Marginal Distance: Does Export Experience Reduce Firm Trade Costs?

Are the costs of exporting to a market reduced if a firm has experience of exporting to a neighbouring market? If so, does this effect operate through reducing entry barriers or by increasing sales once the firm is operating in the market? This paper examines linkages between current export destinations and entry, sales and exit for new markets. We find that measures of exporting experience in geographically nearby markets increase the probability of entry into a market and reduce the probability of exit. However, these same measures have very limited effect on the firm’s export sales in the market. The effect of related experience on sales tends to be negative for recently entered firms. We interpret this result in the context of the Melitz heterogeneous-firm model of trade by showing that lower fixed costs reduce the entry threshold, but this lower threshold has the effect of allowing lower-sales marginal firms to be present in the market.     

Does the Confucius Institute Network Impact Cultural Distance? A Panel Data Analysis of Cross‐Border Flows in and out of China

This paper examines the impact of cultural distance in general and the Confucius Institute Network in particular on cross‐border flows of tourists, goods and investment in and out of China. We estimate a panel gravity model of inbound and outbound flows between 2004 and 2012. We find that the presence of Confucius Institute(s) in the source country increases inbound tourism and equity flows and outbound export and FDI flows for China, while other measures of cultural distance have less of an impact.     

Can Empirical Demand Models Assist in CON Comparative Reviews? A Case Study in Florida

Certificate‐of‐Need (CON) programs for new hospital construction are intended to foster the best selection among competing hospital applications, given demands for hospital care in the community. Yet, the merits of CON depend in part on the quality of the comparative review process. This article examines a case study in Florida to illustrate the utility of empirical evaluations using patient choice models. I estimate such models to show how patients would respond to a change in hospital choices. By simulating the welfare effects of the proposed hospitals, I can further predict how prices of hospital care differ by applicant. Results suggest that empirical analysis using data on patient choice of hospitals may better inform the review process. At the same time, however, it may not give a unique ranking without additional analysis of the fixed costs of proposed services in the context of existing marketwide capacity.     

Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia

Economists have paid close attention to economic development in Southeast Asia, where corruption and bribery are believed to be ubiquitous. In this article, we study the reasons why firms bribe. Specifically, we study the effects of the competition encountered by Southeast Asian firms on their bribing behavior. This article focuses on two types of bribing behavior: (1) informal payments given to the government so that it will ignore rule violations and (2) informal payments to the government to secure a contract. Using firm-level and country-level data from Cambodia, Indonesia, Laos, Myanmar, the Philippines, and Vietnam between 2009 and 2014, we find that the market competition will increase bribing behavior, while political competition within the country will reduce the likelihood of bribing.     

Why Does the US Face Greater Disadvantages in the Trade War with China?

The rhetoric used by President Trump regarding the trade war against China is rife with misinterpretation. The actual American trade deficit with China is much lower if evaluated in the correct terms of value‐added. The deficit is mainly a result of insufficient domestic US savings. In addition, as the US dollar is an international currency which is being increasingly held as a result of increases in world population, income, prices and transaction intensity, Americans can benefit from having trade deficits of hundreds of billions of US dollars each year. My analysis, as well as a model of the Bank of England, reveals that the trade war is not only mutually harmful but also actually hurts America more than China. The Thucydides Trap is likely avoidable in the current nuclear era of assured mutual destruction and because China, facing many structural impediments, is still far behind America in technology and military power.     

A Study on Labor Cost of Enterprises in Shanghai

I.IntroductionSinceChinasentryintotheWTOinlate2001,thenationsenterpriseshavefacedincreasinglyfiercecompetition,mainlywithregardtoattractingforeigninvestment,whichisconsideredasanimportantengineinnationalandlocaleconomicgrowth.Becauseoflowbusinesscostscomparedwithothercountries,Chinahasabsorbedalargeamountofforeigninvestmentinrecentyears.However,asgreateramountofforeigncapitalflowintoChina,businesscostswilltendtoincreaseinsomeareas,especiallythecoastalareas.Laborcostsarethemostimportantaspec…     

A Summary of Mineral Resource Economics Study in China

The history of theory development indicates that the study on the price theory of the mineral resources has moved from the mineral resources paid use to the property of value and pricing mineral resources. The core of the study of mineral resources management system is in fact the analysis on the system changes of the mineral resources paid use and resources marketization. We have formed a mainstream view of the system change that is based on the value, capitalization and marketization. Besides, we must use policies made by the government to eliminate market failures, improve and perfect mineral resources accounting system, make mineral resources planning, and control investment direction and finally bring about the sustainable development of mineral resources.     

