Pub Date : 2020-10-01DOI: 10.1080/10168737.2020.1839940
Hanhyung Pyo, Minsoo Park
ABSTRACT This study evaluates the effects of the government’s support policies for innovative firms, for which small firms are eligible by way of a venture certification program in Korea. We analyze whether the effects of the innovative firms’ policies are heterogeneous across several dimensions. Specifically, we examine how policy effects vary along with the venture certification types, firm size, and age. We assess the short- and long-term effects of the certification program on the performance of certified firms. We find that the program is likely to help innovative and young firms enhance their sales, employment and labor productivity over time. Moreover, the impact of the program is bigger for firms that are financed by venture capital, smaller in size (less than 20 employees) and younger (less than 5 years). In contrast, the support policies for innovative firms were somehow ineffective for firms that are research and development-intensive, medium sized (more than 100 and less than 300 employees) or older (more than 10 years)
{"title":"Who Benefits From the Governmental Support Policy for Innovative Firms and for How Long? Evidence From the Korean Venture Certification Program","authors":"Hanhyung Pyo, Minsoo Park","doi":"10.1080/10168737.2020.1839940","DOIUrl":"https://doi.org/10.1080/10168737.2020.1839940","url":null,"abstract":"ABSTRACT This study evaluates the effects of the government’s support policies for innovative firms, for which small firms are eligible by way of a venture certification program in Korea. We analyze whether the effects of the innovative firms’ policies are heterogeneous across several dimensions. Specifically, we examine how policy effects vary along with the venture certification types, firm size, and age. We assess the short- and long-term effects of the certification program on the performance of certified firms. We find that the program is likely to help innovative and young firms enhance their sales, employment and labor productivity over time. Moreover, the impact of the program is bigger for firms that are financed by venture capital, smaller in size (less than 20 employees) and younger (less than 5 years). In contrast, the support policies for innovative firms were somehow ineffective for firms that are research and development-intensive, medium sized (more than 100 and less than 300 employees) or older (more than 10 years)","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"664 - 681"},"PeriodicalIF":1.1,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1839940","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49442735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-10-01DOI: 10.1080/10168737.2020.1836671
Regret Sunge, N. Ngepah
ABSTRACT This paper examines the impact of agricultural trade liberalization on agricultural total factor productivity (TFP) growth in Africa using panel data for 13 countries from 2005 to 2016. Our contribution is two-fold. Firstly, we analyse the impact of domestic agriculture support in the spirit of the Agreement on Agriculture. Secondly, we draw attention to the South–South versus South–North debate to the agriculture sector. We examine the impact of trade by source, split between trade within and outside Africa. We compute TFP growth for maize and rice using the Malmquist-data envelopment analysis approach. We then use the dynamic fixed effects approach to estimate panel auto-regressive-distributed-lag models. TFP computations show falling growth rates for both maize and rice. Evidence suggests that domestic agriculture support measures have positive output effects but negative productivity effects. We find that reducing trade-distorting agriculture support coupled with good governance significantly increases TFP growth. Accordingly, we appeal that domestic agriculture support is refocused from producer payments to infrastructure development. Furthermore, we document that South–South trade productivity gains match and can surpass South-North Trade. Hence we emphasize increasing intra-Africa agriculture trade.
