Pub Date : 2020-01-02DOI: 10.1080/1226508X.2019.1699847
Y. Kim, Ki Seong Park
ABSTRACT We propose a theoretical model that economic growth rate is a strictly concave function of labour share: Growth rate increases with labour share and decreases after reaching the peak. If wage rates are determined through bargaining between labour unions and employers instead of competition in markets, the labour share deviates from the competitive equilibrium level. When this occurs, the economic growth rate is lower than that in the competitive equilibrium, and the growth rate decreases with the increasing labour share. Our empirical analyses of the 23 OECD countries’ balanced panel between 1980 and 2008 confirm our theoretical model.
{"title":"Labour Share and Economic Growth in OECD Countries","authors":"Y. Kim, Ki Seong Park","doi":"10.1080/1226508X.2019.1699847","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1699847","url":null,"abstract":"ABSTRACT We propose a theoretical model that economic growth rate is a strictly concave function of labour share: Growth rate increases with labour share and decreases after reaching the peak. If wage rates are determined through bargaining between labour unions and employers instead of competition in markets, the labour share deviates from the competitive equilibrium level. When this occurs, the economic growth rate is lower than that in the competitive equilibrium, and the growth rate decreases with the increasing labour share. Our empirical analyses of the 23 OECD countries’ balanced panel between 1980 and 2008 confirm our theoretical model.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86026023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-02DOI: 10.1080/1226508X.2020.1726197
Diem Thi-Ngoc Vo, Sizhong Sun, Chung Thanh Phan
ABSTRACT This study investigates the impact of export destinations on the productivity of small- and medium-sized enterprises (SMEs) in the Vietnamese manufacturing sector (2007–2013), using fixed effects and instrumental variables to control for possible endogeneity of export in our estimation. Empirical results indicate that export does not significantly improve the productivity of SMEs. In addition, we also consider whether export to developed (and developing) countries differently affects firm productivity in our exercise, and our results suggest no evidence of learning by exporting to developed (and developing) countries. For other factors, firm age and capital intensity are found to have negative impacts on firm productivity, while human capital-related factors, innovation activities, and government assistances show positive and significant productivity effects.
{"title":"Does Export Destination Affect Firm Productivity? Evidence From Small- and Medium-Sized Enterprises in the Vietnamese Manufacturing Sector","authors":"Diem Thi-Ngoc Vo, Sizhong Sun, Chung Thanh Phan","doi":"10.1080/1226508X.2020.1726197","DOIUrl":"https://doi.org/10.1080/1226508X.2020.1726197","url":null,"abstract":"ABSTRACT This study investigates the impact of export destinations on the productivity of small- and medium-sized enterprises (SMEs) in the Vietnamese manufacturing sector (2007–2013), using fixed effects and instrumental variables to control for possible endogeneity of export in our estimation. Empirical results indicate that export does not significantly improve the productivity of SMEs. In addition, we also consider whether export to developed (and developing) countries differently affects firm productivity in our exercise, and our results suggest no evidence of learning by exporting to developed (and developing) countries. For other factors, firm age and capital intensity are found to have negative impacts on firm productivity, while human capital-related factors, innovation activities, and government assistances show positive and significant productivity effects.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78102619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-02DOI: 10.1080/1226508X.2020.1726789
Jong-hee Kim
ABSTRACT This paper analyses the financial assets of institutional investors and pension funds to estimate how the change in portfolio affects returns and whether the realisation of returns can improve macroeconomic prudence. From the analysis, this paper offers several findings. First, the increase in the weighted return rates of institutional investors and pension funds lowers GDP volatility and improves macroeconomic prudence. Second, the portfolio composition effect of institutional investors and pension funds can also affect improving macroeconomic prudence. And the effect of composition effect in macroeconomic prudence improvement is greater in countries with high financial openness, for both institutional investors and pension funds.
