Local Market Characteristics Research Articles

The effects of trade on national productivity - A stimulant or its handmaiden: An empirical evidence from ASEAN nations

The paper investigates the mediating relationship between Trade and National Productivity, proxied by economic growth rate in ASEAN from 2012 – 2021. Using data from the ASEAN Statistical Yearbook, this research, first, reinvigorates the positive effects of trade balance on national productivity to improve the international trade literature given new settings and contemporary contexts, second, examines the translating/mediating effects of trade towards economic performance in the ASEAN by a novel approach through the adoption of generalized least squares and structural equation models. Findings show that there is a positive correlation between FDI and economic growth, a negative between trade openness and economic growth. Interestingly, there is the mediating effects of trade towards the FDI-growth relationship, justified by the tremendous uplift after the presence of trade was conducted into the regression. Albeit found compatible, the paper constrains itself since it did not treat the confounding effects of local market characteristics such as governance structures, institutional quality, intervention of fiscal policies, and the monetary circulation as one of the internal factors; to which the present author humbly suggests for future studies. Moreover, because of data unavailability, hypotheses are tested over the 10-year span, which may impede the inference because of macroeconomic-level policy lags.

Pelatihan Teknik Menulis Copywriting Melalui di Media Sosial Untuk Meningkatkan Daya Tarik Calon Pelanggan Produk UMKM Di Rt 03 Rw 06 Kelurahan Yosodadi

This service aims to increase the attractiveness of potential customers for MSME products in RT 03 RW 06 Yosodadi Village through training in copywriting techniques on social media. Effective copywriting is the key to introducing products persuasively and building engagement with consumers. The training participants involved participants from MSME actors in the RT. The training method involves theory and practice sessions, with a focus on copywriting strategies that suit the characteristics of social media. In addition, monitoring and evaluation of training results is carried out to measure increases in product attractiveness and interaction on social media. It is hoped that the results of this research can make a positive contribution in strengthening the branding and marketing of MSME products at the local level, creating sustainable business opportunities, and providing economic benefits for the community in RT 03 RW 06, Yosodadi Village. The training method implemented involves a participatory approach, where training participants are actively involved in the learning process and developing copywriting strategies. In addition, an analysis of local market characteristics and potential customers' preferences is carried out to adapt the copywriting approach to their needs and desires. This training also provides participants with an understanding of the use of social media as an effective platform for building networks and increasing product visibility. The training material includes techniques for writing attractive titles, using relevant images, and applying persuasive language. Evaluation is carried out through monitoring online interactions, the number of content shares, and the increase in the number of followers or likes. It is hoped that the results of this training can make a positive contribution to increasing sales and popularity of MSME products in the RT 03 RW 06 environment. As an effort to empower the local economy, this research is expected to be able to provide insight to MSME players regarding effective marketing strategies in the digital era, as well as encourage collaboration between MSME actors in increasing the competitiveness of local products in the wider market.

PELATIHAN DAN PENDAMPINGAN MEMBANGUN PRAKTIK DIGITAL MARKETING UNGGUL UNTUK PENINGKATAN PEMASARAN UMKM DI KOTA JAKARTA BARAT

Increasing penetration of digital technology has given rise to the need to understand and implement effective marketing strategies, especially for Micro, Small and Medium Enterprises (MSMEs). This service activity aims to provide training and assistance to MSMEs in West Jakarta City in building superior Digital Marketing practices to increase their competitiveness and product marketing. The service implementation methodology involves a series of intensive training that covers basic Digital Marketing concepts, use of social media, search engine optimization, and other online marketing strategies. It is hoped that the results of this activity will provide MSMEs with a better understanding of the potential and benefits of digital marketing. Through practical assistance, it is hoped that MSMEs will be able to implement Digital Marketing strategies that are relevant to local market characteristics. Apart from that, this activity will also evaluate the impact of the training and mentoring on increasing sales and visibility of MSMEs in the digital realm. By involving MSME players as active partners, this activity is expected to make a positive contribution to local economic development in the City of West Jakarta. It is hoped that the findings from this activity can become the basis for developing similar training programs in other regions, so that MSMEs can continue to develop and compete effectively in this digital era

Variation in tiered network health plan penetration and local provider market characteristics.