{"title":"The Impact of Agricultural Trade Liberalization on Agricultural Total Factor Productivity Growth in Africa","authors":"Regret Sunge, N. Ngepah","doi":"10.1080/10168737.2020.1836671","DOIUrl":"https://doi.org/10.1080/10168737.2020.1836671","url":null,"abstract":"ABSTRACT This paper examines the impact of agricultural trade liberalization on agricultural total factor productivity (TFP) growth in Africa using panel data for 13 countries from 2005 to 2016. Our contribution is two-fold. Firstly, we analyse the impact of domestic agriculture support in the spirit of the Agreement on Agriculture. Secondly, we draw attention to the South–South versus South–North debate to the agriculture sector. We examine the impact of trade by source, split between trade within and outside Africa. We compute TFP growth for maize and rice using the Malmquist-data envelopment analysis approach. We then use the dynamic fixed effects approach to estimate panel auto-regressive-distributed-lag models. TFP computations show falling growth rates for both maize and rice. Evidence suggests that domestic agriculture support measures have positive output effects but negative productivity effects. We find that reducing trade-distorting agriculture support coupled with good governance significantly increases TFP growth. Accordingly, we appeal that domestic agriculture support is refocused from producer payments to infrastructure development. Furthermore, we document that South–South trade productivity gains match and can surpass South-North Trade. Hence we emphasize increasing intra-Africa agriculture trade.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"571 - 598"},"PeriodicalIF":1.1,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1836671","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46931333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-25DOI: 10.1080/10168737.2020.1824007
K. Ajide, O. Alimi
This paper examines the conditioning role of institutions in environment-health outcomes nexus in African for a period spanning from 1996 to 2016. The following findings are established using a panel system GMM estimator. First, the unqualified influence of carbon emission on health outcomes is found to be positive and significant statistically. Specifically, it affects human life longevity negatively but positively increases infant deaths and healthcare spending. Second, institutional dysfunctions have an unconditional negative and significant effect on health outcomes. Unambiguously, low regulatory quality and government ineffectiveness weaken life expectancy and amplify the number of infant deaths, while poor corruption control unrestrictedly affects healthcare expenses. Third, the marginal impact of interactions between carbon emission and institutions on life longevity is negative but positive for infant mortality and health expenditure. Lastly, the corresponding net effects of the interaction between environmental pollutants and institutions are equally negative on life expectancy while positive on infant mortality and health expenditure. It means that institutions do not play a supportive role in ameliorating the negative effect of environmental degradation on health outcomes. Thus, strengthening regulatory control, government effectiveness and control of corruption hold the impetus to ensuring environmental balance and improving healthy living and other health-related outcomes.
{"title":"The Conditioning Role of Institutions in Environment-Health Outcomes Nexus in Africa","authors":"K. Ajide, O. Alimi","doi":"10.1080/10168737.2020.1824007","DOIUrl":"https://doi.org/10.1080/10168737.2020.1824007","url":null,"abstract":"This paper examines the conditioning role of institutions in environment-health outcomes nexus in African for a period spanning from 1996 to 2016. The following findings are established using a panel system GMM estimator. First, the unqualified influence of carbon emission on health outcomes is found to be positive and significant statistically. Specifically, it affects human life longevity negatively but positively increases infant deaths and healthcare spending. Second, institutional dysfunctions have an unconditional negative and significant effect on health outcomes. Unambiguously, low regulatory quality and government ineffectiveness weaken life expectancy and amplify the number of infant deaths, while poor corruption control unrestrictedly affects healthcare expenses. Third, the marginal impact of interactions between carbon emission and institutions on life longevity is negative but positive for infant mortality and health expenditure. Lastly, the corresponding net effects of the interaction between environmental pollutants and institutions are equally negative on life expectancy while positive on infant mortality and health expenditure. It means that institutions do not play a supportive role in ameliorating the negative effect of environmental degradation on health outcomes. Thus, strengthening regulatory control, government effectiveness and control of corruption hold the impetus to ensuring environmental balance and improving healthy living and other health-related outcomes.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"634 - 663"},"PeriodicalIF":1.1,"publicationDate":"2020-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1824007","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46551519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-10DOI: 10.1080/10168737.2020.1818273
Seong-Kyoon Kim, B. Yoon, Jeungil Oh
ABSTRACT We study how the adoption of sentencing guidelines affects punishment for crimes. Using 6350 first-trial rulings for criminal cases in South Korea for the period before the adoption of sentencing guidelines (2003–2011) and the period after (2011–2016), we estimate the ordered probit model, classifying punishment into four categories of severity. According to our estimates, punishment for most crimes becomes lighter after the adoption of sentencing guidelines. Among economic crimes, embezzlement and theft receive less severe punishment, while punishment for fraud has strengthened. Of non-economic crimes, perjury and false accusation receive lighter punishment, which would hardly improve the low trust level in South Korean society. Punishment for the obstruction of justice has also weakened, reflecting growing awareness of individual rights among citizens. Judges who prefer severe punishment before the adoption of sentencing guideline maintain their stringent sentences, while those who prefer light punishment lower sentences with confidence due to the sentencing guideline. We call this phenomenon judge’s upward-risk aversion not to exceed the guideline in sentencing.
