Pub Date : 2024-10-29DOI: 10.1016/j.rie.2024.101013
Xuebing Yang
This study investigates how the trade elasticity to trade barriers, or the lack thereof, varies with the bulkiness of goods, measured as the value-to-weight ratio (V/W ratio). The empirical analysis presented herein offers compelling evidence that lighter goods, characterized by higher V/W ratios, demonstrate reduced trade elasticity to distance, contiguity, and colonial relationships but heightened trade sensitivity to language. These findings emphasize the importance of accounting for the variations in V/W ratios when applying gravity models and reveal noteworthy heterogeneity in trade elasticity at the country and trade-pair levels.
{"title":"Bulkiness of goods and the gravity of international trade: Differential impact of trade barriers","authors":"Xuebing Yang","doi":"10.1016/j.rie.2024.101013","DOIUrl":"10.1016/j.rie.2024.101013","url":null,"abstract":"<div><div>This study investigates how the trade elasticity to trade barriers, or the lack thereof, varies with the bulkiness of goods, measured as the value-to-weight ratio (V/W ratio). The empirical analysis presented herein offers compelling evidence that lighter goods, characterized by higher V/W ratios, demonstrate reduced trade elasticity to distance, contiguity, and colonial relationships but heightened trade sensitivity to language. These findings emphasize the importance of accounting for the variations in V/W ratios when applying gravity models and reveal noteworthy heterogeneity in trade elasticity at the country and trade-pair levels.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101013"},"PeriodicalIF":1.2,"publicationDate":"2024-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142586570","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 : 2024-10-15DOI: 10.1016/j.rie.2024.101009
Samuel F. Gamtessa, Harminder Guliani
The recent spikes in oil prices are a significant setback for the world economy, which has already faced multiple challenges due to the COVID-19 pandemic. This is particularly concerning for developing countries as maintaining a sustained growth in real GDP is crucial for lifting their population out of poverty. While the short-run negative macroeconomic effects of a spike in oil prices are well established in the context of the developed world, the long-run growth effect has received little attention, especially in developing countries. Using the World Bank's development indicators database covering the period 1990 to 2020, this study aims to investigate the oil price-growth nexus in low and middle-income net oil-importing countries to shed light on how oil price increases could be a challenge for sustainable development. Specifically, we first set up a theoretical model to establish the relationship between growth in output per capita and oil price. Following the traditional growth regression approaches, we empirically estimate the causal effect of growth in oil prices on the economic growth of 65 net oil-importing developing countries using fixed effect panel IV regression methods. The empirical results confirm statistically significant negative effects of oil prices, indicating that a higher oil price reduces long-run economic growth in oil-importing developing countries. Our results on the other determinants of growth are consistent with the existing empirical growth literature. Oil-importing developing countries, therefore, must allocate resources towards alternative domestic energy sources, in addition to pursuing fuel efficiency and conservation strategies, to mitigate the negative effects of oil price fluctuations on their long-run economic output and uphold sustainable development.
{"title":"Oil Price and Long-run Economic Growth in Oil-importing Developing Countries","authors":"Samuel F. Gamtessa, Harminder Guliani","doi":"10.1016/j.rie.2024.101009","DOIUrl":"10.1016/j.rie.2024.101009","url":null,"abstract":"<div><div>The recent spikes in oil prices are a significant setback for the world economy, which has already faced multiple challenges due to the COVID-19 pandemic. This is particularly concerning for developing countries as maintaining a sustained growth in real GDP is crucial for lifting their population out of poverty. While the short-run negative macroeconomic effects of a spike in oil prices are well established in the context of the developed world, the long-run growth effect has received little attention, especially in developing countries. Using the World Bank's development indicators database covering the period 1990 to 2020, this study aims to investigate the oil price-growth nexus in low and middle-income net oil-importing countries to shed light on how oil price increases could be a challenge for sustainable development. Specifically, we first set up a theoretical model to establish the relationship between growth in output per capita and oil price. Following the traditional growth regression approaches, we empirically estimate the causal effect of growth in oil prices on the economic growth of 65 net oil-importing developing countries using fixed effect panel IV regression methods. The empirical results confirm statistically significant negative effects of oil prices, indicating that a higher oil price reduces long-run economic growth in oil-importing developing countries. Our results on the other determinants of growth are consistent with the existing empirical growth literature. Oil-importing developing countries, therefore, must allocate resources towards alternative domestic energy sources, in addition to pursuing fuel efficiency and conservation strategies, to mitigate the negative effects of oil price fluctuations on their long-run economic output and uphold sustainable development.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101009"},"PeriodicalIF":1.2,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142445854","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 : 2024-10-11DOI: 10.1016/j.rie.2024.101008
Martin Ambassa , Itchoko Motande Mondjeli Mwa Ndjokou , Pierre Christian Tsopmo
Existing literature on the relationship between foreign aid and income inequality (inequality) is inconclusive and the role of conflict has been underexplored. Yet, the frequency and severity of conflicts in Sub-Saharan Africa (SSA) have increased sharply in recent years. This study investigates the impact of foreign aid on inequality in SSA, focusing on the moderating role of conflicts. Using a sample of 41 SSA countries from 1989 to 2022, we employ fixed-effects and System GMM to explore the complex interplay between foreign aid, conflicts and inequality. The results suggest that foreign aid reduces inequality, but that its effectiveness is considerably reduced in conflict-ridden countries. The results confirm the harmful effect of conflict in the foreign aid-inequality nexus in SSA. Results are robust to many robustness checks, such as the alternative strategy, which combines alternative inequality and conflict measures. Our results suggest that promoting good governance by fighting corruption and preventing conflict can enable foreign aid to significantly reduce inequality in SSA.
