-Article 1.0
Author-Name: Jannie Rossouw
Author-X-Name-First: Jannie
Author-X-Name-Last: Rossouw
Author-Name: James Styan
Author-X-Name-First: James
Author-X-Name-Last: Styan
Title: Steinhoff collapse: a failure of corporate governance
Abstract:
South Africans are still in shock after the near-total financial collapse of one of its best-known companies, Steinhoff (Steinhoff International Holdings N.V.). Although incorporated in The Netherlands, the company’s head office is in South Africa. Before its collapse, Steinhoff was among the top-10 companies on the Johannesburg Stock Exchange. Full details of the collapse of Steinhoff are still emerging, but the collapse commenced after the resignation of its Chief Executive, Mr Markus Jooste, when it became clear that the company’s external auditors were not prepared to sign off its 2017 financial statements.A number of lessons can be drawn from the collapse of Steinhoff. Steinhoff is a classic case of corporate governance failure, while the collapse also shows the danger of an all-powerful chief executive, and the limitations of a two-tier board structure. In addition, serious questions have to be asked about the external auditors who signed off on financial statements in earlier years.
Journal: International Review of Applied Economics
Pages: 163-170
Issue: 1
Volume: 33
Year: 2019
Month: 1
X-DOI: 10.1080/02692171.2019.1524043
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1524043
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Handle: RePEc:taf:irapec:v:33:y:2019:i:1:p:163-170
Template-Type: ReDIF-Article 1.0
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Title: Forecasting performance of private sector’s unemployment forecasts in advanced economies
Abstract:
This paper provides a full characterization of unemployment rate forecasts using the mean values from Consensus Economics for a sample of nine advanced economies between 1989 and 2012. It also assesses the performance of unemployment rate forecasts around business cycles’ turning points. We find evidence for biasedness, inefficiency or information rigidities and lack of accuracy of unemployment rate forecasts and the distribution of projection errors appears to be slightly twisted to over-prediction (which decreases during recession episodes). Additionally, there is a sense of ‘pessimism’ among forecasters during recovery periods.
Journal: International Review of Applied Economics
Pages: 707-733
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1319469
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1319469
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:707-733
Template-Type: ReDIF-Article 1.0
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Tung Duc Phung
Author-X-Name-First: Tung Duc
Author-X-Name-Last: Phung
Author-Name: Van Khanh Ta
Author-X-Name-First: Van Khanh
Author-X-Name-Last: Ta
Author-Name: Dat Tho Tran
Author-X-Name-First: Dat Tho
Author-X-Name-Last: Tran
Title: The impact of rural roads and irrigation on household welfare: evidence from Vietnam
Abstract:
We measure the impact of road and irrigation projects on the livelihoods of households in the poorest and most remote areas of Vietnam using difference-in-difference estimators. We find that both rural road and irrigation projects help local households improve the access to safe water and welfare measured by a wealth index. The impact of irrigation projects is found to be larger than the impact of road projects. We also find heterogeneous impacts of road and irrigation projects. Households with higher levels of education tend to benefit more from road projects, while households with lower levels of education are likely to benefit more from irrigation projects.
Journal: International Review of Applied Economics
Pages: 734-753
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1324408
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1324408
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:734-753
Template-Type: ReDIF-Article 1.0
Author-Name: Ebel Berghuis
Author-X-Name-First: Ebel
Author-X-Name-Last: Berghuis
Author-Name: Frank A. G. den Butter
Author-X-Name-First: Frank A. G.
Author-X-Name-Last: den Butter
Title: The transaction costs perspective on international supply chain management; evidence from case studies in the manufacturing industry in the Netherlands
Abstract:
Transaction costs are barriers for internationalisation processes. This paper investigates the practical relevance of transaction costs economics (TCE) for international supply chain management (SCM) in this era of globalisation, which is characterised by splitting up the supply chain in more and more parts. The analysis is based on data from in-depth interviews with seven manufacturing companies in the Netherlands which are actually engaged in this modern way of organising production. It is shown that the balance between transaction costs and sheer production costs (transformation costs) plays a prominent role in the strategic decisions on how and where to organise production. Especially intangible (or ‘soft’) transaction costs are important in this respect. The analysis provides insight in practical experience in the manufacturing industry in the Netherlands with transaction costs and shows how transaction costs affect decisions on transaction management, personnel policy and internationalisation of R&D. This study is to our knowledge the first to confront the theory of TCE with practice of manufacturing firms in their internationalisation decisions using in-depth interviews instead of survey data.
Journal: International Review of Applied Economics
Pages: 754-773
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1324409
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1324409
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:754-773
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Amirhossein Mohammadian
Author-X-Name-First: Amirhossein
Author-X-Name-Last: Mohammadian
Title: Asymmetry effects of exchange rate changes on domestic production in Japan
Abstract:
Previous studies that assessed the effects of currency depreciation on the domestic production of Japan did not find any significant long-run effects. Using the linear ARDL approach we first confirm previous findings. We then argue and show that failure to find any significant link between the value of the yen and Japanese domestic production is due to assuming a linear adjustment mechanism or symmetric effects of exchange rate changes. Once we use the nonlinear ARDL approach we show that indeed exchange rate changes do have asymmetric effects on domestic production in Japan. Not only we observe adjustment asymmetry, but also short-run asymmetry that lasts into the long run. In the long run while strong yen seems to hurt domestic production in Japan, weak yen seems to have no effect.
Journal: International Review of Applied Economics
Pages: 774-790
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1324410
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1324410
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:774-790
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel K. Twerefou
Author-X-Name-First: Daniel K.
Author-X-Name-Last: Twerefou
Author-Name: Emmanuel Ayine Ayimpusah
Author-X-Name-First: Emmanuel Ayine
Author-X-Name-Last: Ayimpusah
Author-Name: John Owusu-Afriyie
Author-X-Name-First: John
Author-X-Name-Last: Owusu-Afriyie
Author-Name: Kwame Adjei-Mantey
Author-X-Name-First: Kwame
Author-X-Name-Last: Adjei-Mantey
Author-Name: Godfred A. Bokpin
Author-X-Name-First: Godfred A.
Author-X-Name-Last: Bokpin
Title: The contest for mineral wealth: an economic analysis of conflicts in Ghanaian mining communities
Abstract:
The paper uses survey data from 1458 households in 60 communities from 24 districts in 5 regions of Ghana and logistic regression to examine conflicts as a contest for mineral wealth in mining communities, estimates the determinants of conflicts in these mining communities and examines how these contests could erode and/or enhance Ghana’s gains from mining. The paper finds that the likelihood of a conflict occurring in a mining area is about 56.7%. Village effect was found to be a significant positive predictor of mining conflict. Also, improvement in primary education, employment opportunities to community members of ages 25–50, the strength of institutions and the absence of small-scale miners in a mining community reduces the probability of conflicts occurring by 12.8, 35.8, 6.57 and 17.7%, respectively. While an increase in pollution levels increases the likelihood of conflicts occurring by 7.1%, primary occupation in manufacturing and services, and increase in household monthly expenditure significantly increases the likelihood of conflicts within the mining communities as the cost of living increases.
Journal: International Review of Applied Economics
Pages: 791-810
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1332016
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332016
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:791-810
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Metzger
Author-X-Name-First: Christoph
Author-X-Name-Last: Metzger
Title: Who is saving privately for retirement and how much? New evidence for Germany
Abstract:
Due to demographic change, the replacement rates of the German statutory pension scheme will decrease over the next decades. Voluntary savings for retirement will therefore increase in relevance as a method of maintaining one’s standard of living during retirement. This article examines the savings behavior for retirement on an individual level in Germany at the extensive as well as the intensive margin. First, the decision to save in general is analyzed, showing that the main determinants for saving are personal income and disposable household income. Furthermore, it is shown that migrants and individuals living in the Eastern part of Germany turn out to be less likely to have additional private savings. Second, the chosen gross saving rates are analyzed using a Tobit model, a log-normal hurdle model and a Type II Tobit model. The results suggest that the decision to save in general, as well as the saving rate, are independent of each other, leading to a loss of information if only a standard Tobit model is used. For example, higher personal income increases the probability to save for retirement, but decreases the resulting saving rate. Modeling both decisions separately thus, leads to a better understanding of the determinants of saving for old-age.
Journal: International Review of Applied Economics
Pages: 811-831
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1338676
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1338676
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:811-831
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Marco Flávio Cunha Resende
Author-X-Name-First: Marco Flávio Cunha
Author-X-Name-Last: Resende
Author-Name: Douglas Alcântara Alencar
Author-X-Name-First: Douglas Alcântara
Author-X-Name-Last: Alencar
Author-Name: Lúcio Otávio Seixas Barbosa
Author-X-Name-First: Lúcio Otávio Seixas
Author-X-Name-Last: Barbosa
Author-Name: Gustavo Figueiredo Campolina Diniz
Author-X-Name-First: Gustavo Figueiredo Campolina
Author-X-Name-Last: Diniz
Title: The finance-investment and saving-funding circuit in the closed and open economies with government
Abstract:
This contribution discusses the Finance-Investment and Saving-Funding (FISF) circuit regarding the closed and open economies with government. Moreover, we discuss the fiscal policy effects on aggregate demand and income in the FISF circuit context. Keynes explained the FISF circuit assuming a closed economy without government. The novelty of the current contribution is to analyze the abovementioned circuit in the closed and open economy context including government. We show that the basic features of the FISF circuit remain unchanged for the closed and open economies when government is considered in the circuit.
Journal: International Review of Applied Economics
Pages: 832-845
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1324411
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1324411
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:832-845
Template-Type: ReDIF-Article 1.0
Author-Name: Gorgi Krlev
Author-X-Name-First: Gorgi
Author-X-Name-Last: Krlev
Author-Name: Georg Mildenberger
Author-X-Name-First: Georg
Author-X-Name-Last: Mildenberger
Author-Name: Helmut K. Anheier
Author-X-Name-First: Helmut K.
Author-X-Name-Last: Anheier
Title: Special issue on innovation and societal transformation – what changes when the ‘social’ comes in?
Journal: International Review of Applied Economics
Pages: 846-848
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1377409
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1377409
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:846-848
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: International Review of Applied Economics
Pages: ebi-ebi
Issue: 6
Volume: 31
Year: 2017
Month: 11
X-DOI: 10.1080/02692171.2017.1379228
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1379228
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Handle: RePEc:taf:irapec:v:31:y:2017:i:6:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Hanen Ragoubi
Author-X-Name-First: Hanen
Author-X-Name-Last: Ragoubi
Author-Name: Sana El Harbi
Author-X-Name-First: Sana
Author-X-Name-Last: El Harbi
Title: Entrepreneurship and income inequality: a spatial panel data analysis
Abstract:
The main objective of this paper is to empirically analyze the relationship between entrepreneurship and income inequality. We use a spatial panel data analysis for both 33 high-income countries and 39 middle- and low-income countries over a period of 11 years. Estimation results and rigorous diagnostic analysis suggest that: (i) there is a strong support for the existence of an inverted U-shaped relationship between entrepreneurship and income inequality espoused by the Kuznets Curve hypothesis; (ii) the relationship between entrepreneurship and income inequality is negatively moderated by country’s level of economic development; (iii) regardless of income inequality levels, entrepreneurship has a non-linear relationship with income per capita; (iv) gross domestic expenditure on research and development exhibits significant negative impacts on entrepreneurship; (v) significant mixed effects on the likelihood of entrepreneurial activity are observed with governance, globalization, population growth rate, and competitiveness variables; (vi) there are significant mixed feedback effects on entrepreneurship; and (vii) there are statistically significant, positive as well as negative spatial spillovers to country-level entrepreneurial activity.
Journal: International Review of Applied Economics
Pages: 374-422
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2017.1342776
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1342776
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:374-422
Template-Type: ReDIF-Article 1.0
Author-Name: Valeria Gattai
Author-X-Name-First: Valeria
Author-X-Name-Last: Gattai
Author-Name: Giorgia Sali
Author-X-Name-First: Giorgia
Author-X-Name-Last: Sali
Title: FDI direction, FDI margin, and heterogeneous firms: evidence from the EU
Abstract:
This paper takes a firm-level perspective to analyze foreign direct investment (FDI) in the European Union (EU). Our data rely on the global company database Orbis and allow the introduction of an original definition of FDI that accounts for the FDI direction – inward vs. outward – and the FDI margin – extensive vs. intensive. Based on the available information, we ask two questions. First, how deep is the FDI involvement of European enterprises? Second, is there any systematic relationship between FDI involvement and firm-level performance? To answer these questions, we adopt an empirical methodology consisting of descriptive statistics and econometric regressions (Probit, Bivariate Probit, and Poisson models). Concerning the depth of FDI involvement, our descriptive statistics reveal that the number of firms involved in inward/outward FDI is quite notable. However, firms’ actual involvement is rather low, meaning that FDI involvement in the EU is widespread, but not deep. Concerning the relationship between FDI involvement and firm-level performance, our econometric regressions show that better enterprises experience some inward/outward FDI rather than none. Moreover, the deeper the FDI involvement, the wider is the gap with domestic firms. This suggests that performance differentials are related to both the extensive and intensive margins of both inward and outward FDI.
Journal: International Review of Applied Economics
Pages: 283-307
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2017.1342777
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1342777
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:283-307
Template-Type: ReDIF-Article 1.0
Author-Name: Touitou Mohammed
Author-X-Name-First: Touitou
Author-X-Name-Last: Mohammed
Title: Simulation of the impact of economic policies on poverty and inequality: GEM in micro-simulation for the Algerian economy
Abstract:
This paper presents an illustration of the importance of computable general equilibrium modelling micro-simulation for simulating the impact of economic policies on living levels of households. The CGEM, as built, was used to simulate the effects of some economic policies on the economy and living levels of all households including the classes of modest, middle and wealthy households. In this context, pro-active economic policies are simulated in order to understand their effects on the macroeconomic plan and on the living level of some household categories defined according to statistical criteria. The first on the analysis of two arbitrarily selected tax policy cases, and the other on three investment policy simulations. Different illustrated simulations show improvements in economic growth and upward social mobility, particularly in the case of increasing the overall investment and improving productive capacity. In all simulations, that inequality would have remained rigid downward and would sometimes even accentuate. Overall, it appears that the increase in investment would boost economic growth through demand effect. However, this increase in demand would be met by more imports, which would damage our trade balance. The national productive system, however, could reverse this trend by making profitable investments by strengthening its productive capacity.
Journal: International Review of Applied Economics
Pages: 308-330
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2017.1342778
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1342778
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:308-330
Template-Type: ReDIF-Article 1.0
Author-Name: C. Saratchand
Author-X-Name-First: C.
Author-X-Name-Last: Saratchand
Title: A preliminary theoretical examination of the targeted public distribution system in India
Abstract:
A theoretical model of targeting in the public distribution system is set out. In any system of targeting there could be inclusion and exclusion errors. These errors could be reduced by search by the state. The state aims to minimise the costs of food administration subject to keeping the magnitude of the exclusion error bounded. Targeting involves a consideration of the objective poverty level, the official poverty level and the targeted poverty level by the state. The targeted poverty level could be less than the official poverty level if the extent of search is not adequate. The objective poverty level is an increasing function of the above poverty line issue price of food due to exclusion errors, a decreasing function of the procurement price of food and by definition the below poverty line issue price of food. The instruments in the hands of the state are the official poverty level, the above poverty line issue price for food, the procurement price of food and the extent of search. The comparative static implications of the model are set out.
Journal: International Review of Applied Economics
Pages: 331-347
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2017.1343287
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1343287
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:331-347
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Georgiou
Author-X-Name-First: Georgios
Author-X-Name-Last: Georgiou
Title: The innovative bureaucrat: evidence from the correctional authorities in Washington State
Abstract:
Bureaucracies are usually regarded as inefficient, wasteful mechanisms. Contrary to this deeply rooted perception of bureaucracy, this paper documents the case of the correctional authorities in Washington State, a bureaucracy that acted with a considerable degree of innovation and professionalism. Their task was to administer a risk assessment instrument that measured the level of risk posed by offenders by way of a numerical score. They used that score to identify the level of supervision offenders were to receive once released into the community. In analyzing the data, I discovered an unusual application of the instrument that resulted in many offenders being bumped to a higher supervision level. Using a regression discontinuity design, I uncover the mechanics of the bumping-up process and I generate an instrument that is cleansed of the manipulation. I find that the manipulated instrument predicts serious recidivism events better than the cleansed instrument, especially when these events involve high-risk offenders, thus providing evidence that the authorities had good reason to undertake the manipulation.
Journal: International Review of Applied Economics
Pages: 348-373
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2017.1351527
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1351527
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:348-373
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Entrepreneurship, investment, and inequality
Journal: International Review of Applied Economics
Pages: 281-282
Issue: 3
Volume: 32
Year: 2018
Month: 5
X-DOI: 10.1080/02692171.2018.1451436
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1451436
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Handle: RePEc:taf:irapec:v:32:y:2018:i:3:p:281-282
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Medeiros Garcia
Author-X-Name-First: Maria Teresa Medeiros
Author-X-Name-Last: Garcia
Author-Name: Pedro Miguel Mendes Rosa Costa
Author-X-Name-First: Pedro Miguel Mendes Rosa
Author-X-Name-Last: Costa
Title: Central bank independence and stock market returns in developed countries
Abstract:
Central bank independence (CBI) is seen in the literature and by policy-makers as being important for achieving stability of inflation and long-term welfare. However, relatively few studies directly consider the relationship between CBI and stock market returns. Using a set of 21 developed countries, over a period of 20 years, and the Morgan Stanley Capital International indices, we test the impact caused by the levels of independence of countries’ central banks. The results lead us to conclude that the ‘free lunch’ hypothesis behind CBI cannot be rejected when its impact on stock market returns is considered.
Journal: International Review of Applied Economics
Pages: 335-352
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1493093
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1493093
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:335-352
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Salvati
Author-X-Name-First: Luca
Author-X-Name-Last: Salvati
Author-Name: Pere Serra
Author-X-Name-First: Pere
Author-X-Name-Last: Serra
Title: One thing leads to another: economic polarizations and social disparities in a pre-crisis Mediterranean city
Abstract:
While economic restructuring has increased spatial polarizations in European cities, the relationship with the evolving social context has been relatively unstudied. The present study investigates socioeconomic disparities in pre-crisis Athens, Greece, focusing on changes in spatial distribution of businesses driven by urban development following the 2004 Olympics. Data from the national business register for 2002 and 2007 were used to localize businesses at the municipal scale according to a standard classification of economic activities (Stakod03). A factor analysis identified the main gradients in the spatial distribution of businesses in the Athens’ metropolitan region, the most relevant changes in the concentration of businesses over the study period and the social indicators associated with the dominant localization patterns for both industry and services. A confirmative analysis was run on 2008 data derived from an updated classification of economic activities (Stakod08). Two variables (average per-capita declared income and distance from the inner city) identified recent patterns of economic polarization in Athens. Advanced services (real estate, informatics, research and development, banking and finance) were concentrated in the wealthiest municipalities of the area. In contrast with traditional urban structures dominated by industrial activities (construction and light manufacturing) and routine services (commerce and trade and public administration), the Athens’ production base became progressively more divided at the metropolitan scale, reflecting the increased concentration of advanced services in the wealthiest districts. The territorial disparities resulting from such transformations may have weakened the local recovery from the 2008 economic crisis.
Journal: International Review of Applied Economics
Pages: 353-383
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1495696
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1495696
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:353-383
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Lamb
Author-X-Name-First: Laura
Author-X-Name-Last: Lamb
Title: Changing preferences for environmental protection: evidence from volunteer behaviour
Abstract:
Over the past couple of decades, public awareness about environmental issues and concern for environmental protection appears to have increased substantially in Canada as it has in many other countries. This research has two objectives: first, to empirically assess the factors affecting voluntary participation in activities to protect the environment in Canada and to determine if participation has changed from 2000 to 2010, and second, to contemplate whether a change in environmental participation over time might be considered evidence of changing preferences, and thus demand, for environmental protection. Analysis makes use of data from Statistics Canada’s 2000, 2004, 2007 and 2010 Canadian Survey of Giving, Volunteering, and Participating used to estimate two IV probit models. Results suggest the likelihood of participating in environmental protection has increased over time providing a signal that preferences for environmental protection may have increased in Canada. Post-secondary education and social capital developed in youth have the largest impacts on the likelihood of participating. The results are expected to provide valuable information for public policy makers and environmental non-profit organizations.
Journal: International Review of Applied Economics
Pages: 384-401
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1510906
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1510906
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:384-401
Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Hernández
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Hernández
Title: Output co-movement between Latin America and the United States: the export structure matters
Abstract:
Using panel data analysis for the period 1961–2014, this paper finds that output fluctuations in Latin America were especially synchronized with the US business cycle before the commodity price boom in the 2000s. In most recent years, China has become a more important geo-economic source of output fluctuations for the region. Furthermore, focusing on export-structure related aspects as mechanisms, evidence suggests that non-primary commodity exporters in Latin America, whose exports have mainly been destined for the US market, display an intensified output fluctuation co-movement with the US. These findings contribute to the understanding of the Latin American macroeconomic exposure to external shocks.
Journal: International Review of Applied Economics
Pages: 402-425
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1511690
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1511690
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:402-425
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Ibarra
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Ibarra
Author-Name: Jaime Ros
Author-X-Name-First: Jaime
Author-X-Name-Last: Ros
Title: Profitability and capital accumulation in Mexico: a first look at tradables and non-tradables based on KLEMS
Abstract:
The article uses the KLEMS database to estimate equations for the rate of private, non-residential capital accumulation in manufacturing, whole tradables, and non-tradables in Mexico during the period 1992-1994. It shows the rate of capital accumulation is positively correlated with the profit rate and its components – the profit share, the output/capital ratio and the relative price of capital goods, negatively correlated in the latter case – in the three sectors, but with considerably larger profitability effects in manufacturing and tradables. It also shows that capital accumulation is positively correlated with the real exchange rate in manufacturing and tradables, and negatively (and less strongly) correlated in non-tradables. A real depreciation increases the relative prices and profit rates of the former sectors, shifting accumulation toward them and away from non-tradables, with a positive overall effect on capital accumulation. The estimations – based on the error-correction ARDL bounds testing approach, and supplemented by OLS equations using the lagged values of the explanatory variables – imply that the flat trajectory of capital accumulation in Mexico is explained in part by a downward trend in the profit rate, which resulted from a fall in the output/capital ratio that more than offset an increase in the profit share.
Journal: International Review of Applied Economics
Pages: 426-452
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1511691
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1511691
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:426-452
Template-Type: ReDIF-Article 1.0
Author-Name: Leonida Correia
Author-X-Name-First: Leonida
Author-X-Name-Last: Correia
Author-Name: Patrícia Martins
Author-X-Name-First: Patrícia
Author-X-Name-Last: Martins
Title: Has the sovereign debt crisis changed the cyclicality of Portuguese remittances?
Abstract:
This paper explores the cyclicality of remittances into Portugal from 1996 to 2015. Using bilateral correlations and econometric model regression approaches, we investigate if remittances are countercyclical or procyclical with Portuguese, French and Swiss outputs (France and Switzerland being the two main remitting countries). We also examine the ability of remittances to smooth macroeconomic shocks, and compare their role with other external financial sources. The empirical results suggest that the sovereign debt crisis has changed the cyclicality of remittances from procyclical in relation to Portuguese GDP in the years before the crisis to countercyclical during the crisis period. This conclusion is valid regardless of the economic situation of home and host countries and is robust to the use of different statistical information to measure the business cycle of Portugal (GDP, private consumption, or unemployment rate). Thus, we conclude that remittances received by Portuguese households played an economic stabilization role in the crisis years.
Journal: International Review of Applied Economics
Pages: 453-472
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1511692
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1511692
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:453-472
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Chen
Author-X-Name-First: Ying
Author-X-Name-Last: Chen
Title: Renewable energy investment and employment in China
Abstract:
The potential trade-off between environmental protection and employment stability has been a concern in the literature. However, in the case of China, the employment issue has not been adequately addressed despite government’s big push on investing in renewable energy since 2007. This essay addresses the employment issue through estimating the relative employment impacts of renewable energy investments versus spending within the traditional fossil fuel sectors based on input-output modeling with China-specific data of sector and subsector weighting techniques. I find that spending within three segments of the renewable energy sectors – solar, wind and bioenergy, will produce in combination about twice as many jobs per dollar of expenditure than an equal amount of spending on fossil fuels. I also find that, more than 70 percent of jobs from renewable energy sectors are created in the informal economy. This raises questions about the quality of the jobs created through renewable energy investments.
Journal: International Review of Applied Economics
Pages: 314-334
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1513458
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1513458
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:314-334
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: 473-473
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2018.1516758
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1516758
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:473-473
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: International Review of Applied Economics Festschrift for Malcolm Sawyer Capitalism: an unsustainable future? Call for Papers, March 2019
Journal: International Review of Applied Economics
Pages: 474-474
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2019.1598697
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1598697
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:474-474
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Prospects for a popular political economy – and a Call for Papers
Journal: International Review of Applied Economics
Pages: 307-309
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2019.1600780
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1600780
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:307-309
Template-Type: ReDIF-Article 1.0
Author-Name: EuroMemo Group
Author-X-Name-First: EuroMemo
Author-X-Name-Last: Group
Title: Prospects for a popular political economy in Europe
Journal: International Review of Applied Economics
Pages: 310-313
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2019.1600783
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1600783
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:310-313
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: I-I
Issue: 3
Volume: 33
Year: 2019
Month: 5
X-DOI: 10.1080/02692171.2019.1620996
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1620996
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Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:I-I
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Jump
Author-X-Name-First: Robert
Author-X-Name-Last: Jump
Author-Name: Ivan Mendieta-Muñoz
Author-X-Name-First: Ivan
Author-X-Name-Last: Mendieta-Muñoz
Title: Wage led aggregate demand in the United Kingdom
Abstract:
The wage led aggregate demand hypothesis is examined for the United Kingdom over the period 1971–2007. Existing studies disagree on the aggregate demand regime for the UK, and this appears to be due to differing empirical approaches. Studies relying on equation-by-equation estimation procedures tend to find support for wage led aggregate demand in the UK, while the single study using a multiple time series estimation procedure finds no support for the hypothesis. We test the wage led aggregate demand hypothesis in the UK using VAR models estimated on quarterly data employing an alternative identification strategy based on shocks to real earnings. The results provide support for the wage led aggregate demand hypothesis during the period of study. However, the expansionary effects of higher earnings seem to be limited and relatively short-lived.
Journal: International Review of Applied Economics
Pages: 565-584
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2016.1271976
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1271976
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:565-584
Template-Type: ReDIF-Article 1.0
Author-Name: Simplice A. Asongu
Author-X-Name-First: Simplice A.
Author-X-Name-Last: Asongu
Author-Name: Antonio R. Andrés
Author-X-Name-First: Antonio R.
Author-X-Name-Last: Andrés
Title: The impact of software piracy on inclusive human development: evidence from Africa
Abstract:
The study examines the effect of software piracy on inclusive human development in 11 African countries for which software piracy data is available for the period 2000–2010. The empirical evidence is based on instrumental variable panel Fixed Effects (FE) and Tobit models in order to control for the unobserved heterogeneity and limited range in the dependent variable. The modeling exercise is based on the inequality adjusted human development (IHDI) and its constituents. The following main findings are established. First, from the FE regressions, software piracy consistently improves the IHDI and its constituents. Within this framework, the positive relationship between inclusive human development and software piracy is driven by all its constituents. Second, for Tobit regressions, the positive relationship between software piracy and inclusive human development is confirmed exclusively in IHDI and literacy specifications. Within the latter framework, the positive relationship between software piracy and inclusive human is driven fundamentally by the literacy rate. Policy implications are discussed.
Journal: International Review of Applied Economics
Pages: 585-607
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1296414
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:585-607
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Maldonado Filho
Author-X-Name-First: Eduardo
Author-X-Name-Last: Maldonado Filho
Author-Name: Fernando Ferrari Filho
Author-X-Name-First: Fernando
Author-X-Name-Last: Ferrari Filho
Author-Name: Marcelo Milan
Author-X-Name-First: Marcelo
Author-X-Name-Last: Milan
Title: Toward the crisis: a Kaleckian-Keynesian interpretation of the instability of growth and capital accumulation in Brazil
Abstract:
This article examines theoretically and empirically the instability of Brazilian investment and growth for the past couple of decades, highlighting the evolution that led to the current crisis. A theoretical discussion highlights the importance of Kaleckian and Keynesian approaches in understanding the semi-stagnation of the Brazilian economy since the 1990s. Empirical evidence shows that investment has increased until 2013, but not to the point of getting the economy back on the track of high growth rates and higher investment-GDP ratios. The econometric findings are compatible with the theoretical underpinnings of investment activity based on Keynes and Kalecki and suggest the existence of room for activist policies in Brazil in order to stimulate economic activity.
Journal: International Review of Applied Economics
Pages: 608-624
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1297387
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:608-624
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Al-Moulani
Author-X-Name-First: Ali
Author-X-Name-Last: Al-Moulani
Author-Name: Constantinos Alexiou
Author-X-Name-First: Constantinos
Author-X-Name-Last: Alexiou
Title: Banking sector depth and economic growth nexus: a comparative study between the natural resource-based and the rest of the world’s economies
Abstract:
This paper investigates the relationship between banking sector depth and long-term economic growth in the natural resource-based economies vis-à-vis economies that are not dependent on natural resources. For the empirical investigation, a Generalised Method of Moments estimator for dynamic panel data models is adopted for 194 countries spanning the period 1964–2013. Using different measures of banking sector depth and economic growth, the investigation yields three key findings. First, the banking–growth relationship is non-linear and positive within certain levels of banking sector depth in both country groups. Second, the time lag between the change in the level of banking sector depth and the effect on economic growth is shorter in the natural resource-based countries than in the other countries. Finally, the total effect of banking sector deepening on long-term economic growth is weaker in economies with abundant natural resources than in the rest of the world.
Journal: International Review of Applied Economics
Pages: 625-650
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1299115
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1299115
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:625-650
Template-Type: ReDIF-Article 1.0
Author-Name: Hisahiro Naito
Author-X-Name-First: Hisahiro
Author-X-Name-Last: Naito
Author-Name: Yu Takagi
Author-X-Name-First: Yu
Author-X-Name-Last: Takagi
Title: Is racial salary discrimination disappearing in the NBA? evidence from data during 1985–2015
Abstract:
This study re-examines the racial salary gap of National Basketball Association players by constructing a long unbalanced panel covering the 1985–1986 to 2015–2016 seasons. Contrary to the results of previous studies, we find that non-white players are paid equally to white players with similar characteristics in the 1980s and 1990s, but that white players started to be paid about 20% more than non-white players in the last 10 years. Our results are robust to all specification checks, such as quantile regressions, controlling sample selection, different contract types, and player nationality. We find that neither employer preference nor income gap of white and black residents explains this increasing salary gap.
Journal: International Review of Applied Economics
Pages: 651-669
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1303037
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1303037
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:651-669
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Peinado
Author-X-Name-First: Patricia
Author-X-Name-Last: Peinado
Author-Name: Felipe Serrano
Author-X-Name-First: Felipe
Author-X-Name-Last: Serrano
Title: Unemployment, wages and pensions
Abstract:
Empirical evidence has shown the existence of a negative relationship between the rates of unemployment and real wages. If pensions are computed according to the wages that workers have contributed, then the unemployment rates during working life may also influence the pensions to which they are entitled. Using data from 2005 to 2012 for the Spanish social security system, we estimate that the unemployment elasticity of real pension is −0.135. A 1% increase in unemployment rate is associated with a reduction in pension equal to 0.135%. In ‘normal times’, this value could be considered modest, but the Great Recession has increased dramatically the rate of unemployment. In 2012, the rate of unemployment in Spain had increased to 25.7% and in 2015, it had diminished to 20.9%. It is estimated that unemployment rate will not be returned to figures existing before the crisis until middle of the next decade. Moreover, the current reforms in social security systems could interact with the future effects of the current rates of unemployment and cause future pensions to be significantly lower than those estimated by individuals. The economic welfare of the future cohorts of retirees would then be significantly worsened.
Journal: International Review of Applied Economics
Pages: 670-680
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1299116
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:670-680
Template-Type: ReDIF-Article 1.0
Author-Name: Marco R. Di Tommaso
Author-X-Name-First: Marco R.
Author-X-Name-Last: Di Tommaso
Author-Name: Mattia Tassinari
Author-X-Name-First: Mattia
Author-X-Name-Last: Tassinari
Author-Name: Stefano Bonnini
Author-X-Name-First: Stefano
Author-X-Name-Last: Bonnini
Author-Name: Marco Marozzi
Author-X-Name-First: Marco
Author-X-Name-Last: Marozzi
Title: Industrial policy and manufacturing targeting in the US: new methodological tools for strategic policy-making
Abstract:
The economic crisis has pushed several countries to adopt selective industrial policies to promote manufacturing and some selected strategic sectors. Despite this new activism, the process of defining strategic targets risks being carried out with poor rigour on a political level, setting governments up for failure. This paper discusses the notion of strategic sector and proposes a new methodology to increase transparency and effectiveness in the identification of what can be defined as ‘strategic’. Focusing on the analysis of the US manufacturing system, we develop a composite indicator – the Strategic Sector Index (SSI) – to rank manufacturing industries on the basis of their strategic significance. Furthermore, we apply an uncertainty analysis methodology to the SSI to evaluate the robustness of the ranking and to minimise the degree of policy-makers’ discretionality in influencing the results.
Journal: International Review of Applied Economics
Pages: 681-703
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1303036
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1303036
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:681-703
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Why not declare a war on happiness?
Journal: International Review of Applied Economics
Pages: 704-706
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1345080
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1345080
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:704-706
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction to: Michie, Why not declare a war on happiness?
