Technological intensities in East and Southeast Asian electronics firms: Does network strength matter?

This paper examines the importance of network strength (NS) on the technological intensities (TI) of electronics firms. TI was disentangled into the categories of human resource (HR), process technology (PT) and R&D (RD) intensities, and the differences between foreign and local firms. The results show that firms in Korea and Taiwan endowed with superior NS enjoy significantly higher skill intensity, TI and RD than firms in Malaysia and Thailand, which have inferior NS. There were no obvious differences in HR practices between foreign and local firms in the four countries. Local firms enjoyed higher TI and RD than foreign firms in Taiwan. There was no statistical difference involving all the technological categories between foreign and local firms in Korea. Foreign firms in Malaysia enjoyed statistically superior TI compared with local firms. Local firms in Thailand showed higher TI and PT than foreign firms. TI and RD of firms are strongly correlated with NS, which showed a stronger impact on TI and RD among local rather than foreign firms. The superior NS of Korea and Taiwan has helped firms participate in higher technological activities and pay higher wages than firms in Malaysia and Thailand.     

Firm Size,Technological Capabilities and Market-oriented Policies in Mauritius

Mauritius is an outlier in sub-Saharan Africa in terms of its impressive growth in garment exports since it adopted outward-oriented policies in the early 1980s. Little, however, is known about the role of technological factors in the behaviour of Mauritian garment exporters. Using recent methodological developments in the literature on technological capabilities, this paper explores this issue. It constructs a "technology index" and conducts econometric analysis on factors affecting enterprise-level technological development and export performance in a sample of enterprises. Firm size, technical manpower, training expenditures and external technical assistance are positively related to the technology index, suggesting that investments in human capital and information (both facilitated by size) improve technological performance. The technology index and foreign ownership have positive and significant effects on export performance. The technology index is a robust tool of empirical research and can be used to analyse the technological record of enterprises in adjusting countries.     

Complementarity between In-house R&D and Technology Purchasing: Evidence from Chinese Manufacturing Firms

In order to catch up with the current technological frontier, firms, especially in developing countries, try to acquire technological advancement through internal R&D efforts, as well as through external technology-sourcing activities. This study tests whether these two sources of technology acquisition are complements or substitutes for each other in small- and medium-sized Chinese manufacturing firms. The evidence that we present shows some signs of complementarity between the two sources of knowledge in reaching a higher unconditional intensity of product innovation for firms with 100–300 employees and, in general, a significant degree of substitutability between them in achieving higher levels of labour productivity.     

When China strikes: Quantifying Australian companies' stock price responses to China's trade restrictions

In early 2020, China, Australia's top export market, unilaterally imposed trade restrictions on Australian barley, beef, coal, cotton, timber, copper and wine. However, convincing evidence regarding the effects of such trade restrictions on firms is scarce. Leveraging data on daily stock returns from 20 listed Australian and 32 listed Chinese firms that produce the restricted commodities, we provide the first systematic analysis of the firm-level economic impacts of China's trade restrictions on Australian and Chinese firms. We find significant adverse effects on Australian firms' stock returns, leading to almost 20% loss within 10 trading days; however, most firms' stock returns immediately rebounded. In contrast, Chinese firms usually saw significant positive stock returns, leading to almost 30% gains, and the positive abnormal returns continuously increased within 10 trading days. Media coverage and trade dependence substantially impact Australian and Chinese firms' stock returns—industries with stronger trade dependence on China saw greater losses in Australian firms' stock returns. Our results suggest that trade reallocation and deflection are two effective mitigation mechanisms for Australian exporters facing China's trade restrictions.     

Productivity and Structural Heterogeneity in the Brazilian Manufacturing Sector: Trends and Determinants

Structural heterogeneity (SH)—i.e. the existence of marked asymmetries in labour productivity among firms, along with low-productivity firms forming a large share of total employment—plays an important role in development theory. But only recently has the availability of micro data made the rigorous measuring of SH possible. This paper makes compatible different databases on manufacturing production, innovation and micro-social data for Brazil—PIA, RAIS, Secex and PINTEC—for 2000–2008 in order to measure SH and analyse its determinants. First, productivity groups are formed out of the universe of Brazilian manufacturing firms using a k-mean cluster methodology. Second, the variables affecting the productivity group to which each firm belongs are tested using an ordered probit model. The results indicate that increasing returns (captured by the firm's market share, the number of employees in innovative activities, workers' years of schooling and the accumulation of workers' experience), the technological intensity of the industry, learning by exporting and public support to R&D have driven productivity growth and reproduced SH through time, as predicted by development and evolutionary theories.     