{"title":"Foreign aid and inequality: Do conflicts matter?","authors":"Martin Ambassa , Itchoko Motande Mondjeli Mwa Ndjokou , Pierre Christian Tsopmo","doi":"10.1016/j.rie.2024.101008","DOIUrl":"10.1016/j.rie.2024.101008","url":null,"abstract":"<div><div>Existing literature on the relationship between foreign aid and income inequality (inequality) is inconclusive and the role of conflict has been underexplored. Yet, the frequency and severity of conflicts in Sub-Saharan Africa (SSA) have increased sharply in recent years. This study investigates the impact of foreign aid on inequality in SSA, focusing on the moderating role of conflicts. Using a sample of 41 SSA countries from 1989 to 2022, we employ fixed-effects and System GMM to explore the complex interplay between foreign aid, conflicts and inequality. The results suggest that foreign aid reduces inequality, but that its effectiveness is considerably reduced in conflict-ridden countries. The results confirm the harmful effect of conflict in the foreign aid-inequality nexus in SSA. Results are robust to many robustness checks, such as the alternative strategy, which combines alternative inequality and conflict measures. Our results suggest that promoting good governance by fighting corruption and preventing conflict can enable foreign aid to significantly reduce inequality in SSA.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101008"},"PeriodicalIF":1.2,"publicationDate":"2024-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142535468","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 : 2024-10-10DOI: 10.1016/j.rie.2024.101006
Jayadevan CM, Nam Trung Hoang, Subba Reddy Yarram
Within high-income countries, there is a notable income inequality spectrum, with certain nations positioned close to a predefined economic threshold, while others within this cohort simultaneously embark on substantial economic growth. This study investigates the influence of critical factors on economic growth and the transition from lower-high and middle-high income to upper-high income. Between 1990 and 2019, 25 of the 28 nations successfully advanced to upper-high income levels. Several key factors contribute to overcoming the barriers associated with lower-high income or middle-high income to upper-high income status. These factors include labor force participation, labor productivity, life expectancy, high-tech exports, reduction in unemployment rates, age dependency ratio, and poverty. The regression discontinuity analysis reveals a positive impact on the experimental group, as economic globalization surpasses the threshold of 78 % facilitating the achievement of upper-high income status.
