CO2 Emissions, Research and Technology Transfer in China

Size: px
Start display at page:

Download "CO2 Emissions, Research and Technology Transfer in China"

Transcription

1 MPRA Munich Personal RePEc Archive CO2 Emissions, Research and Technology Transfer in China Ang, James Monash Universiy 09. February 2009 Online a hp://mpra.ub.uni-muenchen.de/13261/ MPRA Paper No , posed 11. February 2009 / 22:21

2 CO2 EMISSIONS, RESEARCH AND TECHNOLOGY TRANSFER IN CHINA Absrac Alhough he economy of China has grown very srongly over he las few decades, his specacular performance has come a he expense of rapid environmenal deerioraion. Amids animaed debae on he issue of global warming, his sudy aemps o explore he deerminans of CO 2 emissions in China using aggregae daa for more han half a cenury. Adoping an analyical framework ha combines he environmenal lieraure wih modern endogenous growh heories, he resuls indicae ha CO 2 emissions in China are negaively relaed o research inensiy, echnology ransfer and he absorpive capaciy of he economy o assimilae foreign echnology. Our findings also indicae ha more energy use, higher income and greaer rade openness end o cause more CO 2 emissions. Keywords: Environmenal polluion; endogenous growh heory; R&D, China. JEL classificaion: O30; O40; O53; Q40, Q50 1

3 1. Inroducion The debae over global climae change has araced copious aenion from academic researchers and policy makers in recen years. As he major new global player, China s specacular economic growh has been widely observed over he pas few decades. Since he economic reforms of 1978, China has recorded an average real growh rae exceeding nine percen a year. Per capia real income has increased almos enfold during his period. Alongside his srong growh performance, here has been an associaed rapid rise in energy consumpion and polluion emissions. Energy use in China grew a an annual average rae of 7.2 percen during he period Annual polluion emissions, measured by CO 2 in meric ons of carbon, increased from jus 36.6 million in 1953 o million in 2006, represening a more han fory-fold increase. In a recen sudy, Auffhammer and Carson (2008) highligh ha he slowing of China's CO 2 per capia emissions growh raes, as previously prediced, is unlikely o maerialize in he near fuure. In conras, heir forecass sugges ha China's CO 2 emissions are likely o increase dramaically over he shor o medium erm, and significanly exceed he amoun required in he Kyoo Proocol. Wih rapid growh in polluion emissions, here has been increasing concern abou heir impac on China and he global economy. According o a recen sudy by Nielsen and Ho (2007), he aggregae naional environmenal healh damage is esimaed o be in he range of 3 percen o 7.7 percen of GDP. Moreover, The World Bank (2007) repors ha he environmenal polluion cos in China is esimaed o be abou 5.8 percen of is GDP. While he imporance of global warming issues is widely recognized among economiss and policy makers, here has so far been lile effor aemping o examine environmenal performance in China, despie i currenly being responsible for abou one-fifh of global emissions. Mos previous sudies on his subjec have focused on examining he fuure rends of energy consumpion or CO 2 emissions in China (see, e.g., Chan and Lee, 1996; Sinon and Fridley, 2000; Crompon and Wu, 2005; Auffhammer and Carson, 2008). An imporan excepion o his is he sudy by Cole e al. (2008), who focus on examining he deerminans of environmenal polluion for China using indusry-level daa for he period Their resuls show ha energy use and human capial have a posiive impac on indusrial polluion whereas produciviy improvemens and research aciviy end o reduce emissions. Our sudy differs from Cole e al. (2008) in several aspecs. Firs, we uilize ime series daa for China going back as far as The use of a sufficienly long daase enables us o analyze he long-run deerminans of polluion as well as he shor-run dynamics. Second, o he bes of our knowledge, his is he firs aemp ha saisfacorily combines he environmenal 2

4 lieraure wih modern endogenous growh heories. By doing so, i allows us o focus on he roles of R&D aciviy and echnology ransfer in reducing CO 2 emissions. This is done by incorporaing facors ha could induce higher produciviy growh, as suggesed by modern growh lieraure, ino he polluion funcion. The res of he paper is organized as follows. Secion 2 ses ou he analyical framework. Secion 3 discusses consrucion of variables, daa sources and he esimaion echniques. Secion 4 performs he empirical analysis and presens he resuls. The las secion summarizes he resuls and concludes. 2. Theoreical Framework This secion ses ou he analyical framework underlying our empirical modeling sraegy. Assuming a sandard neoclassical producion funcion wih consan reurns, we can wrie he aggregae oupu (y ) funcion a ime as: y = Af( K, L) (1) where A is oal facor produciviy (TFP), K is he capial sock and L is he number of workers. Bernard and Jones (1996a, b) assume ha TFP growh (g A ) depends on echnological cach-up so ha: g A A = = A f( DTF ) 1 (2) where DTF is a variable measuring he echnology gap beween he fronier and he domesic economy (or disance o he fronier). The underlying principle in his simple model is ha counries which are relaively backward can grow faser by uilizing echnologies developed in he leading counry. Therefore, a posiive effec of DTF is expeced due o he role of echnology ransfer in produciviy growh. However, he above formulaion of produciviy cach-up is inadequae o explain he complex evoluion of he growh rae in TFP. In his connecion, we modify he above simple TFP growh specificaion in he following ways. Firs, here is now an exensive lieraure on endogenous growh ha emphasizes he imporance of R&D effors as an engine of growh. The key argumen of he research-induced growh models is ha TFP growh moves closely wih R&D aciviy. For insance, he models of 3

