Industry Linkages Research Articles

Exchange rate, industrial linkage, and firm employment

AbstractThis study examines how exchange rate shocks impact firm‐level employment through five transmission channels, namely, the traditional import competition, export revenue, import cost channels, and the innovative upstream and downstream propagation channels. The upstream (downstream) propagation is defined as an indirect channel of the exchange rate shocks that transmits from downstream (upstream) firms via production chains. Augmenting the model of Campa and Goldberg (2001) by incorporating input–output linkage, I develop a theoretical framework to identify the mechanisms of exchange rate effects on firm‐level employment. Using Chinese firm‐level data and the industrial input–output table, this study yields empirical results that confirm the theory robustly. Specifically, the appreciation of exchange rates has large and significantly negative and positive impacts on firms’ employment through the upstream and downstream propagation channels, respectively.

Inclusive growth in Africa: are Chinese investment and local industry participation compatible?

PurposeThis paper aims to explore whether increasing Chinese foreign direct investment (FDI) is associated with rising contributions of local industry in African countries connected to the Belt and Road Initiative (BRI). The existence of cooperative industry linkages between Chinese investments and local businesses is a necessary condition for achieving the mutual benefits asserted by the BRI.Design/methodology/approachUnder growing FDI, the authors framed increasing local industry contribution as indicative of existing industry linkages. Using principal component analysis and multiple regression on collated country-level data, the authors examined relationships between key industry output variables and several independent variables representing Chinese investment and economic activity in a contiguous three-country region, over two investment periods.FindingsIncreasing Chinese FDI was associated with positive economic outcomes including decreasing unemployment; however, it did not appear to support local industry participation. The authors identified a “China effect” that hampered industry contribution to gross domestic product. The authors found that attempting to counterbalance this effect through direct exports to China was not strategically sound. Similarly, export-focused clusters in special zones may not foster industry linkages if they result in isolationism. Rather, host countries have an opportunity to enhance local industry contribution through leveraging interconnectivity factors under increasing FDI.Research limitations/implicationsSmall sample size of the study has implications for the predictive power of the model and for the complete explanation all the emerging findings. However, the authors presented compelling arguments for selecting the specific three countries. By conducting robustness checks on a separate region, findings of this study were substantially corroborated.Practical implicationsInstead of exporting directly to China as a way to mitigate local industry contraction, host countries need to thoughtfully pursue opportunities that present the greatest value-added export advantages. Proposed Chinese-funded infrastructure projects must be negotiated with a goal to strategically reduce interconnectivity barriers and achieve broader logistics improvements in the host countries.Social implicationsThe study provides a tool for proponents of local industry growth to present clearer frameworks in their advocacy. The social tensions around Chinese dominance in the host countries can be reduced by understanding and pursuing levers that enhance industry contribution in those contexts.Originality/valueThis study takes a different approach to examining the professed win-win proposition of the BRI in Africa. It uncovers important effects of increasing Chinese FDI and addresses viable host country responses, including a clear pathway for forging the cooperative industry linkages needed for inclusive growth and sustainable development.

Changing the industrial structure of tourism to achieve a low-carbon economy in China: An industrial linkage perspective

By combining linkage analysis and the multi-objective programming model, this study establishes a fresh analytical framework that embeds tourism-related sectors to identify the direction of change in the structure of the tourism industry for a low-carbon economy. In a demonstration of the analytical framework, it is applied to an empirical study of China. The main results reveal that most tourism-related sectors are not key emission sectors, and that significant heterogeneity exists in the economic and emission linkage characteristics of these tourism-related sectors. In the optimal scenario, increasing the output of tourism by using the optimal production structure reduces the emission intensity of tourism and offsets macroeconomic losses caused by emission constraints. In the optimisation of the industrial structure aimed at a low-carbon economy, the direction of change in output varies across tourism-related sectors. Therefore, it is essential to avoid promoting emission reductions indiscriminately across the tourism industry. Finally, the practicality and implications of the proposed analytical framework are illustrated.

Industrial linkage effects of RCEP economies' imports of producer services on manufacturing advantages.

