Pub Date : 2023-07-03DOI: 10.1080/10168737.2023.2242844
JaeBin Ahn, Jee-Hyeong Park
An exploration of Korean MNCs' foreign affiliate-level data reveals that a significant portion of manufacturing foreign affiliates sell both to related and unrelated firms at the same time. We refer to this as hybrid vertical FDI. We rationalize the presence of hybrid vertical FDI by modifying the otherwise standard property-rights model of global sourcing with the subsidiary-level option of supplying inputs to unrelated customers in addition to related firms. Given the positive production externality from serving additional customers (that is proportional to the MNC's productivity) and the costs of getting such benefit (that are increasing in relationship-specificity of the outsourced inputs), the model generates following testable hypotheses: Both MNCs' likelihood of choosing hybrid over pure vertical FDI and their foreign affiliate firms' related-firm sales ratio over unrelated-firm go up when the productivity of foreign affiliates increases (but such tendencies weaken when contractual complexity goes up), which our subsequent empirical analysis robustly confirms.
{"title":"Contracting with Enemies? Vertical FDI with Outsourcing Contracts","authors":"JaeBin Ahn, Jee-Hyeong Park","doi":"10.1080/10168737.2023.2242844","DOIUrl":"https://doi.org/10.1080/10168737.2023.2242844","url":null,"abstract":"An exploration of Korean MNCs' foreign affiliate-level data reveals that a significant portion of manufacturing foreign affiliates sell both to related and unrelated firms at the same time. We refer to this as hybrid vertical FDI. We rationalize the presence of hybrid vertical FDI by modifying the otherwise standard property-rights model of global sourcing with the subsidiary-level option of supplying inputs to unrelated customers in addition to related firms. Given the positive production externality from serving additional customers (that is proportional to the MNC's productivity) and the costs of getting such benefit (that are increasing in relationship-specificity of the outsourced inputs), the model generates following testable hypotheses: Both MNCs' likelihood of choosing hybrid over pure vertical FDI and their foreign affiliate firms' related-firm sales ratio over unrelated-firm go up when the productivity of foreign affiliates increases (but such tendencies weaken when contractual complexity goes up), which our subsequent empirical analysis robustly confirms.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"359 - 386"},"PeriodicalIF":1.1,"publicationDate":"2023-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47172276","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 : 2023-06-28DOI: 10.1080/10168737.2023.2229287
Honsoo Kim, S. Kim, Wonshik Kim, Kyung Hoon Yang
Long-term care expenses pose a large financial risk to the elderly. In 2008, South Korea introduced a public long-term care insurance (LTCI) program for individuals older than 65. We study the dynamic effects of the LTCI on various healthcare expenditures. We find that after the implementation of the LTCI, average prescription drug and outpatient expenditures of the elderly increased. Dynamically, we observe that the growth in these expenditures moderates. We also find suggestive evidence that after the introduction of the LTCI, the elderly may utilize LTC hospitals instead of inpatient hospital services. These findings underscore the importance of understanding the long-term effects of LTCI on health and healthcare expenditures of the elderly and the need to account for interactions between LTC and other types of healthcare services in policy design.
{"title":"Dynamic Effects of Long-Term Care Insurance on Healthcare Expenditures: Evidence from South Korea","authors":"Honsoo Kim, S. Kim, Wonshik Kim, Kyung Hoon Yang","doi":"10.1080/10168737.2023.2229287","DOIUrl":"https://doi.org/10.1080/10168737.2023.2229287","url":null,"abstract":"Long-term care expenses pose a large financial risk to the elderly. In 2008, South Korea introduced a public long-term care insurance (LTCI) program for individuals older than 65. We study the dynamic effects of the LTCI on various healthcare expenditures. We find that after the implementation of the LTCI, average prescription drug and outpatient expenditures of the elderly increased. Dynamically, we observe that the growth in these expenditures moderates. We also find suggestive evidence that after the introduction of the LTCI, the elderly may utilize LTC hospitals instead of inpatient hospital services. These findings underscore the importance of understanding the long-term effects of LTCI on health and healthcare expenditures of the elderly and the need to account for interactions between LTC and other types of healthcare services in policy design.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"446 - 461"},"PeriodicalIF":1.1,"publicationDate":"2023-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49642381","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 : 2023-06-28DOI: 10.1080/10168737.2023.2227161
Aomar Ibourk, Zakaria Elouaourti
ABSTRACT This paper explores new pathways to women's empowerment, including household structure, family support, satisfaction and self-esteem, and trust in institutions and politicians, and their impact on labor market participation, with a specific focus on gender differences. Using a microeconomic database of 7,860 individuals from North Africa and employing a Probit model, we find that gender significantly influences labor market participation. Surprisingly, our results reveal that education operates in an unexpected direction in the North African region, confirming the “MENA paradox”. Moreover, household structure's impact on labor decisions varies by gender, as gender norms prevalent in male-dominated societies hinder women's labor market participation, leading to a “marriage penalty.” In a similar vein, our estimations reveal a significant positive correlation between men's belief that “men should have greater job rights than women during scarce work periods” and their labor force participation, shedding light on the influential role of gender norms in North Africa. Our study emphasizes the critical role of networking, social capital, and how North Africans' perception of political life impedes their labor force participation. As for policy implications, our contribution illuminates new pathways for women's empowerment, advocating for comprehensive legislative reforms to promote gender equality and foster inclusive development.
