Transport Equipment Sector Research Articles

Sources of Myanmar’s economic growth during 2010–2015: input–output analysis

This paper examines Myanmar’s economic structure and its sources of economic growth during the period of economic reformation from 2010 to 2015. The study compares the economic performance of Myanmar with that of four other ASEAN countries employing the backward linkage and deviation from proportional growth (DPG) approaches. The data used for the analysis are sourced from the Eora global database and the Asian Development Bank’s database. During 2010–2015, Myanmar experienced significant gross production expansion with the growth rate of 1.84 times, which stands as the highest among the selected countries. Despite its high economic growth, Myanmar lags behind the four other ASEAN countries in terms of industrialization and international trade. Myanmar’s economy mainly relies on domestic market with poor international trade record. The analysis of backward linkages reveals that the transport equipment sector made the largest contribution to output growth in Myanmar. On the other hand, DPG approach indicates that Myanmar’s economic growth during 2010–2015 can be mainly attributed to the expansion of the public administration sector, driven by increased consumption and public and private investment. Industrialization remained underdeveloped until 2015 with the manufacturing sectors not significantly impacting on economy and export growth. Despite some improvements in manufacturing sectors after 2016, the promotion of the manufacturing sectors and agriculture sector is still necessary to foster export and output expansion.

Understanding the industrial NOx and SO2 pollutant emissions in China from sector linkage perspective

Since the most stringent-ever clean air policy was implemented in 2013 in China, main industrial air pollutant emissions have notably decreased. However, there are few studies on air pollutant emissions of industrial sectors driven by supply chain before and after implementing this policy. This paper attempts to provide a new perspective from industrial linkage to understand the emission of air pollutants. Based on Input-Output model framework, we revealed the linkages of SO2 and NOx emissions between sectors from 2012 to 2017 and the driving forces behind emission changes. Moreover, we simulated the possible impact of the key sector linkages on air pollutant emissions. Results show that the most noteworthy change during this period is that the metal melting sector has replaced the power sector, as the largest pollutant output emission sector associated with other sectors, especially the transport equipment sector. The main reason of this phenomena is that the emission intensity reduction rate of metal smelting sector (e.g., only 17% for NOx) is far less than other sectors. In the future, the development of the equipment manufacturing may put pressure on the metal smelting sector to reduce emissions. For example, when the transport equipment sector increases total output by 20% ~ 40%, the metal smelting sector will be driven to emit 0.04Mt ~0.08Mt of NOx. This paper provides a basis to quantitatively analyze the industrial sector linkages and identify the key sectors from 2012–2017, and helps decision makers better understand the impact of sector linkage on pollutant emissions.

The changing pattern of export advantage between USA and China from 1992 to 2018: analysis of comparative advantage in the machinery and transportation equipment sector

The changing pattern of export advantage between USA and China from 1992 to 2018: analysis of comparative advantage in the machinery and transportation equipment sector

The changing pattern of export advantage between USA and China from 1992 to 2018: analysis of comparative advantage in the machinery and transportation equipment sector

The changing pattern of export advantage between USA and China from 1992 to 2018: analysis of comparative advantage in the machinery and transportation equipment sector

Industrial linkage of embodied CO2 emissions: Evidence based on an absolute weighted measurement method

This paper employs absolute weighted measurement method (AWMM) to estimate carbon-based backward and forward linkage in China from 1995 to 2014. The results reveal that construction sector was the largest CO2 emitter from the demand side, and it contributed more than 40% of the total demand side CO2 emissions in 2014. Transport equipment sector and electrical and optical equipment sector became more influential on the demand side CO2 emissions shown by increasing carbon-based backward linkages. The upstream resource sectors had a great driving effect on the supply side CO2 emissions indicated by large carbon-based forward linkage. Electricity, gas and water supply was a vital driver in the CO2 emissions from both demand and supply side, and it was most carbon-intensive. The empirical analysis discloses that economic industrial linkage affected carbon-based industrial linkage significantly. Hence, promoting renewable energy utilization to make energy structure cleaner is essential for the CO2 emission mitigation in China. Enhancing technological innovation of manufacturing sectors to raise position in the global value chain is crucial for industrial upgrading in the context of low carbonization.