Journal: International Review of Applied Economics
Pages: X-X
Issue: 5
Volume: 31
Year: 2017
Month: 9
X-DOI: 10.1080/02692171.2017.1356003
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1356003
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Handle: RePEc:taf:irapec:v:31:y:2017:i:5:p:X-X
Template-Type: ReDIF-Article 1.0
Author-Name: Markus P. A. Schneider
Author-X-Name-First: Markus P. A.
Author-X-Name-Last: Schneider
Author-Name: Daniele Tavani
Author-X-Name-First: Daniele
Author-X-Name-Last: Tavani
Title: A tale of two Ginis in the US, 1921–2012
Abstract:
Following a methodology by Jantzen and Volpert (2012), we use IRS Adjusted Gross Income data for the US (1921–2012) to estimate two Gini-like indices representing inequality at the bottom and the top of the income distribution, and to calculate the overall Gini as a function of the parameters underlying the two indices. A steady increase in the overall Gini since the Second World War actually hides two different periods of distributional changes. First, the increase in inequality from the mid 1940s to the late 1970s is driven by rising inequality at the bottom of the income distribution that more than offsets a decrease in inequality at the top. The implication is that middle-income earners gained relative to high-incomes, and especially relative to low-income earners. Second, the rise in the Gini after 1981 is driven by rising inequality at the top. Third, top-driven inequality follows a U-shaped trajectory consistent with Piketty and Saez (2003, 2006). Fourth, the welfare effects of the different distributional changes behind increasing inequality can be evaluated in light of the Lorenz-dominance criterion by Atkinson (1970): we argue that the rise in inequality since 1981 is much more likely to be associated with a social welfare loss net of compensating growth.
Journal: International Review of Applied Economics
Pages: 677-692
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1173654
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:677-692
Template-Type: ReDIF-Article 1.0
Author-Name: Christina Paraskevopoulou
Author-X-Name-First: Christina
Author-X-Name-Last: Paraskevopoulou
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Title: Revisiting Leontief’s paradox
Abstract:
According to the popular Heckscher-Ohlin model of international trade, a country is expected to export (import) those products whose production requires the intensive use of the factor of production that is in relative abundance (scarcity). Leontief (1953), using input–output data of the US economy for the year 1947, found that the US, an overwhelmingly capital-abundant country, exported labour-intensive products and imported capital-intensive ones. Clearly, the results contradicted the predictions of the Heckscher-Ohlin model and they were characterised as ‘Leontief’s paradox’. A number of explanations for the so-called paradox were offered and this paper briefly, but critically, evaluates these explanations as it examines whether or not Leontief’s results persist in the case of the US economy during the period 1998–2012.
Journal: International Review of Applied Economics
Pages: 693-713
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1173655
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1173655
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:693-713
Template-Type: ReDIF-Article 1.0
Author-Name: Azadeh Rahimi
Author-X-Name-First: Azadeh
Author-X-Name-Last: Rahimi
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Ba Chu
Author-X-Name-First: Ba
Author-X-Name-Last: Chu
Title: Linear and nonlinear Granger-causality between short-term and long-term interest rates during business cycles
Abstract:
This paper is about the causal relationship between short-term and long-term interest rates in the US and Canada. To that end, we apply a linear Granger causality test introduced by Toda and Yamamoto (1995) and the nonlinear Granger causality test of Diks and Panchenko (2006). By combining linear causality effects with the nonlinear ones, it is seen that the most common Granger causality direction between short-term and long-term interest rates is a bidirectional one. We also find that nonlinear Granger causality can be found where no linear causality had been uncovered. Moreover, our findings show that during recent business cycles, the federal funds rate (in the US) and the overnight rate (in Canada) still Granger-cause long-term interest rates significantly.
Journal: International Review of Applied Economics
Pages: 714-728
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1208736
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1208736
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:714-728
Template-Type: ReDIF-Article 1.0
Author-Name: Photis Lysandrou
Author-X-Name-First: Photis
Author-X-Name-Last: Lysandrou
Author-Name: Offiong Helen Solomon
Author-X-Name-First: Offiong
Author-X-Name-Last: Helen Solomon
Author-Name: Thomas Goda
Author-X-Name-First: Thomas
Author-X-Name-Last: Goda
Title: The Differential Impact of Public and Private Governance Institutions on the Different Modes of Foreign Investment
Abstract:
This paper examines the respective impacts of public and private governance institutions on foreign direct and foreign portfolio investment inflows. We present two hypotheses: (1) there is a strong correlation between the quality of a country’s public governance institutions and the amount of foreign direct investment (FDI) received while the quality of its private governance institutions has no further discernible impact on this correlation; (2) there is a strong correlation between the quality of a country’s public governance institutions and the amount of foreign portfolio investment (FPI) received while the quality of its private governance institutions has a further positive impact on this correlation. Our findings, which are based on panel data analysis, show both hypotheses to be valid.
Journal: International Review of Applied Economics
Pages: 729-746
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1208737
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1208737
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:729-746
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Piacentini
Author-X-Name-First: Paolo
Author-X-Name-Last: Piacentini
Author-Name: Stefano Prezioso
Author-X-Name-First: Stefano
Author-X-Name-Last: Prezioso
Author-Name: Giuseppina Testa
Author-X-Name-First: Giuseppina
Author-X-Name-Last: Testa
Title: Effects of fiscal policy in the Northern and Southern regions of Italy
Abstract:
This paper contributes to a growing body of work within ‘fiscal policy studies,’ investigating the recent role of fiscal policy on the Italian economy. Using annual data collected on a regional basis, this study estimates and compares the (impact and cumulative) fiscal multipliers across the North and the South—the less developed area—of Italy. With recourse to a simultaneous equation model for the two macro-areas of Italy, it estimates the overall impact of the measures of budget consolidation policies during the period 2011–2013. Our analysis reveals that tax increases and, with a greater impact, spending cuts, hit the South harder compared to the North.
Journal: International Review of Applied Economics
Pages: 747-770
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1208738
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1208738
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:747-770
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Raza
Author-X-Name-First: Hamid
Author-X-Name-Last: Raza
Author-Name: Bjorn Gudmundsson
Author-X-Name-First: Bjorn
Author-X-Name-Last: Gudmundsson
Author-Name: Gylfi Zoega
Author-X-Name-First: Gylfi
Author-X-Name-Last: Zoega
Author-Name: Stephen Kinsella
Author-X-Name-First: Stephen
Author-X-Name-Last: Kinsella
Title: Two thorns of experience: financialisation in Iceland and Ireland
Abstract:
We explain the 2008 crisis in Iceland and Ireland with an emphasis on the role financialisation played in destabilising these countries’ economies. The two small open economies share similarities in that both countries had capital inflows before the crisis, ending with a sudden stop. However, the mechanisms of the crisis, which induced the capital flows, the factors that influenced them and their effects on the real economy differed due to differences in currency regimes and the response to the crises. We investigate the link between financialisation and the transmission channels of financialisation on the macroeconomy, using ARDL methodology. Finally, we suggest policy prescriptions to limit the scale and scope of similar crises in the future while highlighting the institutional differences between the two economies.
Journal: International Review of Applied Economics
Pages: 771-789
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1208739
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1208739
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:771-789
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Adams
Author-X-Name-First: Samuel
Author-X-Name-Last: Adams
Author-Name: Edem Kwame Mensah Klobodu
Author-X-Name-First: Edem Kwame Mensah
Author-X-Name-Last: Klobodu
Title: Financial development, control of corruption and income inequality
Abstract:
This paper examines the effect of financial development and control of corruption on income inequality in 21 Sub-Saharan African (SSA) countries over the period 1985–2011 using the pooled mean group (PMG) estimator. The empirical results show that financial development measures have positive impact on income inequality, which suggest that financial development increases income inequality. On the other hand, the coefficients of control of corruption are negative and significantly related to income inequality which implies that corruption control reduces income inequality. Further, the interaction of the financial development and the control of corruption is found to be negatively and significantly related to income inequality. Equally the interaction of the financial development and transparency index (an alternate measure of corruptibility) is found to be negatively and significantly related to income inequality. These findings suggest that the control of corruption and transparency in governance are crucial in reducing income inequality in SSA.
Journal: International Review of Applied Economics
Pages: 790-808
Issue: 6
Volume: 30
Year: 2016
Month: 11
X-DOI: 10.1080/02692171.2016.1208740
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1208740
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Handle: RePEc:taf:irapec:v:30:y:2016:i:6:p:790-808
Template-Type: ReDIF-Article 1.0
Author-Name: Vítor Castro
Author-X-Name-First: Vítor
Author-X-Name-Last: Castro
Author-Name: Rodrigo Martins
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Martins
Title: Budgets, expenditure composition and political manipulation
Abstract:
This paper analyses the presence of political cycles in Portuguese Governments’ expenditures using monthly data over the period 1991–2013 for the main categories of government expenditures. The results indicate that Portuguese Governments act opportunistically regarding the budget surplus and that they favour capital instead of current spending near to the elections. Moreover, right-wing governments are more prone to reduce expenditures and deficits after the elections than left-wing ones. A deeper disaggregated analysis of the components of government expenditures corroborates these findings while disentangling other relevant patterns of political manipulation in Portugal.
Journal: International Review of Applied Economics
Pages: 172-187
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2017.1379474
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1379474
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:172-187
Template-Type: ReDIF-Article 1.0
Author-Name: Cullen S. Hendrix
Author-X-Name-First: Cullen S.
Author-X-Name-Last: Hendrix
Title: Kicking a crude habit: diversifying away from oil and gas in the twenty-first century
Abstract:
This article investigates the correlates of diversification away from oil and natural gas dependence in the context of the twenty-first century resource boom (and bust). In a sample of 40 oil- and gas-dependent economies, the majority showed significant sectoral diversification of GDP, but exports remained highly concentrated in fuel exports. Regression analysis indicates that countries that began the boom with higher levels of oil and gas dependence, poorer countries, and those with significantly larger- or smaller-than-average populations were more successful in diversifying their GDP during the commodities boom. Governance matters – more effective, capable bureaucratic structures are associated with greater GDP diversification away from oil and gas – though the effects are not uniformly positive. For any given level of government effectiveness, stronger rule of law is associated with less GDP diversification. Education appears to affect GDP and export diversification differentially. Consistent with endogenous growth theory, countries with more educated populations saw greater growth in their nonresource sectors than countries with less educated populations, though education is associated with greater export concentration. Internal economic diversification in the twenty-first century has been less a matter of policy formation and implementation, and more a matter of factors that shape the policy-making environment.
Journal: International Review of Applied Economics
Pages: 188-208
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2017.1389862
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1389862
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:188-208
Template-Type: ReDIF-Article 1.0
Author-Name: Aristeidis Samitas
Author-X-Name-First: Aristeidis
Author-X-Name-Last: Samitas
Author-Name: Elias Kampouris
Author-X-Name-First: Elias
Author-X-Name-Last: Kampouris
Title: Financial illness and political virus: the case of contagious crises in the Eurozone
Abstract:
This paper investigates the volatility spillover effects from the southern to northern part of the Eurozone during the sovereign debt crisis. Focusing on different phases of the crises, we propose using the dynamic conditional correlation model and the BEKK model to identify possible linkages during the period of 2005–2015. The findings showed that both models behave satisfactorily and are flexible in presenting spillover effects. However, regarding conditional correlations, the asymmetric dynamic conditional correlation model seems to fit better. Additionally, Spain and Italy can significantly damage all strong northern economies, while Greece’s negative shocks are capable of co-moving the French index. Finally, France is the most correlated country within the southern Eurozone.
Journal: International Review of Applied Economics
Pages: 209-227
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2017.1394272
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1394272
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:209-227
Template-Type: ReDIF-Article 1.0
Author-Name: Ronny Vallejos
Author-X-Name-First: Ronny
Author-X-Name-Last: Vallejos
Author-Name: Angelo Gárate
Author-X-Name-First: Angelo
Author-X-Name-Last: Gárate
Author-Name: Marcos Gómez
Author-X-Name-First: Marcos
Author-X-Name-Last: Gómez
Title: Comovement among returns of the private Chilean pension system
Abstract:
The measurement of comovement among economic variables is key in several areas of economics and finance. This article examines the comovement among Pension Fund Administrators (AFPs) in the Chilean private pension system from 2005 to 2016. We use several statistical methods to assess the comovement among the returns during this period. We found evidence of strong comovement among the returns of all AFPs; the higher the percentage of risk rate of the investment instrument, the higher the comovement was. The introduction of a new AFP in 2010 did not change the comovement patterns. The comovement analysis study shows that the quality attributes of the products offered by the AFPs are homogeneous, supporting the idea that concentrated markets with homogeneous products could incentivize tacit collusive behavior, which could distort the functioning of the pension market, thereby affecting the aggregate well-being of workers.
Journal: International Review of Applied Economics
Pages: 228-240
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2017.1411470
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1411470
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:228-240
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Armstrong
Author-X-Name-First: Phil
Author-X-Name-Last: Armstrong
Title: Keynes’s view of deficits and functional finance: a Modern Monetary Theory perspective
Abstract:
The immediate aftermath of the global financial crisis (GFC) was characterised by a resurgence of interest in the work of Keynes. Fiscal policy became at least temporarily acceptable again, in turn leading to government deficits and debt, as a proportion of GDP, reaching levels not seen since before the onset of the neoliberal period. Keynes’s own pronouncements on deficit financing generated renewed interest. Despite the strength of the neoclassical counterattack – which has been relatively successful in reassessing the crisis as a government failure – confidence in orthodox economics has not been fully restored, at least outside the confines of academia. Although the hopes of heterodox economists – that the GFC might mark the beginning of the end of the neoclassical hegemony – have not been realised, the upswing in interest in Keynes’s views has not entirely died away. This paper considers Keynes’s views of deficits and debt and then looks at the controversial area of Keynes’s position vis-à-vis functional finance. The paper concludes by considering how Modern Monetary Theory might increase our understanding of the nature of deficits and debt and thus provide valuable insights which might underpin the use of fiscal policy to pursue public purpose.
Journal: International Review of Applied Economics
Pages: 241-253
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2018.1475139
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1475139
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:241-253
Template-Type: ReDIF-Article 1.0
Author-Name: George Agiomirgianakis
Author-X-Name-First: George
Author-X-Name-Last: Agiomirgianakis
Author-Name: Georgios Bertsatos
Author-X-Name-First: Georgios
Author-X-Name-Last: Bertsatos
Author-Name: Nicholas Tsounis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Tsounis
Title: Gender wage gaps and economic crisis in Greece
Abstract:
We examine gender wage gap (GWG) in Greece for 2013, by using a survey data set. Our findings show first, that the unadjusted GWG is 15.3%, while European Commission reports a value of 15%. Secondly, we derive the ‘adjusted’ GWG, using the Oaxaca and Ransom (OR) and the Juhn, Murphy and Pierce (JMP) methods to be ranging from 10% to 13.6%. Thirdly, looking into the behaviour of the full population, we find a decreasing trend for the discrimination effects, an increasing trend for the residuals effects and a ‘random’ endowments effects while moving to higher deciles. These three effects are associated to the economic crisis 2008–2015. Fourthly, our findings do not show evidence of either a ‘glass ceiling’ effect or a ‘sticky floor’ effect. Finally, that there is strong evidence that investing in higher education reduces the wage discrimination between sexes.
Journal: International Review of Applied Economics
Pages: 254-276
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2018.1485633
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1485633
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:254-276
Template-Type: ReDIF-Article 1.0
Author-Name: Mona Ali
Author-X-Name-First: Mona
Author-X-Name-Last: Ali
Title: Finance, power, and the British balance of payments
Abstract:
The Brexit referendum marks a critical juncture in Britain’s political economy. Benjamin Cohen argues that a nation’s monetary sovereignty lies in its balance of payments (BoP) flexibility (2008, 2015). I argue that a country’s position in the global financial régime must also be accounted for when explaining its BoP dynamics. This allows us to understand why, while sterling has long lost its ‘world currency’ status, Britain’s BoP exhibits some of the same features associated with American ‘exorbitant privilege’. To appreciate the UK’s own BoP flexibilities as well as to flesh out the Anglo-American axis in the international financial order, I compare the UK’s external balance sheets with those of the US. Given the complexities and uncertainties inherent in BoP analyses, I advise against micro-analyses of the BoP in favour of a broader approach that takes into account macro-dynamics as well as the International Political Economy (IPE) concerns outlined above. Elaborating such an analysis for the UK BoP, I explore the potential implications of Brexit for Britain’s external balance sheets and its political-economic future. While Britain’s financial power has helped insulate its balance sheets from external shocks, Britain’s impending departure from the European Union heralds a period of considerable uncertainty.
Journal: International Review of Applied Economics
Pages: 277-304
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2018.1487929
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1487929
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:277-304
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Special issue on alternative forms of corporations and business enterprise in the Global South in the context of globalisation and inequality
Journal: International Review of Applied Economics
Pages: 305-306
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2019.1576996
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1576996
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:305-306
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Finance and power – and Keynes’s relevance today
Journal: International Review of Applied Economics
Pages: 171-171
Issue: 2
Volume: 33
Year: 2019
Month: 3
X-DOI: 10.1080/02692171.2019.1579411
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1579411
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Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:171-171
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Libman
Author-X-Name-First: Emiliano
Author-X-Name-Last: Libman
Title: The effects of exchange rate regimes on real exchange rate misalignment
Abstract:
The literature on exchange rate regimes has paid little attention to the effects of exchange rate policies on real exchange rate misalignments. This paper contributes to filling that gap by exploring such relation empirically. Because the underlying model is probably not linear and the treated individuals differ from non-treated individuals, we rely on Matching models rather than on standard regressions. Our main finding is that pegs are associated with more overvaluation. The results are robust to different exchange rate regime classifications, misalignment indexes, and matching estimators. The evidence presented suggests that policy-makers concerned with overvaluation should avoid sticking with rigid arrangements for too long.
Journal: International Review of Applied Economics
Pages: 39-61
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1331205
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1331205
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:39-61
Template-Type: ReDIF-Article 1.0
Author-Name: Hsiang-Hsi Liu
Author-X-Name-First: Hsiang-Hsi
Author-X-Name-Last: Liu
Title: Applying three-stage DEA on the operational performance of foreign banks in Taiwan
Abstract:
This study applies 3-stage data envelopment analysis (DEA) model on a sample of 29 foreign commercial banks in Taiwan in order to measure their overall operational efficiencies. Exploring adjustments on environmental and statistical noise effects incorporated in the pure performance evaluation for input slacks to achieve true managerial efficiency. Through our research, using a three-stage DEA approach, efficiency scores can function as a more specific and precise set of criteria for true managerial efficiency. Our empirical results demonstrated that the operational efficiency values after being adjusted for external environmental factors and statistical noise tend to be higher than the non-adjusted values. Our findings can help the banking management avoid resource misallocations, enhance banking efficiency and improve banking competitiveness.
Journal: International Review of Applied Economics
Pages: 104-118
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1332014
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332014
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:104-118
Template-Type: ReDIF-Article 1.0
Author-Name: Lúcio Otávio Seixas Barbosa
Author-X-Name-First: Lúcio Otávio Seixas
Author-X-Name-Last: Barbosa
Author-Name: Frederico G. Jayme
Author-X-Name-First: Frederico G.
Author-X-Name-Last: Jayme
Author-Name: Fabricio José Missio
Author-X-Name-First: Fabricio José
Author-X-Name-Last: Missio
Title: Determinants of the real exchange rate in the long-run for developing and emerging countries: a theoretical and empirical approach
Abstract:
This paper presents a new framework for the determinants of real exchange in the long-run in developing and emerging countries (DECs). We assume that currencies should be regarded as an asset. In consequence, dealers in the foreign exchange market play a crucial role on its dynamics. To set our model, we connect the model developed by Kaltenbrunner, which is grounded on chapter 17 of the General Theory, with productivity’s differential effect. By doing so, it states that even short-run factors and monetary variables affect the long-run real exchange rate. Moreover, it points out that the hierarchical nature of the international monetary system is crucial to understand exchange rate movements in DECs. Besides presenting such theoretical approach, our contribution is to test it empirically for 45 DECs from 1990 to 2008 by applying econometric techniques appropriate for panel data. We use a new data-set, which comprises, among other variables, foreign portfolio flow, interest rate differential, external vulnerability measures, and international liquidity, on annual basis. The empirical results endorse this framework. Overall, it shows the primacy of financial factors as determinants of the long-run real exchange rate and points to the endogenous and self-perpetuating nature of international monetary system hierarchy.
Journal: International Review of Applied Economics
Pages: 62-83
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1332017
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332017
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:62-83
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Bernardini Papalia
Author-X-Name-First: Rosa
Author-X-Name-Last: Bernardini Papalia
Author-Name: Silvia Bertarelli
Author-X-Name-First: Silvia
Author-X-Name-Last: Bertarelli
Author-Name: Susanna Mancinelli
Author-X-Name-First: Susanna
Author-X-Name-Last: Mancinelli
Title: Innovation, complementarity, and exporting. Evidence from German manufacturing firms
Abstract:
This paper assesses whether there might be complementarities between different types of innovation activities (product, process and organizational) and how these effects may be linked to the likelihood that a firm will export. Complementarity is addressed through the properties of supermodular functions, and firm heterogeneity by export destination is explored. A new econometric strategy to test for pairwise complementarity in a function with three independent variables and a binary dependent variable is proposed. Exogenous and endogenous innovation variables are considered by using bootstrapping for hypothesis testing, propensity score matching and treatment effects models. The empirical analysis shows that complementarity relationships between innovation strategies are more likely to exist when firms export to multiple foreign markets.
Journal: International Review of Applied Economics
Pages: 3-38
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1332576
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332576
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:3-38
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Murat
Author-X-Name-First: Marina
Author-X-Name-Last: Murat
Title: Foreign education and international trade: empirical evidence from selected Latin American countries
Abstract:
Social ties among university students – of friendship, mutual trust and attachment to the alma mater – tend to be robust and enduring. Through information-diffusion and behaviour-enforcement mechanisms, they can boost the economic exchanges between countries. This paper tests the influence of Latin American people with a tertiary education in OECD countries on the bilateral trade between the home economy and the country of the alma mater, taking into account potential endogeneity concerns. Results show that Latin American student networks exert strong, positive and significant effects on bilateral imports and exports. A 10% increase in the number of Latin American students in the OECD economy boost bilateral trade by about 3%. At a more disaggregated level, their impact on differentiated goods is significantly higher than on homogenous products. Their incidence is lower in the presence of bilateral trade agreements and economic integration between countries. Results are robust to the deep economic and political transformations of the period considered, and to the use of different regressors and specifications.
Journal: International Review of Applied Economics
Pages: 84-103
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1332577
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1332577
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:84-103
Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Ferro
Author-X-Name-First: Gustavo
Author-X-Name-Last: Ferro
Author-Name: Sonia León
Author-X-Name-First: Sonia
Author-X-Name-Last: León
Author-Name: Carlos A. Romero
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Romero
Author-Name: Damián Wilson
Author-X-Name-First: Damián
Author-X-Name-Last: Wilson
Title: From scratch to efficiency gains after a financial crisis? A tale of a restructured banking system
Abstract:
We study the efficiency of the Argentine banking system after the 2001–2002 crisis. The financial system had to be restructured from scratch and recovered jointly with the economy, but its productivity and average cost levels have been stagnant since 2007. The analysis includes efficiency frontier estimations for retail banks and a comparison of subsamples for different categories of banks for the period 2005–15. We try to determine whether public banks are more efficient than private ones, whether privatized are more efficient than always private, as well as national versus foreign entities. Our findings show a modest average efficiency of the system and quite similar efficiency rankings for the different groups of banks. On average, public tend to be slightly more cost efficient than private, and national are slightly more efficient than foreign.
Journal: International Review of Applied Economics
Pages: 119-133
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2017.1338675
File-URL: http://hdl.handle.net/10.1080/02692171.2017.1338675
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:119-133
Template-Type: ReDIF-Article 1.0
Author-Name: Danny Dorling
Author-X-Name-First: Danny
Author-X-Name-Last: Dorling
Title: Moral Sentiments and The New Urban Crisis
Journal: International Review of Applied Economics
Pages: 134-136
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2018.1407062
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1407062
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:134-136
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Time for new thinking
Journal: International Review of Applied Economics
Pages: 1-2
Issue: 1
Volume: 32
Year: 2018
Month: 1
X-DOI: 10.1080/02692171.2018.1415835
File-URL: http://hdl.handle.net/10.1080/02692171.2018.1415835
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Handle: RePEc:taf:irapec:v:32:y:2018:i:1:p:1-2
Template-Type: ReDIF-Article 1.0
Author-Name: Bimal Kishore Sahoo
Author-X-Name-First: Bimal Kishore
Author-X-Name-Last: Sahoo
Author-Name: Bhaskar Jyoti Neog
Author-X-Name-First: Bhaskar Jyoti
Author-X-Name-Last: Neog
Title: Heterogeneity and participation in informal employment among non-cultivator workers in India
Abstract:
Labour informality is one of the most serious challenges facing a developing economy like India with large-scale poverty and decent work deficits. This study has inspected possible heterogeneity within informal employment among the non-cultivator workers. Multinomial Logit was applied to find out the determinants of participation in different components of informal employment. Significant heterogeneity within the informal employment on poverty, age, gender, socio-religious communities, educational attainment and industrial classification was observed. There is coexistence of voluntary and involuntary informal employment. Given the diversity of employment, one-size-fits-all policy design may adversely affect sustainable and inclusive growth in India.
Journal: International Review of Applied Economics
Pages: 437-467
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1257584
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1257584
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:437-467
Template-Type: ReDIF-Article 1.0
Author-Name: David Kucera
Author-X-Name-First: David
Author-X-Name-Last: Kucera
Author-Name: Marco Principi
Author-X-Name-First: Marco
Author-X-Name-Last: Principi
Title: Rights, governance, and foreign direct investment: an industry-level assessment
Abstract:
Theories of multinational enterprises emphasize that foreign direct investment (FDI) is undertaken in different industries for different reasons, yet studies of the effects of rights and governance on FDI generally rely on aggregate-level FDI data. This paper evaluates US FDI outflows to 15 industries (eight manufacturing, seven non-manufacturing) in 54 countries in a linear dynamic panel data gravity FDI model using a ‘system’ generalized method of moments estimator and several widely used rights and governance indexes. At the aggregate level, we estimate that stronger rights and governance have a positive effect on FDI, consistent with most prior studies. At the industry level, we estimate larger positive effects of rights and governance on FDI for service than manufacturing industries, particularly for the information and the finance and insurance industries.
Journal: International Review of Applied Economics
Pages: 468-494
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1263606
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1263606
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:468-494
Template-Type: ReDIF-Article 1.0
Author-Name: Khondker Aktaruzzaman
Author-X-Name-First: Khondker
Author-X-Name-Last: Aktaruzzaman
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Title: Does microcredit increase borrowers’ savings? A fuzzy regression discontinuity design approach
Abstract:
Microcredit has expanded rapidly in recent years but its effect at the household level is still controversial. This paper uses a unique data-set collected from 69 villages in Bangladesh to estimate the effect of participation in microcredit programs on household savings. A regression discontinuity design (RDD) is used to identify the credit effect. To justify the validity of RDD, we test the discontinuities in the conditional density of the forcing variable (in our case, household land), as suggested by McCrary. We do not find any substantial evidence of manipulation of forcing variable at the threshold to invalidate the RDD. Our results show that access to credit increases savings of the borrowers.
Journal: International Review of Applied Economics
Pages: 495-507
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1263607
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1263607
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:495-507
Template-Type: ReDIF-Article 1.0
Author-Name: Justin Doran
Author-X-Name-First: Justin
Author-X-Name-Last: Doran
Author-Name: Noirin McCarthy
Author-X-Name-First: Noirin
Author-X-Name-Last: McCarthy
Author-Name: Marie O’Connor
Author-X-Name-First: Marie
Author-X-Name-Last: O’Connor
Title: The employment–population nexus and implications for sustainable economic development: insights from Irish regions using a partial adjustment model
Abstract:
In this paper, we use a partial adjustment model to analyse the relationship between employment and population growth in Irish district electoral divisions. We employ a spatial estimator to augment our partial adjustment model with a spatial lag and spatial error process. Our results indicate a dual relationship between employment and population growth, suggesting that not only do people follow jobs but also jobs follow people. This finding has implications for economic development policies, which typically focus solely on attracting jobs to a location. The results suggest that a dual-pronged approach to policy may be necessary including developing a region’s amenities to ensure that it is attractive to people and to stimulate population growth. We highlight how our analysis can be used to inform policy through the lenses of place-based and smart specialisation strategies.
Journal: International Review of Applied Economics
Pages: 508-526
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1263608
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1263608
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:508-526
Template-Type: ReDIF-Article 1.0
Author-Name: Toralf Pusch
Author-X-Name-First: Toralf
Author-X-Name-Last: Pusch
Title: The role of uncertainty in the euro crisis – an application of liquidity preference theory
Abstract:
The world financial crisis triggered a rediscovery of the active role fiscal policy can play as a remedy in such situations. During the euro crisis, escalating funding costs in a number of southern eurozone member states and Ireland have called this strategy into question. One interpretation of the euro crisis concentrated on the public debt trends in those countries. Opposing this view, the main point of this contribution is to elaborate the link between rising interest rates on sovereign bonds in the euro crisis and a major feature of the financial crisis – a subdued degree of investor confidence after the Lehman collapse. Theoretically, this link is developed with reference to Keynes’ liquidity preference theory. The high explanatory power of measures for the degree of confidence in financial markets as well as detrimental effects of fiscal austerity on the evolution of sovereign yield spreads are demonstrated empirically by means of panel regressions and supplementary correlation analyses.
Journal: International Review of Applied Economics
Pages: 527-548
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1271975
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1271975
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:527-548
Template-Type: ReDIF-Article 1.0
Author-Name: James Yoo
Author-X-Name-First: James
Author-X-Name-Last: Yoo
Author-Name: Charles Perrings
Author-X-Name-First: Charles
Author-X-Name-Last: Perrings
Title: Modeling the short-run costs of changes in water availability in a desert city: a modified input-output approach
Abstract:
This paper investigates the impact of change in sectoral water supply on employment, value-added output, and indirect business tax, in Maricopa County, Arizona using input–output model. We developed extended modified input–output approach that incorporates each source of water as a separate sector, and that allows for substitution between water sources, and estimated the economic impact of a change in surface water supplies under two scenarios. Scenario I assumes that total water supply/use decreases by 1%, but the reduction comes only from surface water use, holding groundwater use constant. Scenario II assumes that surface water supply/use in all industries decreases by 1%, and the reduction in surface water use is replaced by the exact amount of more expensive groundwater. We found that the magnitude of economic impact depends on consumer’s responsiveness to water price change. When price elasticity of water demand is relatively low (≤0.2), the economic impact of a 1% reduction in surface water supplies was smaller than under the first scenario. However, the more water users in all industries are responsive to a change in water price, the bigger are economic impacts in terms of reductions in jobs, value added, and indirect business taxes.
Journal: International Review of Applied Economics
Pages: 549-564
Issue: 4
Volume: 31
Year: 2017
Month: 7
X-DOI: 10.1080/02692171.2016.1271977
File-URL: http://hdl.handle.net/10.1080/02692171.2016.1271977
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Handle: RePEc:taf:irapec:v:31:y:2017:i:4:p:549-564
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The degeneration of capitalism from a system of production to a speculative orgy
Journal: International Review of Applied Economics
Pages: 147-151
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2020.1720164
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1720164
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:147-151
Template-Type: ReDIF-Article 1.0
Author-Name: Lenore Palladino
Author-X-Name-First: Lenore
Author-X-Name-Last: Palladino
Title: Do corporate insiders use stock buybacks for personal gain?
Abstract:
This paper investigates the hypothesis of whether corporate insiders sell their own personal shareholdings more frequently when they are executing stock buybacks using corporate funds. I examine transactions for nonfinancial corporations with publicly traded stock from 2005 to 2017, and find that net insider sales of over $100,000 are nearly twice as common in quarters when stock buybacks are also occurring than in non-buyback quarters. I conduct an empirical analysis of the relationship between stock buybacks insider transactions and find that a ten percent change in stock buybacks is associated with a half-percent change in corporate insiders selling their personal shareholdings, holding the other factors constant. The results suggest that executives may be taking advantage of the regulatory loophole left in the regulation of stock buybacks, and that policymakers should reform the regulations governing stock buybacks and corporate insider share-selling. I offer a set of policy recommendations to reduce the ability of corporate insiders to use stock buybacks for personal gain.
Journal: International Review of Applied Economics
Pages: 152-174
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1707787
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:152-174
Template-Type: ReDIF-Article 1.0
Author-Name: Sulaiman Al-Jassar
Author-X-Name-First: Sulaiman
Author-X-Name-Last: Al-Jassar
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Empirical evidence on international capital immobility: a consumption-based approach
Abstract:
Based on consumption patterns and consumption-income correlation, a measure of capital mobility is proposed and used to demonstrate that capital mobility is low and that it is lower for low-income than high-income countries. While this result can be dismissed as being based on an unreliable measure of capital mobility or accepted as constituting a puzzle, it can be rationalised intuitively. While capital mobility provides benefits, it can be detrimental to the recipient country, which encourages the imposition of capital controls. Capital mobility can be impeded by home bias and failure of the benefits of international diversification to materialise.