{"title":"A Study on the Decision-Making Behavior of Judge in the Criminal Trial: The Effect of Sentencing Guideline in South Korea","authors":"Seong-Kyoon Kim, B. Yoon, Jeungil Oh","doi":"10.1080/10168737.2020.1818273","DOIUrl":"https://doi.org/10.1080/10168737.2020.1818273","url":null,"abstract":"ABSTRACT We study how the adoption of sentencing guidelines affects punishment for crimes. Using 6350 first-trial rulings for criminal cases in South Korea for the period before the adoption of sentencing guidelines (2003–2011) and the period after (2011–2016), we estimate the ordered probit model, classifying punishment into four categories of severity. According to our estimates, punishment for most crimes becomes lighter after the adoption of sentencing guidelines. Among economic crimes, embezzlement and theft receive less severe punishment, while punishment for fraud has strengthened. Of non-economic crimes, perjury and false accusation receive lighter punishment, which would hardly improve the low trust level in South Korean society. Punishment for the obstruction of justice has also weakened, reflecting growing awareness of individual rights among citizens. Judges who prefer severe punishment before the adoption of sentencing guideline maintain their stringent sentences, while those who prefer light punishment lower sentences with confidence due to the sentencing guideline. We call this phenomenon judge’s upward-risk aversion not to exceed the guideline in sentencing.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"599 - 612"},"PeriodicalIF":1.1,"publicationDate":"2020-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1818273","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43981728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-08-27DOI: 10.1080/10168737.2020.1811750
Soohyung Lee, Minhyuk Nam, Daeun Jeong, Wonmoon Lee
We examine the impact of religious practices on human capital in the context of Ethiopia. We focus on Ramadan, which leads mothers to reduce nutritional intake during the daytime. By exploiting the variation in the extent to which infants were exposed to Ramadan, we estimate the relative disadvantage of Muslim children compared to their non-Muslim counterparts. We find that the exposure to Ramadan in the first trimester has a significant negative effect on the infants’ health outcomes, but not on later life outcomes.
{"title":"Does Ramadan Harm Infant Health? Evidence from Ethiopia","authors":"Soohyung Lee, Minhyuk Nam, Daeun Jeong, Wonmoon Lee","doi":"10.1080/10168737.2020.1811750","DOIUrl":"https://doi.org/10.1080/10168737.2020.1811750","url":null,"abstract":"We examine the impact of religious practices on human capital in the context of Ethiopia. We focus on Ramadan, which leads mothers to reduce nutritional intake during the daytime. By exploiting the variation in the extent to which infants were exposed to Ramadan, we estimate the relative disadvantage of Muslim children compared to their non-Muslim counterparts. We find that the exposure to Ramadan in the first trimester has a significant negative effect on the infants’ health outcomes, but not on later life outcomes.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"613 - 633"},"PeriodicalIF":1.1,"publicationDate":"2020-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1811750","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42907001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-07-02DOI: 10.1080/10168737.2020.1797852
K. Ohnishi
ABSTRACT This paper considers a mixed triopoly model where a state-owned firm, a domestic labor-managed firm and a foreign capitalist firm are allowed to pre-install capacity as a strategic commitment device. First, each firm can choose its capacity level simultaneously and independently. None of the firms can reduce or dispose of capacity. Second, each firm chooses its output level simultaneously and independently. The paper presents the equilibrium outcomes of the international triopoly model. We find that the equilibrium outcomes are not profitable for the foreign capitalist firm.