What Influences Adoption of Green Award Criteria in a Public Contract? An Empirical Analysis of 2018 European Public Procurement Contract Award Notices

Green public procurement (GPP) is a policy tool aiming to achieve environmental protection and resource reservation via public procurement. After decades of adaptation, what promotes and hinders its uptake in public contracting remains difficult to discern. This research explores factors that influence the adoption of green award criteria, covering features of procurement procedures, purchasers, tenderers, and the business sectors through empirical analysis of Probit regression combined with a fixed term method. The data is contract award notices (CAN) from 33 countries in Europe in 2018. Our findings suggest that framework agreements, the medical products sector, the health and social services sector, and the business services sector are negatively correlated with whether a contract is green. On the other hand, the contract value, Government Procurement Agreement (GPA)coverage, joint procurement, competitive dialogue, negotiation with competition (with a call for competition), restricted procedure, transport equipment sector, and food sector can positively correlate with green contracts, or these factors increase the possibility of a contract being green. Explicit explanations on these relations are provided. This research identifies factors relating with and influencing the application of green award criteria in public contracts, which would inform public sectors on efficient resources allocation in terms of increasing green public procurement performance.

MEASURING TRADE SPECIALIZATION OF SLOVAKIA ON EXTRA EU MARKET

The paper copes with trade specialisation of Slovakia on extra EU market. Revealed comparative advantages (RCA) were identified for good categories in 2009, 2013 and 2017. The results indicate stability of trade pattern and increase in the level of specialisation between 2013-2017. The machinery and transport equipment sector was identified as the most competitive. The outcomes show prerequisites of Slovakia for maintaining its comparative advantages in automobile manufacture but at the same time reveal a need to diversify existing export structure.

FOREIGN DIRECT INVESTMENT DETERMINANTS IN THE MANUFACTURING SECTORS IN MALAYSIA

Foreign direct investment (FDI) is a vital driver for economic growth in a country. Hence, FDI determinants should be identified in order to promote FDI. FDI could stimulate economic growth and economic growth could attract FDI. This study examines foreign direct investment (FDI) determinants in the main manufacturing sectors and the impact of FDI on economic growth in Malaysia. Moreover, this study examines the link between FDI and real national income.  The vector error correction model (VECM) is used to estimate FDI determinants and the link between FDI and real national income. The results of the vector VECM show that the coefficients of real exchange rate are found to have positive impact on FDI. The coefficients of real national income, trade openness and real infrastructure are mostly found to have positive impact on FDI whilst the coefficients of real average wage and financial development are mostly found to have negative impact on FDI. Autocracy and polity are found to be significant determinants for many manufacturing sectors in the short run. Inflation is found to influence negatively FDI in the transport equipment sector. The Asian financial crisis, 1997-1998 is found to have influential impact on FDI in the petroleum products sector and the chemical and chemical products sector. These findings reveal that FDI determinants are not exactly the same for all the manufacturing sectors. Therefore, FDI would be attracted through a variety of policies. FDI is found to Granger cause real national income for the basic metal products sector and the chemical and chemical products sector whilst real national income is found to Granger cause FDI for the petroleum products sector. These findings demonstrate that FDI and economic growth are closely related. FDI can sustain economic growth in Malaysia. FDI is crucial for economic growth. &nbsp

Impacts of export restructuring on national economy and CO2 emissions: A general equilibrium analysis for China