Journal: International Review of Applied Economics
Pages: 175-192
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1707788
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:175-192
Template-Type: ReDIF-Article 1.0
Author-Name: Regan Deonanan
Author-X-Name-First: Regan
Author-X-Name-Last: Deonanan
Author-Name: Benjamin Ramkissoon
Author-X-Name-First: Benjamin
Author-X-Name-Last: Ramkissoon
Author-Name: Dana Ramkissoon
Author-X-Name-First: Dana
Author-X-Name-Last: Ramkissoon
Author-Name: Roger Hosein
Author-X-Name-First: Roger
Author-X-Name-Last: Hosein
Title: Disentangling the relationship between remittances and financial development: evidence from Jamaica
Abstract:
This article examines the relationship between remittances and financial development in Jamaica using annual data from 1976 to 2016. We apply Principal Component Analysis to construct an index which captures the dimensions of different indicators of financial development. Using an ARDL approach to construct an error-correction model and the Toda-Yamamoto test to examine causality, we distinguish between the long-run and short-run dynamic linkages between remittances and financial development. Utilizing several financial development models to account for the various empirical relationships in the literature, we find that remittances promote financial development in the long run, while substituting for financial development in the short run. Additionally, the long-run effect is larger, and there is a lag before the short-run effects are realized. These findings suggest that remittances may have different roles in the process of economic development. Thus, differentiating long-run and short-run policies are likely to be important to harness the developmental impact of remittances.
Journal: International Review of Applied Economics
Pages: 193-216
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1685954
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:193-216
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson
Author-X-Name-First: Stephen
Author-X-Name-Last: Dobson
Author-Name: Carlyn Ramlogan-Dobson
Author-X-Name-First: Carlyn
Author-X-Name-Last: Ramlogan-Dobson
Author-Name: Eric Strobl
Author-X-Name-First: Eric
Author-X-Name-Last: Strobl
Title: Savings and the informal sector
Abstract:
In many countries the informal sector is a vital source of employment and income. But little is known about the impact of this sector on savings, which are crucial in promoting investment and growth. This paper finds an inverse relationship between savings rates and the informal sector when the informal sector is small. Once the informal sector reaches a certain size, further growth in the size of the informal sector boosts savings rates. The non-linear relationship is confirmed in both parametric and semi-parametric estimations. Rather than allowing the informal sector to grow unchecked, policy should focus on removing barriers for successful operation of business in the formal sector.
Journal: International Review of Applied Economics
Pages: 217-234
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1707783
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1707783
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:217-234
Template-Type: ReDIF-Article 1.0
Author-Name: Bárbara Christina Pereira Da Silva Carrijo
Author-X-Name-First: Bárbara Christina Pereira Da Silva
Author-X-Name-Last: Carrijo
Author-Name: Sandro Eduardo Monsueto
Author-X-Name-First: Sandro Eduardo
Author-X-Name-Last: Monsueto
Author-Name: Larissa Barbosa Cardoso
Author-X-Name-First: Larissa Barbosa
Author-X-Name-Last: Cardoso
Title: The first job and occupational trajectories: young workers in Brazil between 2002 and 2016
Abstract:
The aim of this article was to analyze the impact of the first job on the occupational trajectory of young people in Brazilian metropolitan regions between 2002 and 2016. The main model estimated the probability of a young person obtaining a job of higher socioeconomic status in comparison with the first job obtained one year prior. The data used were microdata from the PME. Results indicate that the first job was predominantly in activities of lower socioeconomic status, mainly for young women, although no important differences were observed regarding the level of qualification between genders. The type of occupation taken to enter the labor market has important consequences on a person’s occupational trajectory. In other words, a dependency relation was detected. This impact tended to be greater among women. The immediate policy implications are the greater need to address the quality of positions created as points of entry to the market. Current government policies, as well as new proposals, should take these results into consideration. The article offers empirical evidence of a dependency relation between the quality of the position obtained as a first job and the future trajectory of young people in the Brazilian labor market.
Journal: International Review of Applied Economics
Pages: 235-251
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1707784
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:235-251
Template-Type: ReDIF-Article 1.0
Author-Name: Luan Vinicius Bernardelli
Author-X-Name-First: Luan Vinicius
Author-X-Name-Last: Bernardelli
Author-Name: Camila Pereira
Author-X-Name-First: Camila
Author-X-Name-Last: Pereira
Author-Name: Michael A. Kortt
Author-X-Name-First: Michael A.
Author-X-Name-Last: Kortt
Title: The economic and social determinants of participation in physical activity in Brazil
Abstract:
This paper examines the economic and social factors that influence the frequency of participation in physical activity in Brazil. Employing a modified allocation of time framework, we use data sourced from the 2015 Brazilian National Household Sample Survey to analyse the frequency of participation in physical activity for men and women between the age of 18 and 64. Using a conventional ordered logistic regression model, our results suggest that several economic and social factors influence the frequency of physical activity participation in Brazil. For instance, we find that household income has a very small but positive effect on the frequency of participation in physical activity while, in contrast, full-time employment and caring for dependent children have a larger negative for both men and women. Thus, social policies designed to make physical activity more convenient in the workforce may help to facilitate more frequent participation in physical activity.
Journal: International Review of Applied Economics
Pages: 252-266
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1685953
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1685953
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:252-266
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Antonioli
Author-X-Name-First: Davide
Author-X-Name-Last: Antonioli
Author-Name: Claudio Di Berardino
Author-X-Name-First: Claudio
Author-X-Name-Last: Di Berardino
Author-Name: Gianni Onesti
Author-X-Name-First: Gianni
Author-X-Name-Last: Onesti
Title: Specialization and KIBS in the Euro area: a vertically integrated sector perspective
Abstract:
The imbalances among countries belonging to the European Monetary Union (EMU) have been analysed under several angles in recent years, but often neglecting the evolution of economic and productive structures. In this work, we aim to fill this gap analyzing the countries specialization through the differences in the inter-industrial linkages that affect economic systems competitiveness and production processes. We use the input-output subsystem approach exploiting the latest WIOD release (2018) to investigate the role of business services, with a special focus on KIBS, in shaping the EMU countries productive structures through their integration in the manufacturing sectors. The results show that disparities are growing in the composition of productive structure and they are even more pronounced when we consider intersectoral dynamics; in particular, when KIBS are addressed to satisfy the manufacturing final demand and when we control for manufacturing subsystem technological intensity.
Journal: International Review of Applied Economics
Pages: 267-290
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2019.1708278
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1708278
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:267-290
Template-Type: ReDIF-Article 1.0
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: A man for a crisis: Keynesianism, economic theory and the future of civilization
Journal: International Review of Applied Economics
Pages: 291-299
Issue: 2
Volume: 34
Year: 2020
Month: 3
X-DOI: 10.1080/02692171.2020.1717746
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1717746
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Handle: RePEc:taf:irapec:v:34:y:2020:i:2:p:291-299
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The covid-19 crisis – and the future of the economy and economics
Journal: International Review of Applied Economics
Pages: 301-303
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1756040
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1756040
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:301-303
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Erik Bengtsson
Author-X-Name-First: Erik
Author-X-Name-Last: Bengtsson
Title: Financial effects in historic consumption and investment functions
Abstract:
The global financial crisis has highlighted the importance of financial factors on economic performance. Most of the existing research analyses the contemporary experience, and especially the 1980 s onwards. This paper investigates the effects of stock prices, real estate prices and debt on consumption and investment expenditures by estimating consumption and investment equations for about 110 years of data for Britain, France, Norway and Sweden. We find positive debt effects on consumption in three of four countries, but no consistent effects of stock prices and house prices. Effects on consumption are stronger in the more market-based economy of Britain than in the more state-oriented economies of France, Norway and Sweden: in Britain but not in the other countries, consumption has increased in response to stock and house prices. We find positive effects of stock prices on investment in all four countries. Credit expansion boosts investment in some of the countries while house prices seem to have become more influential for investment after 1980. The results indicate that there is interesting variation in financial effects over time, and point forward for possible research on the interaction between financial variables and the real economy since the early twentieth century.
Journal: International Review of Applied Economics
Pages: 304-326
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1732307
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:304-326
Template-Type: ReDIF-Article 1.0
Author-Name: Paola Cardamone
Author-X-Name-First: Paola
Author-X-Name-Last: Cardamone
Title: Productivity and spatial proximity: evidence from the Italian food industry
Abstract:
The aim of this paper is to examine the existence of productivity spillovers across firms in the Italian manufacturing food industry. To this end, using a sample of Italian food firms over the period 2008–2015, first the total factor productivity (TFP) is computed by considering the Levinson-Petrin approach and then a spatial econometric model is employed. Results show evidence of productivity spillovers across firms due to spatial proximity.
Journal: International Review of Applied Economics
Pages: 327-341
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1732308
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:327-341
Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Agostino
Author-X-Name-First: Mariarosaria
Author-X-Name-Last: Agostino
Author-Name: Cristiana Donati
Author-X-Name-First: Cristiana
Author-X-Name-Last: Donati
Author-Name: Francesco Trivieri
Author-X-Name-First: Francesco
Author-X-Name-Last: Trivieri
Title: External knowledge flows and innovation capacity: the Italian service industries
Abstract:
This work explores the relationship between R&D activities, as well as cooperation agreements, and the innovation capacity of service firms. Accounting for interdependencies among variable, we verify whether external research is complementary or substitute for the internal research activities and whether the combination of external and internal sources of knowledge has a stronger impact on the innovation capacity of the science-based service industries. We also evaluate the gains from performing both internal and external R&D in science-based firms involved in cooperation agreements for innovation. Finally, to our knowledge, this work represents the first attempt to investigate the impact of several sources of knowledge and their combination on firms’ innovation intensity. According to our findings, the most important source of innovation is the internal one. Collaborations with public or private institutions seem to be more beneficial for firms involved in more intense innovation activities.
Journal: International Review of Applied Economics
Pages: 342-360
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1735316
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:342-360
Template-Type: ReDIF-Article 1.0
Author-Name: Kien Le
Author-X-Name-First: Kien
Author-X-Name-Last: Le
Author-Name: My Nguyen
Author-X-Name-First: My
Author-X-Name-Last: Nguyen
Title: Aerial bombardment and educational attainment
Abstract:
This paper provides evidence that the Allied bombing of Vietnam, the longest and heaviest aerial bombardment in history, imposed detrimental ramifications on educational attainment and future labor market outcomes of school-age individuals. By exploiting the plausibly exogenous district-by-cohort variation in bomb destruction under a difference-in-differences framework, we find that an increase in bomb intensity leads to significantly fewer educational years completed and lower future earnings for school-age children exposed to the bombardment. We further show that both the supply-side factors (inadequate school security and the lack of teachers) and the demand-side factors (residential casualties, restricted access to healthcare, damaged properties and increased reliance on welfare assistance) could be potential mechanisms driving the long-term consequences of aerial bombardment. Our findings underline the importance of conflict prevention and post-conflict reconstruction in promoting sustainable development.
Journal: International Review of Applied Economics
Pages: 361-383
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1736012
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1736012
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:361-383
Template-Type: ReDIF-Article 1.0
Author-Name: Serhan Cevik
Author-X-Name-First: Serhan
Author-X-Name-Last: Cevik
Author-Name: Vibha Nanda
Author-X-Name-First: Vibha
Author-X-Name-Last: Nanda
Title: Riding the storm: fiscal sustainability in the Caribbean
Abstract:
Fiscal sustainability remains a paramount challenge for small economies with high debt and greater vulnerability to climate change. This paper applies the model-based fiscal sustainability test in 16 Caribbean countries during the period 1980–2018. The results indicate that the coefficient on lagged government debt is positive and statistically significant, implying that fiscal policy in the Caribbean takes corrective actions to counteract an increase in the debt-to-GDP ratio. Nonlinear estimations, however, show that the quadratic debt parameter is negative, which indicates that fiscal policy response is not adequate to ensure sustainability at higher levels of debt. We also find that the fiscal stance tends to be countercyclical on average during the sample period. These empirical results confirm that maintaining prudent fiscal policies and implementing growth-enhancing structural reforms are necessary to build fiscal buffers and ensure debt sustainability with high probability even when negative shocks occur over the long term.
Journal: International Review of Applied Economics
Pages: 384-399
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1749241
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1749241
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:384-399
Template-Type: ReDIF-Article 1.0
Author-Name: P. Dorian Owen
Author-X-Name-First: P. Dorian
Author-X-Name-Last: Owen
Author-Name: Dennis Wesselbaum
Author-X-Name-First: Dennis
Author-X-Name-Last: Wesselbaum
Title: On thresholds in the climate–migration relationship
Abstract:
In this paper, we empirically investigate whether the climate–migration relationship exhibits thresholds. We employ a threshold regression model and a large data set of international migration flows to investigate the existence of thresholds in the climate–migration relationship, while allowing for time-variability in the thresholds. We find evidence for one threshold in the temperature–migration relationship. The average temperature threshold in our sample is found to be 21.78°C (71.2°F) which is supported by results in other parts of the climate-society literature. However, we find that the threshold varies around a constant mean. Finally, our results show that, at the threshold, the effects of the other control variables, such as income and migration costs, change sizably.
Journal: International Review of Applied Economics
Pages: 400-412
Issue: 3
Volume: 34
Year: 2020
Month: 5
X-DOI: 10.1080/02692171.2020.1749242
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Handle: RePEc:taf:irapec:v:34:y:2020:i:3:p:400-412
Template-Type: ReDIF-Article 1.0
Author-Name: Gorgi Krlev
Author-X-Name-First: Gorgi
Author-X-Name-Last: Krlev
Author-Name: Georg Mildenberger
Author-X-Name-First: Georg
Author-X-Name-Last: Mildenberger
Author-Name: Helmut K. Anheier
Author-X-Name-First: Helmut K.
Author-X-Name-Last: Anheier
Title: Innovation and societal transformation – what changes when the ‘social’ comes in?
Journal: International Review of Applied Economics
Pages: 529-540
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1820247
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1820247
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:529-540
Template-Type: ReDIF-Article 1.0
Author-Name: Tamami Komatsu Cipriani
Author-X-Name-First: Tamami
Author-X-Name-Last: Komatsu Cipriani
Author-Name: Alessandro Deserti
Author-X-Name-First: Alessandro
Author-X-Name-Last: Deserti
Author-Name: Maria Kleverbeck
Author-X-Name-First: Maria
Author-X-Name-Last: Kleverbeck
Author-Name: Francesca Rizzo
Author-X-Name-First: Francesca
Author-X-Name-Last: Rizzo
Author-Name: Judith Terstriep
Author-X-Name-First: Judith
Author-X-Name-Last: Terstriep
Title: Business models & social innovation: mission-driven versus profit-driven organisations
Abstract:
The innovation demand placed on both profit-driven and mission-driven organisations is steadily rising in the face of changing technological and social paradigms, set against a generalised atmosphere of fiscal austerity. Hence, mission-driven organisations have undergone a series of transformations in order to find new revenue streams and to better serve their beneficiaries. These transformations are apparent in the area of social innovation, which is characterized by its search for new ways of financing solutions to cope with societal challenges. As mission-driven organisations adopt profit-driven strategies and for-profit organisations adopt mission-driven strategies, they each take on new and sometimes borrowed characteristics, evolving into hybrid organisations.Social innovation research is increasingly devoted to distinguishing features of mission-driven and profit-driven organisations. In fact, we can learn more about mission-driven organisations by looking through the lens of social enterprise. This article contributes to the ongoing debate of mission-driven organisations by analysing how new forms of business models combining mission-driven and profit-driven logics and features are designed and shape organisational behaviour in the field of social innovation. Results illustrate that while mission-driven organisations are often prompted to use models, tools and logics coming from the for-profit sector, more emphasise should be placed on output-oriented models and tools that support the specificities of their business models.
Journal: International Review of Applied Economics
Pages: 541-566
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1781066
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1781066
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:541-566
Template-Type: ReDIF-Article 1.0
Author-Name: Irina Krasnopolskaya
Author-X-Name-First: Irina
Author-X-Name-Last: Krasnopolskaya
Author-Name: Irina Korneeva
Author-X-Name-First: Irina
Author-X-Name-Last: Korneeva
Title: Social innovation measurement: a room for quantitative metrics
Abstract:
This article elaborates on the methodological aspects of social innovation research, with a focus on an examination of the validity of quantitative scales in the identification of socially innovative non-profits (n = 850 NGOs, 2015). This elaboration is necessary due to the methodological shortcomings of existing metrics of social and general, i.e., those relating to technological and business innovations. Based on theoretical conceptualization and derived demarcation lines of the concept, a multi-item scale was generated. It was applied along with a self-assessment scale, which replicates the general innovation measurement. Both scales of an NGO’s social innovativeness resulted in appropriate validity coefficients. However, scales capture different and only partly intersecting shares of socially innovative NGOs. We propose that theoretical and self-assessment scales could be administered simultaneously to eliminate self-assessment biases and to provide empirical data on the scope and size of a sub-sector of socially innovative NGOs.
Journal: International Review of Applied Economics
Pages: 567-587
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1776686
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1776686
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:567-587
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Gauthier
Author-X-Name-First: Caroline
Author-X-Name-Last: Gauthier
Author-Name: Genevieve Shanahan
Author-X-Name-First: Genevieve
Author-X-Name-Last: Shanahan
Author-Name: Thibault Daudigeos
Author-X-Name-First: Thibault
Author-X-Name-Last: Daudigeos
Author-Name: Adélie Ranville
Author-X-Name-First: Adélie
Author-X-Name-Last: Ranville
Author-Name: Pascal Dey
Author-X-Name-First: Pascal
Author-X-Name-Last: Dey
Title: Tackling economic exclusion through social business models: a typology
Abstract:
This article contributes to on-going research on social business models by establishing a link with arguably one of the most salient global challenges we are confronted with today: economic exclusion. We conceive of economic exclusion broadly as a lack of access to salaried employment, finance, or essential goods and services. Addressing how and to what extent social business models can alleviate economic exclusion, we first review and synthesize various bodies of literature on grand challenges and social business models to unpack the constitutive factors of economic exclusion and the constraints social businesses face in their attempts to alleviate them. Based on these insights, and inspired by former works, we draw up a typology of 12 ideal-type social business models. In doing so, we illustrate how each model operates, based on the specific configuration of business model elements required to overcome the relevant barriers underpinning economic exclusion. The main contribution the paper makes is to advance a typology of ideal-type social business models covering the diverse constraints pertaining to economic exclusion. In concluding, we reflect on this contribution, its limitations and avenues for future research.
Journal: International Review of Applied Economics
Pages: 588-606
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2019.1707785
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1707785
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:588-606
Template-Type: ReDIF-Article 1.0
Author-Name: Manuela Rösing Agostini
Author-X-Name-First: Manuela Rösing
Author-X-Name-Last: Agostini
Author-Name: Claudia Cristina Bitencourt
Author-X-Name-First: Claudia Cristina
Author-X-Name-Last: Bitencourt
Author-Name: Luciana Marques Vieira
Author-X-Name-First: Luciana Marques
Author-X-Name-Last: Vieira
Title: Social innovation in Mexican coffee production: filling ‘institutional voids’
Abstract:
The focus of social innovation initiatives on the market through food production is a classic example of social inclusion within the context of emerging countries. From a long-term perspective, however, it is still not clear how social innovation contributes towards filling institutional voids. This paper aims to understand which institutional factors have influenced social innovation and how a coffee production initiative has transformed the reality in which it operates. We analysed a joint initiative of social enterprises that coordinate an organic coffee value chain in southern Mexico, a region in which extreme poverty affects 75% of the population. The case study involved thirteen semi-structured interviews with key actors and participant observation in situ, complemented by secondary data, in an interpretative perspective that adopted a qualitative and exploratory approach. The main results indicate that social innovation fills institutional voids by creating a ‘self-revolving system of activity expansion’. This system helps to scale social innovation based on the collaboration of different actors and the integration of the coffee production chain that promotes the social and economic development of the community by: (1) establishing a more productive relationship between small local producers; (2) adding value to the coffee; (3) encouraging social and economic empowerment in the cooperative; and (4) organizing local economic activities.
Journal: International Review of Applied Economics
Pages: 607-625
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2019.1638351
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1638351
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:607-625
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Marconatto
Author-X-Name-First: Diego
Author-X-Name-Last: Marconatto
Author-Name: Marcelo Pacheco Fernandes Dias
Author-X-Name-First: Marcelo
Author-X-Name-Last: Pacheco Fernandes Dias
Author-Name: Douglas Wegner
Author-X-Name-First: Douglas
Author-X-Name-Last: Wegner
Author-Name: Claudia Bitencourt
Author-X-Name-First: Claudia
Author-X-Name-Last: Bitencourt
Title: The governance of solidarity economy organizations and their impact on community: a configurational approach
Abstract:
Currently there is little empirical evidence on the impact of Solidarity Economy Organizations (SEOs) in their local communities. Using qualitative comparative analysis on more than 6,000 Brazilian SEOs, we analyzed how key rules of governance in combination with the predominant gender of members influences SEO effectiveness for community impact. Results point out four combinations of SEO governance rules and gender that are likely to produce positive outcomes for local communities. Our findings have three implications. They substantiate empirically the argument that the form of governance of SEOs matters and should not be neglected. Second, we show that the rules of governance that improve the social results of SEOs may be more similar to those adopted by traditional firms than generally thought. Finally, our study highlights the influence of gender in combination with other aspects of governance on SEOs effectiveness.
Journal: International Review of Applied Economics
Pages: 626-649
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2019.1707786
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1707786
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:626-649
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenz Cuno Klopfenstein
Author-X-Name-First: Lorenz Cuno
Author-X-Name-Last: Klopfenstein
Author-Name: Saverio Delpriori
Author-X-Name-First: Saverio
Author-X-Name-Last: Delpriori
Author-Name: Paolo Polidori
Author-X-Name-First: Paolo
Author-X-Name-Last: Polidori
Author-Name: Andrea Sergiacomi
Author-X-Name-First: Andrea
Author-X-Name-Last: Sergiacomi
Author-Name: Marina Marcozzi
Author-X-Name-First: Marina
Author-X-Name-Last: Marcozzi
Author-Name: Donna Boardman
Author-X-Name-First: Donna
Author-X-Name-Last: Boardman
Author-Name: Peter Parfitt
Author-X-Name-First: Peter
Author-X-Name-Last: Parfitt
Author-Name: Alessandro Bogliolo
Author-X-Name-First: Alessandro
Author-X-Name-Last: Bogliolo
Title: Mobile crowdsensing for road sustainability: exploitability of publicly-sourced data
Abstract:
This paper examines the opportunities and the economic benefits of exploiting publicly-sourced datasets of road surface quality. Crowdsourcing and crowdsensing initiatives channel the participation of engaged citizens into communities that contribute towards a shared goal. In providing people with the tools needed to positively impact society, crowd-based initiatives can be seen as purposeful drivers of social innovation from the bottom. Mobile crowdsensing (MCS), in particular, takes advantage of the ubiquitous nature of mobile devices with on-board sensors to allow large-scale inexpensive data collection campaigns. This paper illustrates MCS in the context of road surface quality monitoring, presenting results from several pilots adopting a public crowdsensing mobile application for systematic data collection. Evaluation of collected information, its quality, and its relevance to road sustainability and maintenance are discussed, in comparison to authoritative data from a variety of other sources.
Journal: International Review of Applied Economics
Pages: 650-671
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2019.1646223
File-URL: http://hdl.handle.net/10.1080/02692171.2019.1646223
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:650-671
Template-Type: ReDIF-Article 1.0
Author-Name: I. M. F. Oomens
Author-X-Name-First: I. M. F.
Author-X-Name-Last: Oomens
Author-Name: C. Scholten
Author-X-Name-First: C.
Author-X-Name-Last: Scholten
Title: Inclusion in social innovation through the primary and secondary use of technology: a conceptual framework
Abstract:
People with disabilities are an important actor and target group in social innovation initiatives worldwide, as there is a clear need for better inclusion of this group in society. A way to improve the inclusion of people with disabilities is the development of assistive technology. In practice, people with disabilities often use technologies of which the primary use is not that of an assistive technology. They use the technology for a different use and context than the developer intended – termed ‘secondary use’. The current paper studies the factors that are needed to make the secondary use of technology a success. First, a literature review and explorative study in the Netherlands are performed, after which a framework on the secondary use of technology for inclusion, specifically for people with disabilities, is developed.
Journal: International Review of Applied Economics
Pages: 672-686
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1732306
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1732306
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:672-686
Template-Type: ReDIF-Article 1.0
Author-Name: Jess Daggers
Author-X-Name-First: Jess
Author-X-Name-Last: Daggers
Title: What is the value of impact investing?
Journal: International Review of Applied Economics
Pages: 687-691
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1770411
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1770411
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:687-691
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Montgomery
Author-X-Name-First: Tom
Author-X-Name-Last: Montgomery
Author-Name: Micaela Mazzei
Author-X-Name-First: Micaela
Author-X-Name-Last: Mazzei
Title: Social innovation: how societies find the power to change
Journal: International Review of Applied Economics
Pages: 691-696
Issue: 5
Volume: 34
Year: 2020
Month: 09
X-DOI: 10.1080/02692171.2020.1790341
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1790341
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Handle: RePEc:taf:irapec:v:34:y:2020:i:5:p:691-696
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: ‘Building back better’ following the global covid-19 crisis
Journal: International Review of Applied Economics
Pages: 697-698
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1839003
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1839003
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:697-698
Template-Type: ReDIF-Article 1.0
Author-Name: Zuohong Pan
Author-X-Name-First: Zuohong
Author-X-Name-Last: Pan
Title: Employment impacts of the US global value chain participation
Abstract:
This study applies a new set of comprehensive GVC indices to measure the US GVC participation and examine its impact on US employment from both backward and forward GVC linkage perspectives. Based on data from the World Input-Output Database that covers 1995–2011 across all 35 industries in the US and their value-added trade with 40 other economies, and using Arellano and Bond’s GMM estimator for our dynamic panel data (DPD) model specifications, we find that GVC activities have significant positive impacts on the overall US employment. In our main model specification, each time the GVC participation increases by one point, the overall US employment increases by 0.60 percentage point; however, the benefits are only coming from the backward GVC linkages in their simple form and focused on the medium-skilled labor force. Finally, the general forward GVCs do have a minor significant negative impact on the low-skilled labor segment.
Journal: International Review of Applied Economics
Pages: 699-720
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1755238
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1755238
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:699-720
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelina Dardati
Author-X-Name-First: Evangelina
Author-X-Name-Last: Dardati
Author-Name: Meryem Saygili
Author-X-Name-First: Meryem
Author-X-Name-Last: Saygili
Title: Foreign production and the environment: does the type of FDI matter?
Abstract:
We examine the relationship between foreign ownership and the environmental performance of firms. We make a distinction between export-oriented and horizontal multinationals as they have different motivations and firm characteristics. Horizontal foreign direct investment substitutes for exports when trade costs are high, while export-oriented vertical multinationals geographically separate the stages of production primarily to exploit production cost differences across countries. Theoretically, it is not clear which type of foreign direct investment is dirtier. In this paper, we use microdata from Chile and find that export-oriented foreign firms have lower emission intensity than horizontal affiliates and domestic firms.
Journal: International Review of Applied Economics
Pages: 721-733
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1775791
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1775791
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:721-733
Template-Type: ReDIF-Article 1.0
Author-Name: Angela Daley
Author-X-Name-First: Angela
Author-X-Name-Last: Daley
Author-Name: Thesia Garner
Author-X-Name-First: Thesia
Author-X-Name-Last: Garner
Author-Name: Shelley Phipps
Author-X-Name-First: Shelley
Author-X-Name-Last: Phipps
Author-Name: Eva Sierminska
Author-X-Name-First: Eva
Author-X-Name-Last: Sierminska
Title: Differences across countries and time in household expenditure patterns: implications for the estimation of equivalence scales
Abstract:
When comparing economic well-being using income or expenditures, an equivalence scale is often used to adjust for differences in characteristics that affect needs. For example, a family of two is assumed to need more income than a single person, but not twice as much due to the economies of scale in consumption. In this study, we ask whether it is appropriate to use a common equivalence scale when comparing economic well-being across countries and/or time if consumption expenditure patterns differ? Based on an Engel methodology, we estimate equivalence scales for a diverse set of countries (Canada, France, Israel, Poland, South Africa, Switzerland, Taiwan, United States) in different time periods (1999–2012). We find considerable differences in economies of scale across countries, as well as increases over time. Notably, we find that economies of scale are larger than those implied by the widely accepted ‘square root of household size’ equivalence scale. Our results indicate that using a common equivalence scale to compare economic well-being across countries and/or time is misleading. Specifically, if economies of scale are understated (as is the case when using the ‘square root of household size’), the relative poverty experienced by larger versus smaller families is being overstated.
Journal: International Review of Applied Economics
Pages: 734-757
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1781798
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1781798
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:734-757
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Dogan
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Dogan
Author-Name: Emre Orun
Author-X-Name-First: Emre
Author-X-Name-Last: Orun
Author-Name: Bayram Aydın
Author-X-Name-First: Bayram
Author-X-Name-Last: Aydın
Author-Name: Mahmut Saban Afsal
Author-X-Name-First: Mahmut Saban
Author-X-Name-Last: Afsal
Title: Non-parametric analysis of the relationship between inflation and interest rate in the context of Fisher effect for Turkish economy
Abstract:
Inflation is an increase in the general level of prices which indicates a decrease in the purchasing power of households and a decrease in their real income. The level of interest rates in an economy plays an important role in entrepreneurs’ investment decisions. The Fisher Effect is known as a positive relation between the inflation rate and interest rates, with causality running from inflation rates to interest rates. However, the results of research in the economics literature conducted with different countries and methods on the Fisher Effect have differences. In recent years, linearity methods have been abandoned to examine asymmetric relationships between variables, and nonlinear methods have gained importance. In this study, the relationship between interest rates and inflation in the Turkish economy is examined with nonlinear Granger Causality Analysis in the context of Fisher Effect using monthly data. As a result of the study, a unidirectional causal relationship is detected from inflation to interest rates for the Turkish economy. Also, the Fisher hypothesis is found to be valid for Turkey.
Journal: International Review of Applied Economics
Pages: 758-768
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1782852
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1782852
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:758-768
Template-Type: ReDIF-Article 1.0
Author-Name: Jabbar Ul-Haq
Author-X-Name-First: Jabbar
Author-X-Name-Last: Ul-Haq
Author-Name: Sana Khanum
Author-X-Name-First: Sana
Author-X-Name-Last: Khanum
Author-Name: Ahmed Raza Cheema
Author-X-Name-First: Ahmed
Author-X-Name-Last: Raza Cheema
Title: The impact of trade liberalization on child labor in Pakistan
Abstract:
This study investigates the impact of trade liberalization on child labor using micro-level datasets of urban Pakistan. It is anticipated that when economies are open to external competition, this will benefit the poor in those economies, and hence lead to a contraction of child labor. We analyze the geographical differences in the effects of trade policy directed toward the reduction of import tariffs. Trade liberalization and child labor are associated in the case of Pakistan. Trade liberalization reduces child labor in urban Pakistan. Our findings also reveal a statistically significant association between lagged tariffs and child labor. Our findings are robust to various control variables.
Journal: International Review of Applied Economics
Pages: 769-784
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1782853
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1782853
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:769-784
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Barradas
Author-X-Name-First: Ricardo
Author-X-Name-Last: Barradas
Title: Does the financial system support economic growth in times of financialisation? Evidence for Portugal
Abstract:
This paper conducts a time series econometric analysis in order to examine empirically the relationship between the financial system and economic growth in Portugal from 1977 to 2016. The Portuguese financial system has experienced a strong wave of privatisations, liberalisations and deregulations since the adhesion of Portugal to the European Economic Community in 1986, which has not favoured a sustained path of strong economic growth since then. The paper estimates a linear growth model and a non-linear growth model, which includes four proxies for the financial system (money supply, credit, financial value added and stock market capitalisation) and four further control variables (inflation, government consumption, trade openness and education). The paper finds a negative linear relationship between the banking system and Portuguese economic growth, a positive linear relationship between the stock markets and Portuguese economic growth, a concave quadratic relationship between the banking system and Portuguese economic growth, and a convex quadratic relationship between the stock markets and Portuguese economic growth. This suggests that Portuguese policy makers should canalise efforts to decrease the importance of banking system and to increase the importance of stock markets in order to support more robust economic growth in the coming years.
Journal: International Review of Applied Economics
Pages: 785-806
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1782854
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1782854
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:785-806
Template-Type: ReDIF-Article 1.0
Author-Name: Zaira Adnan
Author-X-Name-First: Zaira
Author-X-Name-Last: Adnan
Author-Name: Mamta Chowdhury
Author-X-Name-First: Mamta
Author-X-Name-Last: Chowdhury
Author-Name: Girijasankar Mallik
Author-X-Name-First: Girijasankar
Author-X-Name-Last: Mallik
Title: Determinants of total factor productivity in Pakistan: a time series analysis using ARDL approach
Abstract:
This study examines key determinants of total factor productivity (TFP) in Pakistan for the period 1970–2018 using the auto-regressive distributive lag (ARDL) bound testing approach. The study conducts a time series analysis on macro-economic indicators namely foreign direct investment (FDI), trade openness and human capital and aims to identify whether these factors impact significantly on TFP. TFP is a measure of the productive capabilities of factors of production (capital and labour), and is crucial in relation to economic efficiency and economic growth. The study applied an ARDL bound test to analyse the long-run and short-run relationship among the variables, and also a Granger causality test to consider causal relationships between the explanatory variables and TFP. The results suggest that TFP has a long-run relationship with FDI and human capital.
Journal: International Review of Applied Economics
Pages: 807-820
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1792420
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1792420
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:807-820
Template-Type: ReDIF-Article 1.0
Author-Name: Nicole Ballouz Baker
Author-X-Name-First: Nicole Ballouz
Author-X-Name-Last: Baker
Author-Name: Mona Said Boustany
Author-X-Name-First: Mona
Author-X-Name-Last: Said Boustany
Author-Name: Maroun Khater
Author-X-Name-First: Maroun
Author-X-Name-Last: Khater
Author-Name: Christian Haddad
Author-X-Name-First: Christian
Author-X-Name-Last: Haddad
Title: Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity
Abstract:
In an attempt to lift data availability constraints, this paper investigates into the third level digital divide in 65 developing countries for the period 2000–2014, by studying the existence of a mediating impact of Internet use on the relationship between human capital and total labor productivity, and labor productivity by sector. Results of our mediation models with fixed effects panel regressions and Bootstrapping revealed an Internet use mediation effect of 24.20% on the total effect of human capital on total labor productivity, 27% on labor productivity in services and 23% in industry. Mediation was found to be inconsistent in agriculture.