{"title":"Capacity Choice in an International Mixed Triopoly","authors":"K. Ohnishi","doi":"10.1080/10168737.2020.1797852","DOIUrl":"https://doi.org/10.1080/10168737.2020.1797852","url":null,"abstract":"ABSTRACT This paper considers a mixed triopoly model where a state-owned firm, a domestic labor-managed firm and a foreign capitalist firm are allowed to pre-install capacity as a strategic commitment device. First, each firm can choose its capacity level simultaneously and independently. None of the firms can reduce or dispose of capacity. Second, each firm chooses its output level simultaneously and independently. The paper presents the equilibrium outcomes of the international triopoly model. We find that the equilibrium outcomes are not profitable for the foreign capitalist firm.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"371 - 387"},"PeriodicalIF":1.1,"publicationDate":"2020-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1797852","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49243123","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-26DOI: 10.1080/10168737.2020.1780291
S. Gnangnon
The main thrust of this article is to investigate the effect of general budget support (GBS) resources on tax revenue instability in recipient-countries, including when the latter experience higher economic growth volatility and higher terms of trade instability. The empirical findings suggest that GBS flows exert a negative effect on tax revenue instability, with the magnitude (in absolute value) of this negative effect being lower in Sub-Saharan African (SSA) countries compared to NonSSA countries in the sample. Additionally, the magnitude of the negative effect of GBS resources on tax revenue instability increases as countries experience higher economic growth volatility or greater terms of trade instability. It is worth noting that the magnitude of the GBS effect on tax revenue instability is small, including compared to other development aid inflows. Thus, from an economic perspective, GBS flows exert a lower effect on tax revenue instability than do other development aid flows.
{"title":"General Budget Support and Tax Revenue Instability in Developing Countries","authors":"S. Gnangnon","doi":"10.1080/10168737.2020.1780291","DOIUrl":"https://doi.org/10.1080/10168737.2020.1780291","url":null,"abstract":"The main thrust of this article is to investigate the effect of general budget support (GBS) resources on tax revenue instability in recipient-countries, including when the latter experience higher economic growth volatility and higher terms of trade instability. The empirical findings suggest that GBS flows exert a negative effect on tax revenue instability, with the magnitude (in absolute value) of this negative effect being lower in Sub-Saharan African (SSA) countries compared to NonSSA countries in the sample. Additionally, the magnitude of the negative effect of GBS resources on tax revenue instability increases as countries experience higher economic growth volatility or greater terms of trade instability. It is worth noting that the magnitude of the GBS effect on tax revenue instability is small, including compared to other development aid inflows. Thus, from an economic perspective, GBS flows exert a lower effect on tax revenue instability than do other development aid flows.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"405 - 425"},"PeriodicalIF":1.1,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1780291","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43163870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-26DOI: 10.1080/10168737.2020.1780293
Donghyun Lee
While the effect of foreign direct investment (FDI) on economic growth at the aggregate level is ambiguous, recent studies at the sector level suggest that this could be due to aggregation. And yet, studies on the effect of FDI on growth at the sector level are scant in the literature. In this paper, I empirically examine the effect of FDI on growth using detailed data on worldwide mergers and acquisitions (M&A) activity at industry level from 1986 to 2010. My results show that foreign acquisition has positive effect on the host country’s economic growth overall. However, the effect varies by sector and foreign acquisition into extractive industries has least positive effect on growth. This also seems to be more pronounced in natural resource-abundant developing countries. On the other hand, foreign acquisition into manufacturing sector has biggest positive effect on growth.
