Exchange rate volatility, sectoral trade, and the aggregation biasPéridy, Nicolas
doi: 10.1007/BF02659668pmid: N/A
This paper proposes a sectoral theoretical model in an imperfect competition framework, with country-specific and industry-specific original variables, notably factor productivity, scale economies, or product differentiation. It is then empirically estimated in a panel data model, at a sectoral and geographical disaggregation level, to test the impact of exchange rate volatility on G-7 countries' exports. Economies of scale are estimated from a non-linear translog production system. Two exchange rate volatility measurements have been used: the moving sample standard deviation and the GARCH approach. The main finding shows that the impact of exchange rate volatility on exports varies considerably, depending on the industry covered and the export destination markets. As a consequence, there is both a sectoral and geographical aggregation bias when estimating the effects of exchange rate variations. JEL no. F1, F12, F14
On the measurement of trade-induced adjustmentAzhar, Abdul; Elliott, Robert
doi: 10.1007/BF02659669pmid: N/A
Globalisation and closer regional integration have led to significant increases in trade between nations that in turn impacts on existing long-standing trade partnerships. A consequence of changing trade patterns is an increase in the pressure for resources to reallocate between industries and sectors. This paper provides an integrated approach to the analysis of trade-induced adjustment that complements the existing literature. Adjustment pressures are documented in accordance with the theoretical underpinnings of the smooth adjustment hypothesis and satisfy a number of desirable criteria, monotonicity, consistency and country specificity. The applicability of the authors' approach is examined using UK manufacturing data. JEL no. F19
R&D, trade, and productivity growth in korean manufacturingKim, Taegi; Park, Changsuh
doi: 10.1007/BF02659671pmid: N/A
This paper investigates the effects of both R&D spillovers and trade patterns on productivity in Korean manufacturing, using industry-level data. The results show that domestic and foreign R&D capital stocks played an important R&D in improving the total factor productivity of Korean manufacturing. Moreover, productivity is higher in export industries and the more open industries, and the effects of foreign R&D capital are stronger in the industries with large import shares or large intra-industry trade shares. JEL no. F10, O32, O47.
An econometric framework for testing the eclectic paradigm of international firm activitiesKönig, Markus
doi: 10.1007/BF02659672pmid: N/A
In empirical research on direct investments, Dunning's eclectic paradigm is widely accepted. While this paradigm serves as a theoretical basis for selecting possible explanatory variables, econometric specification usually is ad hoc. This paper shows the implications of the eclectic paradigm for the econometric estimation of investment determinants using firm-level data. The assumptions on the eclectic paradigm lead to a multiplicative model, which calls for a particular estimation strategy. In this way, the empirical analysis is coherently linked to the theoretical base. Furthermore, it becomes possible to systematically test the assumptions of the eclectic paradigm.
What determines the success or failure of german bilateral financial aid?Hemmer, Hans-Rimbert; Lorenz, Andreas
doi: 10.1007/BF02659673pmid: N/A
This paper explores the causes of success or failure of German bilateral financial aid, using data on 1,003 Financial Cooperation (FC) projects and programs performed by the Kreditanstalt für Wiederaufbau (KfW). The authors find that the success or failure of financial aid loans disbursed under FC depends on project characteristics and macroeconomic conditions in the recipient country. Supervision time is also highly negatively correlated with the probability of success. While the relationship disappears once endogeneity is taken into account, the existence of an institutional bias toward a disproportionate allocation of supervision resources in unsuccessful projects cannot be rejected. These results show that some recent evidence on multilateral policybased aid holds also for the case of German bilateral project-based aid.
Banks and the world’s major banking centers, 2000Choi, Sang-Rim; Park, Daekeun; Tschoegl, Adrian
doi: 10.1007/BF02659674pmid: N/A
We update earlier articles on the determinants of interpenetration of financial centers by banks and analyze the substantial changes that have occurred between 1990 and 2000. First, the number of banks and the number of offices in other centers has fallen by over 20 percent since 1990. Second, aggregate interconnectedness has held steady between 1990 and 2000, though there is an increasing asymmetry. Third, Tokyo has lost rank as a center, while Hong Kong and Singapore have continued to gain importance. Fourth, Frankfurt, rather than gaining importance with the advent of the euro, has apparently lost importance. Lastly, some explicit or implicit agreements between banks from different countries not to compete in each other's markets have continued to wane, though intra-European interpenetration remains relatively low. JEL no. F30, G15, G21