Journal: International Review of Applied Economics
Pages: 821-838
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1792421
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1792421
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:821-838
Template-Type: ReDIF-Article 1.0
Author-Name: Adeola Y. Oyebowale
Author-X-Name-First: Adeola Y.
Author-X-Name-Last: Oyebowale
Author-Name: Amr S. Algarhi
Author-X-Name-First: Amr S.
Author-X-Name-Last: Algarhi
Title: Macroeconomic determinants of economic growth in Africa
Abstract:
The topic of the determinants of economic growth in both developed and developing countries remains an unresolved debate. As such, this paper revisits and offers some empirical evidence on macroeconomic determinants of economic growth among 21 African economies. This study employs Pooled Mean Group estimator on the panel data. Our pooled long-run coefficients indicate that growth rates in exports, government expenditure and gross capital formation have statistically significant positive long-run relationships with economic growth at 1%, 5% and 1% levels of significance, respectively; while broad money is not statistically significant among the countries. However, short-run coefficients and error variances differ across the African countries. We further employ Dumitrescu-Hurlin Granger causality test. Our homogeneous causality evidence shows bidirectional causality between growth in gross capital formation and economic growth among the African countries; while growth in broad money, growth in exports and growth in government expenditure show no direction of causality with economic growth. Nonetheless, heterogeneous causality (HEC) evidence differs across the countries – Lesotho, Algeria, Cameroon and Benin show the most favourable causality results from the macroeconomic variables to economic growth. Furthermore, our HEC results show a bidirectional causality between broad money and economic growth in Rwanda.
Journal: International Review of Applied Economics
Pages: 839-857
Issue: 6
Volume: 34
Year: 2020
Month: 11
X-DOI: 10.1080/02692171.2020.1792422
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1792422
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Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:839-857
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Vishnu Padayachee
Author-X-Name-First: Vishnu
Author-X-Name-Last: Padayachee
Title: Alternative forms of ownership and control in the global south
Journal: International Review of Applied Economics
Pages: 413-422
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773635
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773635
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:413-422
Template-Type: ReDIF-Article 1.0
Author-Name: Andries Bezuidenhout
Author-X-Name-First: Andries
Author-X-Name-Last: Bezuidenhout
Author-Name: Christine Bischoff
Author-X-Name-First: Christine
Author-X-Name-Last: Bischoff
Author-Name: John Mashayamombe
Author-X-Name-First: John
Author-X-Name-Last: Mashayamombe
Title: Pitfalls of participation: explaining why a strike followed unprecedented employee dividend pay-outs at a South African mine
Abstract:
This paper attempts to provide explanations for why a spectacular strike (in 2012) at Kumba Iron Ore’s Sishen mine followed after the highest Employee Share Ownership Programme (ESOP) linked pay-out of dividends to workers in South African history. It is argued that a hidden transcript challenged the company’s official version of the ESOP and that some workers saw a political opportunity shortly after the events at Marikana and subsequent wage dispute settlements outside the ordinary collective bargaining procedures. The context for this was an approach to ESOPs that involved shares held in trust, but funded by loans dependent on future income, as well as contestation over the ownership of mineral rights at the mine by a politically influential rival firm. To this end, the ESOP was politicised in public debates. The situation was aggravated by a divided union branch. The functioning of the ESOP and how workers experienced it are analysed by means of publically available documents and primary research. The paper concludes with a discussion of the implications of the case study for ESOPs in the mining industry as a form of ownership diversity.
Journal: International Review of Applied Economics
Pages: 423-438
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773639
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773639
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:423-438
Template-Type: ReDIF-Article 1.0
Author-Name: Seeraj Mohamed
Author-X-Name-First: Seeraj
Author-X-Name-Last: Mohamed
Title: Anglo-American corporation and corporate restructuring in post-apartheid South Africa
Abstract:
The Anglo American Corporation was the largest, most powerful South African corporation during the Twentieth Century. This article focuses on the offshore listing and restructuring of Anglo in the post-apartheid period. The restructuring and offshore listings of the largest South African corporations were allowed as part of a neoliberal approach to economic policy adopted by the post-apartheid government. The resulting financialisation of the economy and pressure on the restructured and offshore listed corporations to maximise shareholder value combined with neoliberal economic policies further weakened South Africa’s already inadequate industrial structure, caused macroeconomic harm and is associated with poor growth and higher inequality.
Journal: International Review of Applied Economics
Pages: 439-455
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773642
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773642
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:439-455
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Klaaren
Author-X-Name-First: Jonathan
Author-X-Name-Last: Klaaren
Title: Benefit corporations for Africa? A South African perspective on alternative corporate forms
Abstract:
The question of the potential for alternative corporate forms in Africa is a significant one. Alongside the dominant current which argues that the traditional corporation is the way forward for economic growth in South Africa, several other streams of thought have contested and been critical of the traditional corporate model. Within the range of structures alternative to the traditional corporation, this article focuses on the particular legal form of benefit corporations. The benefit corporation has made its entry into what one might term the global statute book through the jurisdictions of over twenty American states. While the South African Companies legislation was overhauled and replaced in 2008 with a completely revamped statute, no specific provision was made for a benefit corporation. Since 2008, two practices alternative to further revising the statute book have developed in South Africa: third-party certification and hybrid structuring. While the legal potential to craft a benefit corporation in South Africa exists, there is little evidence of this legal potential and form being developed to date, despite a growing appreciation and interest in the social enterprise sector.
Journal: International Review of Applied Economics
Pages: 456-470
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773644
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773644
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:456-470
Template-Type: ReDIF-Article 1.0
Author-Name: Debdulal Saha
Author-X-Name-First: Debdulal
Author-X-Name-Last: Saha
Title: Producer collectives through self-help: sustainability of small tea growers in India
Abstract:
Collective action through self-help among small tea growers (STGs) is considered as a sustainable alternative of producer collectives in tea plantations in India. Using the case study method, this article discusses that self-help groups (SHGs) among STGs are used as innovative functioning systems to access markets, obtain fair price and gain knowledge and information. Mutual ownership of the manufacturing units along with establishing close relations with capital and individual landholding not only empower the growers but also help them in moving upward in the value chain and provide them with the identity as rural entrepreneurs. While democratic organisational structure, transparency, social cohesion, leadership and associational power in accessing various input and financial services are the main factors of success of such self-management model and collective actions, these could face threats owing to power asymmetry and overly pro-capital business strategies.
Journal: International Review of Applied Economics
Pages: 471-490
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773646
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773646
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:471-490
Template-Type: ReDIF-Article 1.0
Author-Name: Tesfaye T. Lemma
Author-X-Name-First: Tesfaye T.
Author-X-Name-Last: Lemma
Author-Name: Mthokozisi Mlilo
Author-X-Name-First: Mthokozisi
Author-X-Name-Last: Mlilo
Author-Name: Tendai Gwatidzo
Author-X-Name-First: Tendai
Author-X-Name-Last: Gwatidzo
Title: Board remuneration, directors’ ownership and corporate performance: the South African evidence
Abstract:
Excessive directors’ remuneration is usually cited as one of the drivers of the massive income inequality prevalent in South Africa. We draw insights from agency and board power theories to establish whether board remuneration, directors’ shareholding and the interaction between the two factors influences an entity's financial performance. Based on the examination of 1,736 company-year observations obtained from entities traded on the Johannesburg Stock Exchange, for the period 2005–2018, we find direct (no) relationship between remuneration of directors (directors’ shareholding) and an entity's financial performance. Our findings suggest that firms that provide higher, or even excessive, incentives to their directors tend to post superior financial performance; firms can employ directors’ remuneration as a governance tool to induce board effectiveness.
Journal: International Review of Applied Economics
Pages: 491-511
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773654
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:491-511
Template-Type: ReDIF-Article 1.0
Author-Name: Webster Edward
Author-X-Name-First: Webster
Author-X-Name-Last: Edward
Title: The Uberisation of work: the challenge of regulating platform capitalism. A commentary
Abstract:
Under platform capitalism a new business model and a new work order has emerged. The tech giants such as Uber, Amazon and Apple that drive this business model have unprecedented levels of power . This power lies in the hands of a few individuals who divest themselves from employment responsibilities through technology-enabled outsourcing and subcontracting practices that remotely manage their fragmented supply chains. A new form of algorithmic control is introduced where “workers” are managed through on line platforms, monitored indirectly and expected to produce measurable outputs. However, the model is generating open resistance across the globe and new ways of regulating these companies is emerging. Drawing on a range of recent publications I argue that to be effective these attempts at regulation will require a coordinated challenge from above as well as below. This requires a deeper understanding of the new forms of ownership in the platform economy, the nature of this new world of work and the responses being made by this global workforce.
Journal: International Review of Applied Economics
Pages: 512-521
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773647
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:512-521
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Why did the ANC fail to deliver redistribution?
Journal: International Review of Applied Economics
Pages: 522-527
Issue: 4
Volume: 34
Year: 2020
Month: 07
X-DOI: 10.1080/02692171.2020.1773649
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1773649
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Handle: RePEc:taf:irapec:v:34:y:2020:i:4:p:522-527
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Understanding the economy at the micro and macro levels
Journal: International Review of Applied Economics
Pages: 1-2
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2021.1848348
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1848348
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:1-2
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Energy consumption and economic growth in Botswana: empirical evidence from a disaggregated data
Abstract:
This paper examines the relationship between energy consumption and economic growth in Botswana during the period 1980–2016. We disaggregate energy consumption into six components, namely: total energy consumption, electricity consumption, motor gasoline, gas/diesel oil, fuel oil and liquefied petroleum gas. We then compare the results of the disaggregated energy components with that of the aggregated energy consumption level. In order to account for the omission-of-variable bias, we incorporate inflation and trade openness as intermittent variables between the various components of energy consumption and economic growth, thereby creating a system of multivariate equations. Using the ARDL-bound testing approach, the study found a causal flow from economic growth to energy consumption to predominate. This finding has important policy implications as it shows that the buoyant economic growth that Botswana has enjoyed over the years is not energy-dependent, and that the country could pursue the requisite energy conservation policies without necessarily stifling its economic growth. To our knowledge, this study may be the first of its kind to examine in detail the causal relationship between energy consumption and economic growth in Botswana using a multivariate causality model and a disaggregated dataset.
Journal: International Review of Applied Economics
Pages: 3-24
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2020.1792851
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1792851
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:3-24
Template-Type: ReDIF-Article 1.0
Author-Name: Nora Aboushady
Author-X-Name-First: Nora
Author-X-Name-Last: Aboushady
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Do exports and innovation matter for the demand of skilled labor?
Abstract:
The objective of the paper is to examine the impact of exports and innovation on the demand for skilled labor in the Middle East and North Africa (MENA) region. In this matter, we contribute to the existing literature in several ways. First, we examine the connection between exports and skill bias through several innovation and technology adoption indicators, which we divide into core product-related innovation and innovation in auxiliary services. Second, we differentiate between the effect of innovation on skilled blue-collar (production workers) vs. white collar (non-production) workers. We also run the regressions for the manufacturing sector and the services sector separately. Third, we test this relationship for eight MENA countries, using firm-level data from the World Bank Enterprise Survey (2013). Our results suggest a positive and significant impact of the extensive trade margin on innovation and technology adoption, while trade at the intensive margin is insignificant. Furthermore, demand for skilled workers by firms in the MENA region is likely to be higher for production workers than that for non-production ones. This demand is particularly high when a firm adopts a new product, a new production method or spends on research and development, rather than in the case of spending on auxiliary services. At the sector level, the impact of innovation on the demand for skilled labor is positive and significant in the manufacturing sector.
Journal: International Review of Applied Economics
Pages: 25-44
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2020.1822298
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:25-44
Template-Type: ReDIF-Article 1.0
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Author-Name: Abraham Mensah Acquah
Author-X-Name-First: Abraham Mensah
Author-X-Name-Last: Acquah
Title: Re-examining the causal relationships among FDI, economic growth and financial sector development in Africa
Abstract:
Studies on the causal relationships among foreign direct investment (FDI), economic growth and financial sector development
are far from being conclusive, a reflection of the different methodologies and country-settings employed. In this study, we depart from the use of single country
cases to relying on a panel data comprising 45 African countries over the period 1980 to 2016 in examining such causal linkages. By applying a panel Granger Non-Causality test,
we find that the causal nexus between FDI and economic growth is conditioned on the indicator of economic growth while we observe feedback causality between (i) FDI and financial
sector development, and (ii) financial sector development and economic growth. These findings hold irrespective of the proxy of finance and economic growth. The study concludes by
discussing key implications for policy.
Journal: International Review of Applied Economics
Pages: 45-63
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2020.1822299
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:45-63
Template-Type: ReDIF-Article 1.0
Author-Name: Zhandos Ybrayev
Author-X-Name-First: Zhandos
Author-X-Name-Last: Ybrayev
Title: Real exchange rate management and economic growth: export performance in Kazakhstan, 2009–2019
Abstract:
This study contributes to the literature on the evaluation of the effects of the stable and competitive real exchange rate management (SCRER) on economic growth by studying the exporting performance of the tradable sector in Kazakhstan between 2009 and 2019. We also aim to capture the impact of a significant change in the behavior of the exchange rate in August of 2015, following the introduction of inflation targeting monetary policy and switching to the flexible exchange rate regime of domestic currency – tenge. Our results show that a 10% undervaluation of the RER leads to a 0.05 percentage points increase in the growth rate of manufacturing exports. At the same time, a one percent increase in RER leads to a 0.08 percentage points growth in primary products industries, while a depreciation of the RER by one percent leads to a rise of 0.14 percentage points in the growth rate of high-tech manufacturing industries. We also find that a highly volatile exchange rate regime of the exchange rate is not favorable to the development of capital-intensive sectors. Overall, the results suggest that a macroeconomic policy targeting a stable and competitive real exchange rate can be beneficial for the advancement of higher technologically intensive sectors, increased price competitiveness for Kazakhstan’s manufacturing goods and high-skill tradable services, and the process of rapid capital accumulation.
Journal: International Review of Applied Economics
Pages: 64-90
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2020.1836135
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1836135
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:64-90
Template-Type: ReDIF-Article 1.0
Author-Name: Kerry Liu
Author-X-Name-First: Kerry
Author-X-Name-Last: Liu
Title: Deleveraging China
Abstract:
China’s debt issue has attracted extensive attention from investors and China watchers around the world. Previous studies generally concluded that China’s credit crisis is looming. Responding to these concerns, the Chinese authorities started to systematically deal with its debt issue from 2016. This study examines the factors that have contributed to the accumulations of debts, and reviews the deleveraging strategies adopted in different sectors such as non-financial corporate, financial corporate, household and public sectors. This study concludes that some positive progress has been achieved, and at the same time challenges remain.
Journal: International Review of Applied Economics
Pages: 91-109
Issue: 1
Volume: 35
Year: 2021
Month: 01
X-DOI: 10.1080/02692171.2020.1836136
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1836136
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Handle: RePEc:taf:irapec:v:35:y:2021:i:1:p:91-109
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Maura Sheehan
Author-X-Name-First: Maura
Author-X-Name-Last: Sheehan
Title: Building back better?
Abstract:
A global health and economic crisis was created by the spread of Covid-19 across the world during the course of 2020 and into 2021. This Special Issue of the International Review of Applied Economics brings together papers analysing various aspects of this twin crisis. The crisis led to massive intervention by governments, both to tackle the health crisis - through lock-downs; social distancing measures; test, trace and isolate programmes; and to develop and then provide vaccinations - and to offset the economic damage created by the lock-downs, the fall in travel and trade, and so forth. Several of the papers take up the challenge of how we might ‘build back better’. The leading expert on organisational studies and organisational behaviour John Child notes that while the Covid-19 pandemic intensified many of the economic and social problems that societies were already facing, the public response to the crisis points to a constructive way forward, including people participating in collective activities to contribute to addressing the common challenge, arguing that “it is timely to widen participation in organisational decision-making as an approach to addressing many of the problems which will continue to be with us post-Covid, and which indeed the pandemic has exacerbated”. These further challenges include inequality, and the climate crisis. Both could be tackled through a global Green New Deal.
Journal: International Review of Applied Economics
Pages: 111-116
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2021.1882035
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1882035
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:111-116
Template-Type: ReDIF-Article 1.0
Author-Name: John Child
Author-X-Name-First: John
Author-X-Name-Last: Child
Title: Organizational participation in post-covid society – its contributions and enabling conditions
Abstract:
The Covid-19 pandemic has intensified the economic and social problems that societies face today. At the same time, the public response to the crisis points to a constructive way forward. It has brought people together and unleashed a desire to contribute in many ways, some small and others spectacular. It has demonstrated how opportunities for people to participate in collective activities both psychologically and behaviorally can achieve remarkable results, especially when addressing a common danger. This paper argues that it is timely to widen participation in organizational decision-making as an approach to addressing many of the problems which will continue to be with us post-Covid, and which indeed the pandemic has exacerbated. In order to arrive at practical policy options, it proceeds through the following stages. The first is to establish a working definition of organizational participation and to develop a framework for classifying its principal forms. This framework serves to identify the more advanced and consequential forms of participation, and is then used to structure an evidence-based review of how they can constructively contribute to economic and social improvement. The final part of the paper reviews conditions bearing on the practical implementation of participation and which serve to clarify practical policy implications.
Journal: International Review of Applied Economics
Pages: 117-146
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1774976
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:117-146
Template-Type: ReDIF-Article 1.0
Author-Name: Kien Le
Author-X-Name-First: Kien
Author-X-Name-Last: Le
Author-Name: My Nguyen
Author-X-Name-First: My
Author-X-Name-Last: Nguyen
Title: The psychological consequences of COVID-19 lockdowns
Abstract:
COVID-19 outbreak has resulted in the largest number of lockdowns worldwide in history. While lockdowns may reduce the spread of COVID-19, the downside costs of this approach could be dreadful. By exploiting the differential timing of lockdown implementation across the United States within a difference-in-differences framework, we find that the pandemic lockdowns are associated with a variety of adverse psychological outcomes, namely, anxiety, worry, disinterest, depression, and poor general health perception. Our mechanism analyses suggest that these detrimental impacts could be attributed to concerns towards food, housing, and employment security. We further show that African Americans and women are especially susceptible to the adverse repercussions of the lockdowns. The findings imply that lockdowns should be accompanied by policies aimed to prevent mental health burden and deepening inequality.
Journal: International Review of Applied Economics
Pages: 147-163
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1853077
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853077
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:147-163
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Ping Ang
Author-X-Name-First: Joshua Ping
Author-X-Name-Last: Ang
Author-Name: Fang Dong
Author-X-Name-First: Fang
Author-X-Name-Last: Dong
Author-Name: Jason Patalinghug
Author-X-Name-First: Jason
Author-X-Name-Last: Patalinghug
Title: COVID-19: effectiveness of socioeconomic factors in containing the spread and mortality
Abstract:
This paper presents a study on 80 countries that evaluates the socioeconomic factors in containing the spread and mortality of COVID-19. Our results show that the long-term social factors such as lower personal freedom, better education in science, and past coronavirus outbreak experience are more effective than the economic factors such as higher healthcare-associated factors per 1000 population and larger GDP. However, using GDP per capita as the instrumental variable, we also find that the richer countries with a high degree of personal freedom have a higher number of infection or death cases per million population because they would be less likely to adhere to and implement the policy of the movement restrictions to restrict their access to goods and services.
Journal: International Review of Applied Economics
Pages: 164-187
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1853078
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:164-187
Template-Type: ReDIF-Article 1.0
Author-Name: Amine Ben Amar
Author-X-Name-First: Amine
Author-X-Name-Last: Ben Amar
Author-Name: Néjib Hachicha
Author-X-Name-First: Néjib
Author-X-Name-Last: Hachicha
Author-Name: Nihel Halouani
Author-X-Name-First: Nihel
Author-X-Name-Last: Halouani
Title: Is there a shift contagion among stock markets during the COVID-19 crisis? Further insights from TYDL causality test
Abstract:
Using the Toda-Yamamoto-Dolado-Lütkepohl measure of causality, namely the TYDL procedure, which is reliable whatever the variables’ integration order, this study attempts to investigate the existence of shift contagion effect between a set of global, regional, country and US sectoral indices during the COVID-19 crisis. The empirical findings not only reveal that the Chinese stock index has no influence on the rest of the studied stock market indices during the COVID-19 crisis, but also that the European stock index seems to become the major node influencing the market sentiment and, therefore, the other indices during the crisis.
Journal: International Review of Applied Economics
Pages: 188-209
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1853685
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853685
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:188-209
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Vasileiou
Author-X-Name-First: Evangelos
Author-X-Name-Last: Vasileiou
Author-Name: Aristeidis Samitas
Author-X-Name-First: Aristeidis
Author-X-Name-Last: Samitas
Author-Name: Maria Karagiannaki
Author-X-Name-First: Maria
Author-X-Name-Last: Karagiannaki
Author-Name: Jagadish Dandu
Author-X-Name-First: Jagadish
Author-X-Name-Last: Dandu
Title: Health risk and the efficient market hypothesis in the time of COVID-19
Abstract:
In this note, we show that the stock markets do not always incorporate all the available information because in many cases they slowly evaluate the news. Using simple statistical analysis, we show that the response of the markets to the available information in certain time periods is irrational and inefficient. The COVID-19 outbreak gives financial economists an example of health risk underestimation, and of an unexpectedly slow response during a stress period; issues that should be examined in the future under a behavioral view.
Journal: International Review of Applied Economics
Pages: 210-223
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1864299
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1864299
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:210-223
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Vasileiou
Author-X-Name-First: Evangelos
Author-X-Name-Last: Vasileiou
Title: Behavioral finance and market efficiency in the time of the COVID-19 pandemic: does fear drive the market?
Abstract:
In this study, we examine the efficiency of the US stock markets during the COVID-19 outbreak using a fundamental financial analysis approach, the constant growth model and a behavioral model including a Google-based Index. We juxtapose the released news and the performance of the US stock market during the COVID-19 outbreak and we show that during some periods the health risk was significantly underestimated and/or ignored. The Efficient Market Hypothesis (EMH) suggests that prices incorporate all the available information at any point in time, yet as we show a systemic factor, the health risk, was not always rationally incorporated in stock prices. The Runs-tests confirm our assumption that the market was not efficient during the examined period. The reason for this inefficiency could be that something is missing from traditional finance models, such as the impact of fear of COVID-19. For this reason we employ a Coronavirus Fear Index (CFI) based on Google searches and using Granger causality we provide empirical evidence that the fear drives the S&P500 performance, and using a GARCH model we show that the fear negatively influences the performance of the US stock market.
Journal: International Review of Applied Economics
Pages: 224-241
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1864301
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1864301
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:224-241
Template-Type: ReDIF-Article 1.0
Author-Name: Javier Cifuentes-Faura
Author-X-Name-First: Javier
Author-X-Name-Last: Cifuentes-Faura
Title: Analysis of containment measures and economic policies arising from COVID-19 in the European Union
Abstract:
The crisis caused by COVID-19 differs from previously crises due to its particularities. Many countries have been affected by the pandemic, although not all have acted in the same way or imposed the same level of restrictions. This paper analyses the virus containment measures carried out by some of the European countries most affected by the pandemic. It concludes that those that acted early have been less affected. In addition, it examines possible policies to be developed at the European Union level to combat the crisis.
Journal: International Review of Applied Economics
Pages: 242-255
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1864300
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1864300
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:242-255
Template-Type: ReDIF-Article 1.0
Author-Name: O’Raye Dicta Ogisi
Author-X-Name-First: O’Raye Dicta
Author-X-Name-Last: Ogisi
Author-Name: Toritseju Begho
Author-X-Name-First: Toritseju
Author-X-Name-Last: Begho
Title: Covid 19: Ramifications for progress towards the sustainable development goals (SDGs) in Nigeria
Abstract:
This paper examines whether the impact of COVID-19 at the household level is an obstacle to achieving the sustainable development goals of no poverty (SDG1), zero hunger (SDG2), good health and wellbeing (SDG3) and decent work and economic growth (SDG8). We limit our investigation to farm households given their precarious situation. We analyse data from the World Bank National Longitudinal Phone Survey (COVID-19 NLPS) and the 2018/2019 General Household Survey (GHS). An exact McNemar’s test determined that there was a statistically significant difference in the proportion of households that skipped a meal (p =.002), ran out of food (p =.036) or went a whole day without food (p <.001) pre- and during- COVID-19. Approximately 81% perceived COVID-19 as a substantial threat to their income. This was buttressed by the finding that 75% reported a decrease in their total income since the outbreak of COVID-19. Overall, the findings in this paper suggest that COVID-19 posed a substantial threat to the attainment of SDGs 1, 2, 3 and 8. In the long term, government would need to mitigate the impact of COVID-19 through targeted social protection programs and policies to ensure that the country is on track to achieve the SDGs.
Journal: International Review of Applied Economics
Pages: 256-268
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1864302
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1864302
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:256-268
Template-Type: ReDIF-Article 1.0
Author-Name: J. Eduardo Vera-Valdés
Author-X-Name-First: J. Eduardo
Author-X-Name-Last: Vera-Valdés
Title: The political risk factors of COVID-19
Abstract:
This paper analyses a broad range of macro variables to assess the effects they have on the number of cases and deaths due to COVID-19. We consider 23 explanatory variables on health, political, and economic factors for 94 countries. Given the vast number of explanatory variables analysed, the paper employs advanced statistical tools for the analysis. We use regularised regression and dimension reduction methods to increase estimation efficiency. We find that alcohol drinking is associated with an increase in the number of cases and deaths due to COVID-19. In this regard, our results support the World Health Organization’s recommendation of reducing alcohol drinking during the pandemic. Furthermore, our results show that the level of trust inside the society is associated with both the number of cases and deaths. A higher level of trust in medical personnel is associated with fewer cases, while a higher level of trust in the government is associated with fewer deaths due to COVID-19. Finally, hospital beds per thousand inhabitants are a statistically significant factor in reducing the number of deaths. Our results are robust to the estimation method, and they are of interest to governments and authorities responsible for the control of the pandemic.
Journal: International Review of Applied Economics
Pages: 269-287
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2020.1866973
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1866973
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:269-287
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Rafael Ruiz
Author-X-Name-First: Juan Rafael
Author-X-Name-Last: Ruiz
Author-Name: Patricia Stupariu
Author-X-Name-First: Patricia
Author-X-Name-Last: Stupariu
Title: A green new deal and debt sustainability for the post COVID-19 world
Abstract:
This paper explores the design and impact on public finances of a global investment plan directed at supporting post-COVID19 reconstruction efforts by investing in climate change mitigation. We analyse current macroeconomic conditions in both developed and emerging economies and, subsequently, simulate various growth scenarios and observe the impact on public debt sustainability of implementing an economic stimulus oriented towards climate change mitigation.
Journal: International Review of Applied Economics
Pages: 288-307
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2021.1879742
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1879742
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:288-307
Template-Type: ReDIF-Article 1.0
Author-Name: Kerry Liu
Author-X-Name-First: Kerry
Author-X-Name-Last: Liu
Title: COVID-19 and the Chinese economy: impacts, policy responses and implications
Abstract:
COVID-19, the disease caused by novel coronavirus SARS-CoV-2, has greatly affected financial markets, economies and societies worldwide. This study focuses on China and examines a series of issues including: the impact of COVID-19 on the Chinese economy, China’s policy responses to this shock such as fiscal, monetary and institutional measures, and implications such as the nature, gains and costs of China’s policy responses. This study also explores problems that need to be answered in the future. In view of the importance of China in the world regarding the size of its economy, its contribution to world growth, and its increasing influence, this study makes timely and important contributions to policy makers and investors around the world.
Journal: International Review of Applied Economics
Pages: 308-330
Issue: 2
Volume: 35
Year: 2021
Month: 03
X-DOI: 10.1080/02692171.2021.1876641
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1876641
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Handle: RePEc:taf:irapec:v:35:y:2021:i:2:p:308-330
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The first 30 years of the International Review of Applied Economics, and the future of capitalism
Journal: International Review of Applied Economics
Pages: 331-337
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1932326
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1932326
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:331-337
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantin Makrelov
Author-X-Name-First: Konstantin
Author-X-Name-Last: Makrelov
Author-Name: Rob Davies
Author-X-Name-First: Rob
Author-X-Name-Last: Davies
Author-Name: Laurence Harris
Author-X-Name-First: Laurence
Author-X-Name-Last: Harris
Title: The impact of capital flow reversal shocks in South Africa: a stock- and-flow-consistent analysis
Abstract:
South Africa has a very well-developed financial sector and high reliance on capital flows. The country saw large capital outflows as the Covid-19 crisis developed, accompanied by a large depreciation of the rand and spikes in bold yields. We employ a stock- and flow-consistent model to study the impact of capital flow reversal shocks on the South African economy. The model includes a richer representation of institutional balance sheets than existing models. The financial sectors behaviour in the model draws on the theoretical frameworks, which highlight the relationship between bank capital, the risk-taking behaviour of the financial sector, lending spreads and economic activity. We specify a dynamic adjustment model of household expectations with properties that differ from the way in which expectations are formed in either stock- and flow-consistent or (DSGE) models. Household expectations resemble bounded rationality. The financial accelerator mechanism operates through the balance sheets of all institutions in the economy. We find that a reversal in capital flows can affect the domestic economy through its impact on domestic liquidity, on the risk-taking behaviour of the financial sector, and on the demand for assets.
Journal: International Review of Applied Economics
Pages: 475-501
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1888897
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1888897
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:475-501
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: I-I
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1934282
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1934282
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:I-I
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Financialisation, industrial strategy and the challenges of climate change and environmental degradation
Abstract:
The paper discusses the nature of the present era of financialisation, outlining the changes in the financial sector and its relations with the real sector which are particularly relevant for the climate emergency. The relationship between growth of the financial sector (‘financial development’) and economic growth is reviewed, and the relevant of recent empirical findings for the role of the financial sector in addressing the climate emergency drawn out. It is argued that the policy approach to the climate emergency and environmental degradation should be embedded within an industrial strategy. Further, it is argued that the structures of the financial sector need to be changed to encourage financial institutions which are more favourably disposed towards to the allocation of funds to ‘green investment’. It is also argued that the central bank should act in ways that are supportive of environmental policies but that their role is a rather limited one.
Journal: International Review of Applied Economics
Pages: 338-354
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1836137
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1836137
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:338-354
Template-Type: ReDIF-Article 1.0
Author-Name: Gary A. Dymski
Author-X-Name-First: Gary A.
Author-X-Name-Last: Dymski
Author-Name: Annina Kaltenbrunner
Author-X-Name-First: Annina
Author-X-Name-Last: Kaltenbrunner
Title: Financial oversight, the third flawed pillar of the European Union: the missing piece in the Arestis-Sawyer critique of EMU macropolicy design
Abstract:
This paper presents a chronological survey of the 20 academic papers that Malcolm authored or co-authored between 1997 and 2017 on the flawed design – and hence flawed implementation – of the European Monetary Union (EMU)’s macroeconomic policy pillars. We augment his analyses by pointing out a third – complementary – design flaw: the EMU’s two-tiered structure of financial regulation and oversight. While this financial pillar aimed at reconciling Europe’s historically bank-based financial systems with large European banks’ entry into global financial competition, it created a combustible mix when combined with the EMU’s macroeconomic-policy pillars. The Global Financial Crisis lit the fire: member-nations, forced to rescue their domestically-chartered too-big-to-fail megabanks, had to adopt austerity policies that both slowed the pace of post-crisis economic growth and eroded support for pro-Union political leaders. Only marginal changes have been made in these policy pillars post-crisis. Consequently, Europe faces a financial bifurcation point: either to continue ‘whatever it takes’ support for its megabanks, or to rethink both its financial architecture and its macroeconomic and financial policy pillars.
Journal: International Review of Applied Economics
Pages: 371-388
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1894657
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1894657
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:371-388
Template-Type: ReDIF-Article 1.0
Author-Name: Isabella Weber
Author-X-Name-First: Isabella
Author-X-Name-Last: Weber
Author-Name: Anwar Shaikh
Author-X-Name-First: Anwar
Author-X-Name-Last: Shaikh
Title: The U.S.–China trade imbalance and the theory of free trade: debunking the currency manipulation argument
Abstract:
The U.S.–China trade imbalance is commonly attributed to a Chinese policy of currency manipulation. However, empirical studies failed to reach consensus on the RMB misalignment. We argue that this is not a consequence of poor measurement but of theory. At the most abstract level the conventional principle of comparative cost advantage suggests real exchange rates will adjust so as to balance trade. Therefore, the persistence of trade imbalances tends to be interpreted as arising from currency manipulation facilitated by foreign exchange interventions. By way of contrast, the absolute cost theory explains trade imbalances as the outcome of free trade among nations that have unequal real costs. We argue that a disparity in real costs is the root cause of the U.S.–China trade imbalance.
Journal: International Review of Applied Economics
Pages: 432-455
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1814221
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1814221
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:432-455
Template-Type: ReDIF-Article 1.0
Author-Name: Hongkil Kim
Author-X-Name-First: Hongkil
Author-X-Name-Last: Kim
Title: Sovereign currency and long-term interest rates
Abstract:
This paper investigates the effects of government debt and deficits on long-term interest rates in 17 advanced economies over the period 1973–2016 from the perspective of currency sovereignty. The empirical findings of this paper suggest the market penalizes non-sovereign nations for the same amount of fiscal deficit with higher interest rates than sovereigns. In addition, non-sovereign countries face accelerating interest rates for an increase in the debt-to-GDP ratio beyond a certain threshold (49% to GDP) while such a pattern is not obvious among sovereign nations. Overall, the results support Modern Monetary Theory (MMT) view that a monetarily sovereign government, as a monopoly issuer of currency, can influence the prices of their liabilities to a significant extent, somewhat independent of existing public debt and market sentiment.
