Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100099
Zheng Fang , Soon Hock Kang , Sandra Myo Han May
Using panel data from 63 countries in 2005–2021 and the generalised method of moments, this paper examines the impact of industrial robot utilisation on employment. Results show a 1 % increase in new industrial robot installations per 10,000 workers reduces the unemployment rate by 0.037 %-0.039 %. The impact is more pronounced for male workers (0.045 %) than female workers (0.033 %), and youth unemployment is more significantly affected. Lastly, automation is found to reduce the unemployment rate by 0.052 % for people with intermediate education, yet with little effect on those with basic or advanced educational attainment.
{"title":"Does automation really reduce jobs?","authors":"Zheng Fang , Soon Hock Kang , Sandra Myo Han May","doi":"10.1016/j.aglobe.2024.100099","DOIUrl":"10.1016/j.aglobe.2024.100099","url":null,"abstract":"<div><div>Using panel data from 63 countries in 2005–2021 and the generalised method of moments, this paper examines the impact of industrial robot utilisation on employment. Results show a 1 % increase in new industrial robot installations per 10,000 workers reduces the unemployment rate by 0.037 %-0.039 %. The impact is more pronounced for male workers (0.045 %) than female workers (0.033 %), and youth unemployment is more significantly affected. Lastly, automation is found to reduce the unemployment rate by 0.052 % for people with intermediate education, yet with little effect on those with basic or advanced educational attainment.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100099"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704994","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100091
Hiroya Akiba
This article examines the Marshall-Lerner (ML) condition from a broader perspective. Mundell (1968) regarded ML as the stability condition of the equilibrium, but not of the system. The violation of the ML condition by Japan's estimates is interpreted as a possible symptom of a negative exchange rate depreciation spiral in Thorbecke (2022). By constructing an open-economy macroeconomic model with three endogenous variables in three markets, and solving the model for the exchange rate, we examined the model's stability. Stability depends not only on the ML condition, but also on the configuration of the model's parameters. This implies that the ML condition alone is not responsible for the stability/instability of the model. Using the ML parameter estimated by Thorbecke (2022) and previously obtained money market parameters for the Japanese economy, we found that a simple model satisfies the necessary and sufficient conditions for stability. However, for an extended model, some cases fail to satisfy stability conditions. We further investigate the possible cause of this failure, and suggest that the Bank of Japan's (BOJ) unconventional monetary policies implemented after the economic bubble burst may be responsible.
{"title":"The Marshall-Lerner Condition: Stability of an Equilibrium or a System?","authors":"Hiroya Akiba","doi":"10.1016/j.aglobe.2024.100091","DOIUrl":"10.1016/j.aglobe.2024.100091","url":null,"abstract":"<div><div>This article examines the Marshall-Lerner (ML) condition from a broader perspective. Mundell (1968) regarded ML as the stability condition of the equilibrium, but not of the system. The violation of the ML condition by Japan's estimates is interpreted as a possible symptom of a negative exchange rate depreciation spiral in Thorbecke (2022). By constructing an open-economy macroeconomic model with three endogenous variables in three markets, and solving the model for the exchange rate, we examined the model's stability. Stability depends not only on the ML condition, but also on the configuration of the model's parameters. This implies that the ML condition alone is not responsible for the stability/instability of the model. Using the ML parameter estimated by Thorbecke (2022) and previously obtained money market parameters for the Japanese economy, we found that a simple model satisfies the necessary and sufficient conditions for stability. However, for an extended model, some cases fail to satisfy stability conditions. We further investigate the possible cause of this failure, and suggest that the Bank of Japan's (BOJ) unconventional monetary policies implemented after the economic bubble burst may be responsible.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100091"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142759407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100089
Jiyoung Moon , Jehoon Park , Sunghoon Park
In order to measure the current status of Northeast Asian regional cooperation, more specifically in order to comprehensively evaluate whether the region is in a state of cooperation or conflict, this paper adopts a revised and improved combination of approaches used in three existing publications. The Northeast Asia Cooperation Index (NARCI) illustrates the strained situation in Northeast Asia as expected. Looking at the total score, it is -0.25 and -0.425 in 2022 and 2023, respectively, indicating that Northeast Asian regional cooperation is in a state of conflict rather than cooperation and is getting worse. In particular, the political and security situation is at its worst and the economy is also depressed. Regional trade, investment and energy cooperation are all deteriorating. However, some indicators point to the obvious contrast between cooperation and conflict in Northeast Asia giving unexpected dynamism. It should be emphasized that the regional value chain remains robust, even amid the conflict between the US and China.