{"title":"An inquiry into the causes of income differences among high-income countries","authors":"Jayadevan CM, Nam Trung Hoang, Subba Reddy Yarram","doi":"10.1016/j.rie.2024.101006","DOIUrl":"10.1016/j.rie.2024.101006","url":null,"abstract":"<div><div>Within high-income countries, there is a notable income inequality spectrum, with certain nations positioned close to a predefined economic threshold, while others within this cohort simultaneously embark on substantial economic growth<strong>.</strong> This study investigates the influence of critical factors on economic growth and the transition from lower-high and middle-high income to upper-high income. Between 1990 and 2019, 25 of the 28 nations successfully advanced to upper-high income levels. Several key factors contribute to overcoming the barriers associated with lower-high income or middle-high income to upper-high income status. These factors include labor force participation, labor productivity, life expectancy, high-tech exports, reduction in unemployment rates, age dependency ratio, and poverty. The regression discontinuity analysis reveals a positive impact on the experimental group, as economic globalization surpasses the threshold of 78 % facilitating the achievement of upper-high income status.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101006"},"PeriodicalIF":1.2,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142535467","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 : 2024-10-10DOI: 10.1016/j.rie.2024.101012
Emmanuel Ameyaw
Despite the increasing application of DSGE and RBC models to Sub-Saharan African (SSA) economies, questions persist about their alignment with empirical evidence for these economies. This study challenges claims of substantial incongruity with respect to the propagation of productivity shocks by demonstrating a close correspondence between empirical evidence for Ghana’s economy and predictions of the classical real business cycle model. Following a positive productivity shock, we observe a positive comovement among aggregate demand variables (i.e., consumption, investment, government spending, exports, and imports), aggregate supply variables (capital and labor), and money supply while the inflation rate and interest rate decline. Among these, we find the responses of output, consumption, government spending, and inflation rate to be statistically significant. These results contradict assertions of discordance between conventional business cycle models and SSA structural characteristics, at least for Ghana’s economy. The study is motivated by limited empirical evidence on how productivity shocks propagate through SSA economies, and for Ghana, there is no such study. On a secondary goal and by virtue of using a time-varying parameter VAR model, our results also suggest that Ghana’s long business cycle moderation from the mid-1980s to about 2010 was primarily due to a reduction in the volatility of shocks hitting the economy rather than changes in the structural relationship between macroeconomic variables.
{"title":"The macroeconomic effects of productivity shocks: Predictions of conventional business cycle models are not always incompatible with SSA economies","authors":"Emmanuel Ameyaw","doi":"10.1016/j.rie.2024.101012","DOIUrl":"10.1016/j.rie.2024.101012","url":null,"abstract":"<div><div>Despite the increasing application of DSGE and RBC models to Sub-Saharan African (SSA) economies, questions persist about their alignment with empirical evidence for these economies. This study challenges claims of substantial incongruity with respect to the propagation of productivity shocks by demonstrating a close correspondence between empirical evidence for Ghana’s economy and predictions of the classical real business cycle model. Following a positive productivity shock, we observe a positive comovement among aggregate demand variables (i.e., consumption, investment, government spending, exports, and imports), aggregate supply variables (capital and labor), and money supply while the inflation rate and interest rate decline. Among these, we find the responses of output, consumption, government spending, and inflation rate to be statistically significant. These results contradict assertions of discordance between conventional business cycle models and SSA structural characteristics, at least for Ghana’s economy. The study is motivated by limited empirical evidence on how productivity shocks propagate through SSA economies, and for Ghana, there is no such study. On a secondary goal and by virtue of using a time-varying parameter VAR model, our results also suggest that Ghana’s long business cycle moderation from the mid-1980s to about 2010 was primarily due to a reduction in the volatility of shocks hitting the economy rather than changes in the structural relationship between macroeconomic variables.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101012"},"PeriodicalIF":1.2,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142445853","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 : 2024-10-09DOI: 10.1016/j.rie.2024.101011
Roni Frish
This study examines household consumption using data from the Israeli Consumer Expenditure (CE) Surveys and longitudinal administrative income records for 2004–16. The key findings challenge the Permanent Income Hypothesis (PIH) and the Life-Cycle Hypothesis (LCH): The propensity to consume out of income received after the CE survey is half that of income received before the survey. Households with higher income growth showed higher consumption growth. Households tend to consume a significant portion of transitory income straightaway. Finally, households without a pension plan show a marked decrease in consumption upon crossing the retirement age.
{"title":"Consumption and the permanent income of households","authors":"Roni Frish","doi":"10.1016/j.rie.2024.101011","DOIUrl":"10.1016/j.rie.2024.101011","url":null,"abstract":"<div><div>This study examines household consumption using data from the Israeli Consumer Expenditure (CE) Surveys and longitudinal administrative income records for 2004–16. The key findings challenge the Permanent Income Hypothesis (PIH) and the Life-Cycle Hypothesis (LCH): The propensity to consume out of income received after the CE survey is half that of income received before the survey. Households with higher income growth showed higher consumption growth. Households tend to consume a significant portion of transitory income straightaway. Finally, households without a pension plan show a marked decrease in consumption upon crossing the retirement age.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101011"},"PeriodicalIF":1.2,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142433261","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 : 2024-10-09DOI: 10.1016/j.rie.2024.101010
Kyounghun Lee, Frederick Dongchuhl Oh
This study assesses the effects of shareholder voting on a firm’s decision-making by considering two voting methods: majority voting (MV) and quadratic voting (QV). Under MV, shareholders obtain voting rights in proportion to their shares, while under QV, they pay costs to buy voting rights. Our model demonstrates that under both MV and QV, the firm’s decision is efficient if shareholders collectively make the voting decisions. Moreover, shareholders can benefit from share trades resulting in the firm’s efficient decision.
