Capital Goods Research Articles

Виктор Валентинович Новожилов: недописанная глава «австрийской» книги

The increasing complexity of economic phenomena demands improved analytical tools. The 21st century saw a discernible trend where diverse economic schools and various social sciences converged to collaboratively analyze complex economic phenomena. Traces of this trend, however, can be discerned in an earlier period in Soviet science, as illustrated by the work of Viktor Novozhilov, a leading figure in the mathema­tical school of optimal planning during the late 1930s. Despite this subsequent focus, a series of articles from the 1920s, which positioned Novozhilov among the country’s foremost economists, reflect entirely different theoretical positions. Classified as a liberal economist in the comprehensive scientific biography by Nikolai Ya. Petrakov and Natalia S. Kozerskaya, the article aims to highlight the consistency of Novozhilov’s 1920s views with the approaches of the Austrian school of economics, using content analysis as the primary research method. The article views Novozhilov’s change in research approach as the scholar’s strategic response to repressive conditions, driven by his apprehensions about potential persecution. Novozhilov’s principal concept for determining socialist national economic efficiency was rooted in the principle of opportunity costs from the Austrian school. Future research may explore parallels between Novozhilov’s approach and Friedrich von Wieser’s perspective on the valuation of capital goods.

Development and Validation of a Model for Operationally Seized Bolted Joints for the Research on Gentle Bolt Disassembly

Thread galling and seizure is a major impediment to the disassembly of bolted joints. The near-locking of the joint can result in damage to or even breakage of parts of the bolt when a seized bolt is unscrewed. In maintenance, repair, and overhaul (MRO) of complex capital goods such as aircraft engines, seized bolts result in additional disassembly and repair work. Especially in the aircraft engine's hot-section, joints are vulnerable to seizure and galling due to material pairing and thermal conditions. Extensive investigation of the disassembly of joints seized during operation may not be implemented during maintenance orders. The manufacturer's specifications and aviation safety authorities only permit predetermined tools. Therefore, artificial samples are needed to perform fundamental experiments. In this article, a model for artificially and reproducibly replicating seized bolted joints is presented. By adding and adjusting an external clamping force on the thread, the loosening torque can be adjusted as a function of the additional forces. The statistical evaluation of performed experiments will validate the assumed relationship between clamping force and loosening torque. Therefore, this model provides the basis for further disassembly studies by providing artificial and reproducible samples.

Information process-system modelling for Circular Economy of manufacturing systems

Recent push towards sustainable development have lead machine tool builders to begin adopting novel business models which are usually peculiar in product-service-systems. In particular, business models as ‘pay-per-use’ introduced the issue of rental of production capacity integrated with the management of the life cycle of assets in a Circular Economy perspective. However, when it comes to machine tool builders, the high degree of customization of capital goods and in particular of multi-stage automated assembly systems that are strongly linked to the characteristics of the final product make this solution more difficult. Hence, the implementation of such business models represents a clear challenge for machine tool builders and manufacturing system suppliers from technological perspective. This work discusses preliminary results in the technological implications of such strategy. A real industrial case related to cross-sector multi-stage automated assembly systems is presented to highlight the technological challenges and potential research directions.

The usage of the autoregressive integrated moving average model for forecasting milk production in Egypt (2022-2025).

Milk is considered one of the most important capital goods and essential sources of animal protein in the diet of the Egyptian family, as well as an effective means to improve the economic condition of farmers, considering this important view, the policymakers need accurate and advance information regarding future supply for planning on the both short and long term. The study aims to forecast the production of milk in Egypt during the period from 2022 to 2025 using the Autoregressive Integrated Moving Average (ARIMA) model using time series data of milk production (MP) (1970-2021) obtained from the Central Agency for public mobilization and statistics (CAPMS). Augmented Dickey-Fullar Unit Root test, Partial autocorrelation function (PACF), and Autocorrelation function (ACF) of the time series sequence were used to judge the stationarity of the data. After confirming the stationarity of the data, the appropriate ARIMA model was selected based on certain statistical parameters like significant coefficients, values of adjusted R-squared, Akaike information criteria (AIC), Schwarz criterion (SC), and Standard Error of Regression. After the selection of the model based on the previous parameters, the verification of the model was employed by checking the residuals of the Correlogram-Q-Statistics test. The most fitted model to predict the future levels of MP in Egypt was ARIMA (1, 1, and 3). Using the ARIMA (1, 1, 3) model, it could be forecasted that the production of milk in Egypt would show an increasing trend from 6,152.606 thousand tons in 2022 to 6,360.829 thousand tons in 2025.

