Offshoring in the global economy: microeconomic structure and macroeconomic implications

This article analyses the trade balance effects of Europe agreements (EA) between the EU-15 and four new EU members from Central and Eastern Europe (CEEC-4) using both static and dynamic panel data approaches. Specifically, the system generalised method of moments (GMM, Blundell, R., and S. Bond. 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87, no. 1: 115–43) and recently developed econometric methods such as the Correlated Common Estimation Pooled–Hausman-Taylor (CCEP–HT, Serlenga, L., and Y. Shin. 2007. Gravity models of intra-EU trade: Application of the CCEP-HT estimation in heterogenous panels with unobserved common time-specific factors. Journal of Applied Econometrics 22: 361–81) are applied to analyse the effects of the agreement variable. Our estimation results indicate a positive and significant impact of EA on trade flows. However, there is an asymmetric impact of the agreement variable on the trade balance, exports and imports being affected in different ways, which results in a trade balance deficit in the CEEC-4.     

Reaching for global in the Japanese cosmetics industry, 1951 to 2015: the case of Shiseido

This article examines the various factors that have shaped the internationalisation of the Japanese cosmetics industry over six decades of economic transformation from 1951 to 2015. Whilst Japanese cosmetics companies have expanded overseas, their focus has largely been in Asia. This article advances a multifactorial explanation that analyses a number of factors that led to regionalisation, including foreign consumers’ perception of Japan, managerial perceptions and strategies toward export markets, as well as the challenges pertaining to cross-border mergers and acquisitions activities by Japanese firms. Using Shiseido as the case example, the article offers a highly-textured account rooted in an understanding of the evolving historical setting, cautions against simple explanations and extends previous discussions concerning the reasons behind the regional orientation of the Japanese cosmetics industry.     

A new sub-national multi-region input–output database for Indonesia

ABSTRACT

As a large archipelago with significant geographical variation and economic diversity, Indonesia requires detailed regional information when subjected to economic modelling. While such information is available, it however has not been integrated and harmonised into a comprehensive input–output database, thus preventing economic, social, and environmental modelling for investigating sub-national regional policy questions. We present the new IndoLab, a collaborative research platform for Indonesia, enabling input–output modelling of economic, social, and environmental issues in a cloud-computing environment. Within the IndoLab researchers are for the first time able to generate a time series of regionally and sectorally detailed and comprehensive, sub-national multi-region input–output (MRIO) tables for Indonesia. By integrating a multitude of economic, social, and environmental data into a single standardised processing pipeline and harmonised data repository, the IndoLab is able to generate MRIO tables capturing up to 1148 sectors, and 495 cities and regencies. Researchers can freely choose from this detail to construct tables with customised classifications that suit their own research questions. First results from the IndoLab clearly demonstrate the unique characteristics of regions in terms of their sectors’ employment intensity. Thus, the IndoLab has great potential for investigating policy questions that cannot be comprehensively addressed using a single national database.