FDI, exports, and GDP in East and Southeast Asia—Panel data versus time-series causality analyses

Using time-series and panel data from 1986 to 2004, this paper examines the Granger causality relations between GDP, exports, and FDI among China, Korea, Taiwan, Hong Kong, Singapore, Malaysia, Philippines, and Thailand, the eight rapidly developing East and Southeast Asian economies. After reviewing the current literature and testing the properties of individual time-series data, we estimate the VAR of the three variables to find various Granger causal relations for each of the eight economies. We found each country has different causality relations and does not yield general rules. We then construct the panel data of the three variables for the eight economies as a group and then use the fixed effects and random effects approaches to estimate the panel data VAR equations for Granger causality tests. The panel data causality results reveal that FDI has unidirectional effects on GDP directly and also indirectly through exports, and there also exists bidirectional causality between exports and GDP for the group. Our results indicate that the panel data causality analysis has superior results over the time-series causality analysis. Economic and policy implications of our analyses are then explored in the conclusions.     

Imposing Regularity Conditions to Measure Banks’ Productivity Changes in Taiwan Using a Stochastic Approach

Asia-Pacific Financial Markets - This paper develops a stochastic approach to impose regularity properties on a directional output distance function (DODF) and an output distance function, which...     

The effects of product scarcity and consumers' need for uniqueness on purchase intention

Scarcity strategies are employed by marketers to influence consumer decision making. Many famous brands have been designed and produced for the purpose of as being marketed as limited‐edition products to intensify consumer desire and intention to purchase them. However, very few studies have simultaneously integrated relevant constructs to explain the phenomenon of scarcity purchasing. To fill this void, this study develops a comprehensive research model in order to fully understand how scarcity affects consumer value perception and purchase intention. Simultaneously, two competing models are developed to compare the explanation power of Lynn's Scarcity–Expensiveness–Desirability (S‐E‐D) model and Synde and Fromkin's desire for uniqueness model. The results suggest that the effects of scarcity on purchase intention through perceived uniqueness, perceived sacrifice and perceived value are stronger than the scarcity effects through assumed expensiveness, perceived quality, perceived sacrifice and perceived value.     

Missing data and maximum likelihood estimation

The proper use of the maximum likelihood principle in the context of missing data is explored. The relationship between the false procedure of treating the predicted values as if they were observable and the E–M procedure suggested by Dempster, Laird, and Rubin (1977) is also discussed.     

Outsourcing in Product Cycles

In this quality‐ladder product‐cycle model, a production process consists of core research and development (R&D), complementary R&D and manufacturing; and there exist northern imitation, southern innovation, and outsourcing of complementary R&D as well as manufacturing from the North to the South. It is found that a policy to protect intellectual property rights or to subsidize R&D may reduce the aggregate rate of innovation. In addition, not every globalized production strategy is innovation‐improving.     

Private labels and new product development

This paper provides a positive theory of private labels in new product development when a non-integrated distribution channel is faced with demand uncertainty. We consider a regular marketing environment in which a manufacturer endowed with a branded product seeks to design a new product to resolve its retailer’s mis-targeting problem and to optimally screen consumers. Assuming that only linear pricing schemes are available and that the retailer learns the state of demand earlier than the manufacturer does, we show that the presence of a private label always improves channel efficiency. Moreover, a private label is more likely to prevail when the existing branded product is a premium item.

The foundations of Chinese attitudes towards advocating luxury spending

Abstract

In China, some scholars have argued that luxury spending is socially beneficial to equalise wealth, under the assumption that the total endowment of resources is a fixed amount. This argument is not only consistent with Confucianism but also might point to another lesser known side of Confucianism that the luxury spending of the rich can be regarded as a wealth-transferring mechanism. Furthermore, luxury spending was encouraged for purposes of enjoyment; it did not involve the consideration of power and protection. This is in sharp contrast to the extravagance of the European nobility; their intention was to maintain a hierarchical structure.     

Creating Shared Value Through Implementing Green Practices for Star Hotels

This study expands the concept of shared value through the value chain to include green practice innovation in star hotels in Taiwan. By employing the Delphi method, 44 green innovation indicators were established for star hotels to create an instrument to help address green practices’ implementation. Through creating shared value by using the top 18 indicators among eight dimensions, this study explores the preliminary green innovation framework to configure the value chain and to propose a conceptual model based on a shared value perspective. The findings contribute to the current literature by including green innovation processes into the shared value concept to complement the existing value chain design, and by addressing whether the green innovation indicators examined pertain to a value chain or process analysis. The results provide substantial contributions on how star hotels can efficiently implement green practices to simultaneously approach economic profits and environmental protection.     

A study of the effects of co-branding between low-carbon islands and recreational activities

The development of sustainable tourism on islands is increasingly based on the concept of “low carbon” practices. From a co-branding perspective, this study discusses how to combine recreational activities to create a differentiated tourism landscape, and thus positively influence post-visit tourist reactions when the focal islands emphasize their low-carbon practices. This study used a questionnaire survey to study Taiwan's Penghu and Republic of Palau, two islands that have adopted low-carbon policies, and a total of 341 and 298 valid samples were collected, respectively. The findings are the following. (1) Regardless of the island, tourists recognized the low-carbon strategies of both islands, with those of Palau receiving greater attention. (2) The tourists were most familiar with motorized water activities, and the degree of participation in such activities was the highest. However, there were significant differences in degrees of familiarity with and participation in other recreational activities. (3) On both Penghu and Palau, islands and motorized water activities represent the optimal match, and the optimal match percentage of Penghu for all types of recreational activity is 67%. (4) Compared with tourists on Palau, those on Penghu are more willing to recommend a visit to others or revisit the island.