The Price of Capital Goods, Investment, and Labor: Micro-Evidence from a Trade Liberalization

The Price of Capital Goods, Investment, and Labor: Micro-Evidence from a Trade Liberalization

Robotization as a Factor of Russian Firms’ Adaptation to Non-Economic Shocks

Robotization and automation of various industries is one of the main technological trends of the past decade. However, the contribution of robotization to firms' success in the COVID-19 crisis has been far from fully explored to date. In addition, there is a lack of empirical studies on the impact of robotics on companies’ operation under the shock of the sanctions of 2022. The article is devoted to the analysis of factors and effects of robotization of Russian manufacturing companies in the context of recent shocks. Three hypotheses are put forward to be empirically tested: (1) in the pandemic and post-pandemic period, robotization was more characteristic of large businesses than of small and medium-sized firms; (2) firms that used robots overcame the crisis more successfully; (3) robotized firms performed better under the 2022 sanctions. The research approach consists of the empirical analysis (through regression modeling) of data from a survey of 1,900 Russian manufacturing companies’ CEOs conducted in the second half of 2022. The authors found a positive relationship between robot adoption after 2019 and the business size. It is shown that in the COVID-19 crisis robotization was an important factor in preserving employment. The authors also found a significant positive relation between the success of companies in passing the COVID-19 and sanctions shocks and their use of imported equipment. The study provides new insights into the factors of Russian firms’ robotization in the pandemic and post-pandemic period, as well as the specifics of their adaptation to shocks in 2020 and 2022. From a practical point of view, the most important results are the evidence obtained on the widening digital divide between SMEs and large firms, as well as on the contribution of the use of imported capital goods to the resiliency of Russian firms.

Supply Chain Interconnectedness in Times of Crises: A Gravity Model with DiD Analysis of COVID-19 Effects on Central and Eastern European Trade

This paper explores the impact of COVID-19-induced disruptions on supply chains, specifically focusing on the interconnectedness of supply chains and the transmission effects they cause. The gravity model framework, together with difference-in-differences analysis, is employed to analyze monthly trade patterns among Central and Eastern European (CEE) countries, Western European countries, and other trading partner countries. The model presented accounts for the country’s roles in global value chains (GVCs) by incorporating data related to exports, imports of intermediate and capital goods, and imports of final consumption goods. CEE countries have demonstrated a certain resilience during the COVID-19 pandemic. Yet, they were not immune to adverse consequences due to disrupted supply chains, primarily in the imports of intermediate and capital goods. We find that the countries that suffered from the COVID-19 pandemic the least demonstrated remarkable resilience against disrupted GVCs. The findings of our study enrich the literature on the effects of the COVID-19 pandemic, specifically for the CEE region, by providing a framework for understanding the pandemic’s impact on international trade. The results show that supply shock might be greater than demand shocks on production and trade dynamics. Furthermore, our results suggest that policymakers seek adaptability to changing supply and demand patterns, while enterprises should consider broader diversification both within the region and locally.

Enigma of Nickel Export Ban: Understanding Its Impact through Input-Output Analysis

The nickel ore export ban policy has drawn pros and cons in various circles. This study aims to analyze the impact of the nickel ore export ban on other sectors of the economy and the interrelationship between one sector and another. This study uses secondary data in the form of Indonesia's Input Output Table Total Transactions at Basic Prices in 2016 derived from BPS publications and data on the number of Ferro-nickel exports in 2020 derived from UNData publications, which are then analyzed using the input-output method and presented using descriptive quantitative analysis. Based on the research results, electricity and gas procurement are the economic sectors with the most significant backward linkage. In contrast, the manufacturing sector achieves the most significant forward linkage value. In addition, the electricity and gas procurement sector also has the most significant output multiplier value, followed by the construction and manufacturing sectors. The increase in Ferro-Nickel exports due to the nickel ore export ban has considerably impacted the economy regarding both domestic and import output, especially in the manufacturing industry sector. Thus, nickel ore processing activities depend on capital goods and other imported raw materials. The study's implication shows that the export of Ferro-Nickel as part of the mining and quarrying sector impacts the output of other sectors to increase overall economic growth.