{"title":"Cooperation or conflict in northeast Asia? - An approach of NARCI (Northeast Asia Regional Cooperation Index)","authors":"Jiyoung Moon , Jehoon Park , Sunghoon Park","doi":"10.1016/j.aglobe.2024.100089","DOIUrl":"10.1016/j.aglobe.2024.100089","url":null,"abstract":"<div><div>In order to measure the current status of Northeast Asian regional cooperation, more specifically in order to comprehensively evaluate whether the region is in a state of cooperation or conflict, this paper adopts a revised and improved combination of approaches used in three existing publications. The Northeast Asia Cooperation Index (NARCI) illustrates the strained situation in Northeast Asia as expected. Looking at the total score, it is -0.25 and -0.425 in 2022 and 2023, respectively, indicating that Northeast Asian regional cooperation is in a state of conflict rather than cooperation and is getting worse. In particular, the political and security situation is at its worst and the economy is also depressed. Regional trade, investment and energy cooperation are all deteriorating. However, some indicators point to the obvious contrast between cooperation and conflict in Northeast Asia giving unexpected dynamism. It should be emphasized that the regional value chain remains robust, even amid the conflict between the US and China.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100089"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100100
Li Hao, Lee Ki-Seong
This study aims to analyze the fluctuations in agriculture and their effects on the economy. According to the traditional supply and demand theory, prices are determined by the relationship between supply and demand. When demand exceeds supply, agricultural product prices rise, increasing consumers’ cost of living. It potentially causes panic among public and endangers social stability. Conversely, when supply exceeds demand, farmers are forced to lower prices to promote sales, which jeopardizes their income. It may pose threat to consumers’ food safety. Therefore, the stable development of agriculture is of paramount importance in maintaining the country’s economic and social stability. This study examines the transmission mechanism and time-varying impact of economic policy uncertainty on the price volatility of different kinds of agricultural products, using the TVP-VAR model, based on the economic policy uncertainty index and agricultural product price data.
{"title":"The impact of economic policy uncertainty on agricultural prices: Evidence from China","authors":"Li Hao, Lee Ki-Seong","doi":"10.1016/j.aglobe.2024.100100","DOIUrl":"10.1016/j.aglobe.2024.100100","url":null,"abstract":"<div><div>This study aims to analyze the fluctuations in agriculture and their effects on the economy. According to the traditional supply and demand theory, prices are determined by the relationship between supply and demand. When demand exceeds supply, agricultural product prices rise, increasing consumers’ cost of living. It potentially causes panic among public and endangers social stability. Conversely, when supply exceeds demand, farmers are forced to lower prices to promote sales, which jeopardizes their income. It may pose threat to consumers’ food safety. Therefore, the stable development of agriculture is of paramount importance in maintaining the country’s economic and social stability. This study examines the transmission mechanism and time-varying impact of economic policy uncertainty on the price volatility of different kinds of agricultural products, using the TVP-VAR model, based on the economic policy uncertainty index and agricultural product price data.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100100"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100094
Hui-Zheng Liu , Shi-Long Li , Kevin H. Zhang
A key challenge facing developing countries is how to promote export performance through trade liberalization (TL). Using large and highly disaggregate firm-level data with 6-digit HS categories for 1995–2019, we investigate the issue for China based on the recent literature of export margins (XM). Export growth is decomposed into extensive and intensive margins (EM and IM), and IM further into price and quantity margins (PM and QM). We develop three empirical hypotheses based on a theoretical model that includes external economies of scale (EES) and industrial agglomeration (IA) as well as TL-XM links. Then we take China's entry to World Trade Organization (WTO) in 2001 as a quasi-natural experiment in difference-in-difference (DID) regressions. The estimate results suggest that TL increases both EM and IM (and QM) but reduces PM after China's entry to TWO in 2001. The finding is robust to various specifications of the empirical model and measurements of the variables. The further estimations show significantly positive effects of EES, IA, and their interactive terms with TL on EM, IM, and QM. The positive effects are larger for medium-tech industries than low-tech and high-tech industries.