Foreign Direct Investment and the Performance of European Agribusiness Firms

This article analyses the relationship between foreign direct investment and the performance of European agribusiness firms. Motivated by the role of heterogeneous firms in new trade theory and using a firm‐level dataset, statistical analyses identify key differences between firms investing in foreign economies and those that do not. A binary choice model quantifies the relationship between firm characteristics and the decision to engage in foreign investment. Size and – less strongly – productivity are greater for multinationals relative to domestic firms. Furthermore, European multinationals are characterised by a larger debt to equity ratio and show lower labour and input costs.     

Internationalization of innovative capabilities: counter‐evidence from the electronics industry in Malaysia and Brazil

The focus of this paper is the extent to which firms in the electronics industry in Malaysia and Brazil (Manaus) developed significant innovative technological capabilities. By examining whether innovative capabilities have spread to these two late‐industrializing countries, the paper seeks to add new evidence to the debate over internationalization of innovative capabilities and to argue against existing generalizations. Internationalization of innovative capabilities is measured here by the technological capability types and levels built within firms. The framework for capability‐building identifies types and levels of technological capabilities. The paper draws on empirical evidence from 82 electronics firms—transnational corporation subsidiaries and local firms: 53 in Malaysia (25 in Penang and 28 in Klang Valley) and 29 in Manaus (Northern Brazil). Empirical evidence was collected during extensive fieldwork based on different data‐gathering strategies. Both qualitative and quantitative data analysis methods were used. Contrary to common generalizations, the study found that the capabilities of most sampled firms had been upgraded to carry out diverse innovative technological activities. Additionally, these capability‐building efforts were strongly associated with higher capabilities for local decision‐making and control, automation level and efforts to increase exports. The study found firms that innovated to be competitive by reducing costs, being more productive, reducing lead time and producing better products—regardless of whether they were in a domestic market‐oriented country or in an export‐oriented country. Finally, the analysis and framework in this study challenge some existing perspectives on the internationalization of innovative capabilities to the late‐industrializing context.     

Characteristics of Successful Southeastern U.S. Agribusiness Exporters

Abstract

A survey of southeastern U.S. agribusiness exporters showed that export firms had many characteristics in common regardless of commodity category. In general, the profile of a successful southeastern U.S. agribusiness exporter in terms of export sales is one that tends to have higher total sales, foreign and domestic, and more export-market experience though the firm tends to be relatively young. While almost half of the firms engaged in promotion activities, less than a quarter of the respondents availed themselves of federal export promotion/assistance programs because of unfamiliarity or perceived costs. An overwhelming majority considered freight forwarding companies as indispensable parties to all transactions because of the extreme complexity of export-import logistics.     

The transformation of the Indian agricultural input industry: has it increased agricultural R&D?

Indian agricultural input industries have gone through a major transformation in the last 40 years. State owned firms grew during the Green Revolution and then stagnated or declined. Indian corporations that were protected from foreign competition are now exporters of agricultural tractors and pesticides. Foreign multinational corporations are rapidly increasing their role in the seed, pesticide, and tractor industries. Entry by large Indian firms and multinationals has increased competition in the input industries. Private agribusiness R&D in India grew from $23 million in 1985 to $250 million in 2009 in 2005 US dollars. This is the same time period as a transformation in the agricultural input industry, rapid growth in demand for agricultural inputs, breakthroughs in information technology and biotechnology, and changes in intellectual property rights. An econometric model was used to test whether the transformation of agricultural input industry was a major factor in the growth of R&D expenditure or not. This article analyzes a unique, firm level sales and R&D data set from the seed, pesticide, tractor, and fertilizer industries in 2000–2009. The estimated model indicates that agribusiness firms' R&D expenditures from 2000 to 2009 were positively related to variables associated with industry transformation such as firm size, ownership by multinationals, and declining industry concentration. The model also indicates that strengthening patent policy as well as growth in the size of research‐intensive industries like the seed industry contributed to the growth of agribusiness R&D in India.     

