Search results for "InVEST"
showing 10 items of 2596 documents
Labor and product market reforms and external Imbalances: Evidence from advanced economies
2021
We explore the impact of major labor and product market reforms on current account dynamics using a new “narrative” database of major changes in employment protection for regular workers and product market regulation for non-manufacturing industries covering 26 advanced economies over the past four decades. Our main finding is that product market deregulation is associated with a weakening of the current account, while labor market deregulation is associated with an improvement. These effects are transitory and driven by both saving and investment responses. Labor and product market reforms both have a more positive impact on the current account balance when implemented under weak macroecon…
Natural versus manufactured capital: win–lose or win–win? A case study of the Finnish pulp and paper industry
2001
Abstract The effect of investments on environmental variables has been discussed through the win–win rhetoric, specifically in micro-level analysis. On the macro-level the win–win rhetoric has been replaced by the arguments for and against the substitutability of natural and manufactured capital. Here these two concepts belonging to different levels of analysis are linked by looking at the environmental and economic effects of chosen investment strategies in a traditionally capital-intensive industry over time. The paper shows that, rather than generalise the existence of win–win situations or the substitutability of capital, these positions are determined by purely situational factors. As …
Regulation of Investments in Infrastructure: The Interplay between Strategic Behaviors and Initial Endowments
2012
This paper explores the dynamic properties of price-based policies in a model of competition between two jurisdictions. Jurisdictions invest over time in infrastructure to increase the quality of the environment, a global public good. They are identical in all respects but one: initial stocks of infrastructure. This is a dynamic type of heterogeneity that disappears in the long run. Therefore, at the steady state, usual intuitions from static settings apply: identical jurisdictions inefficiently underinvest, calling for public subsidies. In the short run, however, counterintuitive properties are established: (i) the evolution of capital stocks can be nonmonotonic and (ii) one jurisdiction c…
Current account adjustment and retained earnings
2019
First published online: 04 March 2019 This paper develops a formal strategy to calculate current accounts with retained earnings ( RE) on equity investment and analyzes their adjustment during the global financial crisis. RE are the part of companies' profits which is reinvested and not distributed to shareholders as dividends. International statistical standards treat RE on foreign direct investment and RE on portfolio investment differently: while the former enter the current and financial account, the latter do not. We show that this differential treatment strongly affects current accounts of several advanced economies, frequently referred to as financial centers, with large positions in…
¿Cómo se puede mejorar la competitividad de las cooperativas agroalimentarias?
2017
[ES] El entorno de alta competitividad que existe en los mercados agroalimentarios ha incrementado notablemente la presión sobre todos los agentes que operan en ellos. En el caso de las cooperativas, debido posiblemente a su reducida dimensión empresarial, esta cuestión reviste especial importancia puesto que aboca a estas entidades a adoptar cambios que mejoren su competitividad y aseguren la supervivencia. Existe un buen número de trabajos que analizan el papel de distintos aspectos de gestión sobre la competitividad de las empresas en general, sin embargo no se ha abordado el grado de importancia relativa de dichos elementos. El objetivo de este trabajo es establecer una jerarquía en una…
Finance, globalisation, technology and inequality: Do nonlinearities matter?
2021
Abstract Relying on data for 90 economies over 1970-2015 and panel estimation techniques, we investigate how financial development, globalisation and technology affect income inequality. Our findings reveal significant nonlinearities, consistent with either Ushaped or inverted-U shaped relationships. As such, depending on whether a certain threshold value is achieved, the same determinants of income distribution exert opposite effects in different countries. Globalisation is associated with increasing inequality in most advanced economies, but with falling disparities for the large majority of emerging economies. Technology and financial development lead to increasing inequality for most em…
Revisiting the Duration Dependence in the US Stock Market Cycles
2022
There is a big controversy among both investment professionals and academics regarding how the termination probability of a market state depends on its age. Using more than two centuries of data on the broad US stock market index, we revisit the duration dependence in bull and bear markets. Our results suggest that the duration dependence for both bull and bear markets is a nonlinear function of the state age. It appears that the duration dependence in bear markets is strictly positive. For 93% of the bull markets, the duration dependence is also positive. Only about 7% of the bull markets, those with the longest durations, do not exhibit positive duration dependence. We also compare a few …
Japan's FDI drivers in a time of financial uncertainty. New evidence based on Bayesian Model Averaging
2021
En este artículo analizamos los determinantes del stock de FDI saliente de Japón para el período 1996–2017. Este período es especialmente relevante ya que abarca un proceso de creciente globalización económica y dos crisis financieras. Para ello, consideramos un amplio conjunto de variables candidatas basadas en la teoría, así como en análisis empíricos previos. Nuestra muestra incluye un total de 27 países anfitriones. Seleccionamos las covariables utilizando una metodología basada en datos, el análisis Bayesian Model Averaging (BMA). Además, también analizamos si estos determinantes cambian según el grado de desarrollo (emergentes vs desarrollados) o las áreas geográficas (UE vs Asia Orie…
INTERNATIONALIZATION STRATEGIES IN OLIGOPOLY WITH HETEROGENEOUS FIRMS
2016
This paper examines the foreign direct investment (FDI) versus exports decision of foreign oligopolistic firms under cost heterogeneity. An additional motivation for firms to invest abroad is the technological sourcing via spillovers, which flow from the host more efficient firm to foreign less advantaged firms. For intermediate values of the set-up costs associated with FDI entry, it is shown that foreign firms choose opposite entry strategies. An equilibrium where the less efficient foreign firm exports whereas the more efficient invests is more likely to happen when foreign firms become more heterogeneous, the larger the trade costs and not too big oligopolistic profitability. Interestin…
Aggregate uncertainty and sectoral productivity growth: The role of credit constraints
2016
Abstract We show that an increase in aggregate uncertainty—measured by stock market volatility—reduces productivity growth more in industries that depend heavily on external finance. The mechanism at play is that during periods of high uncertainty, firms that are credit constrained switch the composition of investment by reducing productivity-enhancing investment—such as on ICT capital—which is more subject to liquidity risks (Aghion et al., 2010). The effect is larger during recessions, when financing constraints are more likely to be binding, than during expansions. Our statistical method—a difference-in-difference approach using productivity growth of 25 industries from 18 advanced econo…