{"title":"Trade liberalization and export performance in China: Export-margin approach with firm-level data in 1995–2019","authors":"Hui-Zheng Liu , Shi-Long Li , Kevin H. Zhang","doi":"10.1016/j.aglobe.2024.100094","DOIUrl":"10.1016/j.aglobe.2024.100094","url":null,"abstract":"<div><div>A key challenge facing developing countries is how to promote export performance through trade liberalization (TL). Using large and highly disaggregate firm-level data with 6-digit HS categories for 1995–2019, we investigate the issue for China based on the recent literature of export margins (XM). Export growth is decomposed into extensive and intensive margins (EM and IM), and IM further into price and quantity margins (PM and QM). We develop three empirical hypotheses based on a theoretical model that includes external economies of scale (EES) and industrial agglomeration (IA) as well as TL-XM links. Then we take China's entry to World Trade Organization (WTO) in 2001 as a quasi-natural experiment in difference-in-difference (DID) regressions. The estimate results suggest that TL increases both EM and IM (and QM) but reduces PM after China's entry to TWO in 2001. The finding is robust to various specifications of the empirical model and measurements of the variables. The further estimations show significantly positive effects of EES, IA, and their interactive terms with TL on EM, IM, and QM. The positive effects are larger for medium-tech industries than low-tech and high-tech industries.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100094"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704992","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100086
Willem Thorbecke
Oil prices are volatile. How do oil prices affect Taiwanese industries? This paper investigates how oil price increases driven by shocks to global aggregate demand and to oil supply affect Taiwanese sectoral stock returns. It uses Hamilton's (2014) approach to divide oil price changes into portions driven by demand and supply factors. The results indicate that the semiconductor sector and Taiwan Semiconductor Manufacturing Company (TSMC) are harmed by oil price increases. Since oil prices are often high and quick to change, these findings imply that TSMC should expedite its goal of switching from depending on fossil fuels to utilizing renewable energy.
{"title":"How oil prices impact the Taiwanese economy: Evidence from the stock market","authors":"Willem Thorbecke","doi":"10.1016/j.aglobe.2024.100086","DOIUrl":"10.1016/j.aglobe.2024.100086","url":null,"abstract":"<div><div>Oil prices are volatile. How do oil prices affect Taiwanese industries? This paper investigates how oil price increases driven by shocks to global aggregate demand and to oil supply affect Taiwanese sectoral stock returns. It uses Hamilton's (2014) approach to divide oil price changes into portions driven by demand and supply factors. The results indicate that the semiconductor sector and Taiwan Semiconductor Manufacturing Company (TSMC) are harmed by oil price increases. Since oil prices are often high and quick to change, these findings imply that TSMC should expedite its goal of switching from depending on fossil fuels to utilizing renewable energy.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100086"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142571568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100097
Josef C. Brada , Jehoon Park
During the First Industrial Revolution, industrialization led to incompatibilities between the economic sphere and a political sphere based on rule by monarchs and land-owning nobles. These incompatibilities led to poor economic outcomes for workers and, ultimately, to deep changes in the political system. In the Second and Third Industrial Revolutions, compatibility emerged between new technologies and political systems based on representative democracy, leading to favorable outcomes. The changes in technology brought by the Fourth Industrial Revolution may lead to a growing incompatibility between the productive and political spheres, marked by polarization and conflict both within and among counties. A key aspect of this conflict is the rivalry between the United States and China. We evaluate the strengths of the respective countries and analyze which of them is likely to win the competition for dominance during the Fourth Industrial Revolution.