5 Romer (1990), Segersrom e al. (1990), Grossman and Helpman (1991b) and Aghion and Howi (1992)) sugges ha he rae of produciviy growh ( g ) depends on he growh rae of he R&D sock of knowledge: A g A SK A = = ρ (3) A SK where SK is he sock of R&D knowledge. For low raes of depreciaion of R&D sock, we can wrie he above as: X = A υ A Q (4) where X is R&D inpu and Q represens he variey of producs in he economy. The raio ( X / Q ) is commonly referred o as research inensiy. The above framework is in line wih he Schumpeerian version of he R&D-based growh models of Aghion and Howi (1998), Dinopoulos and Thompson (1998), Pereo (1998) and Howi (1999). These models sugges he effeciveness of R&D is dilued due o he proliferaion of producs when an economy expands so ha we can assume consan reurns o he sock of R&D knowledge. Second, here is a growing lieraure suggesing ha domesic research aciviy plays a crucial role in faciliaing he ransfer of foreign echnology (see Howi, 2000; Griffih e al. 2003, 2004; Cameron e al., 2005; Hu e al., 2005). For insance, using a general equilibrium model of endogenous growh, Griffih e al. (2003) combine he above wo srands of lieraure and show ha R&D, in addiion o is direc effec, has an indirec effec on produciviy growh ha operaes hrough he speed of echnological cach-up. Specifically, a lagged ineracion erm beween DTF and ( X / Q ) is inroduced o capure he second face of R&D aciviy. I is posulaed ha he effec of R&D effors on TFP growh will be greaer for counries ha lie furher behind he echnological fronier. As such, his ineracion erm, also known as he absorpive capaciy, is expeced o have a posiive influence on TFP growh. Third, recen sudies have found ha greaer openness in he rade secor is posiively associaed wih higher produciviy growh-enhancing effecs (see, e.g., Coe e al., 1997; Ades and Glaeser, 1999; Alesina e al., 2000; Choudhri and Hakura, 2000). In he models developed 4

6 by Grossman and Helpman (1990, 1991a), rade openness affecs firms decisions o develop new producs, which in urn depend on inernaional compeiion and marke size. Thus, inernaional rade can promoe more innovaive aciviies in he domesic marke and lead o higher produciviy. An augmened equaion for TFP growh ha incorporaes hese consideraions can be given as follows: A g = = f X Q DTF X Q DTF TO [( / ),, ( / ) x, ] A A (5) The lieraure suggess ha per capia energy use ( E ) and per capia real oupu ( Y ) are he key deerminans of polluan emissions (see, e.g., Liu, 2005; Ang, 2007). However, an unproducive economy can also generae more polluion. This is because a counry which is more producive is able o use resources more efficienly (see Cole e al., 2005, 2008). In principle, higher produciviy growh induced by echnology ransfer and more R&D effors can improve environmenal performance. This would be he case when a large proporion of he impored echnology focuses on polluion abaemen and R&D aciviies relae o he creaion of clean echnology ha beer proecs he environmen. Therefore, a more complee characerizaion of he polluion funcion should include produciviy growh as a key deerminan. Incorporaing he role of TFP growh in abaing polluion, we can wrie he environmenal polluion funcion as: 1 C = h [ E, Y, f( g )] (6) A as: Using he above TFP growh specificaion in Eq. (5), we can wrie he polluion equaion 1 We have also aemped o model he polluion funcion using he environmenal Kuznes curve (EKC) framework. The resuls are, however, less saisfacory. This is no surprising given ha an EKC specificaion may no be appropriae for a developing counry like China. In fac, previous sudies by Ang (2007, 2008) have shown ha such a specificaion is appropriae for France bu no Malaysia. Moreover, Auffhammer and Carson (2008) show ha an EKC specificaion for China yields sub-opimal forecas resuls. See also Wagner (2008) who show ha he invered U-shaped relaionship found in he lieraure appears o be spurious and disappears once he observaions have been appropriaely de-facored. 5