This study examines the industrial transmission mechanisms between producer services imports and manufacturing advantages in RCEP economies. Based on the framework of GVCs’decomposition, we establish a hierarchical linear model (HLM) withthe data from 2007 to 2017 in the ADB MIRO, WTO BaTiS and WITS databases to analyze the impact of producer services imports in RCEP economies on the value-added domestic exports of manufacturing in countries around the world, and the conclusions are as follows: (1) Producer service imports have a significant positive impact on the domestic value-added of manufacturing exports through direct effects, upstream effects and downstream effects. The downstream effect is the main driving force for the improvement of manufacturing. After using instrumental variables to resolve endogeneity, the conclusion remains stable; (2) The downstream effect of insurance imports is the largest among producer services imports. After the outbreak of the world financial crisis, the transmission effect of the industry chain was higher in 2008 than before the crisis. (3) Due to the high degree of specialization of industrial division in developed economies, the transfer effect of the three major industrial chains is greater than that of developing countries and regions.

An Analysis on the Forward and Backward Industrial Linkage Structure of Korean Maritime Transportation Industry

An Analysis on the Forward and Backward Industrial Linkage Structure of Korean Maritime Transportation Industry

On Becoming Technology and Livelihood Education Teachers

Becoming a teacher begins with an intention. Anchored on the theory of planned behavior, this study describes the intention of pre-service teachers to become teachers of Technology and Livelihood Education (TLE) after their studies. Three antecedents of intention were explored such as attitude, subjective norm and perceived behavioral control. Participants were selected purposively based on the presence of intention to perform the behavior in question. Data collection was done through interview. The recorded interviews were transcribed, coded and interpreted using interpretative phenomenological analysis. The findings of this study revealed that the intention to become teachers of TLE is based on three beliefs. The favorable attitude is based on the belief that practical knowledge and skills, including life skills, will be developed once become a teacher in TLE. The favorable subjective norm is based on the belief that family, teachers and friends play an important role in decision-making of becoming a TLE teacher. Moreover. The perceived behavioral control is based on the belief that competent teachers, instructional materials, trainings and seminars on trade skills facilitate the performance of becoming a TLE teacher. In light of these findings, the researcher recommended: (1) likely outcomes or benefits of becoming a TLE teacher, within and outside the teaching career, must be emphasized and reiterated to pre-service teachers; (2) community must be informed about the what and why of choosing teaching as a career specifically in the field of TLE; (3) develop programs to capacitate TLE professors/ instructors to equip them with relevant methodology and technology competencies, update learning resources according to industry requirements, and establish industry linkages.

Upgrading within global value chains: backward linkages, forward linkages and technological capabilities

ABSTRACT The aim of the paper is to present a hypothesis of upgrading within global value chains (GVCs). In Stage I, both backward and forward linkages are low at lower level of productivity growth, but it provides ‘window of opportunity’ to increase participation in GVC. Firms enter Stage II with increasingly backward linkages. Only those firms with enough accumulated technological capabilities for transforming into high value-added activities participates in GVC with increasingly forward linkages in Stage III. In Stage IV, both backward and forward linkages again decrease, albeit at a higher level of productivity growth, wherein the firms manage production processes fragmented at different locations. This hypothesis of ‘upgrading within GVC in four stages’ is verified while examining the pattern of backward and forward linkages of global electronics industry with a specific focus on the electronics industry of South Korea, Taiwan and Mexico. It was found that the electronics industry of South Korea and Taiwan exhibited the pattern of ‘upgrading within GVC in four stages’ while Mexican electronics industry got caught in the ‘Stage II’ or ‘low value-added trap’. The proposition is examined from technological capability-building aspects of the systems of innovation approach.

Intellectual property rights policies of higher education institutions (HEIs) in India: a cross-sectional study

PurposeThe purpose of this study is to assess the intellectual property (IP) policy and innovation practices of higher education institutions (HEIs) and to understand the impact of national intellectual property rights (IPR) policy at the ground level. It identifies the barriers of HEIs in the generation of IP, its commercialization and technology transfer.Design/methodology/approachThis cross-sectional study aims to understand the innovation practices and IP policy framework of HEIs in India. It was studied in a qualitative approach with a structured questionnaire tool deployed to the top management of HEIs (targeted respondents), using convenience sampling methods.FindingsThe results imply that IP policies and innovation practices of HEIs in India are evolving and need to align with the global standard as envisaged in the national IPR policy. Lack of commensurate incentives to the inventors, linkages with industries and facilities were found to be major barriers among HEIs and research institutions. Institutional IP policy shall be framed to promote industry linkages with universities resulting in successful IP generation and technology transfer.Research limitations/implicationsThe sample size in this study is less; however, it does not have an impact on the study outcome, as it is a qualitative approach.Practical implicationsThis study brings awareness among stakeholders of IP generation and commercialization regarding the barriers and needed changes to overcome them through policy.Social implicationsIt helps policymakers to redesign the tools of IP and innovation policy to enable the innovation promotion at HEIs. This study identifies innovation practices and institutional barriers in the generation of IP.Originality/valueThis qualitative survey-based study helps in understanding the innovation practices of HEIs in India. It also aims to identify the barriers of HEIs on the generation and commercialization of IP.

Estimating economic impacts from future energy demand changes due to climate change and economic development in China

The energy demand is significantly affected by climate change and economic factors, and the distribution of the demand among different regions in China is unequal because of the large regional differences in climate and economic development. Moreover, demand changes will directly affect the energy sector as the supply side amplifies the economic impact through the industrial linkages among regions and sectors. Therefore, we developed an integrated assessment model combining an energy demand-driven model (EDD) and adaptive multiregional input-output model (AMRIO). The assumptions were used in the model based on China's future climate, economy and energy development. In addition, we evaluated the century-scale energy demand change and its possible economic impact in 5 future scenarios (SSPx-y of CMIP6). The results show that the following: (i) The energy demand in China will continue to increase by approximately 1.89–1.94 times by 2100, resulting in a negative economic impact on GDP ranging from 8.19% to 12.05%. (ii) The energy sector will cumulatively benefit by 26% because of the increase in demand; however, other sectors will suffer negative economic ripple impacts due to the imbalance of supply and demand, especially manufacturing (719%) and agriculture (577%). The results provide quantitative information for policymakers to fully consider the positive and negative impacts of future energy change when making climate mitigation strategies.

Network diffusion of international oil volatility risk in China's stock market: Quantile interconnectedness modelling and shock decomposition analysis

This paper aims to investigate whether oil volatility risks could diffuse through the linkage of industry returns and even further contribute to global crisis throughout the stock market. To highlight such sectoral financial interconnectedness which may serve as a key channel for oil volatility diffusion, we first apply the partial cross-quantilogram (PCQ) approach to detect the directional predictability between returns of 26 industries in China's stock market across different quantiles. We construct the corresponding network to provide a more comprehensive picture of such sectoral interconnection, which is shown to vary prominently under different market states and lag order specifications. Utilizing the spatial autoregressive (SAR) model for panel data, we further assess the possibility of the oil volatility risk diffusion by decomposing the aggregate effect of oil volatility shocks into direct shocks, and indirect shocks transmitting through the estimated network linkage of industries. The empirical results point to the significantly heterogeneous pattern of oil volatility risk diffusion among networks with different lag selections under various market states. Considering the financial linkage of industries within 5 traded days under extreme market states, there exist significant indirect effects contributing to larger oil volatility shocks on industry returns, which confirms risk contagion effects of monthly oil volatilities. It indicates that the network linkage of financial assets might be an important diffusion mechanism for oil volatility risks, which should not be neglected in the research of the oil-stock nexus.

Industrial linkage and spillover effects of the logistics service industry: an input–output analysis

This study applied input–output analysis to examine the industrial linkage effects of the logistics service industry based on the data collected from input–output tables provided by the World Input–Output Database. The results showed the detailed industrial linkage effects of the logistics service industry, indicating several logistics sectors (transportation, storage, and handling) are not only interdependent but they also form a service ecosystem. The study results provide new insights on industrial linkage effects of the logistics service industry and their ripple effects throughout the economy. The results will be valuable source of knowledge for establishing service industrial policies for both the logistics industry and a country’s economy as a whole.

