Decomposing local fiscal multipliers: Evidence from Japan

Recent studies on fiscal policy use cross-sectional data and estimate local fiscal multipliers along with spillovers. This paper estimates local fiscal multipliers with spillovers using Japanese prefectural data comparable with the national accounts. We estimate the local fiscal multiplier on output to be 1.7 at the regional level. We decompose the regional fiscal multiplier into the prefectural fiscal multiplier and the region-wide effect. Converting the latter component into the spillover, we find that the spillover is positive and small in size. We also decompose the regional fiscal multiplier on output into multipliers on the expenditure components. Our estimates suggest that there are crowding-in effects of government spending on consumption and investment. Moreover, we find that the regional fiscal multiplier on absorption exceeds 2.0 and that the spillover to absorption is considerable in contrast to the spillover to output.     

Vulnerability to climate change: Are innovative countries in a better position?

The impact of climate change on organizations and economies remains one of the most significant yet underestimated threats. Although the consequences of climate change have started to gain attention among policy makers, international business research on this issue is lagging behind. Drawing from the knowledge and innovation literatures, we explore the impact of a country’s degree of innovation on its vulnerability to climate change. Using a longitudinal sample of 73 countries for the years of 1998–2013, we examine the impact of innovation, openness to trade, and regulatory quality on a country’s vulnerability to climate change. We find that R&D expenditures as a percentage of GDP (innovation input), openness to trade, and regulatory quality decrease a country’s vulnerability to climate change. We also find that openness to trade moderates the effect of patenting rates (innovation output) on a country’s vulnerability to climate change.     

The capital market spillover effect of product market advertising: Evidence from stock price synchronicity

We analyze whether product market advertising has a spillover effect on stock price synchronicity by transmitting firm-specific information to the capital market and attracting more investor attention. Using a sample of Chinese listed firms from 2009 to 2017, we find that firms with greater advertising expenditures have lower stock price synchronicity. The results are robust after we address endogeneity concerns. In accord with our hypothesis that product market advertising increases the amount of firm-level information capitalized into stock prices through the information channel, we find that the impact of advertising on synchronicity is more pronounced for firms with a higher degree of information asymmetry and firms in the consumer-product industry. Further tests show that product market advertising enhances the ability of current period returns to reflect future earnings, and thus rules out that the negative relationship between advertising and synchronicity is driven by noise trading. Our results imply that product market advertising plays an informative role and improves information efficiency in a capital market.     

Forecasting volatility and co-volatility of crude oil and gold futures: Effects of leverage,jumps, spillovers,and geopolitical risks

To forecast the covariance matrix for the returns of crude oil and gold futures, this paper examines the effects of leverage, jumps, spillovers, and geopolitical risks by using their respective realized covariance matrices. To guarantee the positive definiteness of the forecasts, we consider the full BEKK structure on the conditional Wishart model. By the specification, we can flexibly divide the direct and spillover effects of volatility feedback, negative returns, and jumps. The empirical analysis indicates the benefits of accommodating the spillover effects of negative returns, and the geopolitical risks indicator for modeling and forecasting the covariance matrix.     

知识重叠、知识库特性与创新绩效

以往研究着重探讨重叠/非重叠知识在技术并购中的创新效应，然而在测度知识重叠时仅关注到数量属性而忽略了质量评估。因此，构建一个新的理论框架，利用国家知识产权局2008-2018年专利授权数据，分析217家中国机械制造企业352次国内技术并购案例，探索知识库中重叠、非重叠知识数量和质量属性对并购后创新绩效的影响。结果表明，高质量重叠知识对并购后的企业创新绩效具有正向影响，而高质量非重叠知识则有负向影响。同时，探讨知识数量对并购后创新绩效的影响。研究结果强调了知识重叠对企业获取外部知识的重要性，对企业技术并购实践具有借鉴作用。     

Mapping Brisbane’s Casual Creative Corridor: Land use and policy implications of a new genre in urban creative ecosystems

Creative hotspots have become a key driver for urban policies to stimulate social, cultural, environmental and organisational growth of creative and knowledge-based clusters, districts and hubs. However, their functional and spatial characteristics vary due to their different evolving structure as new spaces of economic activity in different contexts. This article points to a consideration of new foci for both land use and urban economic policy through a mapping of formal and informal creative hotspots in Brisbane, Australia. The study found two distinctive development patterns: (a) earlier top-down approaches as instigated by national and international innovation policies, and; (b) recently emerging bottom-up spaces for creativity, knowledge and innovation practices. This study examines how formal creative strategies and emerging informal creative spaces shape cities and urban policies. The methodology comprises online data collection and a review of creative and knowledge strategies and implementation policies. Data was then analysed via multiple mapping techniques illustrating the spatial distribution of creative hotspots, formal and informal formations, scale and land use characteristics. The research findings consolidate our understanding of Brisbane’s creative ecosystem and suggest new urban policy mechanisms to better foster the interrelationship between top-down and bottom-up approaches in cities, that is, between formally planned and large-scale interventions and small-scale organic and informal creative activities.     