Journal: International Review of Applied Economics
Pages: 577-596
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1908237
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1908237
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:577-596
Template-Type: ReDIF-Article 1.0
Author-Name: Marwil J. Dávila Fernández
Author-X-Name-First: Marwil J.
Author-X-Name-Last: Dávila Fernández
Author-Name: Lionello F. Punzo
Author-X-Name-First: Lionello F.
Author-X-Name-Last: Punzo
Title: Some new insights on financialization and income inequality: evidence for the US economy, 1947–2013
Abstract:
In this article, we study the relationship between income distribution and financialization in the United States between 1947 and 2013. Financialization is introduced as a two-fold process. On the one hand, it implies an increase in the contribution of the financial sector in the composition of production. On the other hand, it is related to an increase in the importance of financial assets in terms of the composition of wealth. We take the share of financial employment as a proxy of the first dimension while, as to wealth composition, we make use of the share of financial assets on corporations’ total assets. Applying cointegration techniques, we identify a positive long-run relationship between financialization and income inequality. Causality goes from employment to income inequality and from the latter to wealth. Nonlinear estimators suggest the existence of certain asymmetric effects such that changes in income distribution cannot be reverted by simply reverting financialization.
Journal: International Review of Applied Economics
Pages: 520-539
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1853684
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853684
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:520-539
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Interpreting the world, in various ways – and changing it
Journal: International Review of Applied Economics
Pages: 626-631
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1918717
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1918717
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:626-631
Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Author-Name: George Joseph
Author-X-Name-First: George
Author-X-Name-Last: Joseph
Title: Determinants of social outreach of microfinance institutions
Abstract:
The paper analyzes the determinants of social outreach of microfinance institutions (MFIs), using three measures of outreach – depth of outreach, breadth of outreach, and outreach to women, and its possible complementarity with financial performance. We use an unbalanced panel of 1,219 MFIs over a period of 20 years to investigate the effect of firm-specific characteristics and the impact of prevailing legal system on social outreach of MFIs. Rejecting the notion of tradeoff between financial performance and social outreach, our empirical results show that better financial performance has a positive association with social outreach. Furthermore, we observe that a common law legal system is more conducive in facilitating social outreach, and MFIs operating under common law legal system achieve better depth of outreach, breadth of outreach, and outreach to women, than MFIs under code law legal system and mixed law legal system. While we had expected nonprofit MFIs to exhibit better social outreach than for profit MFIs, we found empirical evidence of such only in the case of outreach to women. Finally, we find empirical evidence that unregulated MFIs achieve better social outreach than regulated MFIs.
Journal: International Review of Applied Economics
Pages: 540-550
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1907319
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1907319
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:540-550
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Rosenberg
Author-X-Name-First: Samuel
Author-X-Name-Last: Rosenberg
Title: Challenges to neo-liberalism in the United States
Abstract:
With the significant changes in the economy and the society occurring under neo-liberalism as a base, this paper analyzes the extent to which government policies, including federal, state, and local, and labor activism since the Great Recession constitute challenges to neo-liberalism in the United States. It investigates the legacy of neo-liberalism including the ineffective federal governmental response to the COVID-19 economic and health crisis, and the emerging discourse within the Democratic Party calling for a major reorientation of government policy away from neo-liberalism. It concludes by discussing the effects of the neo-liberal agenda on economic well-being and evaluating whether the neo-liberal agenda has been successful in its own terms.
Journal: International Review of Applied Economics
Pages: 407-431
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1844640
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1844640
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:407-431
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: II-II
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1934286
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1934286
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:II-II
Template-Type: ReDIF-Article 1.0
Author-Name: Remzi Baris Tercioglu
Author-X-Name-First: Remzi Baris
Author-X-Name-Last: Tercioglu
Title: Rethinking growth and inequality in the US: what is the role of measurement of GDP?
Abstract:
Five sectors have increased their contribution to US GDP growth since 1973: professional-business services (PBS), finance, information, healthcare, and arts-entertainment. Among these, however, finance, healthcare, and PBS have questionable foundations for being regarded as final consumption of households. Contra published National Income and Product Accounts, treating expenditures on finance, healthcare, and PBS as intermediate consumption reveals a significantly different picture of US economic growth, including i) a deeper slowdown of real output growth since 1973; ii) a more moderate rise in consumption share since 1980; and iii) a sharper decline in labor share, defined as the compensation of employees over GDP since 1985. Through a measurement approach, this paper thus contributes to the literature on secular stagnation and rising inequality in the United States.
Journal: International Review of Applied Economics
Pages: 551-576
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2021.1892038
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1892038
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:551-576
Template-Type: ReDIF-Article 1.0
Author-Name: Pintu Parui
Author-X-Name-First: Pintu
Author-X-Name-Last: Parui
Title: Government expenditure and economic growth: a post-Keynesian analysis
Abstract:
In a post-Keynesian growth model with positive saving propensity out of wages, this paper analyses the implication of different kinds of government expenditures on aggregate demand and economic growth. We distinguish between government expenditure on consumption and investment. The basic idea is that certain kinds of government investment expenditure influences labour productivity. In a formal model, we incorporate this idea by assuming labour productivity as an increasing function of government investment expenditure. When the economy is in a profit-led demand regime, under the balanced budget assumption, we show that a shift in government expenditure from consumption to investment leads to an unambiguous rise in both aggregate demand and economic growth. However, the result is ambiguous in the wage-led demand regime. Once the balanced budget assumption is dropped, while in a wage-led demand regime a rise in government investment expenditure may decrease aggregate demand and growth, it unambiguously raises both aggregate demand and growth in a profit-led demand regime. On the other hand, in the absence of a balanced budget assumption, a rise in government consumption expenditure has a positive effect in both regimes. We also show that allowing the government to run a deficit and incur debt does not necessarily lead to the public debt rising without bounds.
Journal: International Review of Applied Economics
Pages: 597-625
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1837744
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1837744
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:597-625
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolas Passos
Author-X-Name-First: Nikolas
Author-X-Name-Last: Passos
Author-Name: André de Melo Modenesi
Author-X-Name-First: André de Melo
Author-X-Name-Last: Modenesi
Title: Do public banks reduce monetary policy power? Evidence from Brazil based on state dependent local projections (2000–2018)
Abstract:
We test the hypothesis that public banks reduce monetary policy power. Previous studies have shown that companies with access to government-driven credit present smaller fall in investment and production after a contractionary monetary policy shock. Nevertheless, these studies are based on microeconomic data and ignore macroeconomic effects, especially the cost-push effects, of monetary policy. We employ state-dependent local projections to compare monetary policy power – the sensibility of inflation to changes in policy interest rate – between periods of high credit of public banks and periods of high credit of private banks. We do not find evidence that monetary policy is less powerful in periods of high credit of public banks. Even though periods of high credit of public banks present a lower effect over output, those periods present less persistent price puzzles than periods of high private credit. Robustness of results is enhanced by performing several tests. We attribute our results to lower flexibility in interest rates of credit from public banks, what leads to lower transmission in financial costs, lower reduction in capital stock and lower variation in the exchange rate.
Journal: International Review of Applied Economics
Pages: 502-519
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1837745
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1837745
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:502-519
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Title: UK and other advanced economies productivity and income inequality
Abstract:
The focus of this contribution is on weak productivity growth, in the UK and other advanced economies, which has been slowing down ever since around 2000, and on increasing income inequality; both of which have been caused by a number of factors, including ‘secular stagnation’. Actually, recent evidence clearly suggests that labour productivity and income inequality have been closely and significantly related; this is so since there is a strong relationship between productivity, inequality, economic growth and real wages. Productivity growth is the key determinant of how demand can grow without inflation, thereby reducing inequality of income. The slowdown in productivity growth and increase in inequality have been in evidence in the UK and other advanced economies. Indeed, they have become more pronounced following the Global Financial Crisis. It is the case that although weak productivity growth and increased income inequality predate the Global Financial Crisis, and the Great Recession, they have clearly worsened following them.
Journal: International Review of Applied Economics
Pages: 355-370
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1749243
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1749243
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:355-370
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Pollin
Author-X-Name-First: Robert
Author-X-Name-Last: Pollin
Title: The industrial policy requirements for a global climate stabilization project
Abstract:
This paper presents an industrial policy approach for advancing a global climate stabilization project. The centerpieces of the project are 1) dramatically improving energy efficiency standards in the stock of buildings, automobiles and public transportation systems, and industrial production processes; and 2) equally dramatically expanding the supply of clean renewable energy sources – primarily solar and wind power – available at competitive prices. Global investment spending in these areas will need to average about 2.5% of global GDP over 2024–2050 to achieve a net zero CO2 emissions global economy by 2050. The paper works within a policy approach similar to that advanced by Malcolm Sawyer that integrated industrial and macroeconomic policies targeted at achieving full employment.
Journal: International Review of Applied Economics
Pages: 389-406
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1755239
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1755239
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:389-406
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Dünhaupt
Author-X-Name-First: Petra
Author-X-Name-Last: Dünhaupt
Author-Name: Hansjörg Herr
Author-X-Name-First: Hansjörg
Author-X-Name-Last: Herr
Title: Global value chains – a ladder for development?
Abstract:
For countries of the Global South, global value chains offer an opportunity to integrate into international trade and to industrialise relatively easily. However, in this contribution, we argue that this is not sufficient for a catching-up development, i.e. to reach the GDP per capita levels of the countries of the Global North. On the contrary, there is a risk that countries will remain trapped in low value-added activities. The theoretical argument is supported by case studies of four industries in six countries. For catching-up, countries need comprehensive horizontal and vertical industrial policy.
Journal: International Review of Applied Economics
Pages: 456-474
Issue: 3-4
Volume: 35
Year: 2021
Month: 07
X-DOI: 10.1080/02692171.2020.1815665
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1815665
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Handle: RePEc:taf:irapec:v:35:y:2021:i:3-4:p:456-474
Template-Type: ReDIF-Article 1.0
Author-Name: Komla Agudze
Author-X-Name-First: Komla
Author-X-Name-Last: Agudze
Author-Name: Oyakhilome Ibhagui
Author-X-Name-First: Oyakhilome
Author-X-Name-Last: Ibhagui
Title: Inflation and FDI in industrialized and developing economies
Abstract:
This article investigates the effects of inflation on FDI in 74 countries clustered into industrialized and developing economies. Contrary to previous studies, we show that the link between inflation and FDI is nonlinear, with evidence of threshold effects in both industrialized and developing economies. We find that the inflation threshold is about five times higher in developing than industrialized economies. Inflation tends to reduce FDI in industrialized economies after exceeding its threshold whereas in developing economies, its impact on FDI is negative even before exceeding its threshold. We propose that the long-standing evidence of mixed relations between inflation and FDI, which is well documented in the literature, may be explained by the existence of previously ignored threshold effects.
Journal: International Review of Applied Economics
Pages: 749-764
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1853683
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853683
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:749-764
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Fine
Author-X-Name-First: Ben
Author-X-Name-Last: Fine
Author-Name: Pedro Mendes Loureiro
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendes Loureiro
Title: From social choice to inequality-decomposition: in the spirit of Arrow and Atkinson by way of Sen and Shorrocks
Abstract:
This article forges connections between social choice theory and inequality-measurement to deliver a series of advances to the latter. It discusses the ethical and formal aspects connecting the fields, linking the roles played by the intensity of preferences and interpersonal comparability (in social choice) and, respectively, inequality-aversion and interpersonal comparability (in inequality-measurement). This extends naturally to relaxing the assumption of symmetry in group-wise inequality-decompositions, allowing a measure capable of unambiguous decomposition that, overcoming well-known limitations of existing measures, still incorporates different degrees of inequality-aversion through the use of its demonstrated duality with inter-group comparability. The framework is then applied to inequality in Brazil and the changes it underwent between 2003 and 2015, focusing on labour-market incomes of white men and non-white women. We show how sensitive are measures of (changes in) inequality to assumptions regarding the interpersonal comparability of the groups’ income and inequality-aversion, pinpointing the precise trade-offs between the two. The results indicate that, for a reasonable range of parameters, overall inequality changed by between −28.6% and −12.2% over the period. This highlights the analysis of the trade-off between interpersonal comparability and inequality-aversion warrants being addressed explicitly in empirical measurements of, or judgements over, levels and variations of inequality.
Journal: International Review of Applied Economics
Pages: 765-791
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2021.1892039
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1892039
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:765-791
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Oberholzer
Author-X-Name-First: Basil
Author-X-Name-Last: Oberholzer
Title: Long-term development of Kenya’s growth potential
Abstract:
This analysis of balance-of-payments-constrained growth according to Thirlwall’s law shows that Kenya’s growth has been balance-of-payments-constrained in the long term. The basic version of the law does not fit the data since actual growth was above the rate suggested by a balanced trade account. However, the extended version is confirmed because of a partial improvement of Kenya’s terms of trade and capital inflows resulting in the accumulation of foreign debt allowed for a higher growth rate. By endogenously identifying structural breaks in Kenya’s growth history and testing Thirlwall’s law for the respective subperiods, an increase of the growth potential since the 1980s is observed. However, this development went along with a shift in economic activity from agriculture and manufacturing to services and construction while the informal sector multiplied in size. The results thus suggest that the external constraint was not relaxed by the development of productive capacity but by stagnating or even falling incomes and precarization in the labor market, which restricted imports. Therefore, the surge in growth since the beginning of the 21st century has involved an increasing trade deficit and growing external debt.
Journal: International Review of Applied Economics
Pages: 729-748
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1853076
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853076
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:729-748
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Economic theory, practice, and policy – and the prescience of Frank Wilkinson and Vishnu Padayachee
Journal: International Review of Applied Economics
Pages: 633-636
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2021.1976477
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1976477
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:633-636
Template-Type: ReDIF-Article 1.0
Author-Name: Mohd Hussain Kunroo
Author-X-Name-First: Mohd Hussain
Author-X-Name-Last: Kunroo
Author-Name: M. Absar Alam
Author-X-Name-First: M. Absar
Author-X-Name-Last: Alam
Title: Rail versus inland water transport: a comparative costs study based on the movement of coal in India
Abstract:
This paper makes an attempt to fill some of the gaps present in the literature related to various modes of transport in India. It presents a comparative cost study of rail and Inland Water Transport (IWT) in the Indian context. The case of railway transport is based on the existing construction and operation norms of Indian Railways. In contrast, IWT cost parameters are based on discussions with manufacturers of barges in India and operators of barges carrying coal for Frakka Thermal Power Plant in the Ganges. The estimated results suggest that water ways in India have a comparative advantage over the rail in terms of capital costs (including its various components), climate change cost of environmental costs and social (health and accident) costs as these costs are much lower in case of IWT as compared to railways. However, IWT has no comparative advantage in operation. Estimates indicate that operation and maintenance cost of railways with electric traction is lower than that of IWT mainly because of less fuel consumption. All this indicates that there is a need to develop given waterways and introduce efficient barges in water transport so that it can compete with other modes of transport like Railways. In fact, IWT has characteristics to facilitate a system that meets the requirement of an efficient and sustainable transport system which is cost-effective in operation when compared with railways.
Journal: International Review of Applied Economics
Pages: 637-658
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1837082
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1837082
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:637-658
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Carrera
Author-X-Name-First: Jorge
Author-X-Name-Last: Carrera
Author-Name: Pablo de la Vega
Author-X-Name-First: Pablo
Author-X-Name-Last: de la Vega
Title: The non-linear effect of inequality on investment
Abstract:
We fill a gap in the literature on the investment determinants that do not take into account distributive issues, estimating the effect of income inequality on investment based on a heterogeneous panel of 95 countries from 1990 to 2015. Additionally, we (i) control for a wide set of control variables, contrasting different theoretical approaches, including trade and financial globalization; (ii) analyze advanced and developing countries; and (iii) test for a possible non-linear relationship between inequality and investment. Unlike the Kuznets curve, which fades in data panels, we find a significant and non-linear (‘U-shaped’) relationship between inequality and investment even when controlling for the panel dimension. At low levels of initial inequality, the relationship is negative; at high levels of initial inequality, the relationship is positive. A possible explanation for our results lies in the interaction between inequality, the productive matrix and international integration.
Journal: International Review of Applied Economics
Pages: 684-713
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1849043
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1849043
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:684-713
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Gibson
Author-X-Name-First: Bill
Author-X-Name-Last: Gibson
Author-Name: Diane Flaherty
Author-X-Name-First: Diane
Author-X-Name-Last: Flaherty
Title: Modeling functional and juridical informality: a guide for data-driven policy
Abstract:
This paper reviews a methodology for integrating the informal sector into social accounting matrices and a simple computable general equilibrium model. The model distinguishes informality according to whether the presence of the informal sector is due to capital limitations, functional informality, versus juridical informality, which may arise as an illegal or quasi-legal competitive strategy that runs the risk of state sanctions. The goal is to offer policymakers some perspectives on how the informal sector could be incorporated into the economy without first repressing it in a way that inhibits its transformation.
Journal: International Review of Applied Economics
Pages: 659-683
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1849042
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1849042
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:659-683
Template-Type: ReDIF-Article 1.0
Author-Name: Peterson K. Ozili
Author-X-Name-First: Peterson K.
Author-X-Name-Last: Ozili
Title: Economic policy uncertainty: are there regional and country correlations?
Abstract:
This study examines the correlation of economic policy uncertainty (EPU) across countries and regions. Using correlation analysis, the findings reveal that some countries have a positive EPU correlation while other countries have a negative EPU correlation. The economic policy uncertainty index is positively correlated and jointly significant for EU member-countries. There is evidence of cross-regional positive correlation. Also, the EPU correlations are significant for Europe, non-EU countries and the region of the Americas during the global financial crisis, which suggest that financial crises are a contributory factor that drives the correlation of economic policy uncertainty in certain regions.
Journal: International Review of Applied Economics
Pages: 714-728
Issue: 5
Volume: 35
Year: 2021
Month: 09
X-DOI: 10.1080/02692171.2020.1853075
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1853075
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Handle: RePEc:taf:irapec:v:35:y:2021:i:5:p:714-728
Template-Type: ReDIF-Article 1.0
Author-Name: Deepak Kumar Behera
Author-X-Name-First: Deepak Kumar
Author-X-Name-Last: Behera
Author-Name: Maryam Sabreen
Author-X-Name-First: Maryam
Author-X-Name-Last: Sabreen
Author-Name: Deepika Sharma
Author-X-Name-First: Deepika
Author-X-Name-Last: Sharma
Title: The impact of COVID-19 on the Indian economy
Abstract:
This paper estimates the loss of output and employment for the Indian economy over the financial year 2020–21 as a result of the COVID-19 pandemic. Using a capacity utilization ratio method, we estimate that the countrywide lockdown disrupted both demand and supply, with a loss of GVA for 2020–21 of 1.7% under an optimistic approach, and a fall in employment of 0.34%, with a loss of 1.56 million jobs. The pessimistic approach suggests a fall in GVA of almost 10%, with employment falling by 7.6%, and around 35.4 million jobs lost in 2020–21. Future growth will depend on the duration of the containment measures, the exit strategy from the lockdown, and the success of the policy responses in restoring business and consumer confidence, by increasing aggregate demand through fiscal expansion to foster investment and employment.
Journal: International Review of Applied Economics
Pages: 870-885
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1962815
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1962815
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:870-885
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Maura Sheehan
Author-X-Name-First: Maura
Author-X-Name-Last: Sheehan
Title: The ‘Great Reset’ to tackle Covid-19 and other crises
Journal: International Review of Applied Economics
Pages: 793-795
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1999690
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1999690
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:793-795
Template-Type: ReDIF-Article 1.0
Author-Name: Christa D. Court
Author-X-Name-First: Christa D.
Author-X-Name-Last: Court
Author-Name: João-Pedro Ferreira
Author-X-Name-First: João-Pedro
Author-X-Name-Last: Ferreira
Author-Name: Geoffrey J.D. Hewings
Author-X-Name-First: Geoffrey J.D.
Author-X-Name-Last: Hewings
Author-Name: Michael L. Lahr
Author-X-Name-First: Michael L.
Author-X-Name-Last: Lahr
Title: Accounting for global value chains: rising global inequality in the wake of COVID-19?
Abstract:
Production processes depend on fragmented and interdependent value chains; nowadays, a single product often includes components produced in dozens of countries. Many public health measures being implemented to prevent the spread of COVID-19 have dampened economic activity of ‘non-essential’ sectors. The decreased production affects other industries and countries that supply parts, machinery, and services via global value chains. Using the World Input-Output Database, we show how a hypothetical decline in the worldwide consumption of a set of non-essential sectors affects the global distribution of GDP and employment. While richer countries consume relatively more non-essential goods and services, we find, by considering the interdependencies among developed and developing economies, that low-income countries are likely to suffer steeper declines in their GDP and employment. Specifically, for each 1% decline in the demand for non-essential products, the GINI index across nations is expected to rise by 0.3%. That is, global inequality is likely to rise, contradicting some earlier findings. Finally, we show that economies with less-diverse sets of industries are more vulnerable to such global shocks. This study highlights the role of value chains in analyzing the spatial spread of the impacts and their contribution to amplifying world imbalances.
Journal: International Review of Applied Economics
Pages: 813-831
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1912716
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1912716
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:813-831
Template-Type: ReDIF-Article 1.0
Author-Name: Hee-Young Shin
Author-X-Name-First: Hee-Young
Author-X-Name-Last: Shin
Title: The Korean government’s public health responses to the COVID-19 epidemic through the lens of industrial policy
Abstract:
The paper explores the idea that the success of the Korean government’s non-pharmaceutical interventions in response to the COVID-19 epidemic can be better understood through the lens of industrial policy framework than many descriptive public policy literatures that have merely focused on administrative efficiency. It is emphasized in this paper that the Korean government has maintained sustained R&D support, tax subsidy, and various forms of public–private partnerships to help nurture and grow domestic infant industry in such strategic industrial areas as information-communication technology, biotechnology and health care, and pharmaceutical industry for a long time, and this soft industrial policy has enabled the public health authority to implement a series of successful non-pharmaceutical public health measures to suppress and mitigate the spread of the novel coronavirus.
Journal: International Review of Applied Economics
Pages: 851-869
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1954145
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1954145
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:851-869
Template-Type: ReDIF-Article 1.0
Author-Name: Mahua Barari
Author-X-Name-First: Mahua
Author-X-Name-Last: Barari
Author-Name: Srikanta Kundu
Author-X-Name-First: Srikanta
Author-X-Name-Last: Kundu
Author-Name: Saibal Mitra
Author-X-Name-First: Saibal
Author-X-Name-Last: Mitra
Title: An empirical analysis of COVID-19 response: comparison of US with the G7
Abstract:
We compare the US policy response to COVID-19 with its G7 counterparts between March and September 2020. The G7 countries, while economically and ideologically aligned, have instituted vastly different policies to mitigate the spread of the disease with varying degrees of compliance. To quantify the effect of policy responses on the spread of infections, we estimate beta for each country which is the slope coefficient of daily new cases in each country regressed against world new cases. First, we test for structural breaks in daily data for world new cases using the Bai Perron method which endogenously determines break points. We obtain five break dates that allow us to divide the time period into six windows and estimate betas separately for each window. Next, we rank the G7 countries based on their beta values for each window. Our empirical findings suggest that countries that eased their lockdown measures moderately while enforcing nationwide mask mandate and comprehensive contact tracing generally performed better in mitigating the spread of new infections. Furthermore, countries with higher degree of compliance saw improvement in their rankings. US was ranked mostly in the bottom half of the G7 group but not always the worst.
Journal: International Review of Applied Economics
Pages: 886-903
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1965100
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1965100
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:886-903
Template-Type: ReDIF-Article 1.0
Author-Name: Pinaki Das
Author-X-Name-First: Pinaki
Author-X-Name-Last: Das
Author-Name: Santanu Bisai
Author-X-Name-First: Santanu
Author-X-Name-Last: Bisai
Author-Name: Sudeshna Ghosh
Author-X-Name-First: Sudeshna
Author-X-Name-Last: Ghosh
Title: Impact of pandemics on income inequality: lessons from the past
Abstract:
This paper examines how past pandemics impacted income inequality measured through the Gini measure of inequality net of taxes. It explores how five major pandemics, namely, SARS in 2003, H1N1 in 2009, MERS in 2012, Ebola in 2014, and Zika in 2016 impacted the distribution of income across high income, upper-middle-income and lower-middle-income countries. How the inequality across quintiles share in income is impacted was explored. We used comprehensive panel data sets covering annual observations from 1995 to 2017 for 70 countries. The generalized least square estimation shows that the pandemics have a statistically significant positive impact upon income inequality particularly for the high-income group and also for the entire set of 70 countries. However, the impact of the pandemics is negative upon the upper-middle-income group of countries. The estimation is robust controlling for additional macroeconomic variables. The study demonstrates that past pandemics may generate a policy response that impacts the distribution of income. A weakened role of the state has been responsible for worsening inequality.
Journal: International Review of Applied Economics
Pages: 832-850
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1921712
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1921712
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:832-850
Template-Type: ReDIF-Article 1.0
Author-Name: Himadri Shekhar Chakrabarty
Author-X-Name-First: Himadri Shekhar
Author-X-Name-Last: Chakrabarty
Author-Name: Partha Ray
Author-X-Name-First: Partha
Author-X-Name-Last: Ray
Author-Name: Parthapratim Pal
Author-X-Name-First: Parthapratim
Author-X-Name-Last: Pal
Title: The Covid-19 pandemic and economic stimulus in India: has it been a hostage of macroeconomic complications?
Abstract:
This paper analyzes the efficacy and skepticism surrounding the economic stimulus package announced by the Indian authorities in response to the Covid-19 pandemic in 2020. While the end of the pandemic is yet to be on the horizon, countries across the world have been undertaking economic stimulus packages of varied nature, depth, and quantum. A scrutiny of these packages show that India has been cautious in formulating policy measures and balancing inter-temporal objectives. The disaggregated economic stimulus package in India belies the justification of it being an adequate stimulus in managing the mammoth crisis, especially when the authorities had resorted to more deferred spending measures while the need of the hour was direct fiscal spending. Specifically, this study argues that the causes behind the fiscal conservativeness might be linked to India’s twin deficits in the fiscal and current account fronts, along with the fear of a potential capital flight and a possible adverse response by the foreign investors.
Journal: International Review of Applied Economics
Pages: 796-812
Issue: 6
Volume: 35
Year: 2021
Month: 11
X-DOI: 10.1080/02692171.2021.1905786
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1905786
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Handle: RePEc:taf:irapec:v:35:y:2021:i:6:p:796-812
Template-Type: ReDIF-Article 1.0
Author-Name: R Ippoliti
Author-X-Name-First: R
Author-X-Name-Last: Ippoliti
Author-Name: A. Sanders
Author-X-Name-First: A.
Author-X-Name-Last: Sanders
Title: The demand for civil justice in Germany: an empirical investigation
Abstract:
The demand for civil justice in Germany has shrunk over the last decades, although we can observe a high level of heterogeneity, with increasing and decreasing trends depending on specific case matters. The present work investigates this phenomenon, analyzing the aggregate demand for civil justice between 2008 and 2017 at the regional level, and focusing on the courts. We study the propensity of individuals to pursue justice according to the current economic, judicial and socio-cultural environments. We identify a statistically significant negative relation between economic development and the aggregate demand for civil justice, i.e., we cannot reject the hypothesis that the so-called ‘forgiving’ behavior might be predominant among the explored dynamics. However, considering the judicial environment, it emerges that judicial performance might discourage people from submitting cases to courts, lending strength to a different hypothesis, i.e., an increase in the use of alternative methods of dispute resolution on the private market of legal services. Finally, looking at socio-cultural dynamics, the authors observe statistically significant differences between the demand for justice in the West and the East of Germany.
Journal: International Review of Applied Economics
Pages: 67-84
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1888896
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1888896
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:67-84
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Challenges for economic policy
Journal: International Review of Applied Economics
Pages: 1-3
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2022.2037346
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2037346
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:1-3
Template-Type: ReDIF-Article 1.0
Author-Name: Sébastien Charles
Author-X-Name-First: Sébastien
Author-X-Name-Last: Charles
Title: On the long-run relationship between immigration and growth: empirical evidence from European countries
Abstract:
This paper has a main ambition. It evaluates the impact of immigration on GDP per worker for ten European countries in order to fill the gap with numerous studies focusing on variables other than growth (wages, unemployment, innovation or public finances). We show that there is no obvious relationship between growth and immigration for a majority of economies. It is only when we allow for the possibility of structural breaks that we find the existence of cointegration between the two variables for six countries. Moreover, our results suggest that the impact of immigration remains rather modest on average.
Journal: International Review of Applied Economics
Pages: 51-66
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2020.1865285
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1865285
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:51-66
Template-Type: ReDIF-Article 1.0
Author-Name: Chokri Zehri
Author-X-Name-First: Chokri
Author-X-Name-Last: Zehri
Title: Buffering monetary and exchange rate shocks: are capital controls effective?
Abstract:
We demonstrate that capital controls can considerably mitigate the effects of monetary and exchange rate shocks and reduce the volatility of capital inflows to emerging countries. This study analyzed quarterly data of 32 emerging economies over the period between 2000 and 2019, and proposes two methods to identify capital control actions. Using panel analysis, Autoregressive Distributed Lag (ARDL), and local projections approaches, this study found that tighter capital controls may diminish monetary and exchange rate shocks and reduce capital inflows volatility. Furthermore, capital controls respond anti-cyclically to monetary shocks. Under capital controls, countries with floating exchange rate regimes have more potential to buffer monetary shocks. We also found that capital controls on inflows are more effective for lowering the volatility of capital inflows compared to capital controls on outflows.
Journal: International Review of Applied Economics
Pages: 102-128
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1908238
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1908238
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:102-128
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ofoe Chachu
Author-X-Name-First: Daniel Ofoe
Author-X-Name-Last: Chachu
Author-Name: Edward Nketiah-Amponsah
Author-X-Name-First: Edward
Author-X-Name-Last: Nketiah-Amponsah
Title: The Fiscal resource curse: What’s China’s natural resource appetite got to do with it?
Journal: International Review of Applied Economics
Pages: 129-146
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1942438
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1942438
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:129-146
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Philip B. Whyman
Author-X-Name-First: Philip B.
Author-X-Name-Last: Whyman
Author-Name: Ruth Yeoman
Author-X-Name-First: Ruth
Author-X-Name-Last: Yeoman
Title: Call for papers for a special issue on economic policy in an era of crises and uncertainty – tackling global inequality and financial instability, building forward post-covid, and securing net zero
Journal: International Review of Applied Economics
Pages: 147-148
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2022.2014166
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2014166
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:147-148
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Fernando Ferrari-Filho
Author-X-Name-First: Fernando
Author-X-Name-Last: Ferrari-Filho
Author-Name: Marco Flávio da Cunha Resende
Author-X-Name-First: Marco Flávio da Cunha
Author-X-Name-Last: Resende
Author-Name: Fábio Henrique Bittes Terra
Author-X-Name-First: Fábio Henrique
Author-X-Name-Last: Bittes Terra
Title: A critical analysis of the Brazilian ‘expansionary fiscal austerity’: why did it fail to ensure economic growth and structural development?
Abstract:
This paper discusses the Brazilian economy since 2015. After an economic boom from 2005 to 2011, Brazil entered a downturn, which resulted in a strong recession in 2015 and 2016. The Economic Authorities understood that the cause of the crisis was due to an expansionary economic policy undertaken over the period 2009–2014; thereby the solution for the recession would be quite the opposite: fiscal austerity and tight monetary policy. However, the restrictive economic policies did not grant growth: Brazil grew a little bit more than 1.0% on average over 2017–2019. It was this stagnated Brazil that the Covid-19 pandemic met, turning it worse than what had already been bad. In view of that, we explain why the ‘expansionary fiscal austerity’ failed to furnish growth and debate what should be undertaken to ensure a sustainable economic activity and structural development.
Journal: International Review of Applied Economics
Pages: 4-16
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1893667
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1893667
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:4-16
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Aguirre
Author-X-Name-First: Emilio
Author-X-Name-Last: Aguirre
Author-Name: Pablo Blanchard
Author-X-Name-First: Pablo
Author-X-Name-Last: Blanchard
Author-Name: Fernando Borraz
Author-X-Name-First: Fernando
Author-X-Name-Last: Borraz
Author-Name: Joaquín Saldain
Author-X-Name-First: Joaquín
Author-X-Name-Last: Saldain
Title: Prices and competition: evidence from a social program
Abstract:
We use a micro price dataset for products defined at the universal product code level to analyze the impact on prices of a social program in Uruguay that allows its beneficiaries to purchase food, beverages, and cleaning items exclusively in certain small retailers. We find that an unintended negative consequence is that the beneficiaries pay significantly higher prices to other retailers. We find this result for the whole country except for areas with the highest retailer density in Montevideo’s capital city. We also do not find evidence of price discrimination of stores against program beneficiaries. The participant stores charge the same price to beneficiaries and other customers. For an overall assessment of the program, we find that an unintended consequence of it was a price increase for all customers in capital cities that increased the cost of the program.
Journal: International Review of Applied Economics
Pages: 85-101
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1905785
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1905785
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:85-101
Template-Type: ReDIF-Article 1.0
Author-Name: G Pantelopoulos
Author-X-Name-First: G
Author-X-Name-Last: Pantelopoulos
Title: Managed exchange rate regimes and monetary independence: an empirical appraisal
Abstract:
Under the impossible trinity, it is alleged that attempts to maintain both monetary independence and an undervalued domestic exchange rate whilst being exposed to global capital flows will culminate in macroeconomic instability. To analyse the validity of the impossible trinity in the instance of a balance of payments surplus, we first employ a number of ARDL models to investigate the potential presence of co-integration between foreign reserves and several variables on the balance sheet of the Central Bank. A VECM is then used to exemplify the fact that policymakers must respond to an increase in foreign reserves so as to steer the interbank rate to the policy rate. In total, we argue that in the case of a balance of payment surplus (i) it is problematic to validate the existence of a transmission mechanism between foreign reserve accumulation and inflation; (ii) economies with heavily managed exchange rates appear to have achieved monetary independence whilst remaining open to global capital flows; and finally, (iii) since the four Central Banks examined target an overnight rate, rather than any form of monetary aggregate, ‘exogenous’ sterilisation initiatives are involuntary.