PENGARUH LEVERAGE, LIKUIDITAS, FIRM SIZE DAN CAPITAL EXPENDITURE TERHADAP CASH HOLDING PADA PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract - Cash holding or commonly referred to as cash and cash equivalents owned by the Company which is used to finance operational activities such as purchasing raw materials or merchandise, purchasing capital goods, paying salaries or wages, paying off debt obligations, paying dividends and other transactions required by the company. Cash Holding plays a very important role in determining whether a company is healthy or not, often associated with ownership as the dependent variable. The aim of this research is to obtain empirical evidence regarding the influence of leverage, liquidity, company size and cost of capital on cash flow in real estate and real estate companies listed on the Indonesia Stock Exchange (BEI) from 2019 to 2021. Technical sampling used in this research was a purposive sampling technique. Data processing uses the Eviews 13 program. The research results show that the independent variable Leverage has a negative and significant influence on Cash Holding where hypothesis 2 is not rejected, Liquidity has a positive and significant influence on Cash Holding where hypothesis 2 is not rejected, Firm Size has a positive influence but not significant on Cash Holding where hypothesis 3 is rejected, and Capital Expenditure has a positive and significant influence on Cash Holding where hypothesis is rejected. From the empirical evidence above, the implication obtained in this research is that companies that have high leverage need sufficient reserve funds to avoid financial distress, so that the company's activities can run smoothly. In order to cover short-term financing needs, companies really need good liquidity, meaning there is sufficient reserve funds. The bigger a company, the bigger the transactions will be too. Here it is necessary to have reserve funds to be used to meet financing needs so that the company's operations are not disrupted. Capital expenditures made by a company in making investments should use internal funds so that they do not add additional burden. If capital expenditure uses external financing or debt, it will reduce the Company's liquidity level because it has to pay interest or other expenses.
 Keywords: Capital Expenditure; Cash Holding; Firm Size; Leverage; Liquidity

The effect of capital inflows on the imports of capital goods in developing countries

This paper examines the relationship between capital inflows and import of capital goods to credit-constrained industries in developing countries. Using data of 11 industrial sectors in 57 countries for 2000–2020, we find that financially dependent industries import disproportionately more capital goods if they operate in countries that receive more foreign funds. A host of robustness tests, including instrumental variables estimation, confirm our main finding. We also document that: (i) the established nexus breaks down during the global financial crisis, (ii) the observed relationship is mainly due to the direct investment via equity, and (iii) host countries tend to import relatively more capital goods from G7 economies. Overall, our results suggest that one channel through which capital inflows affect economic growth is by alleviating firms' financial constraints, thereby enabling firms to acquire more advanced capital goods.

Analisi Dampak Bisnis Internasional Terhadap Pertumbuhan Perekonomian Di Indonesia

International Trade is an economic transaction carried out between countries. Among the items commonly stored are consumer goods, such as televisions and clothing; capital goods, such as machinery, raw materials and food. In almost all countries, international trade is an effort to increase GDP. Economic growth is an increase in the ability of a country's economy to produce both goods and services in quantity. In general, the high or low population of a country, the birth rate and death rate greatly influence a country's economy because productivity, education, and investment in physical capital since improving longevity create greater needs. The type of research used is qualitative research, qualitative research is research that produces several findings that cannot be obtained using statistical procedures or quantitative methods. With the existence of International Business in Indonesia, Economic Growth will increase. The reason is that the supply and increase for foreign products from the Indonesian people will continue to increase. For this reason, companies or industries in Indonesia will often experience increases and growth, such as the development of the textile, shrimp, coffee and so on industries. With the existence of international business, the prosperity and welfare of society in Indonesia is developing well due to the opening of various kinds of employment opportunities, so that there can be a reduction in the level of poverty in Indonesia.

The Effect of National Income, Exchange Rates, Foreign Exchange Reserves, and Inflation on Capital Goods Imports in Indonesia

The Effect of National Income, Exchange Rates, Foreign Exchange Reserves, and Inflation on Capital Goods Imports in Indonesia

Book depreciation methods under intuitionistic fuzzy environment

In general, depreciation is the monetary value of wear and tear on capital goods inherited from previous years while creating goods and services as a result of production activities. The subject of depreciation is the addition of the loss of value that will occur in the economic values that are thought to be used in a company for more than one year. The most common depreciations methods, straight-line method, declining balance method, and unit-of-production method, are almost always handled with crisp numbers in the literature. However, the uncertainty in the parameters such as initial invest cost, salvage value, and useful life, requires the usage of fuzzy sets to represent the vagueness in these values more realistically. For this purpose, in this study, the depreciation methods are developed under intuitionistic fuzzy environment. The main contribution of this paper to the literature is that it presents the depreciation methods under intuitionistic environment with new equations for the first time. The proposed models are applied to an autonomous trolley problem to illustrate the given approach.