{"title":"Shareholder voting and efficient corporate decision-making","authors":"Kyounghun Lee, Frederick Dongchuhl Oh","doi":"10.1016/j.rie.2024.101010","DOIUrl":"10.1016/j.rie.2024.101010","url":null,"abstract":"<div><div>This study assesses the effects of shareholder voting on a firm’s decision-making by considering two voting methods: majority voting (MV) and quadratic voting (QV). Under MV, shareholders obtain voting rights in proportion to their shares, while under QV, they pay costs to buy voting rights. Our model demonstrates that under both MV and QV, the firm’s decision is efficient if shareholders collectively make the voting decisions. Moreover, shareholders can benefit from share trades resulting in the firm’s efficient decision.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101010"},"PeriodicalIF":1.2,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142433262","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 : 2024-10-05DOI: 10.1016/j.rie.2024.101007
Thomas H.W. Ziesemer
We link a BOPC growth model to the goods market, foreign debt dynamics, and Okun's law. A new condition for getting the Thirlwall effect of world GDP growth on domestic growth is that investment and export shares of GDP should react less to an increase in the domestic growth rate than savings and import shares. If this condition holds, the Thirlwall effect is present for the equilibrium point of stable and unstable debt/GDP dynamics and for positive or negative reactions of the current account to domestic growth. Okun's law translates the effect on the domestic GDP growth rate to a change of the unemployment rate. Under unstable debt/GDP dynamics, the change of world GDP growth may turn around the direction of the debt/GDP dynamics, a second important foreign growth effect. Estimations support the specification of the theoretical model and lead to simulations of the Thirlwall effect, terms of trade and interest rate shocks on output growth. Profit maximizing bank consortia set interest rates below growth rates ensuring stable debt dynamics in the presence of an interior maximum. Conditions for an interior maximum are empirically violated for Brazil indicating that banks would have to change the economy strongly. A crisis can be less likely through a jump into a steady state for the debt/GDP ratio; unstable, increasing debt/GDP processes through high interest rates cannot be ruled out though and may lead to crises unless the empirics of the stability conditions gets more favourable and leads the country-bank model into a stable steady state or out of indebtedness.
我们将 BOPC 增长模型与商品市场、外债动态和奥肯定律联系起来。获得世界 GDP 增长对国内增长的 Thirlwall 效应的一个新条件是，GDP 中的投资和出口份额对国内增长率上升的反应应小于储蓄和进口份额。如果这个条件成立，那么在债务/GDP 动态稳定和不稳定的均衡点上，以及在经常账户对国内增长的正负反应上，都会出现塞尔沃尔效应。奥肯定律将对国内 GDP 增长率的影响转化为失业率的变化。在债务/GDP 动态不稳定的情况下，世界 GDP 增长的变化可能会扭转债务/GDP 动态的方向，这是第二个重要的国外增长效应。估计结果支持理论模型的规格，并可模拟 Thirlwall 效应、贸易条件和利率冲击对产出增长的影响。利润最大化的银行财团将利率设定为低于增长率，从而确保在存在内部最大值的情况下债务动态保持稳定。巴西的经验表明，内部最大值的条件被违反了，这表明银行必须大力改变经济。通过债务/GDP 比率跃入稳定状态，危机发生的可能性较小；但也不能排除通过高利率导致债务/GDP 进程不稳定、不断增长的可能性，除非稳定条件的实证分析变得更加有利，并引导国家-银行模型进入稳定的稳定状态或摆脱负债，否则可能会导致危机。
{"title":"Linking the BOPC growth model with foreign debt dynamics to goods and labour markets: A BOP-IXSM-Okun model","authors":"Thomas H.W. Ziesemer","doi":"10.1016/j.rie.2024.101007","DOIUrl":"10.1016/j.rie.2024.101007","url":null,"abstract":"<div><div>We link a BOPC growth model to the goods market, foreign debt dynamics, and Okun's law. A new condition for getting the Thirlwall effect of world GDP growth on domestic growth is that investment and export shares of GDP should react less to an increase in the domestic growth rate than savings and import shares. If this condition holds, the Thirlwall effect is present for the equilibrium point of stable and unstable debt/GDP dynamics and for positive or negative reactions of the current account to domestic growth. Okun's law translates the effect on the domestic GDP growth rate to a change of the unemployment rate. Under unstable debt/GDP dynamics, the change of world GDP growth may turn around the direction of the debt/GDP dynamics, a second important foreign growth effect. Estimations support the specification of the theoretical model and lead to simulations of the Thirlwall effect, terms of trade and interest rate shocks on output growth. Profit maximizing bank consortia set interest rates below growth rates ensuring stable debt dynamics in the presence of an interior maximum. Conditions for an interior maximum are empirically violated for Brazil indicating that banks would have to change the economy strongly. A crisis can be less likely through a jump into a steady state for the debt/GDP ratio; unstable, increasing debt/GDP processes through high interest rates cannot be ruled out though and may lead to crises unless the empirics of the stability conditions gets more favourable and leads the country-bank model into a stable steady state or out of indebtedness.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101007"},"PeriodicalIF":1.2,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142424779","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 : 2024-09-20DOI: 10.1016/j.rie.2024.101002
