An International Comparison of Leontief Input-Output Coefficients and its Application to Structural Growth Patterns

Empirical sectoral analyses of a standard development pattern have focused upon changes in the value added, disregarding the structural changes in intermediate input. In a more comprehensive approach to the production function, the present paper analyses both sectoral intermediate inputs and the value added by using 45 input-output tables to discover a standard pattern of the changes in the input-output coefficients as an economy develops. The major findings are first a U-shape pattern of the average value added ratio and, conversely, an inverse U-shape pattern of the average intermediate input ratio. Secondly, as compared with principal input coefficients that are broadly stable, supplementary input coefficients exhibit the non-linear trends of an inverse U shape contributed by a rising trend in agriculture in the early stages, and a growing energy cost in most sectors, although this is partly offset by mild U shapes of transport and distribution costs. A similar inverse U-shape pattern is implied for the Leontief multiplier.     

International migration,foreign direct investment,and development stage in developing economies

The existing empirical results on the relationship between FDI and migration are rather mixed. This study reevaluates, both theoretically and empirically, how inward FDI relates to emigration in developing countries. Our model illustrates that the relationship between inward FDI and emigration flows depends on the development stage of a developing country, that is, there is a positive association between inward FDI and emigration flows for relatively less‐developed countries but a negative association between these two variables for relatively developed countries. We confirm the empirical validity of our model prediction using the panel data of 21 OECD and 51 non‐OECD countries during the period from 2003 to 2012. Our results argue that as economic development proceeds in a developing country, the home effect of inward FDI associated with intensified labor demand would dominate the linkage effect that induces the brain drain problem through enhancing the socioeconomic ties with migrant networks.     

Endogenous timing game in a mixed duopoly with partial foreign ownership and asymmetric increasing marginal costs

This study examines a timing game in a mixed duopoly wherein public and private firms compete by taking account of the increasing marginal cost of both firms, as well as partial foreign ownership of the private firm. This study finds that if the private firm has a strong cost advantage over the public firm, public leadership is a risk dominant equilibrium irrespective of foreign ownership ratio. This result means that the cost difference between the public and private firms matters in selecting the risk-dominant equilibrium of the timing game. Additionally, if the private firm has only a weak cost advantage over the public firm, then private leadership (public leadership) is the risk dominant equilibrium if the foreign ownership ratio is (not) small.     

Public infrastructure and trade in a dynamic two‐country model

We develop a two‐country dynamic trade model with public infrastructure having an “unpaid‐factor”‐type positive externality on private sectors’ productivity. With welfare‐maximizing national governments making infrastructure investment, we show that a country with a smaller labor endowment, a lower depreciation rate of infrastructure, and/or a lower time preference rate will become an exporter of a good that is more dependent on infrastructure and will gain from trade, whereas its trading partner may lose from trade. We consider both the nonstrategic governments case and the case of strategic governments that recognize the effect on the terms of trade.     

Transitional dynamics of the R&D growth model with public education

This study analyzes the transition dynamics of the R&D-based growth model with public education, based on [Prettner, K. (2014). The non-monotonous impact of population growth on economic prosperity. Economics Letters, 124, 93–95]. We show that the equilibrium path can be monotonous or oscillatory, but may not converge depending on the value of parameters. Thus, we determine and indicate the sufficient condition for long-run oscillation to emerge. In addition, we find that the technological progress rate speeds up during the long-run balanced growth path when income tax rates for public education rise. This result is consistent with empirical analysis.     

Trade Imbalance and Domestic Market Competition Policy

This study investigates the effect of a country's suppression of competition in its market for nontradables. It assumes that the initial equilibrium is stationary and demonstrates that if competition is suppressed in a small country, the country's trade surplus increases in the short run. In the large country case, the same change creates an excess demand for future tradables and affects the relative price between present and future tradables. Using a two‐country model, the study shows that this price change redistributes real wealth from the country with a trade deficit to the country with a trade surplus.     

Methods for strengths use support: A multi-dimensional model

This study examines how middle managers support their employees' strengths use via three sequential analyses. In Study 1, an open-ended questionnaire survey of high-performing middle managers at a global manufacturer in Japan (n = 144) was conducted to collect comments on strengths use support (SUS). The grounded theory approach was used to generate four categories of SUS, and a quantitative questionnaire was developed based on the analysis. In Study 2, three dimensions of SUS (understanding employees' strengths and interests, developing strengths through challenging assignments, and supporting the accomplishment) were identified by exploratory factor analyses using the questionnaire survey data of middle managers in Japanese firms (n = 208). Study 3 examined the validity and reliability of the three-dimensional model using confirmatory factor analysis of the questionnaire survey data of middle managers in Japanese firms (n = 209).     

Global uncertainty and capital flows: any difference between foreign direct investment and portfolio investment?

This note investigates how global uncertainty relates to extreme waves of capital flows, including foreign direct investment, portfolio investment, and other investment. We find the clear differences in the role of global uncertainty between advanced and developing economies. Global uncertainty increases the likelihood of sudden contraction of portfolio investment in both advanced and developing economies, while it increases that of foreign direct investment in only advanced economies.     

Cross-selling across stores or within a store? Impacts of cross-buying behavior in online shopping malls

Abstract

This study investigates the impacts of cross-buying behavior in an online shopping mall where customers can purchase from additional product categories from various independent stores. We focus on the extent to which store loyalty and relationship duration moderate the cross-buying effects on three behavioral traits: customers’ purchase rate, lifetime duration, and spending. The results reveal that customers who engage in cross-buying more intensely purchase more frequently, have longer expected lifetime duration, and spend higher amounts in each transaction. The impacts on purchase frequency and customer retention are even greater for customers who exhibit higher behavioral loyalty toward some stores. However, store loyalty is found to weaken the association between cross-buying and average spending. Further, relationship duration appears to weaken the effects of cross-buying on purchase rate and spending. These results provide new insights into the impacts of cross-buying on customer value as well as managerial implications for shopping mall owners.     

BOOK REVIEWS

Book Reviews in This Article: Enterprise and the State in Korea and Taiwan. Industrialization and the State: The Korean Heavy and Chemical Industry Drive.