Makalah Industri Substitusi Impor Dan Persaingan Industri Pada Pembangunan Industri

Import substitution industrialization (ISI) is one of the industrial development strategies that has been implemented by many developing countries, including Indonesia. This strategy aims to reduce dependence on imported consumer and capital goods, as well as create jobs and increase domestic value added. In the early stages of its implementation, ISI has successfully driven industrial growth in Indonesia. However, along with technological development and global competition, ISI faces various challenges, one of which is competition from industries in other countries. Industrial competition is one of the important factors that affects industrial development. Healthy competition can encourage industries to innovate and improve efficiency, making them more competitive in the global market. This paper discusses the relationship between ISI and industrial competition in industrial development. This paper also discusses various policies that can be implemented to improve the competitiveness of Indonesian industries.

The dark side of the boom: Dutch disease, competition with China, and technological upgrading in Colombian manufacturing

The natural resource boom of the 2000s spurred growth in income and consumption in many commodity-exporting nations. However, this paper brings together a previously unused combination of data sets from Colombia to document evidence of a downside – the currency appreciation associated with this boom led to a significant and persistent decline in R&D spending and in investment in technological upgrading by Colombian manufacturing firms. Our empirical strategy exploits differences in firms' sales across products and export destinations to create firm-specific measures of exposure to exchange rate shocks both abroad and at home. We link these new measurements of exchange rate exposure with Colombian micro data on R&D investment and technology upgrading. The key finding is that real exchange rate appreciation drives significant reductions in both firm-level R&D investment and a measure of technology upgrading that includes expenditure on capital goods, technology licensing, worker training, and other expenditures related to the adoption of new technology. Even after key commodity prices dropped significantly in the mid-2010s, inducing a substantial and long-lasting Colombian currency depreciation, investments in R&D and technology upgrading remained at subdued levels. Our estimated effects suggest that the resource boom and associated appreciation had a significant and persistent negative effect on technological development of Colombian manufacturing firm, and these conclusions remain even after careful attempts to simultaneously control for rising competition with Chinese manufacturers, which also had a negative effect on Colombian firms' technology investments, and the effects of trade liberalization at home and abroad. Similarities between Colombia and other commodity-exporters suggest that the effects documented in this paper may be widespread.

A Reflection on the Role of Ulama and Community Leaders in Raising Socio-Cultural Capital to Deal with Terrorist Groups in Bukit Jalin, Aceh Besar

The emergence of terrorist groups in the Aceh Province, which is spreading, was revealed after reports from residents and local clerics about armed training carried out by this radical group in Bukit Jalin, Aceh Besar, in September 2009. This terrorism case attracted the attention of the local government and local community. All of this has mainly happened because the expansion of the material world and technology has structured new settings for needs and patterns of life and created fields or jobs (occupations) that are very different from what had developed in the agrarian society in Aceh that was pre-Islamic. -industry. These changes in employment are directly related to economic development in the era of capitalism, which in turn requires investment in capital goods and an increase in the standard of prosperity. As a result, “as the economy develops, the need for skilled workers, technologists, and generally educated people increases almost geometrically”. Thus, what is then witnessed is the continuous adjustment efforts of the traditional and modern world of education into the dynamics of the expansion of the material and technological world. With the emergence of terrorist movements and radical movements that try to offer perspectives and solutions that are based on considerations of violence in addressing the problems of modernity and Indonesianness, it is necessary to play the role of ulama and community leaders who are able to raise socio-cultural capital to deal with the problems of radicalism and terrorism in Aceh/Indonesia in the era of capitalism, in addition to strict law enforcement to eradicate terrorism that threatens our people in Aceh and Indonesia.