{"title":"Revitalizing Women's Labor Force Participation in North Africa: An Exploration of Novel Empowerment Pathways","authors":"Aomar Ibourk, Zakaria Elouaourti","doi":"10.1080/10168737.2023.2227161","DOIUrl":"https://doi.org/10.1080/10168737.2023.2227161","url":null,"abstract":"ABSTRACT This paper explores new pathways to women's empowerment, including household structure, family support, satisfaction and self-esteem, and trust in institutions and politicians, and their impact on labor market participation, with a specific focus on gender differences. Using a microeconomic database of 7,860 individuals from North Africa and employing a Probit model, we find that gender significantly influences labor market participation. Surprisingly, our results reveal that education operates in an unexpected direction in the North African region, confirming the “MENA paradox”. Moreover, household structure's impact on labor decisions varies by gender, as gender norms prevalent in male-dominated societies hinder women's labor market participation, leading to a “marriage penalty.” In a similar vein, our estimations reveal a significant positive correlation between men's belief that “men should have greater job rights than women during scarce work periods” and their labor force participation, shedding light on the influential role of gender norms in North Africa. Our study emphasizes the critical role of networking, social capital, and how North Africans' perception of political life impedes their labor force participation. As for policy implications, our contribution illuminates new pathways for women's empowerment, advocating for comprehensive legislative reforms to promote gender equality and foster inclusive development.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"462 - 484"},"PeriodicalIF":1.1,"publicationDate":"2023-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49653373","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 : 2023-06-01DOI: 10.1080/10168737.2023.2220300
N. Doan, M. Tran
The question of whether the imposition of economic sanctions impairs or nurtures cultural affinity remains controversial. In effect, this paper investigates the effect of economic sanctions on the trade of cultural goods as a proxy for cultural proximity, using cross-country data with 5,304 country pairs ranging from the years 1996–2019. Through extensive robustness checks, our main findings reveal that economic sanctions drive up the trade of cultural goods. The effect on the trade of cultural goods is heterogeneous across various forms of economic sanctions. While military, arms, trade, and travel sanctions are trade facilitators, financial and other sanctions are trade barriers. These effects are conditional on the level of economic development in the sanctioned countries and change over time. Our findings suggest cultural implications of economic sanctions in foreign policy design.
{"title":"Quantifying the Effect of Economic Sanctions on Trade in Cultural Goods","authors":"N. Doan, M. Tran","doi":"10.1080/10168737.2023.2220300","DOIUrl":"https://doi.org/10.1080/10168737.2023.2220300","url":null,"abstract":"The question of whether the imposition of economic sanctions impairs or nurtures cultural affinity remains controversial. In effect, this paper investigates the effect of economic sanctions on the trade of cultural goods as a proxy for cultural proximity, using cross-country data with 5,304 country pairs ranging from the years 1996–2019. Through extensive robustness checks, our main findings reveal that economic sanctions drive up the trade of cultural goods. The effect on the trade of cultural goods is heterogeneous across various forms of economic sanctions. While military, arms, trade, and travel sanctions are trade facilitators, financial and other sanctions are trade barriers. These effects are conditional on the level of economic development in the sanctioned countries and change over time. Our findings suggest cultural implications of economic sanctions in foreign policy design.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"401 - 423"},"PeriodicalIF":1.1,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43988040","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 : 2023-04-03DOI: 10.1080/10168737.2023.2207086
L. Attílio
We assess oil and agricultural price shocks in the financial markets of six EMEs (Brazil, Chile, Mexico, India, South Africa, and Turkey) using the GVAR. Positive oil price shocks provoke falls in all stock markets, devaluations in four domestic currencies, and tight monetary policies in two economies. The variance decomposition indicated that this shock is more influential in the stock markets, followed by the exchange rates. Compared to the oil price, shocks in agricultural prices caused appreciations in all domestic currencies. This shock is pervasive in all exchange markets in the first months, losing importance over time. The distinct responses to different commodities shocks point out that the kind of shock is relevant to comprehend its influence on EMEs. We detected relevant heterogeneities concerning the spreading of commodities shocks on domestic financial markets, especially in South Africa.