Sectoral adjustment for China’s export is vital to transform the Chinese economic structure so that high-quality development can be achieved. However, it is unknown to what extent export restructuring will affect the national economy and carbon dioxide (CO2) emissions. This study quantifies the potential economic and CO2 emission impacts of export restructuring under various export structure patterns and climate policies scenarios by using a global computable general equilibrium (CGE) model. Results show that China’s export restructuring will lead to 0.5–0.7% increase of Gross Domestic Production (GDP) and 2.0–2.2% increase of consumption in 2030 under all the non-climate policy scenarios, although the export volume will decrease. Meanwhile, CO2 emissions per GDP and total employment will both decrease under all the scenarios. At the sectoral level, the transport equipment sector will increase significantly in output, employment and CO2 emissions, while the textile sector will suffer substantial output and employment losses. Considering the application of climate policies, the USA pattern has the highest GDP and is the most carbon efficient among the three export structures. China’s export restructuring will also increase global GDP and consumption by around 0.2% and 0.4%, respectively. Such results suggest that encouraging export of service, transport equipment and reducing export of textile would be effective for China’s economic development and CO2 emission reduction.

The role of transportation sectors in the Korean national economy: An input-output analysis

The transportation industry has been playing an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This paper attempts to analyze the economic impacts of four transportation modes using input-output (I-O) analysis, with specific application to Korea. To this end, we apply the I-O models to the Korean I-O tables generated by the Bank of Korea, paying particular attention to the four transportation sectors in Korea (rail, road, water, and air transportations), considering them as exogenous, and then determining their impacts. Specifically, the production-inducing effects, supply shortage effects, sectoral price effects, forward linkage effects, and backward linkage effects of the four transportation modes are quantitatively derived over the period 2000–2010. For example, the production-inducing effect of a KRW 1.0 production or investment in transportation is larger in the petroleum and transportation equipment sectors than in other sectors. Furthermore, the rail and road transportation sectors have greater supply shortage effects than the other transportation sectors. Finally, the potential uses of the results of this analysis are presented from the perspective of policy instruments, and policy implications are discussed.

Australia-Thailand trade: An analysis of competitiveness and effects of the bilateral FTA

This paper undertakes an analysis of bilateral trade linkages between Australia and Thailand over 1990 to 2011, analysing changes in trade competitiveness, and possible role played by the Thailand-Australia Free Trade Agreement (TAFTA) that came into force in 2005. Trade competitiveness changes are measured by the revealed comparative advantage index (RCAI) at an aggregate and value-added level, as well as a constant market share analysis (CMS) analysis. An export-demand model utilizing interaction effects in presence of the TAFTA is then estimated, hitherto not attempted earlier in the empirical literature on Australia-Thailand trade. The findings of the paper suggest that the Thailand-Australian trade relationship has undergone further adjustment since the establishment of the TAFTA. However, the changes in trade patterns are not necessarily due to TAFTA but more of a long term trend. CMS analysis suggest that Thailand’s export competitiveness significantly contributed to the remarkable growth of exports to Australia experienced over the period, and the strongest trade link between the two countries has been the export of automotive vehicles from Thailand to Australia. However, value-added RCAI reveals that Thailand’s domestic industry have been contributing to its exports to a much lesser extent than as actually observed in its gross exports, and this reflects the increasing role of foreign firms and imported inputs in Thailand’s machinery and transport equipment sector. The export demand model therefore finds a significant positive impact of the TAFTA only on Australian exports to Thailand, but not vice-versa. The observed statistically insignificant impact of the TAFTA on Thai exports to Australia could be due to the limited impact of the TAFTA on trade barriers in Australia, as Thai exporters already enjoyed low tariffs prior to implementation of the TAFTA. The insignificant income effect observed in presence of TAFTA confirms that the TAFTA agreement had no impact on Thailand’s demand for Australian exports even while the Australian economy was growing. The results imply that Australia and Thailand’s membership with the same country in three different FTAs (bilateral, regional and cross-regional) could throw up additional challenges of utilization of these agreements for actual business purposes in the near future.