{"title":"A Study on the Relationship between the Investment of Institutional Investors and Macroeconomic Prudence","authors":"Jong-hee Kim","doi":"10.1080/1226508X.2020.1726789","DOIUrl":"https://doi.org/10.1080/1226508X.2020.1726789","url":null,"abstract":"ABSTRACT This paper analyses the financial assets of institutional investors and pension funds to estimate how the change in portfolio affects returns and whether the realisation of returns can improve macroeconomic prudence. From the analysis, this paper offers several findings. First, the increase in the weighted return rates of institutional investors and pension funds lowers GDP volatility and improves macroeconomic prudence. Second, the portfolio composition effect of institutional investors and pension funds can also affect improving macroeconomic prudence. And the effect of composition effect in macroeconomic prudence improvement is greater in countries with high financial openness, for both institutional investors and pension funds.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86719466","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-28DOI: 10.1080/1226508X.2020.1862692
Youjin Hahn, Stephen Matteo Miller, Hee-Seung Yang
ABSTRACT This study presents estimates of multidimensional household inequality in Australia from 2001 to 2017. Earnings inequality declines through the sample, while disposable income, non-durable consumption expenditures, food expenditures and net worth inequality exhibit relatively flat trends. The relatively flat trend for non-durable expenditures inequality, even over the life cycle, suggests households insure consumption against idiosyncratic shocks. Standard regression estimates of consumption growth against income shocks confirm this finding. Quantile regression estimates indicate households experiencing negative (positive) consumption growth have more sensitivity to negative (positive) income shocks than households with positive (negative) consumption growth, but coefficient estimates have small magnitudes, confirming standard tests.
{"title":"Household Inequality and Risk Sharing in Australia","authors":"Youjin Hahn, Stephen Matteo Miller, Hee-Seung Yang","doi":"10.1080/1226508X.2020.1862692","DOIUrl":"https://doi.org/10.1080/1226508X.2020.1862692","url":null,"abstract":"ABSTRACT This study presents estimates of multidimensional household inequality in Australia from 2001 to 2017. Earnings inequality declines through the sample, while disposable income, non-durable consumption expenditures, food expenditures and net worth inequality exhibit relatively flat trends. The relatively flat trend for non-durable expenditures inequality, even over the life cycle, suggests households insure consumption against idiosyncratic shocks. Standard regression estimates of consumption growth against income shocks confirm this finding. Quantile regression estimates indicate households experiencing negative (positive) consumption growth have more sensitivity to negative (positive) income shocks than households with positive (negative) consumption growth, but coefficient estimates have small magnitudes, confirming standard tests.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75334150","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-10DOI: 10.1080/1226508X.2019.1699845
Meeta Keswani Mehra, Swati Saini
ABSTRACT This paper formulates a growth model to study the interlinkages among quality of schooling, human capital and technical progress of a stylised developing economy such as India. The simulation results reveal that under the technology regimes of innovation and imitation, the quality of schooling triggers a child quantity–quality trade-off wherein parents invest in educating their children and bear lesser number of children when schooling quality exceeds an endogenously determined threshold. Consequently, the stylised economy reaches a self-sustaining growth path under both the regimes by investing in human capital of the young generation in the long run.
{"title":"Implications of Quality of Schooling on Economic Growth and Convergence – A System Dynamics Perspective","authors":"Meeta Keswani Mehra, Swati Saini","doi":"10.1080/1226508X.2019.1699845","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1699845","url":null,"abstract":"ABSTRACT This paper formulates a growth model to study the interlinkages among quality of schooling, human capital and technical progress of a stylised developing economy such as India. The simulation results reveal that under the technology regimes of innovation and imitation, the quality of schooling triggers a child quantity–quality trade-off wherein parents invest in educating their children and bear lesser number of children when schooling quality exceeds an endogenously determined threshold. Consequently, the stylised economy reaches a self-sustaining growth path under both the regimes by investing in human capital of the young generation in the long run.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88203901","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-18DOI: 10.1080/1226508X.2019.1656543
Panayiotis G. Tzeremes
ABSTRACT This paper disentangles the existence of Environmental Kuznets Curve across the Chinese regions as autonomous areas. First it makes use of the time-varying method to measure that strand for thirty Chinese regions over the period 1997–2012. The influence of income on CO2 emissions diminishes steadily from Western regions to Middle and Eastern regions. Lastly, we can observe that the validity of Environmental Kuznets Curve is exerted for one region, whilst the N-shaped curve is valid for the majority of the rest of the Chinese regions.
{"title":"Does the Environmental Kuznets Curve Exist in the Chinese Regions?","authors":"Panayiotis G. Tzeremes","doi":"10.1080/1226508X.2019.1656543","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1656543","url":null,"abstract":"ABSTRACT This paper disentangles the existence of Environmental Kuznets Curve across the Chinese regions as autonomous areas. First it makes use of the time-varying method to measure that strand for thirty Chinese regions over the period 1997–2012. The influence of income on CO2 emissions diminishes steadily from Western regions to Middle and Eastern regions. Lastly, we can observe that the validity of Environmental Kuznets Curve is exerted for one region, whilst the N-shaped curve is valid for the majority of the rest of the Chinese regions.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89535372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-10DOI: 10.1080/1226508X.2019.1640629
W. Cui, Insook Cho
ABSTRACT Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research.
