Spillovers In Terms Research Articles

Wage, foreign-owned firms, and productivity spillovers via labour turnover: a non-linear analysis based on Chinese firm-level data

ABSTRACTUsing firm-level panel data from Chinese manufacturing firms over the period 2004–2007, this article investigates the impact of the wage gap between local and foreign-owned firms on foreign direct investment (FDI) spillovers in terms of total factor productivity (TFP). We find a non-linear threshold effect that: a low-level wage gap threshold exists, below which FDI spillovers are significantly negative. This is because FDI spillovers via labour turnover are blocked due to the low wages of local firms, which jeopardizes the flow of skilled workers from foreign firms to local firms. In contrast, when the wage gap reaches a high-level threshold, local firms can get benefits from FDI spillovers. The reason is that high wages of local firms attract skilled employees to leave foreign firms, which yields a large magnitude of worker mobility from foreign firms to local firms. Our article provides evidence that labour turnover as the channel of FDI spillovers only works when the wage gap is beyond some threshold. Also, these thresholds vary across regions and firm ownerships.

Asymmetric spillover effects between the Shanghai and Hong Kong stock markets: evidence from quantile lagged regression

ABSTRACTThis article surveys the asymmetric spillover effects between the mainland China-based Shanghai Composite Index (SCI) and the Hong Kong based Hang Seng Index (HSI) using a quantile lagged regression model. Compared to previous studies, this article, based on data before and after the 2008 global financial crisis, presents a more detailed analysis, as we investigate the spillovers in terms of returns, volatilities and exchange rates between the renminbi (RMB) and the Hong Kong dollar (HKD) throughout the entire conditional return distribution, including the central quantiles, which are closely related to the normal circumstances, and the extreme quantiles, which correspond to the bear and bull markets. First, we find that the return spillovers from its lagged returns or from the other index not only vary across time but also depend on stock state. Second, while return volatility may boost the stock market in a bull market, it accelerates the decline in a bear market. Third, the depreciation of the RMB relative to the HKD does not significantly affect current returns for the HSI, while it negatively affects current returns for the SCI in a bad state after the crisis. The findings presented in this article will facilitate investors’ understanding of the two stock markets.

Deforestation, leakage and avoided deforestation policies: A spatial analysis

This paper analyses the impact of several avoided deforestation policies within a patchy forested landscape. Central is the idea that one neighbour's deforestation actions may impact the returns to deforestation in nearby patches. We determine the impact of each policy in terms of avoided deforestation and leakage levels at the landscape scale through modelling and simulations. Avoided deforestation policies at a landscape level are respectively: two Payment for Environmental Services (PES) policies, one focused on deforestation hotspots, the second being equally available to all agents; a conservation area; and, an agglomeration bonus. Because our model accommodates spatial interactions in the absence of a deforestation policy, it is possible that a spatial policy can affect both within-intervention areas and outside-intervention spatial spillovers in terms of leakage across different landowners’ forest patches. These two different elements of the total extent of displacement across the full landscape have not been considered before. Our contribution is twofold. In terms of methodology, we expand the concept of leakage in accounting for direct impacts to adjacent patches and spatial spillovers over the landscape, and we provide a measure of leakage in a dynamic manner for policy assessment. From our analytical model and simulations, we show that leakage is sensitive to the spatial distribution of forest patch types. The two PES policies are the most cost-effective policies regarding avoided deforestation. The agglomeration bonus policy is efficient at the expense of a higher cost, whilst the conservation area policy is efficient when patches with similar characteristics are gathered.

Analýza vplyvu ľudského kapitálu na celkovú produktivitu faktorov v regiónoch EÚ s využitím priestorového Durbinovho modelu

This study is devoted to explore the role and impact size of human capital for economic growth. We discern two levels of human capital impacts: First, we point to its contribution to knowledge capital production and second, the multiplicative effects of human capital in the aggregate production function are suggested. We employ lately developed methodology for spatial panel estimations with two-way fi xed effects. Our results show that throughout the EU NUTS-2 regions over the 2000s human capital spillovers, indeed, account for large total factor productivity variation. Moreover, our results suggest that local effects of human capital are secondary to these human capital spillovers in terms of magnitude and, what might be more compelling, that the multiplicative effects of human capital surmount its impacts attributable to knowledge production.

Do good deeds make bad people?

According to the so-called ‘self-licensing effect’, committing to a virtuous act in a preceding choice may lead to behave less virtuously in the succeeding decision. Consequently, well-intentioned policies can lead to overall counter-productive effects by licensing people to behave badly in related behaviors. On the other side, motivational crowding theory argues that constraining people to adopt a desirable behavior can backfire. We use of a classroom experiment to test whether a regulatory framework to incentivize individuals to adopt pro-environmental behavior generate similar spillovers in terms of licensing effect than a non-regulatory framework. We show that the way the good deed is caused doesn’t seem to influence the licensing effect. Nevertheless, we found that business- and environmental-orientated majors react adversely to the regulatory framework. We show that environmental-orientated students exhibit higher intrinsically motivations than business-orientated ones. Accordingly, we suggest that the licensing effect is more likely to arise when the preceding ‘virtuous’ act is freely chosen (respectively regulatory caused) for non-intrinsically (respectively intrinsically) motivated individuals.

