Financial development and economic growth in a microfounded small open economy model

The global financial crisis since 2008 revived the debate on whether or not and to what extent financial development contributes to economic growth. This paper reviews different theoretical schools of thought and empirical findings on this nexus, building on which we aim to develop a unified, microfounded model in a small open economy setting to accommodate various theoretical possibilities and empirical observations. The model is then calibrated to match some well-documented stylized facts. Numerical simulations show that, in the long run, the welfare-maximizing level of financial develop is lower than the growth-maximizing level. In the short run, the price channel (through world interest rate) dominates the quantity-channel (through financial productivity), suggesting a vital role of international cooperation in tackling systemic risk of the global financial system.     

Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators

This study aims to empirically evaluate the predictors that influence sustainability performance among manufacturing firms. Leadership and management, green and lean practices, and guanxi were examined to determine whether these predictors are directly and/or indirectly affecting sustainability performance; 160 valid responses were collected and partial-least-squares-structural-equation-modeling (PLS-SEM) was used to analyze the data. The results showed that leadership and management positively influenced green and lean practices and green and lean practices positively influenced sustainability performance. Leadership and management also positively influenced guanxi. Interestingly, leadership and management and guanxi do not exert a significant direct influence on sustainability performance. The findings contributed to the development of the resource-based-view theory further by empirically exploring the significance of leadership and management coupled with green and lean practices as competencies and capability to drive sustainability performance. The testing of the dual mediators' effects further added value to this study.     

A Note on a Framework for Valuation Ratios Based on Fundamentals*

Valuation ratios divide stock price by accounting metrics such as earnings, earnings growth, and book value. This study adapts the general valuation framework in Ohlson and Juettner-Nauroth (2005) and Ohlson (2005) to present a unified approach for developing valuation ratios based on fundamentals, referred to as fundamental valuation ratios. One starts with a valuation model that is driven by an accounting metric a and its abnormal growth, then divides the valuation model by a to get a fundamental valuation ratio. For any valuation ratio, one can find a corresponding fundamental valuation ratio, as long as the valuation model is based on the same metric a as the valuation ratio denominator.     

Farm size and productivity growth in the United States Corn Belt

In recent decades, agricultural production in the U.S. has continued to shift to large-scale operations, raising concerns about the economic viability of small and midsized farms. To understand whether economies of size provided an incentive for the consolidation of production, the study estimates the total factor productivity (TFP) of five size classes of grain-producing farms in the U.S. Heartland (Corn Belt) region. Using quinquennial Agricultural Census data from 1982 to 2012 the study also compares TFP growth rates across farm sizes to gain insight into whether observed productivity differences are likely to persist. The finding of a strong positive relationship between farm size and TFP suggests that consolidation of production has contributed to recent aggregate productivity growth in the crop sector. The study estimates the extent to which sectoral productivity growth can be attributed to structural change versus other factors including technological change. The study also explores some tradeoffs associated with policies that raise the productivity of small versus large farms.     

The Human Development Approach: An Overview

The human development (HD) approach puts the improvement of people’s lives as the central objective of development. This paper provides an overview of major aspects of the approach. It shows how it emerged with the evolution of development thought and a widening of development objectives The paper explores the two-way relationship between HD and the rival objective, economic growth, is explored and broad characteristics of countries that have been exceptionally successful or unsuccessful , countries with three country cases considered in greater depth. The paper identifies major dimensions of HD, beyond the three elements included in the Human Development Index (HDI) and shows they are poorly captured by the HDI. An overview of global change on HD dimensions from 1980 to 2015 gives a mixed picture with progress on basic HD, uneven trends in some areas, and notable worsening on the environmental dimension. In conclusion, the paper discusses some outstanding issues which need more attention.     

An Empirical Analysis of Green Experiential Loyalty: A Case Study

The purpose of this study is to elaborate the structural relationships among the experiential quality dimensions, experiential trust, emotional attachment, experiential image, switching experience, experiential satisfaction, and experiential loyalty from the green perspective. The study findings are based on structural equation modeling (SEM) analysis of a convenience sample of 560 customers at one green restaurant in Taipei City, Taiwan. The findings show that investing resources in an increase in the experiential quality dimensions and a decrease in green switching experience is useful to enhance green experiential trust, green emotional attachment, green experiential image, green experiential satisfaction, and green experiential loyalty.     

Consequences of a green image of drone food delivery services: The moderating role of gender and age

Drone food delivery services play a significant role in protecting the environment, because the services are operated by batteries that can be charged with electricity. Therefore, this study tried to examine a green image in the context of drone food delivery services. More specifically, this study proposed that a green image of drone food delivery services plays an important role in the formation of attitude toward using the services. In addition, it was hypothesized that the attitude has a positive influence on behavioral intentions including intentions to use, word‐of‐mouth intentions, and willingness to pay more. Lastly, the moderating role of gender and age was proposed during the theory‐building process. A theoretical model, which included 12 hypotheses, was developed and tested using a total of 427 samples collected in Korea. The data analysis results showed that a green image of drone food delivery services has a positive influence on attitude toward using the services, which in turn positively affects three subdimensions of behavioral intentions. Furthermore, gender and age played partly as a moderator. The current paper was the first to study the green image of drone food delivery services, so the findings of this study mean a lot to the theoretical aspect.     

Effects of pro-growth policies on employment: evidence of regional disparities

The main objective of our research is to study the direct impact of pro-growth economic policies on employment creation globally and regionally, as evidence has countered policy-makers’ expectation that output growth leads automatically to job creation. We innovate by using the ratio of employment to the population above 25 years as dependent variable instead of the customary employment elasticity. We apply generalized methods of moments’ econometrics on dynamic panel data models and find that growth stimulates employment creation on average across 76 countries. The policies promoting private sector credit, investments, openness, services, education spending, tertiary enrollment, and a fixed exchange rate are the ones that create employment. Larger government size undermines job creation, while policies promoting FDI and industrial development fail to stimulate employment. However, we establish that the effect of pro-growth policies on employment varies significantly across regions, with evidence of weaker links between economic policies and employment in Sub-Saharan Africa and the Middle East.     

Sources of Productivity Growth Dynamics: Is Japan Suffering From Baumol's Growth Disease?

This study examines the sources of labor productivity growth dynamics in Japan (1970–2010) and investigates the extent to which Japanese economic performance has been affected by Baumol's growth disease (BGD). We find that BGD silently undermines Japanese economic growth. However, the magnitude is miniscule, and consequently the aggregate labor productivity growth rate has not been decreasing monotonically. We also explore how BGD is arising and why it is small in the Japanese economy. BGD is weak because (1) the positive Baumol growth effect is also working in certain services sectors and (2) BGD is not a durable phenomenon: even if a sector begins to suffer from BGD, it is likely to recover quickly.