Agglomeration economies and university program creation in the knowledge economy

Existing academic literature on the relationship between agglomeration economies and university activities is both under-theorized and relatively sparse in terms of empirical examination. This paper addresses each of these voids by contributing and analyzing a market model of pro-revenue education program creation such as graduate-level executive business education (e.g. EMBA) that reveals some intriguing characteristics. For instance, it shows that demand for these pro-revenue programs is inelastic and therefore uniquely determines their availability. More specifically, we show that through agglomeration economies these types of education programs are more likely to emanate from universities located in metropolitan areas and from less academically prestigious universities. Regression analysis of a cross-section of national public universities lends support to important facets of our formal model by suggesting that agglomeration economies continue to increase the probability of offering EMBA programs through a city size of approximately 2.12 million and that the probability that a given business school will offer an EMBA is negatively related to the academic prestige of the institution to which it is affiliated.     

DIY: How internationalization shifts the locus of indigenous innovation for Chinese firms

We elaborate theories of indigenous innovation by explaining how internationalization choices help emerging market firms transition from dependence on external knowledge to self-reliance on internal knowledge. Using a 1998–2007 census dataset of Chinese manufacturing firms, we theorize and test the moderation effect of foreign equity and export orientation on the relationship between knowledge and indigenous innovation. We show that foreign equity dis-incentivizes, while export orientation incentivizes, investments in internal knowledge. We contribute by showing that internationalization choices may radically change indigenous innovation outcomes by shifting the locus of problem solving outside or inside the firm. Our study corroborates the negative direct and indirect effects of external knowledge on indigenous innovation at the firm level previously suggested by China-centric scholars but also shows how two types of internationalization choices may gradually relieve firm-level dependence on imported technology. We bridge the gap between Western research and Chinese thought and practice by introducing a do-it-yourself (DIY) explanation of how firms may implement China’s indigenous innovation (zizhu chuangxin) policy.     

Internationalization speed and subsidiary survival of EMNCs: The moderating roles of CEO international experience and state ownership

In the process of internationalization, effective management of dispersed location-specific knowledge is the key to successful internationalization strategies for companies. Rapid internationalization often prevents multinational corporations (MNCs) from absorbing and internalizing internationalized knowledge in a timely manner and achieving ideal performance. Compared with MNCs in developed countries, emerging market multinationals (EMNCs) are more inclined to implement a rapid internationalization strategy to enhance their own competitive advantage. However, their internationalization process is limited by their lack of managerial resources. Why and how would internationalization speed impact the survival of EMNCs Subsidiary? Using the survival analysis method and taking the Chinese A-share listed companies as empirical setting, our results show that the internationalization speed negatively affects the survival of EMNCs Subsidiary; Both CEO international experience and state ownership weaken the negative impact of internationalization speed on the survival of EMNCs Subsidiary. We argue that rapid internationalization underestimates the Penrose effect in the process of internationalization, that is, underestimates the managerial resources required to learn and accumulate absorptive capacity, and effectively manage dispersed knowledge. Based on the dual context of dispersed knowledge management and managerial constraints, this paper expands the understanding of the impact mechanism of internationalization speed on corporate performance, and also has certain guiding significance for the selection of internationalization speed of EMNCs.     

A multicriteria model for the assessment of rural development plans in Greece

In the last decades rural communities face the problems of ageing of population, high share of elder farmers and imbalanced distribution of farmers across age classes. The Rural Development Plans (RDPs) of Common Agricultural Policy (CAP) in European Union (EU) are the policy instruments that affect agriculture and the people living in rural areas. The RDP measure “Setting up Young Farmers” aims to fight the demographic problems of these areas. This study is an attempt to highlight the role and the impacts of RDPs and especially of the “Setting up Young Farmers” measure in the prefecture of Thessaloniki in Greece. To this end, a multicriteria mathematical programming model was implemented. This methodology was chosen using the Knowledge Brokerage Approach in the context of the LIAISE project, which proposes a set of support modules that are linked to the impact assessment process with a final goal to support future policies and design. The results showed that the “Setting up young farmers” measure achieved its goals to transfer land to young, trained farmers, to offset the set-up costs faced by young people when establishing themselves in farming.