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Author: Kai Li
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The world is not flat, neither are countries. Geography, in terms of location and destination, plays a key role in firm activity. The thesis is composed of two chapters that are relevant to geography and firms' decisions on exporting and investment.Previous research on export dynamics addresses a firm's tradeoff between generating a profit now or in the future, but it overlooks the importance of a firm's export decisions across markets. In the first chapter paper, I study a firm's dynamic export destination choice over two markets (the North and South) using a structural model in which I take into account of both the selection effect and the learning-by-exporting effect. Using data from the Chinese plastic industry, I distinguish and model two determinants that impact a firm's sales: a general component productivity that affects the firm's (entry) sales in all markets, and a market-specific component demand that influences sales only in that market to which the firm is exporting. I find that a firm's decision to export to the North promotes entry (sales) in other markets through productivity improvement. In contrast, a firm's decision to export to the South merely increases the sales in the South through a market-specific demand impact. Counterfactual analysis shows that omitting the benefits of exporting to the South deters 7% of all exporting firms that may have exported to the North; yet eliminating the benefits of exporting to the North deters 34% of all exporting firms that may have exported to the South.In addition to research on export destinations, the location of the firm also determines the way they make decisions. In the second chapter, I study a panel dataset for firms in the equipment-making industry in China and observe that the investment rates in urban areas are consistently lower than in suburban areas by 6-7 percentage points. Three factors could explain this - the production technology, profit shocks and capital adjustment costs. I build a structural model and quantify the relative importance of three factors in determining the firms' investment rate. The results indicate that while the production technology is similar in urban and suburban areas, profit shocks tend to be more volatile and with higher means among firms in suburban areas. Moreover, urban firms face higher (even if more easily reversible) adjustment costs for capital. The counterfactual analysis reveals that profit shocks are responsible for 70-80% of the differential in investment rates whereas difference in adjustment costs explains only about 20-30%.
Author: Kai Li
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
The world is not flat, neither are countries. Geography, in terms of location and destination, plays a key role in firm activity. The thesis is composed of two chapters that are relevant to geography and firms' decisions on exporting and investment.Previous research on export dynamics addresses a firm's tradeoff between generating a profit now or in the future, but it overlooks the importance of a firm's export decisions across markets. In the first chapter paper, I study a firm's dynamic export destination choice over two markets (the North and South) using a structural model in which I take into account of both the selection effect and the learning-by-exporting effect. Using data from the Chinese plastic industry, I distinguish and model two determinants that impact a firm's sales: a general component productivity that affects the firm's (entry) sales in all markets, and a market-specific component demand that influences sales only in that market to which the firm is exporting. I find that a firm's decision to export to the North promotes entry (sales) in other markets through productivity improvement. In contrast, a firm's decision to export to the South merely increases the sales in the South through a market-specific demand impact. Counterfactual analysis shows that omitting the benefits of exporting to the South deters 7% of all exporting firms that may have exported to the North; yet eliminating the benefits of exporting to the North deters 34% of all exporting firms that may have exported to the South.In addition to research on export destinations, the location of the firm also determines the way they make decisions. In the second chapter, I study a panel dataset for firms in the equipment-making industry in China and observe that the investment rates in urban areas are consistently lower than in suburban areas by 6-7 percentage points. Three factors could explain this - the production technology, profit shocks and capital adjustment costs. I build a structural model and quantify the relative importance of three factors in determining the firms' investment rate. The results indicate that while the production technology is similar in urban and suburban areas, profit shocks tend to be more volatile and with higher means among firms in suburban areas. Moreover, urban firms face higher (even if more easily reversible) adjustment costs for capital. The counterfactual analysis reveals that profit shocks are responsible for 70-80% of the differential in investment rates whereas difference in adjustment costs explains only about 20-30%.
Author: Jean Louis Mucchielli
Publisher: Edward Elgar Publishing
ISBN: 1845420624
Category : Business & Economics
Languages : en
Pages : 238
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Book Description
The choice of location for the production plants of multinational firms is an important issue, not least because this decision is accompanied by so many fears brought into public debate. This book analyses how foreign direct investors choose their locations, whilst exploring the forces which shape international economic geography. Although these two issues are, to some extent, inter-related, researchers have only recently acknowledged the similarity of economic geography and international business approaches to the empirical assessment of likely causes of the degree of spatial concentration observed in many modern industries. Giving insight into the direction that future research should take, this book contains state-of-the-art papers on both theoretical and empirical levels. This original collection makes a particularly important contribution to our understanding of the existence and impact of home market effects. Introducing a welcome synthesis between two related and yet rarely integrated areas of study using case studies of firms in Europe, US MNEs and the Mexican automobile industry, this book will be welcomed by both academic and practising economists. Regional scientists and.