{"title":"Impact of Oil and Agricultural Shocks on the Financial Markets of Emerging Market Economies","authors":"L. Attílio","doi":"10.1080/10168737.2023.2207086","DOIUrl":"https://doi.org/10.1080/10168737.2023.2207086","url":null,"abstract":"We assess oil and agricultural price shocks in the financial markets of six EMEs (Brazil, Chile, Mexico, India, South Africa, and Turkey) using the GVAR. Positive oil price shocks provoke falls in all stock markets, devaluations in four domestic currencies, and tight monetary policies in two economies. The variance decomposition indicated that this shock is more influential in the stock markets, followed by the exchange rates. Compared to the oil price, shocks in agricultural prices caused appreciations in all domestic currencies. This shock is pervasive in all exchange markets in the first months, losing importance over time. The distinct responses to different commodities shocks point out that the kind of shock is relevant to comprehend its influence on EMEs. We detected relevant heterogeneities concerning the spreading of commodities shocks on domestic financial markets, especially in South Africa.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"270 - 293"},"PeriodicalIF":1.1,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45427384","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 : 2023-04-03DOI: 10.1080/10168737.2023.2207847
H. Yilmazkuday
Sectoral heterogeneity has been shown to affect country-level welfare gains from trade (measured by costs of autarky) that can be calculated by sector-specific trade elasticities and home expenditure shares. However, empirical analyses of multi-sector models are restricted to a limited number of countries and sectors, mostly due to the lack of data on sector-specific home expenditure shares. This paper first proposes a solution to this limitation by changing the way that foreign products are aggregated at the destination country, where ‘unbiased’ multi-sector welfare gains can be captured by using country-specific trade elasticity measures. Second, the restrictive assumption of unitary importer-income elasticity is relaxed, and it is shown that the trade elasticity in the calculation of welfare gains is replaced by the newly-introduced welfare elasticity, a function of trade and income elasticities. Empirical evidence suggests that equal percentage changes in home expenditure shares result in unequal gains across countries depending on their elasticity measures.
{"title":"Unequal Welfare Gains From Trade Across Countries: The Role of Aggregation and Income Elasticities","authors":"H. Yilmazkuday","doi":"10.1080/10168737.2023.2207847","DOIUrl":"https://doi.org/10.1080/10168737.2023.2207847","url":null,"abstract":"Sectoral heterogeneity has been shown to affect country-level welfare gains from trade (measured by costs of autarky) that can be calculated by sector-specific trade elasticities and home expenditure shares. However, empirical analyses of multi-sector models are restricted to a limited number of countries and sectors, mostly due to the lack of data on sector-specific home expenditure shares. This paper first proposes a solution to this limitation by changing the way that foreign products are aggregated at the destination country, where ‘unbiased’ multi-sector welfare gains can be captured by using country-specific trade elasticity measures. Second, the restrictive assumption of unitary importer-income elasticity is relaxed, and it is shown that the trade elasticity in the calculation of welfare gains is replaced by the newly-introduced welfare elasticity, a function of trade and income elasticities. Empirical evidence suggests that equal percentage changes in home expenditure shares result in unequal gains across countries depending on their elasticity measures.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"137 - 176"},"PeriodicalIF":1.1,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46832030","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 : 2023-04-03DOI: 10.1080/10168737.2023.2212251
Daniel Machado, J. Fuinhas
This empirical research addressed the short – and long-run relationship between economic freedom (and its subcomponents) and income inequality using a panel of 102 countries between 2000 and 2018. The results of employing an autoregressive distributed lag model showed that economic freedom has a detrimental impact on income inequality measured by any of the main inequality indicators. However, the results point to a relatively inelastic relationship. Additionally, the study explored the interactions between the subcomponents of economic freedom and income inequality, again pointing to a rigid relationship. While the size of the government and legal property rights increase income inequality, deregulation exerts the opposite effect. This paper closes with future guidelines for research.