The Relationship between Manufacturer and Distributors: Knowledge Transfer and Performance

This study explored the relationship between knowledge transfer from manufacturer to distributor. The research question is related to knowledge transfer from the manufacturer to distributor and potential improvement in the performance of the last. This issue is important for companies that are expanding their markets. A survey was conducted in business units that belong to the transport equipment sector. The study's sample comprised 199 companies. Measuring instrument followed a rigorous sequence of methodological procedures. Measurements were validated by confirmatory factor analysis, and hypotheses were tested using structural equation modeling. Results suggested positive effects of the manufacturer's performance monitoring and knowledge transfer on the distributor's performance. By having formal and informal mechanisms to follow distributor activities, it is possible to identify operational activities performed by the manufacturer that might improve distributor performance.

Did the financial crisis affect environmental efficiency? evidence from the Japanese manufacturing sector

This study examined the impact of the financial crisis on the environmental and technical efficiencies of the Japanese manufacturing industry. Overall, we found that while the crisis had a negative impact on technical efficiency, it did not affect environmental efficiency—the only exception was the transportation equipment sector which improved its environmental efficiency following the crisis. Additionally, we found that capital intensity does not necessarily affect environmental efficiency. We discuss the implications of these findings and provide directions for future research.

Impact of Trade Facilitation on Parts and Components Trade

This article utilizes data from seventy-seven countries over the period 2004–07 in a gravity trade model to examine the impact of four dimensions of trade facilitation—physical infrastructure, information and communication technology, business environment, and border efficiency—on parts and components and final goods trade for the machinery and transport equipment sector. The results show that the effect of importers’ overall trade facilitation measures is stronger for promoting parts and components than for final goods trade. Among the four dimensions, border efficiency has the largest impact on trade flows for this sector, and the effect of exporter and particularly importers’ border efficiency is important for parts and components, as compared to final goods trade.

Japanese manufacturing facing post-Fukushima power crisis: a dynamic computable general equilibrium analysis with foreign direct investment

The Great East Japan Earthquake and the subsequent tsunami that hit and severely damaged the Fukushima Daiichi Nuclear Power Station resulted indirectly in the shutdown of most of the nuclear power plants in Japan. To compensate for the lost nuclear power supply, more fossil fuels were used. People became concerned that this could be disadvantageous for domestic manufacturing industries and accelerated their offshoring to Asia, especially China, through foreign direct investment (FDI). We used a world trade computable general equilibrium (CGE) model with endogenous FDI from Japan to China to quantify the impact of the power crisis on the Japanese manufacturing sectors. We found that the power crisis as well as FDI would adversely affect several sectors that use power intensively, but would benefit the transportation equipment (TEQ), electric equipment (EEQ) and machinery sectors, despite the common expectation that these sectors would undergo a so-called ‘hollowing-out.’

The Effects of Exchange‐Rate Volatility on Korean Trade Flows: Industry‐Level Estimates

As one of the world's most important exporters, Korea might find volatility in the won to be detrimental to trade. But, since previous studies – as well as economic theory – suggest that the impact of exchange‐rate risk on individual countries trade flows can be ambiguous, each case must be tested empirically. This study does, examining 148 Korean export industries and 144 import industries vis‐à‐vis the rest of the world. We find that in the long run, twenty export industries respond negatively to exchange‐rate risk, while twelve respond positively. For imports, however, eight have negative coefficients and fourteen have positive ones. The majority of industries are unaffected. Small Korean exporters are particularly vulnerable to exchange‐rate risk, as are two large export industries. Imports in the Machinery and transport equipment sector, particularly automobiles, are most likely to see a decrease in the overall trade balance due to increased risk.