To understand variation in enrollment in tiered network health plans (TNPs) and the local provider market characteristics associated with TNP penetration. We used 2013-2017 Massachusetts three-digit ZIP code level employer-sponsored health insurance enrollment data, data on physician horizontal and vertical affiliations from the Massachusetts Provider Database, state hospital reports in 2013, 2015, and 2017, and the 2013-2017 Massachusetts All-Payer Claims database. Linear regressions were used to estimate associations between TNP and local provider market characteristics. We constructed measures of TNP penetration and local provider market characteristics and linked these data using three-digit ZIP code. TNP penetration was at least 10% in all employer market sectors and highest among jumbo sized employers. All state employee health plan enrollees were in a tiered network health plan. Among enrollees not in the state employee health plan, TNP penetration varied from 6.0% to 19.6% across three-digit ZIP codes in Massachusetts. TNP penetration was higher in areas with less horizontal and vertical physician market concentration. Market competition, rather than the absolute quantity of physicians in an area, is associated with TNP penetration.

Legal framework of professional mobility in the EU

The internal market of the European Union creates employment opportunities, but the job search process remains complex due to different rules and requirements related to the high requirements of local legislation and market characteristics. The research aims to provide a legal overview of Directive 2005/36/EC and the latest amendments to the amended Directive 2013/55/EU, which focus on extending the rights of employees and self-employed persons to practice their profession in different Member States of the European Union. The main methods used in the research are analysis and historical. The authors provided two sides of the view of the country’s internal labour market: from the perspective of the “European Union’s fully free market for professionals”, offering enhanced career opportunities and professional development, and from the perspective of migrants and the obstacles they face. The differences between regulated and unregulated professions, highlighting the ease of recognition of the latter were described. The study also discusses the applicability of the Directive to family members from outside the European Union and the introduction of the European Occupational Card in Directive 2013/55. The three systems for the recognition of qualifications were discussed in detail, highlighting their importance and recent developments in case law. Attention has also been paid to barriers to labour mobility, instruments for the protection of EU citizens, and the challenges posed by national legislation in different professions. The paper provides an assessment of the internal features of the functioning of the internal labour market in the European Union and a better understanding of the peculiarities of the functioning of the economy of the association.

The impact of refinancing on housing outcomes among lower-income households

In this paper, we explore how refinancing influences subsequent housing outcomes for financially vulnerable homeowners, including overcrowding, homeownership sustainability, and residential mobility. Drawing on a unique dataset of refinance applicants to the Startlån mortgage programme in Norway, we model these housing outcomes as a function of being approved for mortgage refinancing and a wide range of demographic, socioeconomic, and housing characteristics matched from various public registries, as well as local housing market characteristics. We test, and where appropriate, control for endogeneity in the refinance mortgage approval decision using endogenous treatment modelling. We find a strong positive effect of refinancing: approved mortgage applicants have a 13 percentage points higher probability of sustaining homeownership compared to declined applicants. Refinancing also decreases the number of post-application moves by about a third, and increases the amount of living space available. Our results demonstrate the benefits of access to prime rate refinancing as a tool to stabilise housing careers for lower-income homeowners.

Job Quality and Job Separation of Direct Care Workers in England.

Most job leavers in the long-term care (LTC) sector in England do not leave the sector, but rather move to other LTC employers. Nevertheless, the high "churn" can have a negative impact on continuity and quality of care, care providers' recruitment and training costs, and the remaining staff workload and motivation. This study aimed to provide quantitative evidence on the drivers of direct care workers' job separation in England, with a focus on job quality. We used yearly data (2016-19) from the Adult Social Care Workforce Data Set, the leading source of LTC workforce data in England, including information on both LTC workers and employers. The analysis considered panel data econometric methods that accounted for unobserved heterogeneity at worker and employer levels. After controlling for observed individual, organizational, and local market characteristics as well as unobserved worker and employer heterogeneity, we found that everything else being equal, wages and employment conditions (i.e., full-time contracts and contracts with guaranteed working hours) significantly reduce job separation. For example, a 10% wage increase from the sample mean would reduce the job separation rate by about 3 percentage points. This wage effect was more than halved (i.e., downward biased) when not accounting for unobserved effects. The persistent high staff turnover in LTC in England highlights the need for finding practical solutions faced by care providers and policy-makers. Our findings showed that improving pay and employment conditions can be the way forward while methodologically stressing the importance of accounting for unobserved variable bias.

