Capital Structure and Investment Financing of Small and Medium-Sized Enterprises in Vietnam

Insufficient sources of internal financing and inaccessibility of external financing are acknowledged as crucial constraints on new investment for small and medium-sized enterprises (SMEs). This study examines how capital structure is related to investment decision for SMEs in Vietnam. In particular, we investigate the effect of capital structure on the decision to seek new investment as well as the choice of its financing sources. The main results reveal that SMEs with high financial leverage tend to engage more in seeking new investment. Moreover, empirical results demonstrate that among SMEs seeking new investment, those with higher financial leverage are more likely to choose external financing rather than internal financing. These results confirm the dynamic feature of the pecking order theory in the context of SMEs’ capital structure in Vietnam.     

Human resource development to facilitate experiential learning: the case of Yahoo Japan

Although work experiences are recognized as important mechanisms for developing leaders in organizations, existing research has focused primarily on work assignments rather than on human resource development (HRD) systems that promote experiential learning of managers. The primary goal of this study was to develop an HRD model for facilitating experiential learning by examining the case of Yahoo Japan, which has transformed its HRD system based on experiential learning theory. The results indicate that Yahoo Japan has promoted experiential learning at the individual level by introducing new HRD systems consisting of four elements: reflection support (one‐on‐one meeting and coaching training), assignment support (HRD meeting and job rotation), assessment support (360‐degree appraisal and one‐on‐one meeting assessment) and visionary support (a vision and values). Although these elements are closely associated with each other, reflection support plays a key role in the HRD system. The proposed model is discussed from theoretical and practical viewpoints.     

A welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment

This paper constructs a North–South quality-ladder model in which foreign direct investment (FDI) is determined by the endogenous location choice of firms, and examines analytically how strengthening patent protection in the South affects welfare in the South. Strengthening patent protection increases the South's welfare by enhancing innovation and FDI, but it also allows the firms with patents to charge higher prices for their goods, which decreases welfare. However, the model shows that the former positive welfare effect outweighs the latter negative effect. Moreover, introducing the strictest form of patent protection in the South, that is, harmonizing patent protection in the South with that in the North, may maximize welfare in the South as well as in the North. Further, a similar result can also be obtained in a nonscale effect model.     

Vertical foreign direct investment: Evidence from Japanese and U.S. multinational enterprises

Foreign direct investment (FDI) in developing countries has increased since the 1990s, but there is mixed evidence of vertical FDI associated with factor-seeking motives. This paper estimates the vertical motive of offshore production by multinational enterprises (MNEs) by exploiting past schooling characteristics as instruments for skilled-labor abundance in a host country. Using panel data on Japanese and U.S. MNEs in the 1990s, I find that skilled-labor abundance has a significantly negative impact on sales of manufacturing foreign affiliate only for Japanese MNEs. The results suggest that vertical FDI activity was more prevalent in Japanese MNEs than U.S. MNEs. A plausible explanation is that Japanese MNEs might be more vertically integrated with their offshore production than U.S. MNEs. A difference in foreign outsourcing activities could generate the observed deviation between Japanese and U.S. MNEs.     

Incomplete Insurance and Non-expected Utility

This paper shows that the estimation of non-expected utility (Kreps–Porteus preference) based on the representative agent model is less robust with respect to the departure from complete markets than is the expected utility for the following reasons. First, the precautionary saving caused by uninsured shocks may be evaluated incorrectly. Second, the portfolio held by individual household includes not only marketable assets, but also non-marketable assets (e.g. human capital) in the context of incomplete markets. Third, returns on marketable assets may not provide sufficient information for recovering relevant parameters. The estimated parameters available from the existing empirical research are consistent with the biasedness of parameters implied by this study.
JEL Classification: E44, G12.     

结构性困境中的日本经济

日本经济自2002年开始复苏,但复苏的国际环境充满不确定性,同时内部经济仍面临结构性困境。日本从20世纪80年代初起为了减少国家财政赤字而实施的新自由主义政策持续地遭遇失败,未偿公债不减反增,而政府每年的公共支出又很难降下来,加上日本向老龄化社会的快速转化使得福利政策的总体预算很难削减,以致国家财政危机不断加深。另外,劳动者工作条件和社会生活条件的恶化以及人口下降的威胁,使得新自由主义在其框架内难以解决日本面临的结构性问题,因而有必要对于马克思关于资本主义的学说进行再思考。     

Von neumann facets and the dynamic stability of perfect foresight equilibrium paths in neo-classical trade models

I am grateful to two anonymous referees for useful comments on an earlier version of this paper.     

From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies

The growth in conservation programs has created a need for modeling frameworks capable of measuring microlevel behavioral responses and macrolevel landscape changes. This paper presents an empirical model that predicts farmers' production practices and the resulting levels of agricultural runoffs at more than 42,000 agricultural sites in the upper-Mississippi river basin under alternative conservation policies. Results suggest that payments for conservation tillage and crop rotations increase the use of these conservation practices. However, the acreage response is inelastic and the programs are not likely to be cost effective on their own for addressing hypoxia problem in the Gulf of Mexico.     

Evaluating the Effect of Conservation Policies on Agricultural Land Use: A Site-specific Modeling Approach

This study evaluates quantitatively the effect of three policies (payments for cropland retirement, fertilizer use taxes and payments for crop rotations) on agricultural land use in the upper Mississippi River basin. This is done by estimating two logit models of land use decisions using data from the 1982, 1987,1992 and 1997 Natural Resource Inventories. The models predict farmers' crop choice, crop rotation and participation in the Conservation Reserve Program (CRP) at more than 48,000 Natural Resource Inventories sites under each of the three policies. Results suggest that an increase in the CRP rental rates would significantly increase the CRP acreage, but most of the acreage increase would come initially from less fertilizer‐intensive crops. In contrast, a fertilizer use tax would significantly reduce acreage planted to more fertilizer‐intensive crops, and thus would likely be cost effective for reducing agricultural chemical use and pollution. Although an incentive payment for a corn‐soybean rotation would raise acreage of this rotation and reduce the acreage of continuous corn, the acreage response is in general quite inelastic. Cette étude évalue quantitativement les effets rovoqués par les trois politiques (paiements pour le retrait des terres cultivables, taxes sur l'utilisation d'engrais et paiements pour l'alternance des cultures) sur les terres agricoles du bassin supérieur du Mississipi. Ceci est obtenu en évaluant deux modéles logit des décisions sur l'utilisation des terres provenant des données des «Natural Resource Inventories» de 1982, 1987, 1992 et 1997. Les modéles prédisent le choix des cultures des agriculteurs, l'alternance des cultures et la participation du «Conservation Reserve Program (CRP)» dans plus de 48 000 Natural Resource Inventories dans le cadre de chacune des trois politiques. Les résultats suggérent qu'une augmentation des taux de location du CRP accroisse de maniére significative la surface de CRP, mais la majeure partie de cet accroissement de surface provenaient initialement de cultures moins intensives sans engrais. Cependant, l'utilisation d'une taxe sur l'utilisation d'engrais pouvait réduire de maniére significative la surface plantée avec des récoltes intensives utilisant plus d'engrais, et ainsi ce serait sans doute plus économique pour réduire la pollution et l'utilisation de produits chimiques en agriculture. Bien que des paiements incitatifs à l'alternance maïs‐soja réduisent la surface d'une culture continue de maïs et augmentaient la surface de l'alternance maïs‐soja, les résultats aux transformations des surfaces des terres seraient tout à fait rigides.