Economic Value of Water in the Korean Manufacturing Industry

Water is important to manufacturing firms because industrial water is used for a variety of purposes as one of the most important inputs in the production process. This paper estimates the economic value of water in the Korean manufacturing industry by employing the concept of the value of marginal product (VMP). We use data on 53,912 factories surveyed in 2003 and consider two types of production functions: the Cobb-Douglas and trans-log functions. The specification test revealed that the trans-log function was more appropriate for estimating the data. The industry-wide output elasticity and VMP of industrial water were estimated to be 0.0104 and KRW 1,156 (USD 1.05) per m3, respectively. The estimated VMP ranged from KRW 428 (USD 0.39) per m3 for the precision instrument sector to KRW 13,760 (USD 12.51) per m3 for the transportation equipment sector, indicating that the VMP varies across sectors. The results have important implications for various areas of industrial water management. Any cost-benefit analysis of new projects providing industrial water requires information on the economic value of industrial water. Moreover, such information is required for determining the ways in which scarce water resources could be distributed to various sectors.

Industry trade between Canada and Mexico: Will a weakening peso help Mexican manufacturing in the long run?

Mexico has longed served as one of Canada's major trade partner, but the plunging peso has had drastic effects across North America. This study investigates the bilateral trade relationship between Canada and Mexico for 27 individual industries, from 1973 to 2006. Cointegration analysis shows that overall sensitivity to the real exchange rate is weak, but that the trade balances of certain manufacturing industries do indeed improve after a currency depreciation. The “J-curve” effect is present for certain electrical and mechanical industries, suggesting that the recent decline of the peso may currently be having a negative impact on Mexican trade—but that it might eventually be beneficial, particularly for the Machinery and Transport Equipment sector.

Modularity and the impact on new product development time performance

PurposeThe purpose of this paper is to analyze the impact of product modularity on new product development (NPD) time performance, and the moderating effects of interfunctional integration and supplier involvement on the product modularity‐time performance relationship.Design/methodology/approachThe paper analyzes data from a sample of 186 manufacturing plants settled in several countries, and operating in mechanical, electronic and transportation equipment sectors. Three hypotheses are tested through a hierarchical regression analysis.FindingsData analyses show that product modularity has a direct positive effect on NPD time performance, and that interfunctional integration positively moderates the product modularity‐time performance relationship. Finally, this research does not support the hypothesis that a positive interaction effect exists between product modularity and supplier involvement.Research limitations/implicationsFuture research should replicate and extend the model to samples drawn from other industries. Moreover, analyses carried out provide some interesting directions for future research on the effect of supplier involvement on NPD time performance.Practical implicationsThe practical implication for managers is that NPD time performance reduction requires levering simultaneously on product modularity and interfunctional integration to foster their interaction, rather than investing and acting on product modularity only. In addition, before deciding to invest on product modularity, managers should ascertain the level of interfunctional integration. In fact, it acts as prerequisite for the successful implementation of product modularity.Originality/valueEmpirical studies on the impact of product modularity on NPD time performance are really scant. This research empirically analyzes this effect, and contributes to the advancement of theory by investigating the effect of product modularity and integration practices in NPD in a comprehensive way.

Impact of inter-sectoral trade on national and global CO 2 emissions: An empirical analysis of China and US

This paper attempts to discuss the CO 2 emissions embodied in Sino-US international trade using a sector approach. Based on an input–output model established in this study, we quantify the impact of Sino-US international trade on national and global CO 2 emissions. Our initial findings reveal that: In 2005, the US reduced 190.13 Mt CO 2 emissions through the consumption of imported goods from China, while increasing global CO 2 emissions by about 515.25 Mt. Similarly, China reduced 178.62 Mt CO 2 emissions through the consumption of US goods, while reducing global CO 2 emissions by 129.93 Mt. Sino-US international trade increased global CO 2 emissions by 385.32 Mt as a whole, of which the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors contributed an 86.71% share. Therefore, we suggest that accelerating the adjustment of China’s trade structure and export of US advanced technologies and experience related to clean production and energy efficiency to China as the way to reduce the negative impact of Sino-US trade on national and global CO 2 emissions. This behavior should take into account the processing and manufacturing industries as a priority, especially the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors.