Download or read book An Empirical Model of Sunk Costs and the Decision to Export written by Mark J. Roberts and published by World Bank Publications. This book was released on 1999 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book An Empirical Model of Sunk Costs and the Decision to Export written by Mark J. Roberts and published by . This book was released on 1993 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Empirical Model of Sunk Costs and the Decision to Export written by Mark J. Roberts and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book China In Global Value Chains Opening Strategy And Deep Integration written by Bin Liu and published by World Scientific. This book was released on 2022-10-04 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: International trade in the 21st century is characterized by the emergence and development of Global Value Chains. With the reform and opening-up deepening, China has become an important participant and practitioner of global value chains, a staunch supporter and defender of the multilateral trading system, and a contributor to and beneficiary of economic globalization. This book provides an insightful analysis of the pathways for China to upgrade in global value chains based on the country's opening strategy from the perspectives of tariff, trade facilitation, foreign direct investment, outward direct investment, opening-up of the service industry, and servitization in the manufacturing industry. It also offers best practices for theoretical and empirical studies in global value chains with sophisticated and widely-used econometric methods.
Download or read book Sustainable Manufacturing written by Simon Roberts and published by Juta and Company Ltd. This book was released on 2006 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: Intended for academics and students in the fields of economic development, sociology and economic geography both in South Africa and internationally. This work is also useful for the Development Studies, Development Economics, African Studies and Geography departments in universities in Europe and North America.
Download or read book The Gravity Model in International Trade written by Peter A. G. van Bergeijk and published by Cambridge University Press. This book was released on 2010-06-10 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: How do borders affect trade? Are cultural and institutional differences important for trade? Is environmental policy relevant to trade? How does one's income or wage relate to the fact that trade partners are nearby or far away? These are just some of the important questions that can be answered using the gravity model of international trade. This model predicts and explains bilateral trade flows in terms of the economic size and distance between trading partners (e.g. states, regions, countries, trading blocs). In recent years, there has been a surge of interest in this model and it is now one of the most widely applied tools in applied international economics. This book traces the history of the gravity model and takes stock of recent methodological and theoretical advances, including new approximations for multilateral trade resistance, insightful analyses of the measurement of economic distance and analyses of foreign direct investment.
Download or read book Adjustment Costs Irreversibility and Investment Patterns in African Manufacturing written by Mr.Arne Bigsten and published by International Monetary Fund. This book was released on 1999-07-01 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines dynamic patterns of investment in Cameroon, Ghana, Kenya, Zambia and Zimbabwe, assessing the consistency of those patterns with different adjustment cost structures. Using survey data on manufactured firms, we document the importance of zero investment episodes and lumpy investment. The proportion of firms experiencing large investment spikes is significant in explaining aggregate manufacturing investment. Taken together, evidence from descriptive statistics, average investment regressions modeling the response to capital imbalance, and transition data analysis indicate that irreversibility is an important factor considered by firms when making investment plans. The picture is not unanimous however, and some explanations for the mixed results are proposed.
Download or read book Trade Investment and Economic Growth written by Pooja Lakhanpal and published by Springer Nature. This book was released on 2021-05-10 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Learning from Exporting written by Robert Salomon and published by Edward Elgar Publishing. This book was released on 2006-01-01 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: Questioning whether firms actually learn from exporting experiences, this unique study will prove a fascinating read for academics, researchers, and government and economic policy makers with an interest in business and management, international business, and of course, exporting.
Download or read book The Welfare State Public Investment and Growth written by Hirofumi Shibata and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 333 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents fifteen papers selected from the papers read at the 53rd Congress of the International Institute of Public Finance held at Kyoto, Japan, in August 1997. Although organized under the general title of Public Finance and Public Investment, the Congress covered a wide range of topics in Public Finance. One of the highlights of the Congress was a historic and brilliant debate between two of the greatest living authorities in the area of public finance, Professors James M. Buchanan and Richard A. Musgrave, on the nature of the welfare state and its future. Part I of this book is concerned with this debate and its empirical counterpart. James M. Buchanan (Chapter 1) warns that the welfare state will be unsustainable unless it preserves generality or at least quasi generality in welfare programs. The introduction of overt discrimination in welfare programs through means testing and targeting can only diminish public support. He argues that a political version of the "tragedy of commons" will emerge if and when identifiable interest groups recognize the prospects of particularized gains as promised by discriminatory tax or transfer payments. Faced with mounting pressure from entitlement-like claims of special interest groups against public revenues on one hand and equally strong pressure against further tax burdens on the other, political leaders are attracted to solutions that single out the most vulnerable targets. Distributional disagreement among classes will then become a major source of political discourse and an impetus for class conflict.
Download or read book What Makes Exports Boom written by Mark J. Roberts and published by World Bank Publications. This book was released on 1997-01-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This report sheds new light on what makes exports grow. The effects of macroeconomic conditions and policy variables on manufacturing exports have been notoriously unpredictable in the research literature. The research summarized here suggests that that unpredictability can be traced largely to neglected microeconomic characteristics of manufacturing sectors. In particular, the export response to a given stimulus is shaped by the cross-firm dispersion in unit production costs, the extent of product differentiation, and, critically, the prevalence of previous exporting experience. This research is derived from a recently completed World Bank project examining the microeconomic foundations of industrial export booms in Colombia, Mexico, and Morocco. For each country, plants were followed through time, and their decisions to begin exporting, cease exporting, or adjust their export volumes were detailed. By focusing on microeconomic characteristics, the authors highlight some features of export supply response not previously quantified. First, export booms in Colombia, Morocco, and to a lesser extent Mexico would have been more modest if large numbers of firms had not decided to break into foreign markets. Second, new exporters face significant start-up costs as they develop marketing channels, adapt products and packaging to foreign tastes, and learn bureaucratic procedures. They become exporters only when the expected profits from foreign sales are large enough to cover these costs, and are unlikely to respond to export incentives viewed as transitory." -- Website.
Download or read book Digitalisation and Development written by Dibyendu Maiti and published by Springer Nature. This book was released on 2019-12-03 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book investigates the impact of information and communication technologies (ICTs) on development and well-being (beyond economic benefits) and highlights some emerging issues relating to the realities, constraints and digital divides with particular reference to India. It collects a series of novel contributions, studying the Indian experience in an international cross-country perspective. The book also discusses economic, social, and behavioural aspects of well-being as well as access to ICTs across regions, states and individuals to account for the digital divide. The book establishes an aggregate relationship between ICT exposure and well-being at the country level and addresses a number of fundamental issues, such as whether ICT raises the level of transparency and governance. Based on case studies and anecdotal evidence, it then further assesses the effective implementation of service delivery through ICT innovations. The book is divided into four parts: The introductory part surveys the literature and presents background information on the Indian case; introduces the main themes on the relationships between ICT, socio-economic development and digital divides; and provides a summary and roadmap to the chapters of the book. Part II focuses on the impact of ICT on economic performance, including economic growth, productivity and trade. Part III examines the extent of the digital divides in India, including international, regional as well as inter-personal inequality. Finally, Part IV investigates the impact of ICT on governance, users’ well-being and social outcomes. Combining insights from analyses of a variety of socio-economic dimensions related to digitalisation, this book is relevant for a wide range of scholars and researchers across disciplines, as well as practitioners and policy-makers. While the book has a main focus on India, various contributions take an international cross-country comparative perspective, and the results have general relevance for digitalisation and development. On the whole, the main message of this book is that the impact of ICTs is contingent upon other assets, capabilities and institutional conditions. National policies should, therefore, not only promote digitalization as such but also ensure its co-evolution and complementarity with a variety of other country-specific factors. Chapter 'Digitalisation and Development: Issues for India and Beyond' of this book is available open access under a CC BY 4.0 license at link.springer.com
Download or read book Non Tariff Measures with Market Imperfections written by John C. Beghin and published by Emerald Group Publishing. This book was released on 2013-06-25 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume provides a fresh and non-dogmatic examination of the emergence on nontariff measures (NTMs) and their impact on international trade and welfare, questioning the traditional premise that most NTMs are protectionist and reduce trade and welfare.
Download or read book International Business written by Peter J. Buckley and published by Oxford University Press. This book was released on 2018 with total page 737 pages. Available in PDF, EPUB and Kindle. Book excerpt: Practical, theoretical, global: provides thorough grounding in economic and international business theory complemented by cases, examples, and IB insights from a diverse range of companies and cultures.
Download or read book Jordan written by International Monetary Fund and published by International Monetary Fund. This book was released on 2004-05-04 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper and Statistical Appendix on Jordan underlies stabilization and structural transformation of the economy. Current fiscal policy appears to be broadly sustainable and should be sufficient to allow for the continued fall in the debt burden, absent large external macroeconomic shocks. Over the past decade, Jordan has made commendable progress in replacing an informal family-based social safety system with well-defined and well-targeted social protection institutions. The government will need to remain committed to periodic increases of fuel prices to close the gap between domestic and international petroleum product prices.
Download or read book International Taxation and Multinational Activity written by James R. Hines and published by University of Chicago Press. This book was released on 2009-02-15 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: Because the actions of multinational corporations have a clear and direct effect on the flow of capital throughout the world, how and why these firms behave the way they do is a major issue for national governments and their policymakers. With an unprecedented ability to adjust the scale, character, and location of their global operations, international corporations have become increasingly sensitive to the kind and degree of tax obligations imposed on them by both host and home countries. Tax rules affect the volume of foreign direct investment, corporate borrowing, transfer pricing, dividend and royalty payments, and research and development. National governments that tax the profits of international firms face important challenges in designing tax policies to attract them. This collection examines the global ramifications of tax policies, offering up-to-date, theoretically innovative, and empirically sound perspectives on a problem of immense significance to future economic growth around the globe.
Download or read book trade reorientation and productivitiy growth in bulgarian enterprises written by Simeon Djankov and published by World Bank Publications. This book was released on 1997 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