Alina Malkova , Alex Weng
This study sheds light on how non-traditional lending avenues, specifically peer-to-peer (P2P) lending platforms, influence the financing decisions of small businesses. It introduces a theoretical framework where borrowers weigh the option between opting for a cost-effective traditional bank loan versus an expensive option through crowdlending platforms. The findings suggest that crowdlending platforms become a more appealing choice in the event of credit supply disruptions in traditional banking sectors. Leveraging the phased introduction of mobility restrictions during the COVID-19 pandemic as a case study, our research demonstrates a noticeable pivot of small businesses towards alternative funding sources, such as P2P lending. These findings emphasize the value of offering a variety of financial tools to small businesses so they can weather economic storms.
{"title":"Beyond banks: Navigating the shift to peer-to-peer lending for small enterprises","authors":"Alina Malkova , Alex Weng","doi":"10.1016/j.rie.2024.101002","DOIUrl":"10.1016/j.rie.2024.101002","url":null,"abstract":"<div><div>This study sheds light on how non-traditional lending avenues, specifically peer-to-peer (P2P) lending platforms, influence the financing decisions of small businesses. It introduces a theoretical framework where borrowers weigh the option between opting for a cost-effective traditional bank loan versus an expensive option through crowdlending platforms. The findings suggest that crowdlending platforms become a more appealing choice in the event of credit supply disruptions in traditional banking sectors. Leveraging the phased introduction of mobility restrictions during the COVID-19 pandemic as a case study, our research demonstrates a noticeable pivot of small businesses towards alternative funding sources, such as P2P lending. These findings emphasize the value of offering a variety of financial tools to small businesses so they can weather economic storms.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101002"},"PeriodicalIF":1.2,"publicationDate":"2024-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142323260","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 : 2024-09-18DOI: 10.1016/j.rie.2024.101004
Madhuparna Ganguly
This paper analyzes the effects of a stronger patent regime on innovation incentives, patenting propensity and scientist mobility when an innovating firm can partially recover its damage due to scientist movement from the infringing rival. The strength of the patent system, which is a function of litigation success probability and damage recovery proportion, stipulates expected indemnification. We show that stronger patents fail to reduce the likelihood of infringement and further, decrease the innovation’s expected profitability. Higher potential reparation also reduces the scientist’s expected return on R&D knowledge, entailing greater R&D investment. Our results suggest important considerations for patent reforms.
{"title":"Stronger Patent Regime, Innovation and Scientist Mobility","authors":"Madhuparna Ganguly","doi":"10.1016/j.rie.2024.101004","DOIUrl":"10.1016/j.rie.2024.101004","url":null,"abstract":"<div><p>This paper analyzes the effects of a stronger patent regime on innovation incentives, patenting propensity and scientist mobility when an innovating firm can partially recover its damage due to scientist movement from the infringing rival. The strength of the patent system, which is a function of litigation success probability and damage recovery proportion, stipulates expected indemnification. We show that stronger patents fail to reduce the likelihood of infringement and further, decrease the innovation’s expected profitability. Higher potential reparation also reduces the scientist’s expected return on R&D knowledge, entailing greater R&D investment. Our results suggest important considerations for patent reforms.</p></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 101004"},"PeriodicalIF":1.2,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142274629","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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