Author: Yoko Takeda
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This dissertation consists of three independent chapters on International and Spatial Economics. The first chapter analyzes the spatial sorting pattern of innovative activities by developing a model of heterogeneous firms that choose innovation sourcing sites. The model captures firms' trade-off that locating innovations in larger-sized cities enhances knowledge spillover while it also exposes the higher risk of information leakage to competitors, with implying that the relevance between cost and benefit of sourcing innovation in a populous city depends on the life-cycle length of technology embedded in products. In industries with relatively rapid turn-over of technologies, firms become less sensitive to the risk of information leakage as their fast technology obsolescence tends to outpace adoption of leaked information by competitors. In contrast, firms using more durable technologies evaluate the risk of information leakage relatively more, as leaked information retains long-lasting market value. As a result, the model predicts a geographical sorting pattern of innovation where firms using long-lived technology in production optimally source innovation in smaller-sized cities, and vice versa. The empirical analysis based on U.S. patent data shows that the theory partly explains within-firm heterogeneity of innovation sourcing decision by multi-product firms operating in multiple industries, although there exist considerable across-firm variations in geography choice for innovation that the model cannot account for. The second chapter provides evidence that offshore patent laws influence global firms' innovation decisions. Within a simple model of multinational production, we find that a novel consequence of imitation risk is that firms innovate selectively, directing investments in product development toward relatively short-lived varieties that are difficult to imitate prior to obsolescence. A key implication of firms' selective product development is that patent reforms tend to increase not only innovation by firms, but also the average economic lifetime of the products they develop---both to extents varying non-monotonically across industries according to rates of underlying technological obsolescence. Using detailed data on U.S. patent grants and citations during 1976--2006 and U.S. multinational firms' affiliate innovation investment during 1982--2009, we find empirical regularities consistent with these hypotheses. The third chapter analyzes the intellectual property rights (IPR)-protecting policy in developing countries by constructing a North-South model where the North firms serve the South market through either export or foreign direct investment (FDI). The FDI leads to a technology leakage to local firms in the South via imitation, which imposes the North firm a trade-off in conducting FDI between a benefit of saving production and transportation cost and a cost of tightened competition due to advanced technology adoption by the South firms. IPR protection level in the South determines actual cost of technology leakage incurred by the North firm, and the model concludes that the South government has an incentive to set the loosest possible IPR-protection policy that attracts FDI to the South. This result holds for extended environments of the model.
Author: Robert E. Baldwin
Publisher: University of Chicago Press
ISBN: 9780226035727
Category : Business & Economics
Languages : en
Pages : 194
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Book Description
Geography and Ownership as Bases for Economic Accounting provides a forum for leading specialists in trade and international economics to explore whether changes in the world economy have increased the usefulness of international accounts drawn up on the basis of ownership rather than on geography. The papers in this volume suggest that ownership-based national accounts are helpful in understanding trade and financial transactions among globalized enterprises. Individual chapters emphasize this perspective through accounting exercises, studies of individual countries, and studies of foreign direct investment and its relation to national economies. This volume gives trade and international economists the data and resources to renew discussion of this timely issue.
Author: David Turnock
Publisher: Routledge
ISBN: 1351158104
Category : Science
Languages : en
Pages : 393
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Book Description
With the achievement of further EU and NATO enlargement, a critical political and economic lens is now focused on East Central Europe and, to a lesser extent, the other former communist states. Economic growth in each transition state - and more broadly the region - pivots around the prospects for foreign direct investment (FDI), with decisions on where foreign investors will locate their projects now vitally important. This book - the first one devoted to a geographical survey concentrating specifically on FDI in the region - brings together a wide range of prominent authors from the US and Europe, including the late Frank Carter, to provide a timely and critical examination of the importance of foreign investment. It presents a detailed analysis of location patterns and their significance for regional development, with particular emphasis given to the important socioeconomic and political consequences of uneven distribution of FDI across the region and its constituent countries. Divided into two parts, the book first deals with general overarching themes and issues before applying these to more specific country case studies. The second part deals with regional studies, focusing broadly on the Western Balkans and Bulgaria, before looking at specific economic sectors in individual countries.