Improving the sustainability of food supply chains through circular economy practices – a qualitative mapping approach

PurposeThe purpose of this paper is to present a methodological approach to support qualitative analysis of waste flows in food supply chains. The methodological framework introduced allows the identification of circular food waste flows that can maximise the sustainability of food supply chains.Design/methodology/approachFollowing a qualitative approach, circular economy perspectives are combined with core industrial ecology concepts in the specification of a standardised analytical method to map food waste flows and industrial synergies across a supply chain.FindingsThe mapped waste flows and industrial linkages depict two time-related scenarios: (1) current scenarios showing the status quo of existing food waste flows, and (2) future scenarios pointing out circular flows along the supply chain. The future scenarios inform potential alternatives to take waste flows up the food waste hierarchy.Research limitations/implicationsThe qualitative approach does not allow generalisations of findings out of the scope of the study. The framework is intended for providing focussed analysis, case by case. Future research involving mixed methods where quantitative approaches complement the qualitative perspectives of the framework would expand the analytical perspective.Originality/valueThe framework provides a relatively low-cost and pragmatic method to identify alternatives to minimise landfill disposals and improve the sustainability of food supply chains. Its phased methodology and standardised outcomes serve as a referential basis to inform not only comparative analysis, but also policymaking and strategic decisions aimed at transforming linear food supply chains into circular economy ecosystems.

A Theoretical Framework on Market Orientation-firm Performance Linkage in Textile Processing Industry: Mediating Effect of Entrepreneurial Orientation

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.

University-Industry Linkage & Development of Higher Education: A Study about Faculty Perception

Higher education in India has expanded enormously since independence and enlarged in size but, this enlarged size of the university campuses in India, is now facing financial crisis which is increasing more as visible in most of the developing countries. University industry linkage may be an alternative to this crisis. Establishing an effective & successful collaboration between universities and industries in order to remain competitive and financially viable is an alternative. But this relation will sustain if appropriate steps will be taken by both sides (Universities & industries) to benefit mutual interests with objective to serve the society. This paper makes an attempt to present the perception of higher education faculty members about the importance of University-Industry linkage and it is an effort to discuss the ways and means for making a strong university - industry linkage.

Efficiency of the teaching-industry linkage in the Australian vocational education and training

The vocational education and training (VET) sector plays a crucial role in Australia’s education system. Associated closely between the VET provision and industry, VET training quality is continually at the heart of debates in the process of implementing the Australian VET reform agenda. In response of key themes of this reform process, investigating the training efficiency of VET through the linked efficiency between teaching and industry responsiveness is imperative. The paper aims to address this objective by using the dynamic network data envelopment analysis in a balanced panel data for 2008–2012. This advanced model allows to assess simultaneously the efficiency of two nodes, teaching and industry responsiveness, and the overall dynamic training efficiency of VET based on fields of education in a network structure. We found that the overall training efficiency of VET is, on average, 0.835 while the mean divisional efficiencies of the teaching efficiency and industry responsiveness are 0.763 and 0.908, respectively. Sensitivity analysis is conducted to examine dynamic changes of the efficiency of the teaching and industry linkage following various period weights. Policy implications are drawn for the Australian VET sector.

Research on the Model of Entrepreneurial University and Advanced University Governance: Policy Recommendations for Public Universities in Vietnam

Research on the Model of Entrepreneurial University and Advanced University Governance: Policy Recommendations for Public Universities in Vietnam

Linking local water consumption in inland arid regions with imported virtual water: Approaches, application and actuators

The consumption of local blue-green physical water (blue-green PW) is linked to imported virtual water (imported VW) within economic production. The quantitative analysis of interactions between blue-green PW and imported VW is important for integrated management of water resources in inland arid areas. This study used the North Tianshan Mountains (NTM) as a case study to demonstrate the construction of a framework to account for local blue-green PW and imported VW in regional economic production using an input-output model. The results showed that the consumption and transfer of blue-green PW in the agricultural sector constitute the most important part of the water cycle in the NTM. Production consumed relatively less imported VW, 51.3% of which was by the secondary and tertiary industries. VW consumed by the primary industry in the NTM was closely correlated with that by the secondary and tertiary industries, whereas low consumption by the primary industry in the NTM and high demand for primary industry products from outside regions resulted in the direct outflow of large amount of blue-green VW. The current structure of trade in VW also contributed to increasing water shortages in the NTM. This study proposed that the enhancement of the cyclic strength of the primary industry in the local economic system is an effective measure to reduce water loss and improve water utilization efficiency. In addition, by considering the results of industrial linkage analysis of economic sectors, this study proposed that the government should promote the development of industries with large water storage potential, such as construction, manufacturing and forestry, and that adjustment of the structure of local industries should be accelerated so as to reduce the loss of VW during local economic production and trade flows of the primary industry.

An Adaptable Conceptual Model for Construction Technology Transfer: The BRI in Africa, the Case of Ethiopia

Unlike other developmental relationships, BRI is the most promising icon in transforming the construction industry and built environment in Africa; the infrastructure developments like highways, bridges, skyscrapers, and aviation take in advanced construction technologies, methods, and skills. However, the technological capability of Chinese construction firms is not transferred in the highest capacity to the host countries. Nevertheless, the main focus is on delivering modern railways, highways, and skyscrapers. Thus, this research aimed to propose an adaptable technology transfer model by identifying the theoretical concepts in the body of knowledge, exploring the prior technology transfer models and the best experiences. The findings indicated that the BRI inclusive countries in Africa benefit from infrastructure development with an investment amount of more than US$33 billion with potential technology spillovers, but in an unplanned, and not best suited to their conditions because of the lack of a single-country-based technology, transfer model ahead of project implementation. Using a systems thinking approach and a causal loop diagram tool, the authors created a conceptual model to guide the Africa’s construction technology transfer through BRI. The research also examined case study projects in Ethiopia to assert the new model’s practicability over the existing processes. Moreover, the university–industry linkage structures, can facilitate the process through R&D and innovation in the whole project life cycle.

Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance.

Given the growing awareness of sustainable development, the environmental protection industry has attracted much attention. Green finance has developed rapidly in policymaking and practices. This study provides a framework for evaluating green finance via linkage analysis based on input–output theory. Measurements on industrial linkages are calculated in China in two provinces from 2002 to 2018, which study the relationship between finance and environmental protection sectors. The results show that the environmental protection sector (EPS) in China has gradually developed from a sector with weak backward and strong forward linkages to a sector with strong backward and weak forward linkages from 2002 to 2015; however, in 2017 and 2018, the EPS returned to a sector with weak backward and strong forward linkages. At the provincial level, the EPS used to be a key sector with strong backward and forward linkages. The connection between the finance sector and the EPS rose first, then declined in the country and the Zhejiang province; Guangdong had a similar evolution in the former period, but it had a rising trend in the latest year. The findings provide insights for further promoting the support from the finance sector to the environmental protection activities.

Evaluation of linkage efficiency between manufacturing industry and logistics industry considering the output of unexpected pollutants

ABSTRACT Applied a non-radical non-oriented Slack Based Measure (SBM) model of Data Envelopment Analysis (DEA) to measure the linkage efficiency between the two sectors from 2009 to 2016. The paper analyzes the current situation of manufacturing and logistics efficiency, presents a way to improve the linkage efficiency of manufacturing and logistics industry, and using Tobit regression to analyze the environmental factors that affect the linkage efficiency. The results show that: Totality, the two industries in the three northeast provinces show a steady development trend in the period from 2009 to 2016, but the development of the two industries in northeast China is still insufficient. Unexpected pollutant output is the main reason for the decline of manufacturing efficiency in the regions. The redundancy of input factors is the main reason that affects the efficiency decline of the logistics industry. The results of Tobit regression analysis show that the investment of science and technology and opening to the outside world have a positive influence on the efficiency of the two industries, and government consumption has a negative effect on the efficiency of the two industries. This is to correctly understand and grasp the status of two industry linkage development in three northeast provinces. And it provides a certain basis for the development policy of the two-industry linkage development. Implications: Due to the availability of data, reference to the relevant achievements of the research on the linkage between manufacturing industry and logistics industry. The transportation industry, warehousing, and postal and telecommunications industry data are generally used as logistics industry data. Manufacturing data replaced by industrial data. The manufacturing industry is the core industry in the industrial system. Its output value accounts for more than 90% of industrial output value, so it can reflect the development trend of the manufacturing industry in general.