Contribution of capital goods production to social impacts: A life cycle perspective for a circular desalination plant

The production of capital goods is often ignored in the life cycle inventory phase of life cycle assessment studies. In this study, we investigated whether capital goods production, i.e., manufacturing of capital equipment and construction of infrastructure, and operation affect the results of the social life cycle assessment (S-LCA), using a case study of a desalination plant with multiple co-products in Lampedusa, Italy. The assessment was conducted using the PSILCA database to evaluate 20 impact subcategories and four stakeholder categories: Workers, Value chain actors, Society and Local community. Monetary data were collected for the manufacturing of equipment, labor and miscellaneous work during plant construction, working hours of employees during operation, consumed electricity and chemicals, and recovered materials during operation. Furthermore, multi-functionality was addressed through substitution, system expansion, and economic allocation to examine how these approaches affected the results. The functional unit was 1 m3 industrial water. Equipment manufacturing and plant construction contributed up to 15% to stakeholder categories and between 2% and 75% to impact subcategories of the substitution approach, and up to 51% for impact subcategories of system expansion and economic allocation. Equipment manufacturing and plant construction contributed to a high extent to “Health and safety” (of Workers), “Discrimination” and “Local employment” due to the construction and electrical sectors. Credits in substitution lead to a lower contribution of the operational stage and negative societal impact values. If S-LCA practitioners must limit the considered impact subcategories, for generic or site-specific analysis, the “Health and safety” (Workers), “Local employment”, and “Fair salary” should be investigated.

Railroad infrastructure investment and economic performance in Portugal: An industry-specific analysis

This study addresses the crucial question of the macroeconomic impact of investing in railroad infrastructure in Portugal. The aim is to shed light on the immediate and long-term effects of such investments on economic output, employment, and private investment, specifically focusing on interindustry variations. We employ a Vector Autoregressive (VAR) model and utilize industry-level data to estimate elasticities and marginal products on these three economic indicators. Our findings reveal a compelling positive long-term spillover effect of these investments. Specifically, every €1 million in capital spending results in a €20.84 million increase in GDP, a €17.78 million boost in private investment, and 72 new net permanent jobs. However, these gains are not immediate, as only 14.5% of the output increase and 38.8% of the investment surge occur in the first year. In contrast, job creation is nearly instantaneous, with 93% of new jobs materializing within the first year. A short-term negative impact on the trade balance is expected as new capital goods are imported. Upon industry-level analysis, the most pronounced output increases are witnessed in the real estate, construction, and wholesale and retail trade industries. The most substantial net job creation occurs in the construction, professional services, and hospitality industries. This study enriches the empirical literature by uncovering industry-specific impacts and temporal macroeconomic effects of railroad infrastructure investments. This underscores their dual advantage in bolstering long-term economic performance and counteracting job losses during downturns, thus offering valuable public policy implications. Notably, these benefits are not evenly distributed across all industries, necessitating strategic sectoral planning and awareness of employment agencies to optimize spending programs and adapt to industry shifts.

Determinants of Total Factor Productivity in India: an Econometric Analysis

Productivity rise as a source of growth has high potential to uplift millions out of poverty. Mitigating the productivity gap can play vital role in helping developing countries to offset with developed countries. In this regard, present study attempts to scrutinize the relationship and significance of various determinants of total factor productivity (TFP) in India for the period 1990–1991 to 2019–2020. To this end, autoregressive distributed lag bounds testing approach has been utilized. The results pinpoint that trade openness and unemployment have a positive impact on total factor productivity. On the other hand, inflation has a negative but insignificant relationship with total factor productivity, both in the short and long run. The results imply that exports need to be diversified, and import of capital goods should be encouraged to enhance TFP in the long run. Further, foreign-owned business entities need to be encouraged to hire domestic workers, which would result in enhanced TFP in the long run.

The sectoral trade losses from financial crises

Abstract The “Great Trade Collapse” triggered by the 2008-2009 crisis calls for a careful assessment of the trade losses from financial crises. We adopt a more detailed perspective by looking at the response of different types of trade (i.e. consumption, intermediate, capital goods, and business services) following various types of financial crises (i.e. debt, banking, and currency crises) in 41 emerging markets. Estimations performed in the 1980-2019 period using a combination of impact assessment and local projections to capture a causal dynamic effect running from financial crises to the trade activity show that the collapse of total trade is long-lasting and mainly driven by the fall of intermediate goods and to some extent capital goods, while trade in consumption goods and business services is more resilient to crises. Therefore, financial crises could lead to considerable disruption of global value chains, as observed during the Global Financial Crisis (GFC), and easily spill over from one country to another through trade linkages. The examination of heterogeneity reveals that total and sectoral trade is more severely impacted in countries with a lower share of manufacturing exports, less diversified exported products, and trading partners, with lower demand from trading partners and when associated with a deterioration of the domestic and external financial conditions and sudden stops. By contributing to the understanding of the trade effects of financial crises, our analysis provides insightful support for the design and implementation of policies aimed at coping with these effects.