Journal: International Review of Applied Economics
Pages: 17-50
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2020.1864298
File-URL: http://hdl.handle.net/10.1080/02692171.2020.1864298
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Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: 149-149
Issue: 1
Volume: 36
Year: 2022
Month: 01
X-DOI: 10.1080/02692171.2021.1940487
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1940487
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Handle: RePEc:taf:irapec:v:36:y:2022:i:1:p:149-149
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Kemoe
Author-X-Name-First: Laurent
Author-X-Name-Last: Kemoe
Author-Name: Emmanuel K.K. Lartey
Author-X-Name-First: Emmanuel K.K.
Author-X-Name-Last: Lartey
Title: Public debt, institutional quality and growth in sub-Saharan Africa: a threshold analysis
Abstract:
Using data for 44 sub-Saharan African countries, this study analyzes the effect of public debt on economic growth and assesses whether institutional quality matters for this effect. The results indicate that, while an increase in public debt has a negative impact on economic growth, this effect is dampened when there is an increase in the quality of institutions as captured by an anti-corruption perception indicator or a government effectiveness indicator. Further, the findings indicate that there is a level of institutional quality above which the effect of an increase in public debt on growth is positive. Ergo, a decline in corruption as well as the perception effect that it engenders, and an improvement in the quality of policymaking should eliminate some of the inefficiencies characteristic of governments in the sub-region and facilitate a positive impact of debt on growth.
Journal: International Review of Applied Economics
Pages: 222-244
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1957785
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1957785
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:222-244
Template-Type: ReDIF-Article 1.0
Author-Name: Françoise Okah Efogo
Author-X-Name-First: Françoise
Author-X-Name-Last: Okah Efogo
Author-Name: Kwami Ossadzifo Wonyra
Author-X-Name-First: Kwami Ossadzifo
Author-X-Name-Last: Wonyra
Author-Name: Evans Osabuohien
Author-X-Name-First: Evans
Author-X-Name-Last: Osabuohien
Title: Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade
Abstract:
This study investigates how foreign direct investment (FDI) affects the participation of developing countries in global value chains (GVCs). This inquiry is crucial as FDI is seen, at least theoretically, as a means of expediting developing countries’ participation in GVCs in some ways. It provides empirical evidence of this nexus between FDI and GVC using a dynamic panel data model including 43 developing countries (2010–2019). Our results show, among other things, that FDI has a significantly positive effect on the participation of developing countries in GVCs. This is found to be the case regardless of whether the FDI is in the primary, secondary or tertiary sector. However, to benefit fully requires policymakers to strengthen the absorptive capacity of the local labour force (productivity and education level).
Journal: International Review of Applied Economics
Pages: 264-284
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1962255
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1962255
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:264-284
Template-Type: ReDIF-Article 1.0
Author-Name: Guivis Nkemgha
Author-X-Name-First: Guivis
Author-X-Name-Last: Nkemgha
Author-Name: Symphorin Engone Mve
Author-X-Name-First: Symphorin
Author-X-Name-Last: Engone Mve
Author-Name: Hermine Balouki Mikala
Author-X-Name-First: Hermine
Author-X-Name-Last: Balouki Mikala
Author-Name: Honoré Tékam
Author-X-Name-First: Honoré
Author-X-Name-Last: Tékam
Title: Linking natural resource dependence and industrialization in sub-Saharan African countries
Abstract:
Despite the growing literature on natural resources, little is known about the effect of natural resources on industrialization, particularly in sub-Saharan African countries. The aim of this paper is to fill this gap by assessing how natural ressources affect the industrialization process in 27 sub-Saharan African countries over the period 2000–2016. To carry out our investigation, we used several estimation methods including Ordinary Least Squares (OLS), Fixed Effect (FE) and Generalized Moments Methods (GMM). The results show that there is a negative relationship between natural resource dependence and industrialization. A U-shaped relationship between natural resource dependence and industrialization is established. Furthermore, the disaggregation of natural resource rents shows that while oil rent, gas rent and mineral rent hamper the industrialization process, the effect of forest rent and coal rent on the industrialization is positive. Finally, we show that governance plays an important role in mitigating the negative impact of natural resources on industrialization. Thus, governance can be an effective way to break the resource curse in sub-Saharan African countries.
Journal: International Review of Applied Economics
Pages: 245-263
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1957786
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1957786
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:245-263
Template-Type: ReDIF-Article 1.0
Author-Name: Shivalik Singh
Author-X-Name-First: Shivalik
Author-X-Name-Last: Singh
Author-Name: M. H. Bala Subrahmanya
Author-X-Name-First: M. H. Bala
Author-X-Name-Last: Subrahmanya
Title: Quantum of finance obtained by tech startups over the lifecycle: an analysis of its determinants
Abstract:
The needs of tech startups for finance over the lifecycle vary from stage to stage. At the same time, the ability of a startup to obtain the required amounts of finance at different stages of its lifecycle will depend both on internal factors, and on accessible sources of finance. This study investigates the factors which enable a tech startup to obtain finance over its lifecycle based on data gathered through a semi-structured questionnaire and in-depth interviews with the founders/CEOs of 93 tech startups in Bangalore. Our results indicate that the total amount of finance a tech startup raises is significantly influenced both by the characteristics of an entrepreneur, and the growth metrics of the tech startup. Furthermore, our findings suggest that the type of financial sources influences the total quantum of finance a startup obtains at a particular stage in its lifecycle.
Journal: International Review of Applied Economics
Pages: 187-204
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1945549
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1945549
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:187-204
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: This changes everything
Journal: International Review of Applied Economics
Pages: 151-153
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2022.2064604
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2064604
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:151-153
Template-Type: ReDIF-Article 1.0
Author-Name: Atm Sayfuddin
Author-X-Name-First: Atm
Author-X-Name-Last: Sayfuddin
Title: When green practices affect business performance: an investigation into California’s hotel industry
Abstract:
Previous studies suggest there are financial benefits of environmentally friendly business practices. However, a firm’s decision to adopt green initiatives is endogenous. This study attempts to correct for endogeneity bias and uses a novel data set to examine the impact of green practices on business performance in the lodging industry. Findings based on multiple empirical specifications indicate that a hotel’s location plays a determining role in the effect of going green on its performance (e.g. occupancy rate, price, and revenue). Green hotels in resorts and small towns command price and revenue premiums but have no impact on occupancy rates. Further investigation reveals that hotels in less popular cities enjoy the most benefit from becoming green.
Journal: International Review of Applied Economics
Pages: 154-186
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1957784
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1957784
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:154-186
Template-Type: ReDIF-Article 1.0
Author-Name: Seenaiah Kale
Author-X-Name-First: Seenaiah
Author-X-Name-Last: Kale
Title: The influence of non-R&D channels on innovation in a developing economy: an empirical analysis in the context of India
Abstract:
This study investigates the capability of innovation in India from a neo-Schumpeterian perspective, mainly focusing on the non-R&D aspects. We choose this focus for three reasons: (i) Based on our exploratory analysis, the investigation of innovation needs to go beyond the R&D effort (of manufacturing firms); (ii) R&D outlays alone may not fully explain innovation, particularly in resource-scare transition economies like India; and, (iii) Motivated by the theoretical underpinnings of the neo-Schumpeterian literature highlighting the process of interaction that enable the nurturing of innovation capabilities through national innovation system (NIS). Using Indian data from 1981 to 2017, of the non-R&D aspects of inputs, such as human capital, financial capital as internal factors; openness, FDI, and remittances as external factors. Estimated results from the cointegration analysis indicate that human capital and remittances are significant, but FDI has little impact, and openness (in terms of exports and imports) has an insignificant effect on innovation.
Journal: International Review of Applied Economics
Pages: 205-221
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2021.1951682
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1951682
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:205-221
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Obeng-Odoom
Author-X-Name-First: Franklin
Author-X-Name-Last: Obeng-Odoom
Title: Industrial policy, economic theory, and ecological planning
Abstract:
The resurgence of interest in industrial policy in both development economics and urban studies requires reflection. To learn lessons about the past and avoid potential problems about the future, our present actions must be informed by both our past experience and our expectations of the future. One way to do so is to review and ponder key studies in industrial policy. While research on the empirical consequences of industrial policy is quite advanced, theorising industrial policy across and within schools of economic thought requires more work. Within this gap, the neglect of land in theories of industrial policy is particularly conspicuous and serious.
Journal: International Review of Applied Economics
Pages: 285-290
Issue: 2
Volume: 36
Year: 2022
Month: 03
X-DOI: 10.1080/02692171.2022.2026301
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2026301
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Handle: RePEc:taf:irapec:v:36:y:2022:i:2:p:285-290
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# input file: CIRA_A_2090521_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Beniamino Pisicoli
Author-X-Name-First: Beniamino
Author-X-Name-Last: Pisicoli
Title: Banking diversity, financial complexity and resilience to financial shocks: evidence from Italian provinces
Abstract:
In this paper, we investigate the influence of banking and financial diversity on stability. We compute an index of banking diversity for Italian provinces and, drawing on network theory, we propose a measure of the diversity and development of the overall provincial financial sector. Our results show that diversity in the banking and financial markets promotes greater stability. Such beneficial effects are particularly evident during periods of financial distress. We ascribe our findings to the better diversification achieved by more diverse financial systems, as documented by lower loan concentration and higher loan diversification in terms of economic destination and borrower category.
Journal: International Review of Applied Economics
Pages: 338-402
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2090521
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2090521
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Handle: RePEc:taf:irapec:v:36:y:2022:i:3:p:338-402
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Author-Name: The Editors
Title: Correction Notice
Journal: International Review of Applied Economics
Pages: iii-iii
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2106708
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2106708
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# input file: CIRA_A_2052714_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Costas Lapavitsas
Author-X-Name-First: Costas
Author-X-Name-Last: Lapavitsas
Author-Name: Aylin Soydan
Author-X-Name-First: Aylin
Author-X-Name-Last: Soydan
Title: Financialisation in developing countries: approaches, concepts, and metrics
Abstract:
Financialisation in developing countries is the subject of an expanding literature but its characteristic features and its relationship to developed countries remain unclear. Reviewing the literature, this paper shows that financialisation in developing countries should be distinguished from financial liberalisation and financial globalisation. Furthermore, its character is partly derivative from financialisation in developed countries, as is confirmed by two theoretical approaches, related but different from each other, namely ‘subordinate’ and ‘dependent’ financialisation. By further reviewing the empirical literature, the paper also shows that financialisation in developing countries is highly variable and different from that in developed countries regarding the conduct of non-financial enterprises, banks, and households. Moreover, the literature addresses several sources of vulnerability for developing countries relating to financialisation. Finally, there are significant literature gaps, above all, the connection between financialisation and the globalisation of production as well as the role of the state.
Journal: International Review of Applied Economics
Pages: 424-447
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2052714
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2052714
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Handle: RePEc:taf:irapec:v:36:y:2022:i:3:p:424-447
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# input file: CIRA_A_2092321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Economists former UK-regulators
Author-X-Name-First: Economists
Author-X-Name-Last: former UK-regulators
Title: Economists’ competitiveness letter
Journal: International Review of Applied Economics
Pages: 302-307
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2092321
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2092321
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# input file: CIRA_A_2090522_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Christine Oughton
Author-X-Name-First: Christine
Author-X-Name-Last: Oughton
Title: Measuring corporate diversity in financial services: a diversity index
Abstract:
This paper provides a measure of corporate diversity in financial services. Our index is based on four components: ownership; competitiveness; balance sheet structure/resilience; and geographic spread. The first of these sub-indexes measures ownership diversity based on the Berry index of diversification and the Gini-Simpson index of biodiversity. It captures the extent of diversity in ownership types – for the UK, banks, mutuals, and the government owned National Savings & Investment – where each of these have different objectives, creating diversity in behaviour. Our second sub-index captures the extent of competition, and is based on the inverse of the Hirschmann-Herfindahl index of concentration. Our third sub-index measures diversity in balance sheet structures and resilience across the financial sector. Our final sub-index captures the extent of geographic spread and the regional concentration of financial services. These indicators are combined into a single index – the D-Index – that measures diversity in financial services. The D-Index shows a marked decline in the run-up to the 2007–2009 financial crisis, followed by further falls during 2008 and 2009. Since then, the index has remained more or less flat. We are no closer to creating the conditions – of diversity – to avoid a repeat of the 2007-2009 global financial crisis.
Journal: International Review of Applied Economics
Pages: 308-337
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2090522
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2090522
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# input file: CIRA_A_2093339_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Mariana Mortágua
Author-X-Name-First: Mariana
Author-X-Name-Last: Mortágua
Author-Name: Izaura Solipa
Author-X-Name-First: Izaura
Author-X-Name-Last: Solipa
Title: Reviving financial markets – a critical assessment of the single resolution mechanism
Abstract:
The creation of the Banking Union, set to be an integrated financial framework for the Eurozone, should be better understood as part of a larger process of governing through financial markets, where policy-makers resort to market-based instruments and policies for governance purposes, thus forming an alignment with the interests of financial elites. This paper assesses the Single Resolution Mechanism and highlights overlooked aspects of its design and decision-making process that are actively strengthening and further integrating market-based finance in the European banking system. The resolution framework and its underlying conditionalities imposed by the limited public intervention toolkit and the European State Aid regime are promoting banking capital concentration and the marketization of more traditional banking systems. Meanwhile, the discretionary decisions imposed by the European technocratic body reinforces the integration agenda, with often detrimental effects for the member states of the Southern Periphery. While the Banking Union has the overall goal of financial stability and increased convergence between member states, the outcomes of the Single Resolution Mechanism point to an increase in market-based finance and riskier business models at the expense of smaller and more traditional banking systems, fostering too-big-to-fail institutions and further deepening the already rooted intra-euro divergences.
Journal: International Review of Applied Economics
Pages: 403-423
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2093339
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2093339
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Author-Name: Ekaterina Bryleva
Author-X-Name-First: Ekaterina
Author-X-Name-Last: Bryleva
Author-Name: Ivan Rozmainsky
Author-X-Name-First: Ivan
Author-X-Name-Last: Rozmainsky
Title: The non-financial private firms’ sector of Spain in 2011 – 2017: the financial fragility hypothesis-based analysis
Abstract:
The paper analyzes the financial relations of non-financial private sector firms in Spain based on the financial instability hypothesis developed by Hyman Philip Minsky. We suppose that in the private sector of the Spanish economy after the 2008–2013 crisis there was an increase in the number of firms characterized by the hedge regime of financing. We test this hypothesis using the 2011–2017 data for 163 Spanish private non-financial companies from Thomson Reuters. Three indices were constructed according to three methodologies that distinguish firms as hedge, speculative and Ponzi, in order to determine the degree of financial fragility of the private sector of the Spanish economy. The results showed that the economy of Spain in 2011–2017 was in the process of escaping from financial fragility. This occurred despite austerity policies. Such policies diminish economic activity, in general, and the flow of business profits in particular. It makes it difficult to escape from a fragile financial position. Nevertheless, in the case of Spain, the negative consequences of austerity policies were offset by other government measures, tourism and export diversification.
Journal: International Review of Applied Economics
Pages: 448-473
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2026300
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2026300
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# input file: CIRA_A_2112858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The coming financial crisis
Abstract:
The 2007–2008 international financial crisis was the worst since the 1929 Wall Street Crash – triggering the 1930s Great Depression, the rise of fascism and Hitler in Europe, and the Second World War. In the 1930s there were reforms to tackle the causes – particularly in the US with Roosevelt’s New Deal – including splitting banks’ ‘casino’ from ‘high street’ operations, and strengthening trade union rights. Following the Second World War, there were global reforms, including exchange controls to prevent cross-border financial speculation. But in the post-1980s era of privatisation and deregulation, these reforms were lobbied against and generally abandoned. The resulting speculative orgy, accompanied inevitably by increased inequality, led to the 2007–2008 international financial crisis. Reforms were promised, including increasing the degree of corporate diversity in the financial services sector, and creating ‘resolution’ plans for banks to prevent their collapse. However, the promised reforms regarding corporate diversity were reneged upon. Resolution plans were adopted in the UK, but in Europe this is being driven in a way that will strengthen the power of finance that created the problem in the first place. And the UK Government wants the regulator to promote the ‘competitiveness’ of financial services, which was tried before, and didn’t end well.
Journal: International Review of Applied Economics
Pages: 291-301
Issue: 3
Volume: 36
Year: 2022
Month: 05
X-DOI: 10.1080/02692171.2022.2112858
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2112858
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# input file: CIRA_A_2013455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmad Alawadhi
Author-X-Name-First: Ahmad
Author-X-Name-Last: Alawadhi
Author-Name: Nadeem Burney
Author-X-Name-First: Nadeem
Author-X-Name-Last: Burney
Author-Name: Ayele Gelan
Author-X-Name-First: Ayele
Author-X-Name-Last: Gelan
Author-Name: Sheikha Al-Fulaij
Author-X-Name-First: Sheikha
Author-X-Name-Last: Al-Fulaij
Author-Name: Nadia Al-Musallam
Author-X-Name-First: Nadia
Author-X-Name-Last: Al-Musallam
Author-Name: Wafa Awadh
Author-X-Name-First: Wafa
Author-X-Name-Last: Awadh
Title: The effect of conservation on residential electricity consumption: evidence from Kuwait
Abstract:
Based on data from a household survey completed in 2016, this paper estimated a model for residential electricity consumption in Kuwait. The main objective of estimating the model was to examine the impact of curtailment and efficiency energy conservation measures on household electricity consumption. Given Kuwait’s demographic composition and variations in electricity consumption across months, the model was estimated for two population groups (nationals and expatriates) and three periods (annual, summer months, and winter months). Prior to estimating the model, tests were conducted to determine if the observed differences in consumption across the population groups were sufficiently different to warrant separate treatment of groups. The survey data revealed that despite electricity consumption being heavily subsidized, households made efforts to conserve electricity by investing in efficient technologies as well as changing habits and practices. While the curtailment measures reported to be adopted by households were found to lower electricity consumption of the national households, the efficiency measures were found to impact electricity consumption of expatriate households. Awareness of conservation campaigns and conservation issues were found to lower electricity consumption, particularly in the case of expatriate households.
Journal: International Review of Applied Economics
Pages: 589-607
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.2013455
File-URL: http://hdl.handle.net/10.1080/02692171.2021.2013455
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# input file: CIRA_A_2124007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The role of agency and regulation in economic and social processes
Journal: International Review of Applied Economics
Pages: 475-476
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2022.2124007
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2124007
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Handle: RePEc:taf:irapec:v:36:y:2022:i:4:p:475-476
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# input file: CIRA_A_2069688_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Theodore P. Lianos
Author-X-Name-First: Theodore P.
Author-X-Name-Last: Lianos
Author-Name: Nicholas Tsounis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Tsounis
Author-Name: Anastasia Pseiridis
Author-X-Name-First: Anastasia
Author-X-Name-Last: Pseiridis
Title: Population and economic growth in developed countries
Abstract:
The relationship between population growth and economic growth is examined. Evidence is provided on the direction of causality between population and GDP in five industrialized countries (US, UK, Germany, France, and Italy) for the periods 1820–1938 and 1950–2016. Using Toda-Yamamoto Granger causality tests and Sims causality test it was found that the direction of causality during the former period was from Population to GDP or bidirectional while for the latter period, it was from GDP to population. It is also shown that during the second period per capita GDP was almost double relative to the first period. We argue that the difference may be partly explained by the direction of causality between the two variables. In the 1820–1938 period, the direction of causality is probably due to the large family model that prevailed in that period that led to rapid population growth. For the 1950–2016 period it is probably the rapid economic growth that followed the Second World War and motivated large migration flows to the developed countries we examined.
Journal: International Review of Applied Economics
Pages: 608-621
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2022.2069688
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2069688
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# input file: CIRA_A_1962256_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: James Yoo
Author-X-Name-First: James
Author-X-Name-Last: Yoo
Author-Name: Julianna Browning
Author-X-Name-First: Julianna
Author-X-Name-Last: Browning
Title: The heterogeneity of residents’ preference over a wide array of services, provided by a master planned community (MPC)
Abstract:
The study estimated an average Californian’s preference over a variety of attributes provided by Master Planned Communities (MPC) – (1) Access to Natural Park & Urban amenities, (2) Access to HOA amenities, (3) Frequency of Social Gatherings and (4) Landscape Aesthetic. The study estimated conditional logit (CL), 2-class latent class (2 C-LCM) and 2-class latent class–random parameter models (2 CLC-RPM), to explore respondents’ varying preferences over those services, and found that people in our sample perceived the above-mentioned attributes as positive amenities, although the frequency of social gatherings provided by communities was viewed as the least important amenity. The results also showed that younger and relatively wealthier respondents were more likely to value MPC-driven services higher than their older and poorer counterparts. Also, the results from 2 CLC-RPM with attitudinal membership variables show that people in MPC-lover class tend to believe building MPCs promote school quality and opportunities for social gatherings.
Journal: International Review of Applied Economics
Pages: 477-495
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.1962256
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1962256
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Handle: RePEc:taf:irapec:v:36:y:2022:i:4:p:477-495
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# input file: CIRA_A_1962257_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ana Cléssia Pereira Lima de Araújo
Author-X-Name-First: Ana Cléssia Pereira Lima
Author-X-Name-Last: de Araújo
Author-Name: Maria Analice D. Santos Sampaio
Author-X-Name-First: Maria Analice D. Santos
Author-X-Name-Last: Sampaio
Author-Name: Edward Martins Costa
Author-X-Name-First: Edward Martins
Author-X-Name-Last: Costa
Author-Name: Ahmad Saeed Khan
Author-X-Name-First: Ahmad Saeed
Author-X-Name-Last: Khan
Author-Name: Guilherme Irffi
Author-X-Name-First: Guilherme
Author-X-Name-Last: Irffi
Author-Name: Rayssa Alexandre Costa
Author-X-Name-First: Rayssa Alexandre
Author-X-Name-Last: Costa
Title: The quotas law for people with disabilities in Brazil: is it a guarantee of employment?
Abstract:
This study aims to evaluate the effects and effectiveness of establishing legal employment quotas for people with disabilities (PwD) in Brazil for the years of 2007 and 2016. By estimating Regression Discontinuity Design (RDD) models, we verify that, in 2007, the Law of Quotas did not affect the employment of people with disabilities. However, in 2016, the effects are positive for firms that employ 100 to 500 workers. Regarding the effectiveness of the law, in 2016, the increase in the number of employed workers with disabilities is approximate to the required quota for firms with 100 to 200 employees.
Journal: International Review of Applied Economics
Pages: 496-525
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.1962257
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1962257
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# input file: CIRA_A_1962816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Pablo Mateo
Author-X-Name-First: Juan Pablo
Author-X-Name-Last: Mateo
Author-Name: Maxi Nieto
Author-X-Name-First: Maxi
Author-X-Name-Last: Nieto
Title: Surplus and capital profitability in the Spanish economy, and comparison with the Euro area. A political economy approach
Abstract:
The article studies the evolution of both surplus and profit rates in the Spanish economy during the phase of the housing bubble, the subsequent crisis and the recent economic recovery (1995─2017), comparing as well core and peripheral economies of the Eurozone. From various methodological approaches and showing several indicators, this paper finds an underlying deep profitability crisis and an alarming drop in what we call the productivity of surplus, without reaching previous levels of profitability at the end of the period. This path has been offset by a reduction in interest rates, which promoted corporate indebtedness. The huge decrease of profitability in Spain is however consistent with its peripheral insertion into the Euro area. In opposition, the more advanced economies of the region were able to keep the level of capital profitability and even increasing the volume of surplus.
Journal: International Review of Applied Economics
Pages: 526-547
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.1962816
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1962816
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# input file: CIRA_A_2006152_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Miguel Massot
Author-X-Name-First: Juan Miguel
Author-X-Name-Last: Massot
Author-Name: Román David Merga
Author-X-Name-First: Román David
Author-X-Name-Last: Merga
Title: A Balance-of-Payments-Constrained Growth Model for a Small Commodity Exporting Country: Argentina Between 1971 and 2016
Abstract:
We study the balance of payments (BOP) as a constraint on economic growth, focusing on Argentina’s economy between 1971 and 2016. The data show that Thirlwall’s balance-of-payments-constrained growth model cannot explain Argentina’s average growth during this period, which witnessed high growth in the terms of trade. We expand Thirlwall’s model based on recent empirical indications that exporters set their prices in foreign currencies. Thus, we show new ways in which the terms of trade and real exchange rate impact the growth rate compatible with the BOP equilibrium. While prices affect the growth rate compatible with the BOP equilibrium mainly through changes in the original model’s quantities, the proposed extension finds a stronger direct effect of the terms of trade. Through the extended model, we find that the weak and strong tests of Thirlwall’s Law are not rejected. Further, we show the consistency of the results regardless of the assumed country size or presence of structural economic breaks. Consequently, we argue that prior literature was inconclusive for Argentina as it did not consider invoicing of international trade in foreign currency, thus disregarding the full effect of the terms of trade and real exchange rate on growth compatible with the BOP equilibrium.
Journal: International Review of Applied Economics
Pages: 564-588
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.2006152
File-URL: http://hdl.handle.net/10.1080/02692171.2021.2006152
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Handle: RePEc:taf:irapec:v:36:y:2022:i:4:p:564-588
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# input file: CIRA_A_1965551_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Emin Gahramanov
Author-X-Name-First: Emin
Author-X-Name-Last: Gahramanov
Author-Name: Khusrav Gaibulloev
Author-X-Name-First: Khusrav
Author-X-Name-Last: Gaibulloev
Author-Name: Javed Younas
Author-X-Name-First: Javed
Author-X-Name-Last: Younas
Title: Does property ownership by women reduce domestic violence? A case of Latin America
Abstract:
It is widely believed that empowering women via various material means increases women’s outside options and, thereby, makes them less vulnerable to intimate partner violence. However, the effect of such empowerment on domestic violence could be subtle particularly in countries with pre-existing high tolerance to violence, weak law enforcement and male institutional domination. Using cross-sectional household-level survey data for Latin American countries, we test the effect of property ownership by women on domestic violence. The results show that a woman’s sole property ownership is not associated with less domestic violence against her; sometimes the correlation is even positive. However, married women who co-own the property are less likely to face domestic abuse by husbands.
Journal: International Review of Applied Economics
Pages: 548-563
Issue: 4
Volume: 36
Year: 2022
Month: 07
X-DOI: 10.1080/02692171.2021.1965551
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1965551
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# input file: CIRA_A_2117283_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Michael Batu
Author-X-Name-First: Michael
Author-X-Name-Last: Batu
Author-Name: Bosu Seo
Author-X-Name-First: Bosu
Author-X-Name-Last: Seo
Title: Gender roles and safety of women at home in the COVID-19 era: evidence from 101 countries
Abstract:
This study analyzes the impact of travel restrictions due to the COVID-19 pandemic on the safety of women at home, and on home production responsibilities. We use Google’s community mobility reports to measure changes in travel patterns and Facebook’s Survey on Gender Equality at Home to measure changes in home production and safety at home during the first wave of the COVID-19 pandemic for 101 countries. We uncover two key findings: first, travel restrictions increase the percentage of women who felt unsafe at home, and second, travel restrictions lead to a rise in home production for both sexes, with men bearing much of the increase. We discuss the implications of these results for policies to support women and girls during pandemics.
Journal: International Review of Applied Economics
Pages: 739-761
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2117283
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117283
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# input file: CIRA_A_1990870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sucharita Ghosh
Author-X-Name-First: Sucharita
Author-X-Name-Last: Ghosh
Author-Name: Francesco Renna
Author-X-Name-First: Francesco
Author-X-Name-Last: Renna
Title: An empirical analysis of the early impact of Covid-19 on income-related inequality in household stress
Abstract:
This paper focuses on the early impact of Covid-19 on income-related inequality in the UK. Using a Concentration Index, we investigate whether Covid-19 has differing effects on the stress levels of low-income households versus high-income level households. We use two measures of stress, mental stress and financial stress and a Recentered Influence Function regression approach to study how the policies implemented by the UK government during the pandemic affected inequality. On examining UK’s policy response, our results show that the mortgage holiday was very effective in lowering income-related inequality in financial stress and the Coronavirus Job Retention Scheme was effective in containing the rise in income-related inequality in mental stress.
Journal: International Review of Applied Economics
Pages: 627-646
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2021.1990870
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1990870
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# input file: CIRA_A_2044458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kerry Liu
Author-X-Name-First: Kerry
Author-X-Name-Last: Liu
Title: Covid-19 and the China opportunity narrative: investment, trade, and the belt and road initiative
Abstract:
China’s rapid economic growth has generated many economic opportunities for the world through outward foreign direct investment, trade, and its iconic Belt and Road Initiative. This study aims to examine the effects of Covid-19 on the narratives of these China opportunities. Based on weekly datasets between May 2016 and May 2021 and employing Autoregressive Distributed Lag Models, this study finds the worldwide narratives on the roles of Chinese outward foreign direct investment, Chinese trade, and China’s Belt and Road Initiative have experienced a structural break after 2020. Before 2020, they were generally regarded as opportunities. During the pandemic, their roles have changed significantly. The outbreak of Covid-19 and its development in the world may play a critical role in this structural break. This study is broadly related to the debate around decoupling from China and the China opportunity paradigm. This study contributes to policy discussions by taking a new perspective and providing novel empirical evidence, and contributes to academia through its quantitative approach.
Journal: International Review of Applied Economics
Pages: 697-724
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2044458
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2044458
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# input file: CIRA_A_2040960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Eduardo Gilberto Loría Díaz de Guzmán
Author-X-Name-First: Eduardo Gilberto Loría Díaz
Author-X-Name-Last: de Guzmán
Author-Name: Arely Paola Medina González
Author-X-Name-First: Arely Paola
Author-X-Name-Last: Medina González
Title: Mexico: the populism/COVID-19 syndemic
Abstract:
Using eight cross-section econometric models applied to a sample of 31 countries, we find that, although the Case Fatality Ratio (CFR) of COVID-19 is explained by ‘structural’ variables that were given prior to the pandemic (healthcare infrastructure, comorbidities, poverty and the HDI), the ’response’ variables to the crisis (fiscal support, health policy, and, above all, government narrative) have been determinant in the evolution of the pandemic. We show that the dummy variable representing populist countries is significant, demonstrating that, as Shiller (2017) stated, narrative plays a major role in shaping behavior and economic outcomes.
Journal: International Review of Applied Economics
Pages: 792-814
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2040960
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2040960
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# input file: CIRA_A_2100329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jalil Safaei
Author-X-Name-First: Jalil
Author-X-Name-Last: Safaei
Author-Name: Andisheh Saliminezhad
Author-X-Name-First: Andisheh
Author-X-Name-Last: Saliminezhad
Title: The Covid-19 pandemic economic impacts and government responses across welfare regimes
Abstract:
The Covid-19 pandemic disrupted lives across all countries, and had severe negative impacts on the global economy, with a massive loss of production and employment, and an increase in national debts. Given that the economic impacts and government responses are structurally rooted in a country’s type of welfare regime, this study examines the economic impacts and government responses in selected OECD countries as differentiated by their welfare regimes using both descriptive and statistical methods. Our descriptive findings indicate that GDP drop and higher unemployment have been less severe in the social democratic countries, and the rise in government debt has been more dramatic in the liberal countries. We also find some degree of convergence in social spending across the welfare regimes at least as long as the pandemic persists. Using panel regression analysis, we find that more testing and higher vaccination are positively associated with GDP growth. On the other hand, containment measures and emergency economic support are negatively associated with GDP growth. Moreover, the descriptive finding that the adverse impact of the pandemic on GDP has been more pronounced in liberal and conservative countries compared to the social democratic countries is corroborated by our statistical analysis.
Journal: International Review of Applied Economics
Pages: 725-738
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2100329
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2100329
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# input file: CIRA_A_2029367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaac K. Ofori
Author-X-Name-First: Isaac K.
Author-X-Name-Last: Ofori
Author-Name: Mark K. Armah
Author-X-Name-First: Mark K.
Author-X-Name-Last: Armah
Author-Name: Emmanuel E. Asmah
Author-X-Name-First: Emmanuel E.
Author-X-Name-Last: Asmah
Title: Towards the reversal of poverty and income inequality setbacks due to COVID-19: the role of globalisation and resource allocation
Abstract:
This study contributes to the policy discourse aimed at addressing the welfare setbacks imposed implicitly by the coronavirus pandemic. To this end, we draw macrodata for the period 1990 – 2019 to examine whether globalisation and resource allocation matter for reducing poverty and income inequality in the Middle East and North Africa (MENA). Robust evidence from the GMM estimator shows that: (1) economic globalisation reduces both poverty and income inequality, (2) though social globalisation heightens income inequality in the region, it has no significant effect on poverty; (3) compared to the effect on poverty, economic globalisation is remarkable in reducing income inequality in the presence of efficient resource allocation. Policy recommendations are provided in line with Agenda 2030 and the rise in social globalisation of the region.
Journal: International Review of Applied Economics
Pages: 647-674
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2029367
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2029367
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# input file: CIRA_A_2040961_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ruohan Wu
Author-X-Name-First: Ruohan
Author-X-Name-Last: Wu
Title: An Empirical Investigation of the Economic Impacts of COVID-19: Micro-level Evidence from Europe
Abstract:
This paper empirically investigates the economic impacts of COVID-19. Using firm-level data from Europe, we first analyze the statistics of how firms’ production, sales, workforce, expectations, and received government support were affected during 2020. We then examine the determinants of production reductions encountered by European firms during COVID-19 and compare between countries with different income levels. We find that both capacity utilization – to be specific, a firm’s output produced as a percentage of its maximum production capability – and employment size exert important influences on the likelihood of firms’ reduced production. Interestingly, receiving government support increases the likelihood of firms downsizing production in high-income countries, yet causes the opposite in low-income countries.
Journal: International Review of Applied Economics
Pages: 675-696
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2040961
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2040961
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# input file: CIRA_A_2132035_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Maura Sheehan
Author-X-Name-First: Maura
Author-X-Name-Last: Sheehan
Title: Creating healthy cities
Journal: International Review of Applied Economics
Pages: 623-626
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2132035
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2132035
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# input file: CIRA_A_2138836_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kerry Liu
Author-X-Name-First: Kerry
Author-X-Name-Last: Liu
Title: China’s dynamic covid-zero policy and the Chinese economy: a preliminary analysis
Abstract:
Shanghai’s lockdown from April to May 2022 attracted worldwide attention. While the rest of the world has generally chosen to live with Covid-19, China still sticks to its elimination strategy, i.e. the dynamic Covid-zero policy. This paper considers this policy and its economic implications. First, this study describes the policy and provides a quantitative description of its development based on Google Trends data and the Baidu index. Second, we explore the economic impacts of the March – May 2022 lockdown and concludes that they were less severe – and the policy responses were also smaller – than those in early 2020. However, one major difference is that Chinese household and corporate sectors have much weaker expectations than in early 2020, and as a consequence, policy responses may also be less effective. Third, from the perspective of stock markets, which can be seen as an expected value of all possible scenarios in the future, this study finds that China’s Covid-zero policy is considered to be detrimental to the economy.
Journal: International Review of Applied Economics
Pages: 815-834
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2138836
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2138836
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# input file: CIRA_A_2130187_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amrita Saha
Author-X-Name-First: Amrita
Author-X-Name-Last: Saha
Author-Name: Marco Carreras
Author-X-Name-First: Marco
Author-X-Name-Last: Carreras
Author-Name: Evert-Jan Quak
Author-X-Name-First: Evert-Jan
Author-X-Name-Last: Quak
Title: Investigating initial policy responses to COVID-19: evidence across 59 countries
Abstract:
We conduct a review of different support measures adopted by 59 countries as an immediate response to the COVID-19 pandemic using an inclusive development lens across five key areas – health and safety, welfare, finance and credit, taxes and fees and structural measures. Using the information that a policy response was announced or implemented immediately, we propose and provide proxy measures for ‘access’, ‘short-term cover’ and ‘medium- to long-term adequacy’ using secondary data. Then, we construct a COVID-19 Response Inclusiveness (CRI) score – to capture the extent of ‘inclusiveness’ inherent in the support across populations, particularly for the marginalised and more vulnerable. We define and capture inclusion as the equitable distribution of social and economic gains, enhanced well-being and capabilities, with social and political empowerment. Finally, using simple cross-country regressions, we find the initial COVID-19 cases, changes in mobility and Gross Domestic Product (GDP) per capita as key characteristics that were significantly associated with our measured extent of inclusiveness in countries’ response packages in the immediate aftermath of the crisis.
Journal: International Review of Applied Economics
Pages: 762-791
Issue: 5-6
Volume: 36
Year: 2022
Month: 11
X-DOI: 10.1080/02692171.2022.2130187
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2130187
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Handle: RePEc:taf:irapec:v:36:y:2022:i:5-6:p:762-791
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# input file: CIRA_A_2044459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Julia Jose
Author-X-Name-First: Julia
Author-X-Name-Last: Jose
Author-Name: Javed Younas
Author-X-Name-First: Javed
Author-X-Name-Last: Younas
Title: Financial inclusion and women’s bargaining power: evidence from India
Abstract:
Extant literature links the higher bargaining power of women with favorable outcomes for the health and education of children, lower domestic abuse, and enhanced socioeconomic status. This paper examines the interplay between the financial inclusion of a woman and her intra-household bargaining power. The theoretical model predicts an ambiguous effect, wherein improvements in her well-being depend on her husband’s reaction. Using household-level data from India, we show that a woman’s well-being improves in many ways when she has a bank account. We use two unique instruments to address the issue of simultaneity. Placebo tests also certify our results. Our findings suggest that removing financial barriers for women increases their independence and say in household decision-making.
Journal: International Review of Applied Economics
Pages: 76-92
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2044459
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2044459
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# input file: CIRA_A_2117286_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marina da Silva Sanches
Author-X-Name-First: Marina da Silva
Author-X-Name-Last: Sanches
Author-Name: Laura Barbosa de Carvalho
Author-X-Name-First: Laura Barbosa de
Author-X-Name-Last: Carvalho
Title: Multiplier effects of social protection: a SVAR approach for Brazil
Abstract:
Based on a Structural VAR approach, we estimated fiscal multipliers for social benefits in Brazil for 1997–2018. Our results suggest that social benefits have relatively large multiplier effects, even when compared to public investment. The multipliers are also larger in the full sample, which includes the country’s 2014–16 economic crisis than in the period 1997–2014. In particular, our results show that spending one unit on social expenditures generates a final change in GDP of almost three after two years. The higher estimated multipliers in the full sample appear in the response of household consumption and private investment to shocks in total social expenditures and for different types of social benefits (e.g. cash transfers, unemployment insurance, and pensions). In a context in which the expansion of social protection became prominent as a response to structural changes in the labor market and the Covid-19 pandemic, our paper reinforces its potential role in the short-run economic recovery.
Journal: International Review of Applied Economics
Pages: 93-112
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2117286
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117286
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:93-112
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# input file: CIRA_A_2026299_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Walid Abdmoulah
Author-X-Name-First: Walid
Author-X-Name-Last: Abdmoulah
Title: Export sophistication and economic performance, new evidence using TiVA database
Abstract:
This study investigates the relationship between export sophistication and economic performance using a panel data from 64 countries over 2005–2015. Following a dynamic GMM approach, strong evidence of the positive effect of the manufacturing sector on countries’ economic performance is found. Similarly, high tech and ICT exported goods have a positive and significant effect on income. Relying on TiVA indicators gives new insights into countries’ Global Value Chains (GVCs) participation gains. Backward linkages are shown to be strongly income enhancing. Forward linkage effects are mixed, depending on the end use of the exported domestic value-added, suggesting that countries should not take GVCs’ benefits for granted and should consider interventionist policies in order to climb the sophistication ladder and develop more valuable parts of the value chain.
Journal: International Review of Applied Economics
Pages: 113-137
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2026299
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2026299
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# input file: CIRA_A_2117282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Serhan Cevik
Author-X-Name-First: Serhan
Author-X-Name-Last: Cevik
Title: Dirty dance: tourism and environment
Abstract:
Tourism was one of the fastest-growing sectors of the global economy before the COVID-19 pandemic, accounting for around 10% of global GDP. This has created a number of challenges including environmental degradation, especially in small island countries where the carbon footprint of tourism constitute a substantial share of carbon dioxide (CO2) emissions. This study investigates the impact of tourism on CO2 emissions in a relatively homogenous panel of 15 Caribbean countries over the period 1960–2019. The results show that international tourist arrivals have a statistically and economically significant effect on CO2 emissions, after controlling for other economic, institutional and social factors. Managing tourism sustainably requires a comprehensive set of policies and reforms aimed at reducing its environmental impact, and curbing excessive dependency on fossil fuel-based energy consumption.
Journal: International Review of Applied Economics
Pages: 168-185
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2117282
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117282
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:168-185
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# input file: CIRA_A_1965550_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chokri Zehri
Author-X-Name-First: Chokri
Author-X-Name-Last: Zehri
Author-Name: Zagros Madjd-Sadjadi
Author-X-Name-First: Zagros
Author-X-Name-Last: Madjd-Sadjadi
Title: The distributional impacts of capital controls
Abstract:
The study examines the distributional implications of capital account restrictions on three important welfare measurements of concern for policymakers: income inequality, poverty, and external debt. Two approaches are followed, the Autoregressive Distributed Lag (ARDL), and the local projections regression with impulse response functions (IRFs), and applied to a panel data for 102 countries from 1995 to 2019. First, we identify the capital control periods, and second, we follow behavior of these three measurements after these periods. The results show a decline in income inequality and poverty and a decline in external debt. However, four pathways can affect the intensity of capital controls impacts, the financial development and the strength of the financial institutions, the financial crisis probability, the bargaining power of the labor market, and the cost of international debt. The study highlights that additional policies may be needed to redistribute some of the gains of capital controls.
Journal: International Review of Applied Economics
Pages: 138-167
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2021.1965550
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1965550
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:138-167
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# input file: CIRA_A_2167629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Zombie firms, financial inclusion and women’s bargaining power, and other issues
Journal: International Review of Applied Economics
Pages: 1-2
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2023.2167629
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2167629
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:1-2
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# input file: CIRA_A_2056155_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Katherine A. Moos
Author-X-Name-First: Katherine A.
Author-X-Name-Last: Moos
Author-Name: Hao Qi
Author-X-Name-First: Hao
Author-X-Name-Last: Qi
Title: The state's response to the crisis of neoliberalism: a comparison of the net social wage in China and the United States, 1992-2017
Abstract:
We compare the welfare states and taxation regimes of the two largest economies in the world, China and the United States, from 1992 to 2017. We begin with a comparison of each country’s net social wage – that is, the difference between total benefits received by and taxes paid by labor – using two established methods. While the net social wage in the two countries exhibited similar trends, the increasing net social wage has distinctly different implications in the two countries due to their specific historical trajectories in the neoliberal era. In the US, the increasing net social wage reflects an ambivalent and reluctant response to workers’ social reproduction. In China, it reflects institutional changes in the welfare state, which we interpret as the Chinese state’s attempt to resolve the social-reproduction crisis caused by neoliberal reforms of the 1990s.
Journal: International Review of Applied Economics
Pages: 23-49
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2056155
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2056155
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:23-49
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# input file: CIRA_A_2045911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nicolás Águila
Author-X-Name-First: Nicolás
Author-X-Name-Last: Águila
Author-Name: Juan M. Graña
Author-X-Name-First: Juan M.
Author-X-Name-Last: Graña
Title: Not all zombies are created equal. A Marxist-Minskyan taxonomy of firms: United States, 1950-2019
Abstract:
The ‘zombie’ literature emphasizes the financial characteristics of firms and focuses on financial channels to explain their rise. This is incomplete because it conflates together firms with very different productive characteristics. Drawing on Marx and Minsky’s insights, we build a taxonomy of firms showing both their productive and financial characteristics based on the rate of profit of enterprise and the interplay between its three determinants: the profit rate, the difference between the profit and the interest rate, and the leverage ratio. Considering the different possible combinations of these variables, we classify firms into seven types: normal and regular small capitals (hedge finance); speculative small, super small, and leveraged small capitals (speculative finance); and financially stressed small and zombie capitals (Ponzi finance). We show the composition and evolution of U.S. listed firms as well as relevant descriptive statistics by type of firm from 1950 to 2019. Our main finding is that the principal problem of U.S. firms is productive, not financial, as there is a high share of firms with increasingly negative profitability even before the payment of interest and despite having relatively low leverage.
Journal: International Review of Applied Economics
Pages: 3-22
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2045911
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2045911
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:3-22
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# input file: CIRA_A_2117281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tanadej Vechsuruck
Author-X-Name-First: Tanadej
Author-X-Name-Last: Vechsuruck
Title: Sectoral wage share and its decomposition in China
Abstract:
This paper investigates sectoral contributions to the trend of national wage share, or the labor income share, during 2000–2014 in China. I apply the logarithmic mean Divisia index (LMDI) decomposition, the method widely used in energy studies, to decompose the trend of the wage share. At a sectoral level, with rapid structural transformation, structural change negatively impacted the wage share through the between-sector effect – the structural and price effects – mainly from agriculture. This result confirms Arthur Lewis’s hypothesis that structural transformation has a negative contribution to the wage share. At a national level, when the wage share declined before 2008, the between-sector effect was as significant as the within-sector effect – the wage and productivity effects. After 2008, the within-sector effect directed the increasing wage share trend. This implies that although structural transformation matters to the wage share in a large developing country like China, a wage-productivity nexus has been more influential and determined the increasing trend of the wage share since 2008.
Journal: International Review of Applied Economics
Pages: 50-75
Issue: 1
Volume: 37
Year: 2023
Month: 01
X-DOI: 10.1080/02692171.2022.2117281
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117281
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Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:50-75
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# input file: CIRA_A_2138835_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pål Børing
Author-X-Name-First: Pål
Author-X-Name-Last: Børing
Author-Name: Michael Spjelkavik Mark
Author-X-Name-First: Michael Spjelkavik
Author-X-Name-Last: Mark
Title: Public R&D support to enterprises in four R&D sectors: the mix of types of aid and policy agencies
Abstract:
We examine how the amount of public R&D support to enterprises in different R&D sectors is related to the mix of types of aid and policy agencies. The question we ask is whether this amount increases or decreases with the number of types of aid and policy agencies in each sector. We use panel data on the amount of support received by Norwegian enterprises in the following four R&D sectors: the higher education sector, the institute sector, the health trusts, and the industrial sector. GMM regressions show that the amount of support is positively related to the number of policy agencies in all four sectors, and positively related to the number of types of aid in the industrial sector (the relationship is non-significant in each of the other three sectors). The estimation results therefore indicate that the amount of public R&D support increases in one of the R&D sectors (the industrial sector) when enterprises benefit from an increasing number of different types of aid, and increases in all sectors when enterprises benefit from an increasing number of different policy agencies.
Journal: International Review of Applied Economics
Pages: 236-252
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2022.2138835
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2138835
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Handle: RePEc:taf:irapec:v:37:y:2023:i:2:p:236-252
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# input file: CIRA_A_2167952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anusha Goel
Author-X-Name-First: Anusha
Author-X-Name-Last: Goel
Title: Trends and reforms of financial inclusion in India
Abstract:
Financial Inclusion means providing basic financial products and services to marginalised groups in society in a cost-effective manner. It is an aspect of financial development which helps to achieve higher growth, reduced inequality and reduced poverty. This article undertakes a thematic literature review of factors responsible for financial exclusion, recent trends regarding inclusion, and policy initiatives by government and regulatory bodies. The literature suggests that low earnings, gender gap, ignorance towards marginalised groups, low degree of financial literacy, remote locations and cultural barriers are all important issues behind financial inclusion. There have been improvements in the extent of inclusiveness alongside various reforms and the development of the digital infrastructure, especially during the past decade. However, certain aspects still necessitate pre-emptive measures by the authorities.
Journal: International Review of Applied Economics
Pages: 275-285
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2023.2167952
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2167952
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Handle: RePEc:taf:irapec:v:37:y:2023:i:2:p:275-285
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# input file: CIRA_A_2198329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Inequality growth within countries, despite catch-up between countries
Journal: International Review of Applied Economics
Pages: 187-189
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2023.2198329
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2198329
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Handle: RePEc:taf:irapec:v:37:y:2023:i:2:p:187-189
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# input file: CIRA_A_2117287_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Phuong Thao Dang
Author-X-Name-First: Phuong Thao
Author-X-Name-Last: Dang
Author-Name: K. Ali Akkemik
Author-X-Name-First: K. Ali
Author-X-Name-Last: Akkemik
Title: Greenhouse gas emissions in Vietnam: an analysis based on a social accounting matrix with firm heterogeneity
Abstract:
Vietnam is one of the fastest-growing polluters in the world – due to rapid industrialization facilitated by massive foreign investments. This study estimates the sources of greenhouse gas (GHG) emissions arising from activities of firms using a social accounting matrix (SAM) that incorporates firm heterogeneity based on ownership style, namely, state-owned enterprises, private firms, and foreign-invested enterprises. The results show that an increase in exports or investments increases GHG gas emissions to varying degrees depending on whether the increase occurs in state-owned enterprises, private firms, or foreign-invested enterprises (FIEs). The largest increase in emissions results from an increase in exports and investments of FIEs, whereas the increase in emissions due to private firms and SOEs is much smaller. The results imply that it is important to consider the impact of foreign investments and the activities of foreign firms on GHG emissions in Vietnam.
Journal: International Review of Applied Economics
Pages: 190-216
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2022.2117287
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117287
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Handle: RePEc:taf:irapec:v:37:y:2023:i:2:p:190-216
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# input file: CIRA_A_2184464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Roberto Alexandre Zanchetta Borghi
Author-X-Name-First: Roberto Alexandre Zanchetta
Author-X-Name-Last: Borghi
Title: Structural change and industrial linkages: a perspective on China’s growth pattern, 1995-2009
Abstract:
China has presented one of the most noticeable growth experiences in economic history. High growth rates in the post-1978 reform period have been marked by deep structural changes in the Chinese economy. This paper aims to discuss China’s long-term economic growth from a Kaldorian-Structuralist framework that emphasises the importance of a large, diversified and integrated industrial base as a central engine of economic growth that may prevent balance-of-payments constraints. This study applies input-output indicators to reveal key sectoral transformations of the Chinese productive structure and changes in interindustry linkages during the 1990s and 2000s. Results provide evidence that: (i) the Chinese sustained growth pattern has relied on a diversified and increasingly integrated domestic industrial production; and (ii) most sectors have been able to generate through exports enough foreign exchange to pay for import needs.
Journal: International Review of Applied Economics
Pages: 253-274
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2023.2184464
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2184464
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# input file: CIRA_A_2123910_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: João P. Romero
Author-X-Name-First: João P.
Author-X-Name-Last: Romero
Author-Name: Ana Bottega
Author-X-Name-First: Ana
Author-X-Name-Last: Bottega
Author-Name: Arthur B. Cordeiro
Author-X-Name-First: Arthur B.
Author-X-Name-Last: Cordeiro
Title: The impact of demand on innovation and research intensity
Abstract:
The paper investigates the relationship between demand, innovation and research intensity (R&D to output and patents per millions of hours worked) in different groups of industries. These relationships were investigated using disaggregate industry-level data from EU KLEMS, ANBERD and USPTO, in a sample that comprises 12 industries in 18 countries over 1977–2006. The results reported in the paper indicate that demand exerts a positive and significant impact on innovation, measured by R&D expenditure and patents. Moreover, this impact is stronger in high-tech industries than in low-tech ones. The paper also provides evidence that demand does not impact research intensity, despite its impact on innovation. This finding holds both for low-tech and high-tech industries, using both R&D to value added and patents per millions of hours worked as measures of research intensity. This suggests that research intensity is not influenced by demand growth, but most likely depends on the quality of each country’s National Innovation System.
Journal: International Review of Applied Economics
Pages: 217-235
Issue: 2
Volume: 37
Year: 2023
Month: 03
X-DOI: 10.1080/02692171.2022.2123910
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2123910
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Handle: RePEc:taf:irapec:v:37:y:2023:i:2:p:217-235
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# input file: CIRA_A_2205111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ebel Berghuis
Author-X-Name-First: Ebel
Author-X-Name-Last: Berghuis
Author-Name: Derk Loorbach
Author-X-Name-First: Derk
Author-X-Name-Last: Loorbach
Author-Name: Anne van Vulpen
Author-X-Name-First: Anne
Author-X-Name-Last: van Vulpen
Author-Name: Martijn Verkuijl
Author-X-Name-First: Martijn
Author-X-Name-Last: Verkuijl
Author-Name: Claudia van Orden
Author-X-Name-First: Claudia
Author-X-Name-Last: van Orden
Author-Name: Rachel Greer
Author-X-Name-First: Rachel
Author-X-Name-Last: Greer
Title: Coming together for transition? Entrepreneurial ecosystems for a circular economy
Abstract:
Circular ecosystems can be a role model in the transition to a circular economy, can inspire and motivate other entrepreneurs, and may possibly have a transformative effect in the transition. For example, by deploying knowledge and experience for a targeted lobby for policy change – such as changes in the law and regulations. Four circular ecosystems were studied to discover how they function, and what they may contribute to the transition to a circular economy. The research shows that cooperation in ecosystems can provide circular start-ups with much added value. At the same time, the research also shows that the influence of the four circular ecosystems investigated is limited regarding the local transition to a circular economy. The ecosystems are not examples of a circular economy yet. But ecosystems are not static entities. They are on the move, as this research demonstrates.
Journal: International Review of Applied Economics
Pages: 372-388
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2205111
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2205111
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# input file: CIRA_A_2197642_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paul Ningaye
Author-X-Name-First: Paul
Author-X-Name-Last: Ningaye
Author-Name: Isaac Ketu
Author-X-Name-First: Isaac
Author-X-Name-Last: Ketu
Title: Does infrastructure development matter for the shadow economy in African countries?
Abstract:
Understanding the determinants of the informal economy is a crucial issue in economic development due to its far-reaching effects on development efforts. Previous studies focused exclusively on factors that can potentially reduce the relative size of the shadow economy. However, these attempts have not enjoyed much success to date in Africa, where informality has continued to thrive. We contend that realistic medium-term goals, as opposed to obligatory formalisation, could increase the output of informal businesses by providing enough infrastructure and a welcoming business climate, which would at the same time foster formalisation. Using OLS, FE and system GMM with data on 42 African countries covering 2003–2018, we find that infrastructure development reduces the relative size of the shadow economy in African countries. Our results remained consistent when we controlled for the effects of other determinants of the informal economy, employed other estimators, and used an alternative measure of the informal economy.
Journal: International Review of Applied Economics
Pages: 290-310
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2197642
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Handle: RePEc:taf:irapec:v:37:y:2023:i:3:p:290-310
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# input file: CIRA_A_2210513_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jen-Chung Mei
Author-X-Name-First: Jen-Chung
Author-X-Name-Last: Mei
Title: Core product competence and productivity gains: the role of foreign ownership
Abstract:
Recent theoretical contributions provide predictions about the effects of core product competence on firms’ productivity. However, we know little about the influence of foreign ownership on core product competence that might also lead to productivity gains across firms. This paper uses firm-level data for 137 countries to investigate how foreign ownership affects firms’ decision to become specialised at core products and the subsequently firm productivity gains. To tackle the possible endogeneity of foreign ownership, the instrumental variable approach and the propensity score matching technique are employed. The results show that foreign ownership has a positive and significant effect on firms’ core product competence and this positive effect leads to productivity gains, especially for the most productive firms. We further reveal that foreign competition within an industry encourages firms to become specialised at core products, which could further lead to productivity gains across firms.
Journal: International Review of Applied Economics
Pages: 389-425
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2210513
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# input file: CIRA_A_2205109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lamia Jaidane Mazigh
Author-X-Name-First: Lamia
Author-X-Name-Last: Jaidane Mazigh
Author-Name: Islem Khefacha
Author-X-Name-First: Islem
Author-X-Name-Last: Khefacha
Author-Name: Belgacem Smiri
Author-X-Name-First: Belgacem
Author-X-Name-Last: Smiri
Title: Gender and corruption: examining the nexus in MENA countries using PMG-ARDL approach
Abstract:
This paper investigates the relationship between gender and corruption in thirteen Middle East and North African (MENA) countries during 2006–2020. We find a poor performance in terms of both corruption and the lack of involvement of women in public life, with a correlation between these two phenomena in the region. Due to the presence of cross-sectional dependence and heterogeneity in the panel, we employed second-generation econometric panel unit root and cointegration tests. Using the ARDL-PMG approach, which is categorised as an error-corrected model, we demonstrate that greater involvement of women in the economic and political sphere is associated with lower levels of corruption. The results also indicate that the link between corruption and gender is dependent on the context and institutional factors. The role of democracy and political stability in explaining this interaction is particularly important, especially when women are well-represented in decision-making positions. Finally, we provide evidence that improved gender equality can strengthen the connection between greater involvement of women in public life, and more success in tackling corruption. Greater gender egalitarianism can break down the male-dominated network of corruption that is widespread in MENA countries.
Journal: International Review of Applied Economics
Pages: 357-371
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2205109
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2205109
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# input file: CIRA_A_2205108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Filippo Domma
Author-X-Name-First: Filippo
Author-X-Name-Last: Domma
Author-Name: Lucia Errico
Author-X-Name-First: Lucia
Author-X-Name-Last: Errico
Title: The impact of social media adoption on innovative SMEs’ performance
Abstract:
This paper empirically investigates Social Media adoption as a driver of firms’ performance. Specifically, we focus on the relationship between the embracing of Twitter and Italian Innovative Small and Medium Enterprises (SMEs) profitability over 2011–19. Although Twitter is perceived as a low-cost and effective communication channel, the main results show that Innovative SMEs adopting Social Media appear to have lower profitability than those without social network implementation. An interpretation of this evidence can rely on the difficulty of innovative SMEs in overcoming barriers to Twitter adoption related to the human capital required to maintain relationships with the online community of consumers in the Italian context.
Journal: International Review of Applied Economics
Pages: 324-356
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2205108
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# input file: CIRA_A_2216119_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The need for environmental and social sustainability – but how to make the case, and how to achieve it?
Journal: International Review of Applied Economics
Pages: 426-431
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2216119
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# input file: CIRA_A_2205107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Clement Oppong
Author-X-Name-First: Clement
Author-X-Name-Last: Oppong
Author-Name: Abukari Salifu Atchulo
Author-X-Name-First: Abukari
Author-X-Name-Last: Salifu Atchulo
Author-Name: Shenell Fatia Oman
Author-X-Name-First: Shenell
Author-X-Name-Last: Fatia Oman
Title: Public debt and economic growth nexus in sub-saharan Africa: does institutional quality matter?
Abstract:
This paper investigates the effect of institutional quality and public debt on economic growth among sub-Saharan African countries. The study employs the System Generalized Method of Moments (SGMM) and the Fixed Effect techniques on data from 35 Sub Saharan African countries (sourced from the World Development Indicators (WDI) and the World Governance Index (WGI) databases from 2010 to 2020). The results reveal that institutional quality has a significantly negative effect on public debt; public debt has a significantly negative effect on economic growth; and institutional quality has a significantly positive effect on economic growth. This suggests that countries with weak institutions may have debt overhang deleterious to economic growth.
Journal: International Review of Applied Economics
Pages: 311-323
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2205107
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# input file: CIRA_A_2233262_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: How to deliver economic success – and what does that mean?
Abstract:
The articles in this issue explore a whole range of issues around economic performance – from the problem of corruption, and the link this may have with gender, through to the need for environmental sustainability and a circular economy. Hence why the title for this introductory essay refers to ‘economic success’ rather than ‘economic growth’, since success should not be measured by ‘growth’, but rather by human welfare and wellbeing, broadly defined.
Journal: International Review of Applied Economics
Pages: 287-289
Issue: 3
Volume: 37
Year: 2023
Month: 05
X-DOI: 10.1080/02692171.2023.2233262
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# input file: CIRA_A_2253063_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Editor’s introduction
Journal: International Review of Applied Economics
Pages: 433-434
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2253063
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# input file: CIRA_A_2240243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Khairunnisa Abd Samad
Author-X-Name-First: Khairunnisa
Author-X-Name-Last: Abd Samad
Author-Name: Nur Hayati Abd Rahman
Author-X-Name-First: Nur Hayati
Author-X-Name-Last: Abd Rahman
Author-Name: Shafinar Ismail
Author-X-Name-First: Shafinar
Author-X-Name-Last: Ismail
Author-Name: Najihah Hanisah Marmaya
Author-X-Name-First: Najihah Hanisah
Author-X-Name-Last: Marmaya
Title: Is the well-being of gig workers in Malaysia better? The reality of pain and gain
Abstract:
The demand for gig work is continuously rising with the emergence of online platforms and marketplaces such as Freelancers.com, LinkedIn, Grab, Foodpanda, etc. Although the demand for gig work is growing, the ecosystem of this field does not fully support the welfare and well-being of its workers. The literature discussion is scarce regarding the well-being of Malaysia’s gig workers, especially regarding the financial, work-life balance, and workers’ protection aspects. This study aims to fill this gap. Our findings indicate that the main motivation for choosing gig work is flexible work hours. The challenges faced by gig workers include the meagre ability to save, and lack of retirement security. No health benefits are present to support the sustainable wellbeing of gig workers. The current policies that help workers during times of need, such as SOCSO and EPF, are always welcome but perceived as optional. Thus, the paper suggests that more policies should be formulated to support the wellbeing of gig workers.
Journal: International Review of Applied Economics
Pages: 518-531
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2240243
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240243
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Handle: RePEc:taf:irapec:v:37:y:2023:i:4:p:518-531
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# input file: CIRA_A_2241214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Suzanne Schneider
Author-X-Name-First: Suzanne
Author-X-Name-Last: Schneider
Title: Call for papers: for a special issue of the International Review of Applied Economics on ‘risk, uncertainty, and democracy’
Journal: International Review of Applied Economics
Pages: 571-572
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2241214
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2241214
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# input file: CIRA_A_2240250_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Domingos Isaias Maia Amorim
Author-X-Name-First: Domingos Isaias Maia
Author-X-Name-Last: Amorim
Author-Name: Maria Josiell Nascimento da Silva
Author-X-Name-First: Maria Josiell Nascimento
Author-X-Name-Last: da Silva
Author-Name: Francisco José Silva Tabosa
Author-X-Name-First: Francisco José
Author-X-Name-Last: Silva Tabosa
Author-Name: Alexandre Nunes de Almeida
Author-X-Name-First: Alexandre
Author-X-Name-Last: Nunes de Almeida
Author-Name: Pablo Urano de Carvalho Castelar
Author-X-Name-First: Pablo Urano
Author-X-Name-Last: de Carvalho Castelar
Title: Greenhouse gas emissions from Brazilian agriculture and convergence clubs
Abstract:
This work aims to assess whether there is a convergence in the emission of Greenhouse Gases (GHG) in the states of Brazil. To achieve this objective, the Phillips and Sul (2007) time series methodology was employed, testing the hypothesis of global (or common) convergence, using data from the Greenhouse Gas Emissions and Removal Estimation System (Sistema de Estimativas de Emissões e Remoções de Gases do Efeito Estufa - SEEG), for the period of 1989–2018, which provides the emission, in tons, of Carbon Monoxide (CO) in agriculture and livestock, as well as of Carbon Dioxide (CO2), for changes in land and forest use. Among the main results, the formation of different convergence clubs is suggested, rejecting the hypothesis of global convergence, and thus presenting four convergence clubs for the CO pollutant and three clubs for the CO2, with two divergent states. When analysing the convergence clubs, it was found that there was a significant reduction in CO emissions in all clubs, and while analysing the CO2, only two of the clubs, which were clubs 3 and 4, managed to reduce their emissions.
Journal: International Review of Applied Economics
Pages: 532-552
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2240250
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240250
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# input file: CIRA_A_2240252_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gopal Krishna Roy
Author-X-Name-First: Gopal Krishna
Author-X-Name-Last: Roy
Author-Name: Amaresh Dubey
Author-X-Name-First: Amaresh
Author-X-Name-Last: Dubey
Title: Labour market rigidity and total factor productivity: a re-examination of the evidence from India
Abstract:
The existing empirical studies concerning labour market rigidity associated with the labour laws in India suggest an adverse impact of rigidity on total factor productivity (TFP). In this paper, we improve upon both the measurement of spatiotemporal variation in labour market flexibility and plant-level TFP from production function estimates in the presence of institutional rigidity in labour inputs adjustment due to job security legislation based on the recent advancement in the literature. We use an unbalanced panel of manufacturing plants from the Annual Survey of Industries panel data from 1999–2000 to 2016–17 to analyse the relationship between labour market rigidity/flexibility and TFP. We find that establishments that fall under the purview of job security legislation have higher productivity than those outside the ambit of job security legislation. The results suggest that rigidity associated with job security provisions does not harm TFP, and higher flexibility is negatively associated with TFP. However, we find considerable heterogeneity in the flexibility–TFP relationship across various industry groups. The heterogeneity in the flexibility–TFP relationship suggests that flexibility-inducing labour policy may improve TFP in some industries and, at the same time, decrease it in others.
Journal: International Review of Applied Economics
Pages: 553-570
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2240252
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240252
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# input file: CIRA_A_2234311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joseph Chukwudi Odionye
Author-X-Name-First: Joseph Chukwudi
Author-X-Name-Last: Odionye
Author-Name: Augustine C Odo
Author-X-Name-First: Augustine C
Author-X-Name-Last: Odo
Author-Name: Marius Ikpe
Author-X-Name-First: Marius
Author-X-Name-Last: Ikpe
Author-Name: Richard O. Ojike
Author-X-Name-First: Richard O.
Author-X-Name-Last: Ojike
Title: Threshold-based asymmetric reactions of trade balances to currency devaluation: fresh insights from smooth transition regression (STR) model
Abstract:
This study sought to ascertain relatively the asymmetric reactions of trade balances to currency devaluation and non-devaluation regimes in sub-Saharan African (SSA) countries between 1981 and 2021 using the smooth transition regression (STR) model. The outcome indicates that, in Ghana, Malawi, and Mozambique, currency devaluation as a change in policy has a major influence on the trade balance; however, in Nigeria, Kenya, and Tanzania, this impact is negligible. Nigeria had the highest gamma coefficient but insignificant, suggesting that policy change has not significantly impacted the country’s trade balance despite the high transition rate. Findings from the devaluation regime revealed that, with the exception of Ghana, all other nations’ real exchange rates are inversely and significantly related to the trade balance. Additionally, it displayed an average threshold parameter of 0.147, indicating that a devaluation of more than 14.7% within a year will deteriorate the trade balance in SSA. The results indicate that the devaluation effects hinge on the structure, macroprudential policies, and infrastructural growth of the nation. The study recommended amongst other things, (i) a robust structural transformation in key sectors (ii) judicious investment in infrastructural development to address the key bottleneck in the quality and quantity of domestic production.
Journal: International Review of Applied Economics
Pages: 435-456
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2234311
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2234311
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# input file: CIRA_A_2234837_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sosson Tadadjeu
Author-X-Name-First: Sosson
Author-X-Name-Last: Tadadjeu
Author-Name: Brice Kamguia
Author-X-Name-First: Brice
Author-X-Name-Last: Kamguia
Author-Name: Ronald Djeunankan
Author-X-Name-First: Ronald
Author-X-Name-Last: Djeunankan
Title: Access to drinking water and sanitation in developing countries: Does financial development matter?
Abstract:
The aim of this study is to examine the effect of financial development on access to safe water and sanitation. Using panel data from a sample of 106 developing countries over the period 2000–2019, empirical results based on two-step system generalised method of moments suggest that financial development improves access to drinking water and sanitation for the total population and for both urban and rural populations. In addition, financial development reduces the gap between urban and rural populations in terms of access to these two basic services. Further analysis also suggests that the financial market and financial institutions, as well as their sub-indices (financial depth, financial access, and financial efficiency), also improve access to water and sanitation. These results underscore the need for continued efforts to design and implement policies that promote financial development. In addition, given the greater impact of financial institutions, we suggest that reforms to improve the financial system should be more oriented towards the development of financial institutions.
Journal: International Review of Applied Economics
Pages: 457-481
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2234837
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2234837
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# input file: CIRA_A_2239719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moraghen Warren
Author-X-Name-First: Moraghen
Author-X-Name-Last: Warren
Author-Name: b. Seetanah
Author-X-Name-First: b.
Author-X-Name-Last: Seetanah
Author-Name: n. Sookia
Author-X-Name-First: n.
Author-X-Name-Last: Sookia
Title: An investigation of exchange rate, exchange rate volatility and FDI nexus in a gravity model approach
Abstract:
This study assesses the significance of exchange rate and exchange rate volatility in the bilateral inflows of FDI using a gravity model, based on a sample of 40 countries over the period 2001 to 2019. This analysis is also specifically concerned with the estimation challenges which revolve around the validity of the log-linear transformation of the gravity equation in the potential presence of heteroscedasticity and zero FDI observations. The various alternative estimation techniques, all validate the fact that exchange rate volatility has a negative impact on the bilateral inflows of FDI whereas exchange rate depreciation has a positive and significant coefficient. On the other hand, the variables GDP-host and GDP-Home are positive and significant justifying that the host and home countries’ economic sizes remain factual elements in attracting FDI. The models’ estimates also interestingly validate the fact that geographical distance and tax level have a sizeable negative influence on the bilateral inflow of FDI. Besides, the significance of the dummy variable common language confirms a negative causal effect of a communication barrier between the local workers and foreign investors.
Journal: International Review of Applied Economics
Pages: 482-502
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2239719
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2239719
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# input file: CIRA_A_2240241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luckas Sabioni Lopes
Author-X-Name-First: Luckas Sabioni
Author-X-Name-Last: Lopes
Author-Name: Wilson Luiz Rotatori Corrêa
Author-X-Name-First: Wilson Luiz
Author-X-Name-Last: Rotatori Corrêa
Title: Macroeconomic uncertainty and monetary policy transmission in Brazil: a TVAR approach
Abstract:
This article assesses the impact of uncertainties on the effectiveness of monetary policy in Brazil after the adoption of the inflation-targeting regime. We employ the methodology of autoregressive vectors with an endogenous threshold (TVAR) with a general uncertainty indicator (IGI), proposed as a linear combination of four existing proxies for the Brazilian context. The sample covers 2003 to June 2022 at a monthly frequency. The results show the IGI variable has the highest degree of correlation with economic recessions in the country among all the analysed indicators. Moreover, in regimes of high uncertainty, the responses of the output gap, inflation, and inflationary expectations to interest rate shocks are severely reduced. Therefore, we conclude that an increase in macroeconomic uncertainties can reduce the effectiveness of monetary policy in Brazil.
Journal: International Review of Applied Economics
Pages: 503-517
Issue: 4
Volume: 37
Year: 2023
Month: 07
X-DOI: 10.1080/02692171.2023.2240241
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240241
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# input file: CIRA_A_2272432_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Productivity, equity and sustainability
Journal: International Review of Applied Economics
Pages: 573-574
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2272432
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# input file: CIRA_A_2240257_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thanos Poulakis
Author-X-Name-First: Thanos
Author-X-Name-Last: Poulakis
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Title: Dynamic linkages between real exchange rates and real unit labour costs: evidence from 18 economies
Abstract:
The article examines the long-run behaviour of real exchange rates based on the premises of classical political economy. Specifically, it investigates the dynamics between real exchange rates and real unit labour costs of tradable commodities for 18 developed and developing economies. The analysis is carried out by applying recent methods of panel data, while the short- and long-run dynamics are estimated based on the cross-sectional autoregressive distributed lag model. Our findings confirm the presence of short- and long-run effects of real unit labour costs on real exchange rates. Consequently, new and more effective foreign exchange rate policies may be designed.
Journal: International Review of Applied Economics
Pages: 607-620
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2240257
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240257
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# input file: CIRA_A_2240270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Myoungrok Kim
Author-X-Name-First: Myoungrok
Author-X-Name-Last: Kim
Author-Name: Young jo Song
Author-X-Name-First: Young jo
Author-X-Name-Last: Song
Title: Corporate excess savings: what does it have to do with M&A activities, cash holdings and debt repayments in Korea?
Abstract:
Corporate excess savings, or gross savings in excess of fixed capital formation, can affect the real economy through the financial decisions of individual firms. Based on an unbalanced panel of more than 2,000 Korean listed companies from 2003 to 2021, this study analyses how excess savings are used in individual firms’ financial activities and their consequent impact on aggregate demand at the macroeconomic level. Excess savings are most often used for debt repayment. Considering heterogeneity, the excess savings of large firms are mainly related to M&A, while the excess savings of small firms are relatively more disbursed to cash holdings for the precautionary motive. Since 2010, the extent of its use in M&A has become stronger; M&A in large firms appears to crowd out fixed capital formation for a certain period of time. When this analysis is applied at the industry level, it is also consistent with the results of individual firms.
Journal: International Review of Applied Economics
Pages: 667-685
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2240270
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240270
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# input file: CIRA_A_2254246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Abdallah Abdul-Mumuni
Author-X-Name-First: Abdallah
Author-X-Name-Last: Abdul-Mumuni
Author-Name: David Kofi Ampah
Author-X-Name-First: David Kofi
Author-X-Name-Last: Ampah
Author-Name: Anthony Fiifi Afful
Author-X-Name-First: Anthony Fiifi
Author-X-Name-Last: Afful
Title: The link between households’ durable asset accumulation and healthcare utilisation and spending
Abstract:
In developing countries with less advanced financial systems, the accumulation of durable assets remains key to enhancing household welfare. Despite this, studies that explore the link between asset accumulation and health outcomes have largely focused on financial assets. We contribute to the literature by examining the effect of durable asset accumulation on healthcare utilisation and spending using data from a comprehensive and nationally representative survey data in Ghana. Our preferred endogeneity-corrected estimates indicate that a standard deviation increase in asset accumulation is associated with 1.741 and 0.598 standard deviations improvement in healthcare utilisation and spending, respectively. These findings are robust to alternative approaches to addressing endogeneity and different ways of conceptualising asset accumulation. Heterogeneities in findings for gender, location, and for decomposed health expenditures are also explored. We identify education and entrepreneurship as important channels through which asset accumulation influences healthcare utilisation and spending, respectively, and recognise the need for flexible policies that enhance households’ accumulation of durable assets, especially in developing countries.
Journal: International Review of Applied Economics
Pages: 686-710
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2254246
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2254246
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# input file: CIRA_A_2240255_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mattia Tassinari
Author-X-Name-First: Mattia
Author-X-Name-Last: Tassinari
Title: Productivity, equity, and sustainability: A trilemma for contemporary human development?
Abstract:
Productivity, equity and sustainability are regarded as ‘essential components’ in the human development paradigm. They reflect structural aspects of an economic system and create the material conditions for widespread human development and wellbeing. Nevertheless, the consistency among these principles is significantly questioned in the economic literature, depicting a potential ‘trilemma’ for contemporary human development. This paper analyses the ability of different economies to consistently advance productivity, equity, and sustainability. A new composite indicator – the Human Development Structural Consistency (HDSC) index – is introduced to measure the integrated performance in productivity, equity and sustainability of 66 economies from 2006 to 2019. The analysis shows a general progressive improvement in the ability of economies to advance the three structural components of human development consistently, although the three measures continue to appear incompatible with each other, whereby the process of economic growth is still associated with rising environmental degradation and a weak contrast to inequalities. This paper discusses the possible policy solutions to this ‘trilemma’, such as the structural changes necessary to ensure that improvements in productivity are accompanied by rising equity, sustainability, and effective human wellbeing.
Journal: International Review of Applied Economics
Pages: 575-606
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2240255
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240255
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# input file: CIRA_A_2266331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The failures of current capitalism: what next?
Journal: International Review of Applied Economics
Pages: 711-718
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2266331
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2266331
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# input file: CIRA_A_2240269_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gonçalo Amado
Author-X-Name-First: Gonçalo
Author-X-Name-Last: Amado
Title: Revisiting the debate on the Eurozone crisis: causes, clustering periphery and core, and the role of interest rate convergence
Abstract:
Explaining the Eurozone crisis requires explaining the origins of the external imbalances until then. The paper divides the literature arguments into three ”fundamental causes”, not mutually exclusive: a competitiveness problem, North-South flows, and excess of public and/or private spending. Within each of these causes, we find divergences between authors in the literature and identify a set of variables correlated with the accumulation of external imbalances before the crisis. These variables help to create clusters of Eurozone countries and separate core countries from the periphery. We then develop an original argument, that the convergence of nominal long-term interest rates in the periphery cluster countries, relative to the core cluster countries, between 1996 and 2007, was the trigger for the three ”fundamental causes” mentioned. We find Granger-causality between this convergence and subsequent (after four quarters) annual variations in the quarterly current account balance.
Journal: International Review of Applied Economics
Pages: 642-666
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2240269
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240269
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Handle: RePEc:taf:irapec:v:37:y:2023:i:5:p:642-666
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# input file: CIRA_A_2240262_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peng Yang
Author-X-Name-First: Peng
Author-X-Name-Last: Yang
Author-Name: Weizeng Sun
Author-X-Name-First: Weizeng
Author-X-Name-Last: Sun
Title: How does digital technology facilitate the green innovation of enterprises? Evidence from China
Abstract:
Employing annual reports (2007–2019) of Chinese A-share listed firms, we develop a firm-level digital technology application index using text analysis to investigate the impact of digital technology on an enterprise’s green innovation. The results indicate that, first, the application of digital technology significantly increases the level of green innovation of enterprises and will continue to have a positive impact over the next three years. Second, we demonstrate three mechanisms by which digital technology influences green innovation: namely, alleviating financial constraints, empowering the upgrading of human capital structure, and promoting R&D (research and development) cooperation. Third, we find that enterprises can only promote green innovation by integrating digital technology into their production, operation, and management processes. Furthermore, the positive impact of digital technology on green innovation was predominantly observed in businesses located in regions with a high level of environmental protection awareness and with limited environmental governance capacity.
Journal: International Review of Applied Economics
Pages: 621-641
Issue: 5
Volume: 37
Year: 2023
Month: 09
X-DOI: 10.1080/02692171.2023.2240262
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240262
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# input file: CIRA_A_2254716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Parimal Ghosh
Author-X-Name-First: Parimal
Author-X-Name-Last: Ghosh
Author-Name: Maniklal Adhikary
Author-X-Name-First: Maniklal
Author-X-Name-Last: Adhikary
Title: Dynamicity and nonlinearity in the association between different facets of financial development and macroeconomic volatility: evidence from the World Economy
Abstract:
This paper attempts to explore dynamicity and nonlinearity in the association between financial development and macroeconomic volatility, considering different aspects of financial development. The data to this end comprises a panel of 98 countries from 1991 to 2016. This paper uses an objective trichotomous development taxonomy to classify the countries according to their overall financial development and income. Dynamic panel regressions ensure that the role of overall financial development in smoothing macroeconomic volatility dwindles as the level of overall financial development increases. Overall financial development begins to amplify volatility after a certain point. Other aspects of financial development also affect volatility in a similar fashion. Nonlinear estimation results show that most of the measures of financial development are associated with macroeconomic volatility in a U-shaped manner. On the contrary, we find an inverted U-shaped association between financial institution efficiency and macroeconomic volatility. The findings are found to be robust to an alternative country classification system based on income and an alternative measure of volatility. To minimise macroeconomic volatility, policymakers should try to increase financial institution efficiency beyond its threshold point and keep all other aspects of financial development at their optimal level.
Journal: International Review of Applied Economics
Pages: 745-766
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2254716
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2254716
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# input file: CIRA_A_2268548_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kashika Arora
Author-X-Name-First: Kashika
Author-X-Name-Last: Arora
Title: Developing linkages between technology-intensive exports and GVC participation: a perspective from India and G20 countries
Abstract:
The G20, representing the world’s major developed and developing countries, is experiencing a unique situation with a troika of developing countries – Indonesia, India, and Brazil – holding significant positions for the first time. India, holding the G20 presidency, has a unique opportunity to strengthen its ties while assuming the responsibility of leading the world towards economic recovery. To understand India’s priorities regarding trade and supply chain resilience within the G20, it is essential to examine the background of India’s trade relationships with G20 member countries. This paper explores the connection between technology-intensive exports and global value chain (GVC) participation for the period 1995 to 2018 using advanced time-series analysis. The results point towards the importance of forward linkages for India’s exports of both high and low-tech exports and the backward linkage for medium-tech exports. The results show a connection between technological capabilities and exports to G20 nations through India’s participation in the GVC. In light of these findings, the paper offers guidance for the development of timely and well-informed sector-specific strategies.
Journal: International Review of Applied Economics
Pages: 804-827
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2268548
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2268548
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# input file: CIRA_A_2268558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Firoz Khan
Author-X-Name-First: Firoz
Author-X-Name-Last: Khan
Author-Name: Seeraj Mohamed
Author-X-Name-First: Seeraj
Author-X-Name-Last: Mohamed
Title: Elites and economic policy in South Africa’s transition and beyond
Abstract:
We build on and critique previous literature on economic policy configuration during the transition from apartheid to democracy (1990 to 1994) in South Africa (SA). The contribution of this article, and our critique of much influential literature on economic policy formation during the transition, is that the powerful corporate elites were not just stakeholders in negotiations between the apartheid government, the African National Congress (ANC) and other parties. We adopt a structural approach that highlights the crucial role of corporate elites and their active manoeuvring to manage and control economic policymaking during the transition to ensure continuity of the ostensibly free market economic policies they designed during the late-apartheid period. The complicity of the economic leadership of the ANC in squashing progressive economic transformation horizons is directly connected to the survival and institutionalisation in the present of late-apartheid neoliberalised economic policy. Ultimately, the corporate elite’s exertion of their state-expanded powers, their co-option of selected members of the black political elite and the ANC’s economic policy self-emasculation has further strengthened multinational corporations’ domination of SA’s markets, which were already highly concentrated, and limited present and future possibilities for inclusive development of the SA economy.
Journal: International Review of Applied Economics
Pages: 722-744
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2268558
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2268558
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# input file: CIRA_A_2299580_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: How to pursue sustainable development goals in face of global forces?
Journal: International Review of Applied Economics
Pages: 719-721
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2299580
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2299580
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# input file: CIRA_A_2299584_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Whatever happened to the idea of World Government?
Journal: International Review of Applied Economics
Pages: 828-834
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2299584
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2299584
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# input file: CIRA_A_2259276_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: The Editors
Title: Correction
Journal: International Review of Applied Economics
Pages: 835-835
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2259276
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2259276
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# input file: CIRA_A_2281458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Petros Kosmas
Author-X-Name-First: Petros
Author-X-Name-Last: Kosmas
Author-Name: Elias Ioakimoglou
Author-X-Name-First: Elias
Author-X-Name-Last: Ioakimoglou
Title: Determinants of profitability in the economy of the Republic of Cyprus based on a classical Marxist approach
Abstract:
This paper was designed to explore the factors influencing profitability within the business sector using a methodological framework rooted in Marx’s concept of the profit rate. By addressing the complexities of profitability changes, this study investigated the factors that drive profitability within the business sector of the Republic of Cyprus for the years 2006–2022, including: a period of severe structural crisis and change (2013–2014), a period of recovery (2015–2022) based on the outcomes of the crisis, and a period (2006–2012) against which shifts can be contrasted. The findings of this empirical study suggest that a substantial portion of the increase in profitability since 2015 is due to the reduction in the value of the labour power during the crisis years (2013–2014) and following the COVID-19 pandemic period (2021–2022).
Journal: International Review of Applied Economics
Pages: 767-780
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2281458
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2281458
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Handle: RePEc:taf:irapec:v:37:y:2023:i:6:p:767-780
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# input file: CIRA_A_2281460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Subroto Rapih
Author-X-Name-First: Subroto
Author-X-Name-Last: Rapih
Author-Name: Budi Wahyono
Author-X-Name-First: Budi
Author-X-Name-Last: Wahyono
Title: The relative impact of traditional and digital financial inclusion on economic growth: a threshold regression-based comparative analysis
Abstract:
This study examines the effect of traditional and digital financial inclusion on economic growth in 130 developed and developing countries in 2014 and 2017. The motivation behind this study emerges from the critical need to discern not only how traditional and digital financial inclusion individually influence economic growth, but also to compare their relative contributions. In addition, there exists a potential non-linear relationship between traditional and digital financial inclusion, wherein both forms of financial inclusion can exert a positive influence on economic growth up to a specific threshold. For this purpose, traditional and digital financial inclusion indices were developed as distinct measures to investigate the relative contribution of each to economic growth. Cross-sectional sample splitting and threshold estimation were utilised to analyse whether the effects of each financial inclusion index on economic growth varied across different levels of digital and traditional financial inclusion. This study yielded two notable findings. First, the effect of traditional financial inclusion on economic growth is pronounced in countries with low levels of inclusion. Second, digital financial inclusion has a greater positive impact on economic growth in countries with higher levels of digital financial inclusion.
Journal: International Review of Applied Economics
Pages: 781-803
Issue: 6
Volume: 37
Year: 2023
Month: 11
X-DOI: 10.1080/02692171.2023.2281460
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2281460
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# input file: CIRA_A_2330368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Juana Paola Bustamante Izquierdo
Author-X-Name-First: Juana Paola
Author-X-Name-Last: Bustamante Izquierdo
Title: Complementarities between product and process innovation and their effects on employment: a firm-level analysis of manufacturing firms in Colombia
Abstract:
The introduction or adoption of innovations at the firm level has consequences for job creation that may differ across low-middle and high-income countries. Also, the type of innovation that firms introduce, such as process or product innovations, can affect employment through different channels. This paper aims to study the effects of innovation on employment growth at the firm level using a framework that considers the nature of innovation and the relative efficiency of the firms. The study uses a rich panel dataset that combines information from two different surveys in Colombia: the Annual Manufacturing Survey and the Survey on Development and Technological Innovation in the Manufacturing Sector. The article provides empirical evidence supporting the idea that the nature of innovation in the country involves complementarities between process and product innovations. The paper discusses how this result is related to the patterns of innovation in middle income countries, which need not only new technologies but also imitation of processes and products. Another novelty of this analysis is the study of displacement effects of process innovation through improvements in the relative efficiency of the firms. Findings show that some firms reduce employment from process innovations, reflecting high heterogeneity in efficiency among firms.
Journal: International Review of Applied Economics
Pages: 129-154
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2024.2330368
File-URL: http://hdl.handle.net/10.1080/02692171.2024.2330368
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# input file: CIRA_A_1957783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Júlio Eduardo Rohenkohl
Author-X-Name-First: Júlio Eduardo
Author-X-Name-Last: Rohenkohl
Author-Name: Andreia Cunha da Rosa
Author-X-Name-First: Andreia Cunha
Author-X-Name-Last: da Rosa
Author-Name: Janaina Ruffoni
Author-X-Name-First: Janaina
Author-X-Name-Last: Ruffoni
Author-Name: Orlando Martinelli
Author-X-Name-First: Orlando
Author-X-Name-Last: Martinelli
Title: Necessary and sufficient conditions for the absorptive capacity of firms that interact with universities
Abstract:
A complex concept, absorptive capacity was first introduced by Cohen and Levinthal (1989, 1990) and is connected to the Penrose theory of growth of firms ([1959] 2009) as it is related to a variety of firms’ internal resources and external aspects of their environment, such as sources of knowledge. Considering firms that interact with universities in the search for external knowledge, this paper aims to identify the necessary and sufficient conditions of these firms to reach certain levels of absorptive capacity. We conducted a survey of firms that interacted with engineering research groups at universities in the state of Rio Grande do Sul (Brazil). We applied the Fuzzy Sets Comparative Qualitative Analysis. The main results were: (1) the necessary and sufficient conditions for high-level absorptive capacity are a combination of high acquisition and assimilation and medium transformation and exploitation; (2) the necessary and sufficient conditions for medium or non-high absorptive capacity are obtained by medium levels of acquisition, assimilation, transformation and exploitation; and c) that there are a variety of paths to improving the absorptive capacity of firms. These findings are important to formulating more diverse, flexible and less costly public policies aimed towards improving firms’ absorptive capacity.
Journal: International Review of Applied Economics
Pages: 175-193
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2021.1957783
File-URL: http://hdl.handle.net/10.1080/02692171.2021.1957783
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# input file: CIRA_A_2022295_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bronwyn H. Hall
Author-X-Name-First: Bronwyn H.
Author-X-Name-Last: Hall
Title: Patents, innovation, and development
Abstract:
I survey some recent research on the role of patents in encouraging innovation and growth in developing economies, beginning with a brief history of international patent systems and facts about the current use of patents around the world. I discuss research on the implications of patents for international technology transfer and domestic innovation. This is followed by a review of recent work by myself and co-authors on regional patent systems, the impact of patents on firm performance, and the impact on pharmaceutical patenting and domestic innovation. The conclusion suggests that patents may be relatively unimportant in development, even for middle income countries.
Journal: International Review of Applied Economics
Pages: 17-42
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2021.2022295
File-URL: http://hdl.handle.net/10.1080/02692171.2021.2022295
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# input file: CIRA_A_2242016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: John Kay
Author-X-Name-First: John
Author-X-Name-Last: Kay
Title: The story of flight
Abstract:
The history of commercial aviation - from the earliest attempts at flight to the modern civil aircraft - is used to illustrate the central role of the evolutionary progress of collective knowledge in what is loosely described as technical progress. No individual knows how to build an airbus - ten thousand people working together do. The emphasis on collective intelligence as a means of solving problems builds on Penrose’s insight that the firm is best viewed a s a collection of capabilities to develop a template for the modern corporation that recognises the development of ‘capital as a service’ and the importance of ‘hollow corporations’, franchises and platforms in the twenty-first century economy.
Journal: International Review of Applied Economics
Pages: 90-103
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2023.2242016
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2242016
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# input file: CIRA_A_2022296_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: William Lazonick
Author-X-Name-First: William
Author-X-Name-Last: Lazonick
Title: Is the most unproductive firm the foundation of the most efficient economy? Penrosian learning confronts the neoclassical fallacy
Abstract:
Edith Penrose’s The Theory of the Growth of the Firm provides an intellectual foundation for a theory of innovative enterprise, which is essential to any attempt to explain productivity growth, employment opportunity, and income distribution. Penrose’s theory of the firm is also an antidote to the absurdity that has been taught by PhD economists to millions of college students for over seven decades: the most unproductive firm is the foundation of the most efficient economy. The dissemination of this ‘neoclassical fallacy’ to a mass audience began with Paul A. Samuelson’s textbook, Economics: An Introductory Analysis, first published in 1948. Over the decades, the neoclassical fallacy has persisted through 18 revisions of Samuelson, Economics and in its countless ‘economics principles’ clones. This essay challenges the intellectual hegemony of neoclassical economics by exposing the illogic of its foundational assumptions about how a modern economy operates and performs. To get beyond the neoclassical fallacy, economists must be trained in a ‘historical transformation’ methodology that integrates history and theory. It is a methodology in which theory serves as both a distillation of what we have learned from the study of history and a guide to what we need to learn about reality as the ‘present as history’ unfolds.
Journal: International Review of Applied Economics
Pages: 58-89
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2021.2022296
File-URL: http://hdl.handle.net/10.1080/02692171.2021.2022296
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# input file: CIRA_A_2123459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lenore Palladino
Author-X-Name-First: Lenore
Author-X-Name-Last: Palladino
Author-Name: William Lazonick
Author-X-Name-First: William
Author-X-Name-Last: Lazonick
Title: Regulating stock buybacks: the $6.3 trillion question
Abstract:
Corporate resource allocation decisions shape business investment, income distribution, and productivity growth. Stock buybacks––a term denoting when a corporation repurchases its own shares on the open market––manipulate stock prices and enrich senior corporate executives and hedge fund managers. We argue that the growing distribution of corporate funds to share-sellers via stock buybacks is a source of productivity fragility in the US economy. This article presents new data on the use of stock buybacks by US corporations in 2010–2019. We show the widespread and growing use of stock buybacks across industries and sectors and describe policies that will curb the excessive use of corporate funds on stock buybacks.
Journal: International Review of Applied Economics
Pages: 243-267
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2022.2123459
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2123459
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# input file: CIRA_A_2335064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: The life and times of Edith Penrose
Journal: International Review of Applied Economics
Pages: 268-276
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2024.2335064
File-URL: http://hdl.handle.net/10.1080/02692171.2024.2335064
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# input file: CIRA_A_2154917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Michael Joffe
Author-X-Name-First: Michael
Author-X-Name-Last: Joffe
Title: Profit rate dynamics in US manufacturing
Abstract:
The attributes and dynamics of the profit rate distribution provide indispensable information on how the economy works. Edith Penrose, in The theory of the growth of the firm¸ took agency, managerial capabilities, heterogeneity and open-endedness as characteristic of the economy. Schumpeter had a similar view. Neoclassical theory, in contrast, envisages convergence to a standard rate of return, invoking inter-industry capital flows and diminishing returns as the main mechanism. I analysed the data on US manufacturing, 1987–2015. There was evidence of convergence, attributable to loss of supra-normal profits in two industries. The features of the distribution confirm Penrose’s view. Neoclassical theory fares poorly: the data do not support ‘a standard rate of return’, and no plausible macro shock exists that could have produced the observed dispersion. The symmetry of the observed distribution indicates that neither market power nor intangible assets play major roles in determining the shape of the profit rate distribution; risk, however, is relevant if reformulated. Intersectoral capital flows were weak, and there was no evidence of diminishing returns. Penrose’s conception of heterogeneous managerial capacity refers to a concept of economic power distinct from market power, corresponding to differential ex ante strength; differential profit outcomes represent ex post strength.
Journal: International Review of Applied Economics
Pages: 194-223
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2022.2154917
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2154917
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# input file: CIRA_A_2144149_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mariana Mazzucato
Author-X-Name-First: Mariana
Author-X-Name-Last: Mazzucato
Title: Collective value creation: a new approach to stakeholder value
Abstract:
The corporate community has rediscovered an old idea: stakeholder value. The concept’s history is rooted in the literature on varieties of capitalism. Within that scholarship it has served to delineate institutional and relational differences between capitalist systems and forms of corporate governance. Today, stakeholder value is being used to argue for the redirection of capitalism to deliver on key goals related to inclusion and sustainability. This paper argues that the concept – and thus the endeavour to change capitalism – will remain weak unless it goes to the centre of how we create value. Moralistic exhortations to business leaders are not enough to bring about a true stakeholder form of capitalism. For this we must have stronger theory and practice on how to restructure finance, production, and public-private partnerships in new ways that recognise the state’s market-shaping role and support equitable distribution of value across stakeholders.
Journal: International Review of Applied Economics
Pages: 43-57
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2022.2144149
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2144149
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# input file: CIRA_A_2117284_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chia Huay Lau
Author-X-Name-First: Chia Huay
Author-X-Name-Last: Lau
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Penrose’s theory of the firm in an era of globalisation
Abstract:
Penrose analysed why some firms succeed in growing – what the factors are that enable growth, and the ways in which success can breed success, with enhanced capabilities enabling growing market share (or sales), and with increased revenues and profitability enabling those capabilities to be further developed. There is a separate question as to why firms expand their operations internationally. In this paper, we analyse a sector that in Edith Penrose’s day operated almost exclusively domestically, namely the ‘consulting engineering’ sector. We consider why firms in this sector are now increasingly operating internationally. In doing so, we consider whether the factors identified – by Penrose and others – as causing firms to grow are also relevant to the expansion of these firms overseas. Our findings support Penrose’s Resource-based Theory, which argues that unique strategic resources that are inimitable and non-substitutable can provide firms with competitive advantages. Internationalisation provides consulting engineering firms with the opportunities to explore and obtain different kinds of expertise and resources from other regions. With a larger pool of expertise to draw from, firms can develop their firm-specific strategic assets and technical advantages.
Journal: International Review of Applied Economics
Pages: 155-174
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2022.2117284
File-URL: http://hdl.handle.net/10.1080/02692171.2022.2117284
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# input file: CIRA_A_2336315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Author-Name: Christine Oughton
Author-X-Name-First: Christine
Author-X-Name-Last: Oughton
Title: Edith penrose’s influence on economic analysis, strategic management and political economy
Abstract:
Edith Penrose is best known for her classic book The Theory of the Growth of the Firm, originally published in 1959, but she also made major contributions in other fields, including patents, the oil industry, and development economics. This special double issue of the International Review of Applied Economics publishes recent research from a range of leading economists and management scholars from across the world, either explicitly analysing Penrose’s contribution, or else analysing topics from firms’ collaborations with universities through to the practice and consequences of share buy-backs, which demonstrate that a Penrosian perspective helps to illuminate the reality of such processes.
Journal: International Review of Applied Economics
Pages: 2-11
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2024.2336315
File-URL: http://hdl.handle.net/10.1080/02692171.2024.2336315
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# input file: CIRA_A_2240272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Damian Tobin
Author-X-Name-First: Damian
Author-X-Name-Last: Tobin
Title: Captive markets and climate change: revisiting Edith Penrose’s analysis of the international oil firms in the era of climate change
Abstract:
Edith Penrose’s analysis of the investments of the international oil companies (IOCs) stemmed from her interest in the economics of the large international firm and its implications for developing economies. Her approach highlights the endogenous factors shaping the growth of the large firm and cautions against viewing it as a neutral technocracy where investment automatically responds to price incentives. Drawing on Penrose’s concept of a captive market in oil products, this research develops Penrose’s ideas around motive, profit, self-financing and the international firm to explain why the IOC’s institutional environment still favours investment in fossil fuels. The study collected country and firm level data on investment and production in downstream petrochemical refining. The data show a connection between the captive market and the strategies of the large oil firms in expanding refining capacity as a strategic hedge against regulatory policies to limit climate change. This locks society into a carbon intensive infrastructure, reduces the motivation for investment and adds to global CO2 emissions. The findings indicate that the oil companies need to take greater risks on green investments with their retained earnings. Governments need to direct this investment towards socially useful purposes using coordinated regulatory pressure.
Journal: International Review of Applied Economics
Pages: 104-128
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2023.2240272
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2240272
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# input file: CIRA_A_2331000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kofi Adjepong-Boateng
Author-X-Name-First: Kofi
Author-X-Name-Last: Adjepong-Boateng
Author-Name: Christine Oughton
Author-X-Name-First: Christine
Author-X-Name-Last: Oughton
Title: Edith Penrose and the Penrose Lectures
Abstract:
This article summarises Edith Penrose’s career and impact on two disciplines - economics and management. The extent of her influence can be gauged by scanning the pages of leading publications in both fields, where copious references to Penrosian Theory, the Penrose Effect, the Penrosian Firm, Penrosian Analysis, the Penrosian Perspective, Penrosian Dynamics are standard. Penrose also played a major role in a variety of economics associations, policy bodies and government inquiries. This article considers the nature of her achievements and the fact that they are all the more remarkable for having been made at a time when economics was even more male dominated than it is today. Perhaps it is because she was a woman that her major contribution – The Theory of the Growth of the Firm - modelled firms as collections of people rather than as anonymous automata. We show how her contributions are honoured today via the annual Penrose Lectures; two lectures given each year at SOAS University of London, on a topic in economics, management or political economy. One of the objectives of the Penrose Lecture series is to showcase the work of leading women working in the fields of economics and management.
Journal: International Review of Applied Economics
Pages: 12-16
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2024.2331000
File-URL: http://hdl.handle.net/10.1080/02692171.2024.2331000
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# input file: CIRA_A_2336317_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jonathan Michie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Michie
Title: Double special issue on Edith Penrose
Journal: International Review of Applied Economics
Pages: 1-1
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2024.2336317
File-URL: http://hdl.handle.net/10.1080/02692171.2024.2336317
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# input file: CIRA_A_2254718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Irene Roele
Author-X-Name-First: Irene
Author-X-Name-Last: Roele
Author-Name: Sonja Ruehl
Author-X-Name-First: Sonja
Author-X-Name-Last: Ruehl
Title: What is Edith Penrose’s legacy for the theory of the firm?
Abstract:
Prompted by centenary celebrations of the contribution of Edith Penrose to the theory of the firm, the development of resource-based views of the firm (RBV) and knowledge-based perspectives, this article considers the continuing usefulness of Penrose’s perspective for strategic management, from the point of view of the practitioner, the management educator and to the development of the academic field of strategic management. As authors, we draw on methods originating with Penrose’s pioneering case study methodology by framing illustrative ‘vignettes’ or case examples for discussion, including that of Tesco, which draws on extensive participant observation as well as theory.
Journal: International Review of Applied Economics
Pages: 224-242
Issue: 1-2
Volume: 38
Year: 2024
Month: 03
X-DOI: 10.1080/02692171.2023.2254718
File-URL: http://hdl.handle.net/10.1080/02692171.2023.2254718
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Handle: RePEc:taf:irapec:v:38:y:2024:i:1-2:p:224-242