JOB SEPARATION OF LONG-TERM CARE FRONTLINE STAFF IN ENGLAND

Abstract Staff turnover in the long-term care (LTC) sector in England is perceived to be relatively high. Most job leavers do not leave the sector, but rather move to other LTC employers. Nevertheless, there are concerns that the high ‘churn’ has a negative impact on continuity and quality of care, care providers’ recruitment and training costs, and the remaining staff workload and motivation. This study aimed to provide missing quantitative evidence on the drivers of LTC staff retention in England, with a focus on job quality. We used yearly data (2016 to 2019) from a large, employer-employee dataset covering about half of England’s LTC market: the Adult Social Care Workforce Dataset. After controlling for observed individual, organisational, and local market characteristics as well as unobserved worker and employer heterogeneity, we found that, everything else being equal, wages and employment conditions (i.e. full time contracts and contracts with guaranteed working hours) significantly reduce job separation. For example, a 10 per cent wage increase from the sample mean would have reduced the job separation rate by about 3 ppt. Our results also show that the wage effect was substantially downward biased (i.e. closer to zero) when not accounting for unobserved effects: the estimated reduction in job separation rate of a 10 per cent wage increase was only 1 to 1.5 ppt. Our findings show that improving pay and employment conditions for LTC staff can improve staff retention in LTC and stress the importance of accounting for unobserved variable bias.

Financial permeation and rural poverty reduction Nexus: Further insights from counties in China

We investigate how financial permeation affects rural poverty reduction by matching representative county household data with the local banking market, FinTech development, and county characteristics data from China. We discover that financial permeation via bank branch expansion boosts household income and mitigates household vulnerability to poverty, and these effects are magnified on lower-income and more vulnerable households, especially in impoverished counties. Further considering the potential substitution effect of FinTech, we verify that enhancing financial permeation via bank branch expansion still matters to rural poverty reduction even in the digital era. Exploring the channels, we find that financial permeation accelerates rural poverty reduction directly through improving financial utilization and motivating investment activities and indirectly through spurring local economic growth. Notably, the more pronounced marginal effects of the channels on households in impoverished counties, to some extent, explain the poverty reduction effect of financial permeation. The results imply the necessity of financial permeation via bank branch expansion for the realization of shared prosperity.

Court Decision in General Motors Uruguay – The Importance of Marketing Intangibles, Local Market Characteristics and Local Comparables in a Comparability Analysis

December 2021, the first court case in Uruguay on the application of the current transfer pricing regulations was concluded. After a thorough functional analysis and providing voluminous evidence of more than 11.000 sheets, the tax administration succeeded in demonstrating the existence of marketing intangibles in the transaction under analysis. The judgment in this case recognizes the importance of local market characteristics as relevant comparability factors that have to be taken into account in the comparability analysis, especially in circumstances in which there is publicly available information on national enterprises that perform similar activities to the taxpayer.

Borders, varieties and distribution costs: Evidence from a US–Canada retail chain

AbstractUsing data from a large retailer operating in Canada and the United States, I examine how market size and retailer size at the local and regional levels shape the variety of products available to consumers at a given store. The average Canadian store carries many fewer varieties, and I show that this has a potentially large (negative) effect on consumer welfare for Canadian (vs. American) shoppers. I propose a novel method to quantify the international difference in retail distribution costs and find evidence that they are much higher in Canada. Exploiting intra‐national variation in market and retailer characteristics, I find that up to a quarter of the international variety gap can be explained by observed local and regional market characteristics that lead to larger retail scale in the United States. I also show that retailer scale has independent effects on product variety, conditional on market characteristics, and that manufacturer size and retailer size are substitutes in distribution.

Relationship between rural hospital closures and the supply of nurse practitioners and certified registered nurse anesthetists

BackgroundReductions in primary care and specialist physicians follow rural hospital closures. As the supply of physicians declines, rural healthcare systems increasingly rely on nurse practitioners (NPs) and certified registered nurse anesthetists (CRNAs) to deliver care. PurposeWe sought to examine the extent to which rural hospital closures are associated with changes in the NP and CRNA workforce. MethodUsing Area Health Resources Files (AHRF) data from 2010-2017, we used an event-study design to estimate the relationship between rural hospital closures and changes in the supply of NPs and CRNAs. FindingsAmong 1,544 rural counties, we observed 151 hospital closures. After controlling for local market characteristics, we did not find a significant relationship between hospital closure and the supply of NPs and CRNAs. DiscussionWe do not find evidence that NPs and CRNAs respond to rural hospital closures by leaving the healthcare market.