{"title":"Income Inequality and Economic Freedom Revisited: Are Freedom and Equality Conflicting Values? Evidence from the twenty-first Century","authors":"Daniel Machado, J. Fuinhas","doi":"10.1080/10168737.2023.2212251","DOIUrl":"https://doi.org/10.1080/10168737.2023.2212251","url":null,"abstract":"This empirical research addressed the short – and long-run relationship between economic freedom (and its subcomponents) and income inequality using a panel of 102 countries between 2000 and 2018. The results of employing an autoregressive distributed lag model showed that economic freedom has a detrimental impact on income inequality measured by any of the main inequality indicators. However, the results point to a relatively inelastic relationship. Additionally, the study explored the interactions between the subcomponents of economic freedom and income inequality, again pointing to a rigid relationship. While the size of the government and legal property rights increase income inequality, deregulation exerts the opposite effect. This paper closes with future guidelines for research.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"294 - 323"},"PeriodicalIF":1.1,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45087245","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 : 2023-04-03DOI: 10.1080/10168737.2023.2212268
Hodabalo Bataka, Wonyra Kwami Ossadzifo
Using data from Sub-Saharan African (SSA) countries over the period 1990–2015, this study examines the effects of Global Value Chains’ (GVCs) participation on economic growth by distinguishing participation in upstream, participation in downstream and sectors-based participation. The study also focuses on how the economic growth effect of GVCs’ participation can be affected by the ICTs. The Driscoll and Kraay’ estimation approach applied to the cross-lagged panel model enabled to overcome the cross-sectional dependence, heteroscedasticity, errors’ autocorrelation and reverse causality problems. The generalized method of moments (GMM) is further employed for the robustness check. The findings are robust and indicate that the GVCs’ participation (general, upstream, downstream and sectorial) boosts economic growth in SSA countries. These positive effects hold and are even more intensive when the GVCs’ participation is modulated by the ICTs. Furthermore, the study demonstrates that SSA countries should focus on the downstream GVCs’ participation that is the production and export of the (high technologies) intermediate goods that are essential for the production activities of other GVCs’ stakeholders. For the sectors-based participation, the study seems to show that participation in the services sector promotes more economic growth, followed to some extent by the mining, agriculture and manufacturing sectors.
{"title":"How ICTs Moderate the Effect of Global Value Chains’ Participation on Economic Growth in Sub-Saharan Africa?","authors":"Hodabalo Bataka, Wonyra Kwami Ossadzifo","doi":"10.1080/10168737.2023.2212268","DOIUrl":"https://doi.org/10.1080/10168737.2023.2212268","url":null,"abstract":"Using data from Sub-Saharan African (SSA) countries over the period 1990–2015, this study examines the effects of Global Value Chains’ (GVCs) participation on economic growth by distinguishing participation in upstream, participation in downstream and sectors-based participation. The study also focuses on how the economic growth effect of GVCs’ participation can be affected by the ICTs. The Driscoll and Kraay’ estimation approach applied to the cross-lagged panel model enabled to overcome the cross-sectional dependence, heteroscedasticity, errors’ autocorrelation and reverse causality problems. The generalized method of moments (GMM) is further employed for the robustness check. The findings are robust and indicate that the GVCs’ participation (general, upstream, downstream and sectorial) boosts economic growth in SSA countries. These positive effects hold and are even more intensive when the GVCs’ participation is modulated by the ICTs. Furthermore, the study demonstrates that SSA countries should focus on the downstream GVCs’ participation that is the production and export of the (high technologies) intermediate goods that are essential for the production activities of other GVCs’ stakeholders. For the sectors-based participation, the study seems to show that participation in the services sector promotes more economic growth, followed to some extent by the mining, agriculture and manufacturing sectors.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"324 - 357"},"PeriodicalIF":1.1,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44110860","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 : 2023-03-28DOI: 10.1080/10168737.2023.2194292
Gordon Reikard
There are two major issues in using artificial intelligence to forecast exchange rates, choice of methodology and choice of causal models. A further complication is the nonstationarity of the data. This study compares artificial neural networks, nonlinear regressions and recurrent neural networks, using seven econometric models, in forecasting four major exchange rates over horizons of 1–3 months. The models are trained over moving windows and estimated in both levels and differences. There are three key findings. First, the multilayer perceptron nearly always achieves the most accurate forecasts, with the regressions in second place. The recurrent neural network places a distant third. Second, at horizons of 1 and 2 months, the perceptron is usually better in differences. At the 3-month horizon, however, the accuracy in differences deteriorates. Third, the perceptron favors models including international differentials in price levels, interest rates and yields, which achieve the best forecasts in the majority of cases. Several other models are competitive. One is the familiar Dornbusch-Frankel equation which uses differentials in inflation, output, interest rates and money supplies. Another is a combined model, the Dornbusch-Frankel equation with an additional term for the yield differential. Models using differentials in real interest rates do well in one instance.