The Selection of Industry Given Preference in Development of Each Province： A Comparative Empirical Study Based on the Power of Industry Competition

As China has joined WTO, the global competitive market is open widely to us and we are confronted with both the opportunity and challenge. The urgent affairs during the project period of the Eleventh Five-year Plan are how to constitute scientific regional expansion program of industry in our country. Based on the theory of industry competition power along with the methods of Factor Analysis and Analytical Hierarchy Process, the paper chooses manufacturing as its subject irivestigated to do a comparative empirical study on the manufacturing development of each province. Then as to the industry that should be given preference in development, the paper selects some provinces having development advantages according to the theory of industrial cluster, which provides a reference to the decision-making of regional industrial expansion program during the period of the Eleventh Five-year Plan.     

Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?

In recent years some OECD countries were successful in loweringthe unemployment rate substantially while other countries werenot. In this paper we investigate to what extent successfulcountries implemented a comprehensive set of institutional reforms.We present a theoretical framework to investigate the relationshipbetween unemployment and labor market institutions (LMI) suchas labor taxes, unemployment benefits, employment protection,union bargaining power and (de)centralization of bargaining.In our empirical analysis of data over the period 1960–99of 17 OECD countries we show that particular combinations ofLMI are responsible for low unemployment rates.     

Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern Bhutan

This study examines the impact of social capital on the poverty of rural households in eastern Bhutan, with a particular focus on households' participation in community groups, which can be a proxy for the structural aspect of social capital. Using a two‐stage probit least squares simultaneous equation model, the present study reveals that social capital positively contributes to poverty reduction in Bhutan. This study also finds that non‐farm income is important for poverty reduction in rural areas. Our results, however, indicate that poor households in remote areas are discouraged from participating in community groups.     

A Comparative Study of Financing Structure of China Mainland and Taiwan Based on the Life Cycle of High-tech Enterprises

High-tech enterprises not only bear such characteristics as high investment and high risk, but also require a long growth cycle which is clearly divided into several stages. These characteristics have great influence upon the enterprise＇s financing structure. Therefore, exploration of the financing structure at different stages of high-tech enterprise life cycle and study of the structure diversity under different financing environment are undoubtedly significant to the establishment of reasonable financing structure and financing strategy. Taking high-tech enterprises of China Mainland and Taiwan as study subject and adopting the methods of comparative study and positive analysis, this paper divides the enterprise life cycle into three stages by using relevant financial indexes. On the basis of the financing structure indexes, the paper makes a comparative analysis of the financing structure at enterprise＇s different stages of both banks of straits, and analyzes the causes of the differences. The findings of the analysis shed new light on improving the financing structure of Chinese high-tech enterprises.     

Impact of RMB Appreciation on Trade and Labor Markets of China and the USA： A Multi-country Comparative General Equilibrium Model

Since the recent economic crisis, the undervaluation of China's exchange rate has been a focus in the debate on the global policy mix. Using a non‐competitive input–output table, we establish a comparative‐static general equilibrium model to simulate the impact of real exchange rate changes on Sino–US trade and labor markets. The simulation shows that the impacts of a 10‐percent RMB revaluation on the trade surplus of China and the labor market of the USA are more modest than is generally perceived, and the negative impact on the output of the non‐processing industry in China is more significant than that on the processing industry. The Sino–US trade imbalance will continue to deteriorate, China's non‐processing trade surplus will decline and the processing trade will increase, with the combined effect being small. For the USA, labor‐intensive goods imported from China will shift to different Asian countries instead of transferring back to the US market. The simulation results indicate that the impacts of an RMB revaluation on both Chinese and US labor markets would be limited.