South Asia's Export Structure in a Comparative Perspective

World-wide cross-country regressions are used to examine South Asia's export structure through the lens of Heckscher‐Ohlin trade theory. By comparison with other regions, South Asia's exports are unusually concentrated on labour-intensive manufactures. This distinctive export structure is shown to be the result mainly of South Asia's distinctive combination of resources: by comparison with other regions, it has a low level of education and few natural resources, relative to its supply of labour. This basic economic fact must be recognized in the design of trade and development strategy for South Asia over the next few decades.     

Export Barriers in the Western Australian Horticulture Industry

This study was designed to identify perceived barriers to exports specific to Australian horticulture industry and the relative impact of these barriers on firms' export decisions. Specifically the study attempted to examine the differences, if any, in perceived export barriers by non-exporting and exporting firms. The analysis suggested seven major export barrier factors/variables. These barriers are somewhat different to barriers identified in recent studies suggesting that export barriers may be industry and country specific. The perceived seriousness of some of the barriers was significantly different for non-exporters and exporters. A discriminant analysis suggested, however, that it was not possible to predict whether a firm will be an exporter or not based on their perceptions of export barriers. The implications of the findings for the management of Australian horticulture exports are discussed.     

The Current State of the Russian Agricultural Sector

Russia's agriculture produces around 3.7 per cent of the country's GDP, employs 9.2 per cent of the national workforce and contributes around 6 per cent of the country's exports. The sector has shown remarkable resilience in the face of wider economic turbulence. Self‐sufficiency rates for the main agricultural commodities are relatively high. Agricultural exports have grown very significantly since 2000 especially for wheat and meslin (wheat and rye mixture). Meat production has been growing steadily, particularly in the poultry and pork sectors. Whilst the agri‐food sector has great potential to play an even more prominent role in Russia's economy, it suffers from relatively low productivity and an outdated technological base. The main drive for efficiency has come mainly from the relatively large‐scale agricultural firms, who generated more than half of the total value of agricultural output in 2016. Foreign policy instability, including economic sanctions, the devaluation of the national currency and declining economic growth have weakened the sector and caused an increase in the prices of imported goods and equipment. At the same time Russian products have replaced high value‐added imports and Russia's agricultural producers are expanding into new markets.     

LABOUR PRODUCTIVITY AND CONCENTRATION IN THE FOOD PROCESSING INDUSTRIES

The most obvious reason for studying labour productivity is that it can reasonably be regarded as one of the dimensions of market performance: firms which exhibit a high rate of increase of labour productivity are, other things being equal, “better” than firms with a low rate of increase. Similarly, concentration, a dimension of market structure, can be regarded as having normative implications. Although the selection of these variables as being worthwhile ones for study clearly rests on their value as normative indicators, the scope of this paper is essentially positive in content. Its purposes are: first, to provide estimates of changes in labour productivity and of changes in concentration in the food processing industries in the decade 1954-63; second, to attempt to test various hypotheses concerning the causes of different rates of change of productivity (including the hypothesis that increasing concentration has helped to raise productivity); and in conclusion to consider some of the possible effects of productivity changes.     

Scale Effects and Mark-ups in the US Food and Fibre Industries: Capital Investment and Import Penetration Impacts

Capital investment patterns and import penetration are often alleged to influence firms' costs and prices, and thus economic performance. We examine the impacts of these factors on measures of scale economies, input demand/composition, and market power in the US food and fibre industries. Flexible variable cost functions incorporating quasi-fixity of three categories of private (internal) capital and two external technological and trade (import) factors represent the cost structures of the two industries. Pricing equations, based on inverse demand functions including import prices, represent output decisions. Cost and demand elasticities constructed from this model indicate reduced manufacturing costs from technical and trade, scale and capital effects. This increased cost efficiency arises largely from materials savings in the textiles industry and reduced labour use in the food industry. Mark-up behaviour is exhibited for most of the sample period in the textiles industry, and neither industry appears heavily affected by import prices.     

BIASES IN RESEARCH: THE CASE OF RUBBER GROWING IN MALAYSIA

This paper measures the impact of technological progress in Malaysian rubber growing and tests the hypothesis that past research has been biased in favour of raising the productivity of capital rather than labour. It also demonstrates the methodological usefulness, in relation to a long-lived perennial crop, of separating embodied from disembodied technical change. The analysis indicates that research leading to new embodied technology has not been biased since it has raised the productivity of all input factors at about the same rate over time. However, disembodied technological change has not shifted the production hypersurface in an unambiguously neutral fashion. These results are especially pertinent to the debate about the future direction of rubber growing research.     