Airline Pricing, Price Dispersion, and Ticket Characteristics On and Off the Internet

This paper uses transaction data to investigate the effects of Internet purchase on airline fares. Our data include ticket characteristics, restrictions, flight load factors, and dates and channel of purchase. Controlling for ticket and flight characteristics, online purchasers pay about 11 percent less than offline purchasers, which seems rooted in more efficient shopping. The results do not support a spillover in terms of reduced fares or dispersion from greater Internet shopping. The paper also uses the data to reevaluate the relationship between market concentration and fares, but fails to identify any statistically significant, robust relationship. (JEL D83, L11, L86, L93)

Forms of technological spillovers from multinational companies to small and medium food companies in Nigeria

PurposeForeign direct investment (FDI) provides a source of new technologies, processes, products, and management skills. Thus, the inflow of foreign knowledge and technology though FDI may lead to technological spillovers to the local economy resulting in higher productivity and overall economic growth. Over the years, there have existed many FDIs in Nigeria in the form of multinational companies (MNCs), especially in food industry. The purpose of this paper is to assess the various forms of technological spillovers from MNCs to domestic small and medium food companies (SMFCs) in Nigeria, with a view to determining their nature and extent.Design/methodology/approachThe study employed a multi‐stage sampling method. First, three States from Southwestern Nigeria, where the activities of MNCs are prominent, were purposively chosen. Then, five sub‐sectors of food companies, where the majority of domestic food companies are represented were selected; out of which 200 food companies were chosen for the study through stratified random sampling technique. The primary data were collected through structured questionnaire administered on the selected companies, to elicit information on the various forms of technological spillovers that had taken place.FindingsThe various forms of spillovers from the MNCs to the domestic SMFCs in Nigeria were linkages, investment in human capital, and labour turnover. Most of the SMFCs indicated linkages with MNCs, and the relationship was mainly forward type. About 50 per cent and 7 per cent domestic SMFCs benefitted from the training opportunities and from technical assistance from MNCs, respectively. Also, 37.5 per cent of the owner managers had working experience from MNCs in the areas of research and development, production or operation, quality control, and administration. The changes effected in their production technology included embarking on more efficient production and efficient use of existing resources.Originality/valuePrevious studies on technological spillover measured spillovers in terms of productivity gains rather than through technological learning, capability building, and linkages activities. The paper re‐conceptualises technological spillover from MNCs by linking the spillover occurrence to the technological changes associated with the production capability.

Japanese automakers' approach to electric and hybrid electric vehicles: from incremental to radical innovation

This paper discusses Toyota’s, Honda’s and Nissan’s efforts in battery, hybrid, and fuel cell electric vehicles (BEVs, HEVs and FCVs). Its aim is to increase understanding of the process constituting a paradigmatic shift in technology. In particular, the paper aims to elucidate how automakers managed their early moves. Based on interviews, patent data and previous literature, key aspects relating to the automakers successful early moves into vehicle electrification (as seen in 2010) are outlined. Toyota’s (and Honda’s) aim of in-house knowledge development in the new technologies is among the aspects emphasised as distinctive compared to other world automakers. Furthermore, spill-over in terms of branding and sales and a deliberate development of the corporate culture are proposed as potential new first-mover objectives and consequences. Finally, this paper argues that Toyota, Honda and Nissan are capable of not only incremental but also more-than-incremental innovations, as illustrated by their position in the electrification race.

Foreign Direct Investment and Wage Inequality: Evidence from China

Summary This study provides micro-level evidence on the close link between foreign participation and wage inequality. We investigate the wage premium and the wage spillover effect of foreign-invested enterprises in the Chinese manufacturing sector. The results indicate a significant foreign premium in both wage and non-wage compensation. The presence of foreign and Hong Kong, Macao and Taiwan (HMT) investment results in a significantly negative spillover in terms the wage level in domestic firms, and discourages wage growth in such firms. Overall, the evidence suggests that exposure to foreign investment increases inter-enterprise wage inequality.

Spillover Effects Among Gold, Stocks, and Bonds

In this paper an attempt is made to document the interdependence among stocks, bonds and gold. Gold is an important asset class and has often been seen as a safe haven and counter-cyclical investment vehicle. We present an extension of the work done by Diebold and Yilmaz (2009) using a spillover index methodology to examine whether gold returns and volatilities can predict U.S. stock and bond market movements or vice versa. For the sample period from January 1970 until April 2009, return spillovers appear muted. However, there is some evidence of volatility spillovers of which much is attributable to a spillover from innovations in stocks to bond return volatility. Spillovers in terms of returns are higher during the early 1980s, mid-1990s and the most recent financial crisis. Volatility spillovers have been very elevated in the recent financial crisis as well as late 1970s and early 1990s. The lack of any substantial relationship between gold and stocks and gold and bonds raises the question whether gold price movements can be used as a predictor for stocks and bond prices.

Corporate ecological sustainability strategy decisions: the role of attitude towards sustainable development

AbstractA number of studies reveal a key danger of economic development in terms of the environmental impact of corporate activities. Because multinational corporations (MNCs) play a pivotal role in the development of developing countries but tend to generate a negative spill-over in terms of climate change, they have become focal points in the current debate on the role of MNCs in addressing the ecological problems. I develop a theoretical framework focusing on the roles of fear of poor firm performance, perceived change in competitive advantage and attitude towards sustainable development in determining a decision on a corporate ecological sustainability strategy.

Knowledge Spillover on Networks

We introduce the knowledge spillover equation on a network. We construct a tool to investigating the knowledge spillover in terms of network. The mean-filed asymptotic solution of the equation has the following characteristics: (1) the growth rate is common for all agents on the network regardless of the degree; (2) the growth rate is dependent on the mean degree of nearest neighbors, whereas it is independent from the mean degree; (3) the TFP is proportional to degree; (4) the more heterogeneous the network is, the greater the growth rate is. Among representative networks: regular, random, and scale-free networks, the growth rate is the greatest in a scale-free network and the least in a regular one. We investigate other types of knowledge spillover equations. Using the knowledge spillover equation, we show that the growth rate is large if the region size is small, the density of firms is high, or network formation cost is low. We show that the knowledge spillover equation can be applied to the problem of network formation mechanism.