{"title":"The fourth industrial revolution: Implications for the global economy and for the strategic competition between the United States and China","authors":"Josef C. Brada , Jehoon Park","doi":"10.1016/j.aglobe.2024.100097","DOIUrl":"10.1016/j.aglobe.2024.100097","url":null,"abstract":"<div><div>During the First Industrial Revolution, industrialization led to incompatibilities between the economic sphere and a political sphere based on rule by monarchs and land-owning nobles. These incompatibilities led to poor economic outcomes for workers and, ultimately, to deep changes in the political system. In the Second and Third Industrial Revolutions, compatibility emerged between new technologies and political systems based on representative democracy, leading to favorable outcomes. The changes in technology brought by the Fourth Industrial Revolution may lead to a growing incompatibility between the productive and political spheres, marked by polarization and conflict both within and among counties. A key aspect of this conflict is the rivalry between the United States and China. We evaluate the strengths of the respective countries and analyze which of them is likely to win the competition for dominance during the Fourth Industrial Revolution.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100097"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142748638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100093
Abigail S. Hornstein
Foreign direct investment (FDI) may represent an expansion in the domestic capital supply, which could thus increase GDP growth through the investment and consumption sectors and generate productivity increases. We examine this hypothesis by looking earlier in the investment process and use little-known data on FDI approvals from ten Asian countries that have routinely required advance approval of FDI and have also disclosed this data. We show that the approved FDI predicts actual FDI inflows, and that on average more FDI is approved than realized. The approved FDI is used to create an FDI commitment ratio and gap, which are thus absolute and relative measures of how FDI pledges are fulfilled. We then examine how the host economy is affected by the FDI commitment ratio and gap using an Arellano-Bond dynamic panel estimator to examine an unbalanced dataset spanning 1967–2022. We find GDP growth forecasts are significantly affected by both FDI measures. However, actual GDP growth is affected negatively by the FDI gap, with the effects strongest at the 3-year horizon. Thus, we show that FDI initially displaces domestic capital before expanding the domestic capital supply.
外国直接投资（FDI）可能代表着国内资本供应的扩大，从而通过投资和消费部门提高国内生产总值的增长，并带来生产率的提高。我们通过研究投资过程的早期阶段来检验这一假设，并使用了鲜为人知的外国直接投资审批数据，这些数据来自十个亚洲国家，这些国家通常要求外国直接投资的提前审批，并披露了这些数据。我们的研究表明，批准的外国直接投资可以预测实际的外国直接投资流入量，而且平均而言，批准的外国直接投资多于实际的外国直接投资。批准的外国直接投资被用来创建外国直接投资承诺比率和差距，从而绝对和相对地衡量外国直接投资承诺的履行情况。然后，我们使用 Arellano-Bond 动态面板估算器，对 1967-2022 年间的非平衡数据集进行研究，考察东道国经济如何受到外国直接投资承诺比率和缺口的影响。我们发现，GDP 增长预测受到这两种外国直接投资措施的显著影响。然而，实际 GDP 增长受到外国直接投资缺口的负面影响，3 年期的影响最大。因此，我们表明，外国直接投资在扩大国内资本供应之前，最初会取代国内资本。
{"title":"Economic growth and foreign direct investment in Asia: When investors imperfectly fulfil approved investment plans","authors":"Abigail S. Hornstein","doi":"10.1016/j.aglobe.2024.100093","DOIUrl":"10.1016/j.aglobe.2024.100093","url":null,"abstract":"<div><div>Foreign direct investment (FDI) may represent an expansion in the domestic capital supply, which could thus increase GDP growth through the investment and consumption sectors and generate productivity increases. We examine this hypothesis by looking earlier in the investment process and use little-known data on FDI approvals from ten Asian countries that have routinely required advance approval of FDI and have also disclosed this data. We show that the approved FDI predicts actual FDI inflows, and that on average more FDI is approved than realized. The approved FDI is used to create an FDI commitment ratio and gap, which are thus absolute and relative measures of how FDI pledges are fulfilled. We then examine how the host economy is affected by the FDI commitment ratio and gap using an Arellano-Bond dynamic panel estimator to examine an unbalanced dataset spanning 1967–2022. We find GDP growth forecasts are significantly affected by both FDI measures. However, actual GDP growth is affected negatively by the FDI gap, with the effects strongest at the 3-year horizon. Thus, we show that FDI initially displaces domestic capital before expanding the domestic capital supply.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100093"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100092