Author: Milford B. Green
Publisher: Ashgate Publishing
ISBN:
Category : Industrial location
Languages : en
Pages : 296
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Book Description
Collection of papers dealing with the factors determining the location of transnational corporations and their foreign direct investments. Contains statistical charts and diagrams.
Author: Rediscovering Geography Committee
Publisher: National Academies Press
ISBN: 0309577624
Category : Education
Languages : en
Pages : 260
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Book Description
As political, economic, and environmental issues increasingly spread across the globe, the science of geography is being rediscovered by scientists, policymakers, and educators alike. Geography has been made a core subject in U.S. schools, and scientists from a variety of disciplines are using analytical tools originally developed by geographers. Rediscovering Geography presents a broad overview of geography's renewed importance in a changing world. Through discussions and highlighted case studies, this book illustrates geography's impact on international trade, environmental change, population growth, information infrastructure, the condition of cities, the spread of AIDS, and much more. The committee examines some of the more significant tools for data collection, storage, analysis, and display, with examples of major contributions made by geographers. Rediscovering Geography provides a blueprint for the future of the discipline, recommending how to strengthen its intellectual and institutional foundation and meet the demand for geographic expertise among professionals and the public.
Author: Thomas Farole
Publisher: World Bank Publications
ISBN: 0821398954
Category : Business & Economics
Languages : en
Pages : 301
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Book Description
While national incomes have converged in recent decades, the emergence of entrenched leading and lagging regions within countries is becoming a critical policy challenge. Drawing on empirical studies and case studies, this book assesses the role of trade integration and connectivity in shaping and addressing the challenges of lagging regions.
Author: Robert E. Baldwin
Publisher: University of Chicago Press
ISBN: 0226036545
Category : Business & Economics
Languages : en
Pages : 360
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Book Description
Geography and Ownership as Bases for Economic Accounting provides a forum for leading specialists in trade and international economics to explore whether changes in the world economy have increased the usefulness of international accounts drawn up on the basis of ownership rather than on geography. The papers in this volume suggest that ownership-based national accounts are helpful in understanding trade and financial transactions among globalized enterprises. Individual chapters emphasize this perspective through accounting exercises, studies of individual countries, and studies of foreign direct investment and its relation to national economies. This volume gives trade and international economists the data and resources to renew discussion of this timely issue.
Author: Kenneth A. Reinert
Publisher: Princeton University Press
ISBN: 1400830400
Category : Political Science
Languages : en
Pages : 1329
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Book Description
An essential reference to all facets of the world economy Increasing economic globalization has made understanding the world economy more important than ever. From trade agreements to offshore outsourcing to foreign aid, this two-volume encyclopedia explains the key elements of the world economy and provides a first step to further research for students and scholars in public policy, international studies, business, and the broader social sciences, as well as for economic policy professionals. Written by an international team of contributors, this comprehensive reference includes more than 300 up-to-date entries covering a wide range of topics in international trade, finance, production, and economic development. These topics include concepts and principles, models and theory, institutions and agreements, policies and instruments, analysis and tools, and sectors and special issues. Each entry includes cross-references and a list of sources for further reading and research. Complete with an index and a table of contents that groups entries by topic, The Princeton Encyclopedia of the World Economy is an essential resource for anyone who needs to better understand the global economy. More than 300 alphabetically arranged articles on topics in international trade, finance, production, and economic development International team of contributors Annotated list of further reading with each article Topical list of entries Full index and cross-references Entry categories and sample topics: Concepts and principles: globalization, anti-globalization, fair trade, foreign direct investment, international migration, economic development, multinational enterprises Models and theory: Heckscher-Ohlin model, internalization theory, New Trade Theory, North-South trade, Triffin dilemma Institutions and agreements: European Union, International Monetary Fund, World Trade Organization, World Bank, Doha Round, international investment agreements Policies and instruments: dollar standard, international aid, sanctions, tariffs Analysis and tools: exchange rate forecasting, effective protection, monetary policy rules Sectors and special issues: child labor, corporate governance, the digital divide, health and globalization, illegal drugs trade, petroleum, steel