{"title":"Forecasting Exchange Rates with Neural Networks: Time Variation, Nonstationarity, and Causal Models","authors":"Gordon Reikard","doi":"10.1080/10168737.2023.2194292","DOIUrl":"https://doi.org/10.1080/10168737.2023.2194292","url":null,"abstract":"There are two major issues in using artificial intelligence to forecast exchange rates, choice of methodology and choice of causal models. A further complication is the nonstationarity of the data. This study compares artificial neural networks, nonlinear regressions and recurrent neural networks, using seven econometric models, in forecasting four major exchange rates over horizons of 1–3 months. The models are trained over moving windows and estimated in both levels and differences. There are three key findings. First, the multilayer perceptron nearly always achieves the most accurate forecasts, with the regressions in second place. The recurrent neural network places a distant third. Second, at horizons of 1 and 2 months, the perceptron is usually better in differences. At the 3-month horizon, however, the accuracy in differences deteriorates. Third, the perceptron favors models including international differentials in price levels, interest rates and yields, which achieve the best forecasts in the majority of cases. Several other models are competitive. One is the familiar Dornbusch-Frankel equation which uses differentials in inflation, output, interest rates and money supplies. Another is a combined model, the Dornbusch-Frankel equation with an additional term for the yield differential. Models using differentials in real interest rates do well in one instance.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"202 - 219"},"PeriodicalIF":1.1,"publicationDate":"2023-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44716114","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 : 2023-03-28DOI: 10.1080/10168737.2023.2193159
Thuy Tuong Nguyen, T. H. Duong, Myehue Dinh, T. T. M. Truong, T. H. H. Pham
While there have been numerous papers analyzing the political, economic and social effects of trust, there is little evidence on how social trust has an impact on property rights protection which is fundamental for promoting economic development. This study aims to investigate how trust value is related to property rights protection, focusing on the comparison of the effect on intellectual property rights versus physical property rights. Analyzing the data on property rights protection in 2015 from the Property Right Alliance organization and trust value from the World Value Survey from 1999 to 2014, we find that social trust has a direct effect only on intellectual property rights protection but less consistent on physical property rights protection. However, trust value has indirect effect on both forms of property rights protection via formal institutions. Our study, thus, adds to the literature by clarifying the context through which trust value affects cheating behaviors.
{"title":"The Role of Social Trust on Property Right Protection: Physical Property Versus Intellectual Property","authors":"Thuy Tuong Nguyen, T. H. Duong, Myehue Dinh, T. T. M. Truong, T. H. H. Pham","doi":"10.1080/10168737.2023.2193159","DOIUrl":"https://doi.org/10.1080/10168737.2023.2193159","url":null,"abstract":"While there have been numerous papers analyzing the political, economic and social effects of trust, there is little evidence on how social trust has an impact on property rights protection which is fundamental for promoting economic development. This study aims to investigate how trust value is related to property rights protection, focusing on the comparison of the effect on intellectual property rights versus physical property rights. Analyzing the data on property rights protection in 2015 from the Property Right Alliance organization and trust value from the World Value Survey from 1999 to 2014, we find that social trust has a direct effect only on intellectual property rights protection but less consistent on physical property rights protection. However, trust value has indirect effect on both forms of property rights protection via formal institutions. Our study, thus, adds to the literature by clarifying the context through which trust value affects cheating behaviors.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"37 1","pages":"177 - 201"},"PeriodicalIF":1.1,"publicationDate":"2023-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48986758","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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