{"title":"Household’s Happiness and Financial Market Participation","authors":"W. Cui, Insook Cho","doi":"10.1080/1226508X.2019.1640629","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1640629","url":null,"abstract":"ABSTRACT Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87455163","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/1226508X.2019.1636703
Hyelin Choi, Semin Kim, T. Jung
ABSTRACT We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.
{"title":"The Role of Innovation in Upgrading in Global Value Chains","authors":"Hyelin Choi, Semin Kim, T. Jung","doi":"10.1080/1226508X.2019.1636703","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1636703","url":null,"abstract":"ABSTRACT We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83665275","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/1226508X.2019.1643059
S. In, Dane P. Rook, Ashby H. B. Monk
ABSTRACT What is environmental, social, and governance (ESG) data and how do we evaluate its quality and effectiveness? This form of evaluation is important, as it is a precondition for investors trying to integrate ESG in investment decisions. Previous literature describes intrinsic properties of ESG data (e.g. multifaceted-ness and context dependence) and highlights a trade-off between the validity and reliability of ESG data, which is often tied to the lack of theoretical foundations and scarcity of high-quality ESG data. Encouragingly, new data technologies have improved the accessibility, availability, and transparency of ESG data, but an agreed theoretical framework to evaluate ESG data quality is still lacking. This paper seeks to fill that theoretical gap by proposing a ‘user-oriented’ approach to evaluate ESG data. In this framework, we consider ESG data to be a ‘continuous concept with limitless boundaries’ and characterise it in terms of its width and depth. The bearing of width and depth on ESG data quality is ultimately a function of the investment decisions in which such data is used: the approach we endorse is therefore user-centric. This study then shows how ESG data, when it is of high quality, maps onto the investment decision-making processes.
{"title":"Integrating Alternative Data (Also Known as ESG Data) in Investment Decision Making","authors":"S. In, Dane P. Rook, Ashby H. B. Monk","doi":"10.1080/1226508X.2019.1643059","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1643059","url":null,"abstract":"ABSTRACT What is environmental, social, and governance (ESG) data and how do we evaluate its quality and effectiveness? This form of evaluation is important, as it is a precondition for investors trying to integrate ESG in investment decisions. Previous literature describes intrinsic properties of ESG data (e.g. multifaceted-ness and context dependence) and highlights a trade-off between the validity and reliability of ESG data, which is often tied to the lack of theoretical foundations and scarcity of high-quality ESG data. Encouragingly, new data technologies have improved the accessibility, availability, and transparency of ESG data, but an agreed theoretical framework to evaluate ESG data quality is still lacking. This paper seeks to fill that theoretical gap by proposing a ‘user-oriented’ approach to evaluate ESG data. In this framework, we consider ESG data to be a ‘continuous concept with limitless boundaries’ and characterise it in terms of its width and depth. The bearing of width and depth on ESG data quality is ultimately a function of the investment decisions in which such data is used: the approach we endorse is therefore user-centric. This study then shows how ESG data, when it is of high quality, maps onto the investment decision-making processes.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88154088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/1226508X.2019.1636702
Taehyun Kim
ABSTRACT Equityholders of firms with high debt loads have an incentive to underinvest, a distortion that can be most costly for firms with attractive growth options. Using a novel patent-based measure of a firm's growth options, we find that firms issue more equity and shy away from debt financing when they have larger investment opportunities sets. The results are more pronounced among firms in patent-intensive industries. The findings suggest the existence of conflicts of interest between debtholders and equityholders. Our results are consistent with the use of conservative debt policies by technology-intensive firms to mitigate the debt overhang associated with their future growth options.
{"title":"Financing Technological Innovation: Evidence from Patent-Intensive Firms","authors":"Taehyun Kim","doi":"10.1080/1226508X.2019.1636702","DOIUrl":"https://doi.org/10.1080/1226508X.2019.1636702","url":null,"abstract":"ABSTRACT Equityholders of firms with high debt loads have an incentive to underinvest, a distortion that can be most costly for firms with attractive growth options. Using a novel patent-based measure of a firm's growth options, we find that firms issue more equity and shy away from debt financing when they have larger investment opportunities sets. The results are more pronounced among firms in patent-intensive industries. The findings suggest the existence of conflicts of interest between debtholders and equityholders. Our results are consistent with the use of conservative debt policies by technology-intensive firms to mitigate the debt overhang associated with their future growth options.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88674046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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