Ownership Structure and Performance of China’s A-Share-Listed Benchmark Hotels

ABSTRACT The ownership structure has been identified to affect the operating performance of China’s A-share-listed benchmark hotels. Seven A-share-listed benchmark hotels were analyzed by regression analysis to test the relationship between ownership structure and performance. The research reveals the following. (1) The proportions of state-owned, institutional investors, tradable ownership, and the equity balance index have negative effects on return on assets (ROA). While the portion of managerial ownership has a positive influence on ROA. (2) The proportions of state-owned, tradable ownership and the equity balance index have positive effects on performance. The portions of managerial ownership and the top ten shareholders have negative effects on Tobin’s Q. (3) The proportions of state-owned, institutional investor shares, tradable ownership, and the equity balance index have adverse effects on the sustainable growth rate. Results show that ownership structures influence the performance of the benchmark hotels. The research limitation is that there are only seven A-share-listed hotel groups in China. We conclude that the Chinese hotel industry’s ownership structures move toward global operations and still keep their local market characteristics. The managerial implication also guides investors in assessing the value of the listed hotels in China.

Bank Mergers, Acquirer Choice and Small Business Lending: Implications for Community Investment

We examine the effects of bank merger and local market characteristics on local small business lending. Mergers involving small, in-state acquirers are positively associated with small business loan (SBL) originations in counties where target banks are located. Conversely, mergers involving large, out-of-state acquirers are associated with fewer SBL originations. The analysis suggests that the results are driven by acquirer’s choice of target. Small and in-state acquirers target banks that focus more on SBL and targets with strong relationships while large, out-of-state acquirers pursue better performing banks with stronger balance sheets and less focus on SBL. Results are particularly strong in counties with a large number of small firms. Post-merger activity supports banks expanding on their acquisition strategy decisions. The findings suggest that acquirer strategy is important for evaluating the impact of acquisitions on local community development and that one-size-fits-all policy solutions for bank mergers may not produce common local outcomes.

Housing Values and the Residential Settlement of Migrants: Zooming in on Neighbourhoods in Italian Provincial Capitals

This study looks at the relationship between housing values (prices and rents) and the residential settlement of migrants in different neighbourhoods in Italian provincial capitals. We exploit here the high spatial resolution dataset on the settlement of migrants developed within the Data for Integration (D4I) project. The D4I information on resident population characteristics was merged with a dataset on housing values for civilian and economic residential units using boundaries defined by local housing market characteristics. The results suggest that: (1) more diverse neighbourhoods are also those with relatively lower housing values; (2) the relationship between housing values and the concentration of migrants is non-linear; and (3) the sign and significance of the association varies significantly depending on the origin of migrants.

Are Bank Merger Characteristics Important for Local Community Investment?

Using a sample of 3,964 bank mergers during the 1999-2016 period, we examine the effects of merger and local market characteristics on local small business lending through banks’ dependence on soft information acquisition relative to technology driven lending. Mergers involving small or in-state acquirers are positively associated with small business loan (SBL) originations in counties where the target bank has a presence, particularly in counties with a larger number of small firms. In contrast, mergers involving large acquirers are associated with fewer SBL originations while those involving out-of-state acquirers have no impact on SBL originations. Analyses of acquirer bank SBL origination activity post-merger corroborate our county-level results. Post-merger, small bank acquirers increase in SBL originations, while large acquirers do not. Examining the behavior of local competitor banks shows that competitors of small acquirers decrease SBL originations, partially offsetting the positive effect associated small bank acquirers. Taken together, our findings underscore the importance of soft information acquisition in small business lending and suggest one-size-fits-all policy solutions are not likely to lead to common outcomes at the local level. Encouraging mergers by small banks and by in-state acquirers can positively affect small business lending and community investment, particularly in counties with a large fraction of small firms.