{"title":"Resource-Seeking Cross-Border Mergers and Acquisitions and Growth: Industry-level Analysis","authors":"Donghyun Lee","doi":"10.1080/10168737.2020.1780293","DOIUrl":"https://doi.org/10.1080/10168737.2020.1780293","url":null,"abstract":"While the effect of foreign direct investment (FDI) on economic growth at the aggregate level is ambiguous, recent studies at the sector level suggest that this could be due to aggregation. And yet, studies on the effect of FDI on growth at the sector level are scant in the literature. In this paper, I empirically examine the effect of FDI on growth using detailed data on worldwide mergers and acquisitions (M&A) activity at industry level from 1986 to 2010. My results show that foreign acquisition has positive effect on the host country’s economic growth overall. However, the effect varies by sector and foreign acquisition into extractive industries has least positive effect on growth. This also seems to be more pronounced in natural resource-abundant developing countries. On the other hand, foreign acquisition into manufacturing sector has biggest positive effect on growth.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"388 - 404"},"PeriodicalIF":1.1,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1780293","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45199913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-26DOI: 10.1080/10168737.2020.1780292
S. Babalola, W. Shittu
This study examines the roles of institutions on the relationship between foreign aid and economic growth in the 16 West African countries. Relying on panel data obtained from the World Bank’s world development and governance indicators, from 1996 to 2017, the study employs the autoregressive distributed lag technique in investigating the relationship. The empirical findings depict that foreign aid exerts a neutral effect on economic growth; the effect turns negative when the institutional variable is incorporated into the analysis. Again, the interaction effect of foreign aid and institution on economic growth is such that it reduces the negative effect of foreign aid on economic growth. The other factors of growth included are trade openness and government size, whose effects are positive and largely negative on the growth of the West African region, respectively. A significant policy implication from these findings is that the efforts of governments of the region should be directed towards building formidable economic, social and political institutions. This would not only reduce the negative impact of aid on growth but would also promote the competitiveness of the countries for private domestic and foreign capital; thus, reducing reliance on foreign aid.
{"title":"Foreign Aid and Economic Growth in West Africa: Examining the Roles of Institutions","authors":"S. Babalola, W. Shittu","doi":"10.1080/10168737.2020.1780292","DOIUrl":"https://doi.org/10.1080/10168737.2020.1780292","url":null,"abstract":"This study examines the roles of institutions on the relationship between foreign aid and economic growth in the 16 West African countries. Relying on panel data obtained from the World Bank’s world development and governance indicators, from 1996 to 2017, the study employs the autoregressive distributed lag technique in investigating the relationship. The empirical findings depict that foreign aid exerts a neutral effect on economic growth; the effect turns negative when the institutional variable is incorporated into the analysis. Again, the interaction effect of foreign aid and institution on economic growth is such that it reduces the negative effect of foreign aid on economic growth. The other factors of growth included are trade openness and government size, whose effects are positive and largely negative on the growth of the West African region, respectively. A significant policy implication from these findings is that the efforts of governments of the region should be directed towards building formidable economic, social and political institutions. This would not only reduce the negative impact of aid on growth but would also promote the competitiveness of the countries for private domestic and foreign capital; thus, reducing reliance on foreign aid.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"534 - 552"},"PeriodicalIF":1.1,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1780292","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41980201","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-03DOI: 10.1080/10168737.2020.1771398
Qizhong Yang, T. Otsuki, Etsuyo Michida
In the past decade, product-related environmental regulations (PRERs) aimed at environmental protection and consumers’ health and safety were actively introduced in developed countries, led by the EU. This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The first analysis focuses on the R&D enhancement effect of PRERs. We then consider productivity as a realization of innovations and examine if the R&D enhanced by PRERs can promote further productivity. The result shows that the response to REACH can create incentives to advance R&D. Further estimations on the effect of induced R&D on firm productivity show a significant positive relationship between them. On the other hand, no relationship between the response to RoHS and R&D expenditure is found. Moreover, the analysis also shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance.
{"title":"Product-Related Environmental Regulation, Innovation, and Competitiveness: Empirical Evidence From Malaysian and Vietnamese Firms","authors":"Qizhong Yang, T. Otsuki, Etsuyo Michida","doi":"10.1080/10168737.2020.1771398","DOIUrl":"https://doi.org/10.1080/10168737.2020.1771398","url":null,"abstract":"In the past decade, product-related environmental regulations (PRERs) aimed at environmental protection and consumers’ health and safety were actively introduced in developed countries, led by the EU. This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The first analysis focuses on the R&D enhancement effect of PRERs. We then consider productivity as a realization of innovations and examine if the R&D enhanced by PRERs can promote further productivity. The result shows that the response to REACH can create incentives to advance R&D. Further estimations on the effect of induced R&D on firm productivity show a significant positive relationship between them. On the other hand, no relationship between the response to RoHS and R&D expenditure is found. Moreover, the analysis also shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"34 1","pages":"510 - 533"},"PeriodicalIF":1.1,"publicationDate":"2020-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2020.1771398","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47550216","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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