Yuna Seo, Naoto Shirasawa
The importance of younger farmers is increasing as Japan's agricultural sector faces a declining labor force. This study assessed young farmers' perceptions and resilience in response to agricultural changes and risks, using four criteria: robustness, adaptability, transformability, and cooperativeness. Farmers were categorized into two resilience profiles: high and low. High-resilience farmers displayed strong agricultural training, mathematical skills, and a positive approach to future challenges, managing farm functions efficiently. Conversely, the low-resilience group had limited training, lower mathematical abilities, and struggled with challenges, expressing concerns about economic issues and uncertainty. Recommendations for strengthening resilience include enhancing agricultural education, promoting rural life, and fostering innovative farming. These insights offer valuable guidance for policymakers aiming to build a resilient, sustainable agricultural sector in Japan.
{"title":"Profiling the perceived resilience of young farmers in Japanese agriculture","authors":"Yuna Seo, Naoto Shirasawa","doi":"10.1016/j.aglobe.2024.100092","DOIUrl":"10.1016/j.aglobe.2024.100092","url":null,"abstract":"<div><div>The importance of younger farmers is increasing as Japan's agricultural sector faces a declining labor force. This study assessed young farmers' perceptions and resilience in response to agricultural changes and risks, using four criteria: robustness, adaptability, transformability, and cooperativeness. Farmers were categorized into two resilience profiles: high and low. High-resilience farmers displayed strong agricultural training, mathematical skills, and a positive approach to future challenges, managing farm functions efficiently. Conversely, the low-resilience group had limited training, lower mathematical abilities, and struggled with challenges, expressing concerns about economic issues and uncertainty. Recommendations for strengthening resilience include enhancing agricultural education, promoting rural life, and fostering innovative farming. These insights offer valuable guidance for policymakers aiming to build a resilient, sustainable agricultural sector in Japan.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100092"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142655428","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-01DOI: 10.1016/j.aglobe.2024.100087
Thi Mai Nguyen, Quoc Trung Tran, Thi Thuy Trang Truong
This paper examines how local corruption determines corporate investment in Vietnam where local corruption is more relevant to firms’ business activities than central corruption. We use the informal payment score extracted from the Vietnam Provincial Competitiveness Index (PCI) database as a proxy of local corruption. With a sample of 5,852 observations from firms listed in Vietnam, we find that local corruption increases investment expenditure through decreasing underinvestment and increasing overinvestment.
{"title":"Local corruption and corporate investment in an emerging market","authors":"Thi Mai Nguyen, Quoc Trung Tran, Thi Thuy Trang Truong","doi":"10.1016/j.aglobe.2024.100087","DOIUrl":"10.1016/j.aglobe.2024.100087","url":null,"abstract":"<div><div>This paper examines how local corruption determines corporate investment in Vietnam where local corruption is more relevant to firms’ business activities than central corruption. We use the informal payment score extracted from the Vietnam Provincial Competitiveness Index (PCI) database as a proxy of local corruption. With a sample of 5,852 observations from firms listed in Vietnam, we find that local corruption increases investment expenditure through decreasing underinvestment and increasing overinvestment.</div></div>","PeriodicalId":100126,"journal":{"name":"Asia and the Global Economy","volume":"4 2","pages":"Article 100087"},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142593600","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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