The evolution of MNCs' R&D foreign units: the case of Swedish MNCs in India

PurposeThe article aims to explain how the drivers of subsidiary evolution influence a multinational company's (MNC) research and development (R&D) subsidiary's evolution over time.Design/methodology/approachThe article draws on insights from a longitudinal comparative case study of three Swedish MNCs' Indian R&D units.FindingsThe study shows that the evolution of R&D units is a triangular showdown among headquarter assignments, local market constraints, and opportunities, and that subsidiary choice is an important driver of both mandated extension and stagnation. We summarize our findings in various propositions that emphasize different drivers over time and that highlight the strong impact of a subsidiary's understanding of the corporate immune system on the evolution of that subsidiary's R&D mandate.Research limitations/implicationsDrawing on the common limitations of a case study approach, further research is needed to test the suggested propositions with larger samples, ideally with subsidiaries in other emerging and developed markets.Practical implicationsThe study illustrates the risks involved for subsidiary managers when pushing an R&D mandate-related initiative too far and provoking the corporate immune system. For headquarters management, the study highlights the importance of understanding that the development of R&D competence and capability at a subsidiary cannot be guided solely by headquarter assignments and local market characteristics; rather, the subsidiary's initiatives also need to be considered.Originality/valueThe study contributes to the literature on R&D internationalization by showing how the drivers of subsidiary evolution influence a subsidiary's R&D mandates over time and that subsidiary choice is an important driver of both mandated extension and stagnation.

The Effect of Top Management Team Turnover and Local Market Characteristics on Financial Reporting Risk

Upper echelon theory posits that defining, executing, and overseeing an organization’s strategy is a shared activity among top executive teams. Prior research has applied this theory to improve our understanding of firm performance and strategy. In this study, we explore the boundaries of upper echelon theory by examining its application to managements’ financial reporting oversight function. Specifically, we examine whether greater turnover among the members of a firms’ top executive group other than those with direct financial reporting oversight responsibilities (i.e., the CEO and CFO) influences key stakeholders’ concerns about financial reporting risk or whether consistency in the CEO and CFO positions is sufficient to alleviate any such concerns. Consistent with upper echelon theory, we find that turnover among top executives other than the CEO and CFO is positively associated with increased perceptions of financial reporting risk among auditors and audit committees. Building upon labor economics literature, we then explore whether local market characteristics that should affect firms’ ability to replace top executive talent moderates this effect. We find that the positive association between executive team turnover and perceptions of financial reporting risk is greater for companies headquartered in areas with more limited local labor pools and companies that are market leaders in their local areas or industries. Further analyses suggest that the perceptions of financial reporting risk in response to executive team turnover offsets deterioration in financial reporting quality.

Inelastic response of ductile eccentrically braced frames

Resultsof nonlinear analyses of 6- and 9-story regular buildings structured with moment-resisting eccentrically braced steel frames are discussed in this paper. Models were located in soft soil site conditions (Mexico City's lake-bed zone) and designed for a seismic modification factor Q = 4.0 (the maximum allowed according to the local code). Nonlinear analyses were performed in OpenSees. Beam-column elements with plasticity spread along the element length were considered for the link beam, beam segments outside of shear links, braces, and columns. A detailed model of the connection at ends of link elements with springs was also considered. Through 1756 certified laboratory coupon tests, an improved value of the actual steel yielding stress was included in order to evaluate material overstrength capacity based on local market characteristics. Despite the fact that buildings were designed in compliance with capacity design principles, undesired soft-story collapse mechanisms were developed. According to the results, the link rotation normative limit is conservative to predict actual inelastic capacities. Based on a statistical study, a proposal to evaluate link rotation capacity was developed as a function of the cross-section of the link beam. Results indicate that links do not yield at the same time or on all floors; therefore, axial demands in columns based on a capacity design philosophy might be too conservative. An improved strategy to estimate the axial design demand in columns is proposed.

How small are small markets? Local market size for child care services

In this article, we propose an innovative way of delineating local markets based on easily accessible data. We apply this concept to the day care industry and investigate providers' location choices relative to local market characteristics to evaluate the widespread presumption that local markets for child care services are geographically very small. Using a panel of all day care centers for the metropolitan region of Vienna, Austria, for nearly a decade, as well as geographically extremely disaggregated data on the spatial distribution of children under the age of six at the 250 m × 250 m grid cell level, we find that the location of children and day care centers are strongly related, but this relationship diminishes as soon as the distance between a child's place of residence and the day care center's location increases. We conclude that local markets for day care services in metropolitan regions are indeed very small (about 500 m or 550 yards).