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Author: Andrew B. Bernard
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 50
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Book Description
This paper examines the response of industries and firms to changes in trade costs. Several new firm-level models of international trade with heterogeneous firms predict that industry productivity will rise as trade costs fall due to the reallocation of activity across plants within an industry. Using disaggregated U.S. import data, we create a new measure of trade costs over time and industries. As the models predict, productivity growth is faster in industries with falling trade costs. We also find evidence supporting the major hypotheses of the heterogenous-firm models. Plants in industries with falling trade costs are more likely to die or become exporters. Existing exporters increase their shipments abroad. The results do not apply equally across all sectors but are strongest for industries most likely to be producing horizontally-differentiated tradeable goods.
Author: Andrew B. Bernard
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 50
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Book Description
This paper examines the response of industries and firms to changes in trade costs. Several new firm-level models of international trade with heterogeneous firms predict that industry productivity will rise as trade costs fall due to the reallocation of activity across plants within an industry. Using disaggregated U.S. import data, we create a new measure of trade costs over time and industries. As the models predict, productivity growth is faster in industries with falling trade costs. We also find evidence supporting the major hypotheses of the heterogenous-firm models. Plants in industries with falling trade costs are more likely to die or become exporters. Existing exporters increase their shipments abroad. The results do not apply equally across all sectors but are strongest for industries most likely to be producing horizontally-differentiated tradeable goods.
Author: Mark J. Roberts
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
March 1995 Exports respond unpredictably to a change in real exchange rates, suggests evidence from the 1980s. Recent theoretical work explains this as a consequence of the sunk costs associated with breaking into foreign markets. Sunk costs include the cost of packaging, upgrading product quality, establishing marketing channels, and accumulating information on demand sources. The authors use micro panel data to estimate a dynamic discrete-choice model of participation in export markets, a model derived from the Krugman-Baldwin sunk-cost hysteresis framework. Applying the model to data on manufacturing plants in Colombia (1981-89), they test for the presence of sunk entry costs and quantify the importance of those costs in explaining export patterns. The econometric results reject the hypothesis that sunk costs are zero. The results, which control for both observed and unobserved sources of plant heterogeneity, indicate that prior export market experience has a substantial effect on the probability of exporting, but its effect depreciates fairly quickly. The reentry costs of plants that have been out of the export market for a year are substantially lower than the costs of a first-time exporter. After a year out of the export market, however, the reentry costs are not significantly different from the entry costs. Plant characteristics are also associated with export behavior: large old plants owned by corporations are more likely to export than other plants. Variations in plant-level cost and demand conditions have much less effect on the profitability of exporting than variations in macroeconomic conditions and sunk costs do. It appears especially difficult to break into foreign markets during periods of world recession.
Author: Andrew B. Bernard
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.
Author: Inter-American Development Bank
Publisher: Springer
ISBN: 1349581518
Category : Business & Economics
Languages : en
Pages : 366
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Book Description
This volume uses the study of firm dynamics to investigate the factors preventing faster productivity growth in Latin America and the Caribbean, pushing past the limits of traditional macroeconomic analyses. Each chapter is dedicated to an examination of a different factor affecting firm productivity - innovation, ICT usage, on-the-job-training, firm age, access to credit, and international linkages - highlighting the differences in firm characteristics, behaviors, and strategies. By showcasing this remarkable heterogeneity, this collection challenges regional policymakers to look beyond one-size-fits-all solutions and create balanced policy mixes tailored to distinct firm needs. This book is open access under a CC BY-NC-ND 3.0 IGO license.
Author: Eddy Bekkers
Publisher: Rozenberg Publishers
ISBN: 905170903X
Category :
Languages : en
Pages : 144
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Book Description
The thesis is organized as follows. Chapter 2 contains a survey of the three most in‡fluential models on fi…rm heterogeneity and of the most important empirical work on firrm heterogeneity. The chapter starts with a brief review of the homogeneous productivity imperfect competition literature. Chapter 2 …finishes with a comparison of the three most in‡fluential models of fi…rm heterogeneity and the oligopoly model put forward in the thesis. Chapter 3 addresses exporting uncertainty under heterogeneous popularity. Chapter 4 contains the chapter on …firm heterogeneity under oligopoly. Chapter 5 constitutes the models on …firm heterogeneity and endogenous quality. Chapter 6 points out the within-sector specialization model. Chapter 7 addresses the effect of importer characteristics on unit values and the role of markups and quality to explain this effect. Chapter 8 concludes.
Author: Andrea Ciani
Publisher: World Bank Publications
ISBN: 1464815585
Category : Business & Economics
Languages : en
Pages : 178
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Book Description
Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.
Author: Pooja Lakhanpal
Publisher: Springer Nature
ISBN: 9813369736
Category : Business & Economics
Languages : en
Pages : 396
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Book Description
The book contributes to the growing literature pertaining to empirical and policy issues in international trade, foreign capital flows and issues in finance, implications for India and emerging economies related to trade and development interface, and analysis of sector level growth and development in India. Further, the focus is on the policy aspects of these themes and their role in fostering economic development in the context of India and other emerging market economies. The discourse focuses mainly on empirical work and econometric details. The relevant issues are investigated using state of the art techniques such as gravity models, panel co-integration, generalized hyperbolic distributions, SEM, FMOLS and Probit models. In addition, detailed literature survey, discussions on data availability, issues related to statistical estimation techniques and a theoretical background, ensure that each chapter significantly contributes to the ever-growing literature on international trade and capital flows. The readers shall find an engaging dialogue on the crucial role played by policy and the trade-capital flows-growth experience of emerging economies. The book is relevant for those who are interested in contemporary issues in trade, growth and finance as well as for students of advanced econometrics who may benefit from the analytical and econometric exposition. The empirical evidences provided here could serve as ready reference for academicians, researchers and policy makers, particularly in emerging economies facing similar challenges.
Author: Bernard M. Hoekman
Publisher: World Bank Publications
ISBN: 0821361260
Category : Business & Economics
Languages : en
Pages : 370
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Book Description
The importance of international technology diffusion (ITD) for economic development can hardly be overstated. Both the acquisition of technology and its diffusion foster productivity growth. Developing countries have long sought to use both national policies and international agreements to stimulate ITD. The 'correct' policy intervention, if any, depends critically upon the channels through which technology diffuses internationally and the quantitative effects of the various diffusion processes on efficiency and productivity growth. Neither is well understood. New technologies may be embodied in goods and transferred through imports of new varieties of differentiated products or capital goods and equipment, they may be obtained through exposure to foreign buyers or foreign investors or they may be acquired through arms-length trade in intellectual property, e.g., licensing contracts. 'Global Integration and Technology Transfer' uses cross-country and firm level panel data sets to analyze how specific activities exporting, importing, FDI, joint ventures impact on productivity performance.
Author: R.W. Jones
Publisher: North Holland
ISBN:
Category : Business & Economics
Languages : en
Pages : 654
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Book Description
Textbook, research papers on international economic theory, economic policy and practice - includes a literature survey of theoretical studies in trade relations; covers evolution of economic models explaining the determinants of trade structure, capital flow, labour mobility, trade in natural resources, etc.; examines macroeconomics aspects of balance of payments, exchange rate, international monetary system, economic relations and dependence, etc. Bibliography, graphs, statistical tables.
Author: Charlie Karlsson
Publisher: Edward Elgar Publishing
ISBN: 1781953546
Category : Business & Economics
Languages : en
Pages : 401
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Book Description
'Charlie Karlsson, Börje Johansson and Roger R. Stough have collected a set of important articles on some of the most important factors determining the growth of contemporary regional economies. the focus of the book is on important growth determinants that are almost never mentioned in the standard analyses of economic growth. Entrepreneurship is discussed from theoretical as well as empirical points of view. the role of social capital as well as institutional governance are highlighted in chapters that ought to be read by all economists interested in the economic growth and development of regions.' – Åke E. Andersson, Jönköping International Business School, Jönköping, Sweden 'This is an exceptional work that is the result of an outstanding selection of the best papers on agglomeration and innovation given at the 10th anniversary of the Udevalla conference. It is the finest set of conference papers I have seen in the past 25 years. These are artfully woven together into three primary areas. the first focuses on the role of knowledge and innovation in entrepreneurship, the second incorporates the institutional environment, while the third looks at the international context. I recommend this collection to academics, students and all who are interested in the role of creativity and innovation in entrepreneurial development. Not only are these the very best researchers in the field, but the materials are presented in a clear and concise manner, making it an outstanding base for advanced courses in this area. This work combines some of the best writings by top-notch authors sharing the sharpest insight into the complex area of the role of human capital in structuring agglomerative advantages. I take my hat off to the fine editorial work represented in this volume.' – Kingsley E. Haynes, George Mason University, US 'The book provides a remarkable contribution on the role of human capital as major creator of knowledge, interpreted as abilities, capabilities, methods, creativity and persistency in identifying and solving problems by collecting, selecting, interpreting and applying existing knowledge and information. the laws of increasing returns to human capital – among which are urban agglomerations as magnets which attract persons who embody knowledge – are conceptually searched and empirically verified. the book answers questions such as: Why do highly educated people, i.e. the carriers of human capital, tend to concentrate in large agglomerations?; What are the agglomerative forces?; and How does this agglomeration of human capital impact different types of economic activities and in particular their location behaviour? Important normative implications are thus derived from such a collected effort.' – Roberta Capello, Politecnico di Milano, Italy 'The Regional Economics of Knowledge and Talent, edited by Charlie Karlsson, Börje Johansson and Roger R. Stough brings together a wide range of cutting-edge studies and research on the role of talent in regional development. It is an important addition to our understanding of how knowledge, human capital, and talent shape the development of cities and regions across the globe.' – Richard Florida, University of Toronto, Canada This original and instructive new book defines and explores the concept of knowledge as the talent, skills, know-how and understanding embodied in individuals. the distinguished contributors advance the current research frontier in three novel directions which focus on: the role of human capital and talent for creativity, entrepreneurship and regional development; the role of institutions for the behaviour of firms and entrepreneurs; and the influence of the global context on the location, export and innovation behaviour of firms in a knowledge economy. They also address critical questions that underpin the emerging knowledge economy: • Why does human capital and talent tend to agglomerate in large urban regions? • How does this agglomeration affect the location of different types of economic activities? • How does this agglomeration affect regional growth? Presenting the state of the art in the field of knowledge economics, this book will prove a stimulating and challenging read for scholars and researchers with an interest in economics, business and management, and regional and urban studies.