The determinants of outward foreign direct investment: a firm‐level analysis of Indian manufacturing

This paper analyses the determinants of the overseas direct investment activity of Indian manufacturing enterprises. In general, several firm‐specific characteristics such as age, size, R&D intensity, skill intensity and export orientation are observed to be important explanatory factors in the outward foreign direct investment (O‐FDI) activity of Indian firms. The impact of age and size on O‐FDI has been observed to be non‐linear. The product differentiation activities and the productivity of firms are other useful factors in overseas production expansion in certain industries. The study reveals that the performance of these firm‐specific variables is subject to sectoral dynamics. Internationalization of production activities of Indian firms has been observed to be partly fuelled by policy liberalization during the 1990s.     

Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh

The impact of economic liberalization reforms on the productive performances of manufacturing firms remains a contentious issue in the literature. This paper attempts to contribute to the debate by empirically estimating productivity growth of Bangladesh food manufacturing using firm level data before and after reform. Empirical results show that the share of output growth was accounted for by input growth in most sectors of this industry. In some sectors, the estimated rate of total factor productivity (TFP) growth is negligible or even negative. Decomposition of the TFP growth shows that technological progress plays a significant role in TFP growth across firms within the sub-sectors of this industry. Empirical results also show that the relative contribution of capacity realization to TFP growth is not substantial in inhibiting the industry's high and sustained growth. These dismal performances indicate that the industries responded a little to the implementation of economic reforms.     

Sequential Adoption of Site-Specific Technologies and Its Implications for Nitrogen Productivity: A Double Selectivity Model

This paper analyzes the sequential decision to adopt two site-specific technologies, soil testing and variable rate technology, and the impact of adoption on nitrogen productivity. The results indicate that while farm location was a key variable influencing adoption of soil testing, farm size, human capital, and innovativeness of farmers had a significant impact on adoption of variable rate technology in four Midwestern states. A double selectivity model applied to correct for sample selection bias shows that adoption leads to significant gains in nitrogen productivity for farms with below average soil quality but statistically insignificant gains for farms with above average soil quality.     

Who gains from Australian generic wine promotion and R&D?

The present paper estimates the distributions of aggregate returns from different types of research and promotion investments by the Australian grape and wine industry among grapegrowers, winemakers, domestic and foreign consumers, and the tax office. The results show that most of the gains from cost-reducing R&D in grape and wine production go to producers and that producers get a far larger share of the benefit from export promotion than that from domestic promotion. Foreign consumers of Australian wine also enjoy a significant share of the benefits from Australian R&D. Sensitivity analysis shows that the key results hold for a wide range of parameter values.     

Agricultural technology and land use futures: The UK case

This paper explores how agricultural technology has interacted with recent land use in the UK and how it might do so in the next 50 years. From 1960 to 1985, farmers successfully used technology to increase the output of crop and animal products per unit of land and particularly of labour. This reduced the number of people employed in agriculture, and promoted larger and more specialised farm enterprises. Between 1985 and 2006, food prices were relatively low, and although labour productivity continued to increase, land productivity remained relatively static. However during this period, farmers started to address the effects of agriculture on reduced water quality and habitat loss.For established agricultural products, technological innovation tends to have an incremental effect, working through genetic improvement, the removal of abiotic and biotic stress (e.g. crop nutrition and protection, irrigation and drainage, and animal nutrition, health and housing) and the substitution of labour. Whereas the first two processes tend to be scale-neutral, the substitution of labour is usually easiest to achieve on larger farms. Other key areas for technological innovation include addressing air, soil and water quality, biodiversity, waste reduction, and information management. Over the next 50 years, large step-changes in land use arising from agricultural technology are predicted to arise from the development of new markets for agricultural products. A strong bioenergy sector will strengthen the links between crop commodity and energy prices and will have a major effect on future land use. Climate change and the regulation of greenhouse gas emissions will alter the relative profitability of crop and animal production systems. Lastly, increased public awareness of the links between food, health and the environment could substantially shift the demand for specific agricultural products.Continual improvements in agricultural technology are pivotal to providing society with the flexibility to balance the challenges of improving human well-being with the management of the planet's ecosystem. Increased technological innovation increases the probability that agricultural land can be used for other purposes, but the exact relationship is dependent on trade and environmental policies. The large external effects of agriculture mean that decisions regarding the adoption of future technologies should be taken by farmers working with other stakeholders.