7 ln C = α + β ln E + β lny + β lnto + β ln( X / Q) + β ln DTF β [ln( X / Q)x ln DTF] + β Reg+ ε (7) where emissions), C refers o an indicaor of environmenal qualiy for China (proxied by per capia CO 2 β 's represen he long-run elasiciies and ε is Gaussian errors. β 1 and β 2 are expeced o be posiive according o he lieraure. Greaer rade openness is likely o resul in more compeiion, causing he leas producive and leas energy-efficien firms o leave he marke. However, Anweiler e al. (2001) and Cole and Ellio (2003), among ohers, posulae ha he environmenal impac of rade liberalizaion can be decomposed ino scale (size of economy), echnique (producion mehods) and composiion (specializaion) effecs. While more polluion may occur due o he scale effec, he echnique effec is likely o be beneficial o he environmen. The composiion effec depends on he counry's comparaive advanage. Hence, he ne effec of free rade on he environmen depends on he relaive srengh of each opposing force, and is herefore ulimaely an empirical issue. Thus, he expeced sign for β 3 is indeerminae. The expeced signs for β 4, β 5 and β 6 are negaive since R&D aciviy, echnology gap and he absorpive capaciy of echnology ransfer are expeced o reduce polluion. Finally, following Cole e al. (2008), he empirical specificaion of he polluion funcion presened above also considers a legal dummy variable (Reg), which capures he effec of adopion of he Environmenal Proecion Law since Eq. (7) will be esimaed using annual daa for China over he period Daa and Esimaion Techniques 3.1 Measuremen and daa sources This secion describes he consrucion of variables, daa sources and economeric echniques employed in he analysis. Long hisorical daa on polluion for China are no available from any domesic official source. Therefore, we have obained he daa from an inernaional source compiled by he Carbon Dioxide Informaion Analysis Cener. 2 Following mos prior sudies (see, e.g., Holz-Eakin and Selden, 1995; Friedl and Gezner, 2003; Marinez- Zarzoso and Bengochea-Morancho, 2004; Liu, 2005; Ang, 2007, 2008; Auffhammer and Carson, 2008), we consider per capia CO 2 emissions (C ) as he measure for he level of polluion. I refers o he oal emissions from fossil-fuel burning, cemen manufacure and gas flaring. Daa for oher ypes of emissions going back as far as he 1950s are unforunaely no 2 The daa are available for download a: hp://cdiac.ornl.gov/fp/rends/emissions/prc.da. 6

8 available. Real GDP and energy consumpion daa are direcly obained from he China Saisical Yearbook. In line wih CO 2 emissions, hese wo series are divided by populaion. We use he sandard rade inensiy measure, i.e., he sum of expors and impors over GDP, as he proxy for rade openness (TO ). In he lieraure, i is common o use eiher R&D labor or real R&D expendiure as he proxy for R&D inpu ( X ). However, daa for R&D personnel are only available from The lack of R&D personnel daa for he enire esimaion period promps us o consider using only R&D expendiure in he analysis. R&D expendiure, which is available coninuously from 1953, is proxied by oal scienific research expendiure. This is obained from he Naional Bureau of Saisics of China (1999), and more recen daa are aken from he China Saisical Yearbook. Largely due o he lack of R&D daa for developing counries, almos all previous work on R&D-based growh models has focused only on OECD counries (see, e.g., Zachariadis, 2003; Guellec and De la Poerie, 2004; Ha and Howi, 2007). Disance o he fronier can be measured as follows: DTF A A L = (8) L A where L A is he level of oal facor produciviy of he echnological leader a ime. Following he general pracice in he lieraure, we ake he Unied Saes as he echnological fronier (see, e.g., Cameron e al., 2005; Madsen e al., 2008). The furher China lies behind he echnological leader, he larger he echnology gap and herefore he greaer he poenial for echnology ransfer o benefi produciviy growh and hereby reduce polluion. Toal facor produciviy is compued as Y / K L π 1. We use gross domesic produc a consan price as he measure of real oupu ( Y ). Real capial sock ( K ) is compued using he perpeual invenory mehod (i.e., K = I + (1 δ ) K 1). In line wih Coe and Helpman (1995), a depreciaion rae (δ ) of 5% and he growh rae of gross capial formaion (g) a consan prices during he sample period, , are used o obain he iniial sock ( K 0 ) for he year 1953, so ha K 0 = I 0 /( g+ δ ), where I 0 is real gross capial formaion in Following he esablished pracice in he lieraure, capial s share of income (π ) is se a 0.3. Naional accoun saisics for he U.S. are colleced from he Bureau of Economic Analysis whereas labor daa are aken from he Bureau of Labor Saisics. Daa for Y, K and L for China covering he 7

9 period are obained from Wang and Yao (2003). We exend he daa using more recen daa poins available from he China Saisical Yearbook. Figure 1: Time series plos of variables ( ) -8-6 ln (per capia CO2 emissions) ln (per capia energy use) -9 ln C ln E ln (per capia real GDP) -0.5 ln (rade openness) 8 ln Y -1.5 ln TO ln (research inensiy) ln (R/AL) ln (disance o he fronier) -3 ln (R/AHL) ln DTF -5 ln (R/Y) To measure R&D expendiure in real erms, we deflae by an unweighed average of a wage index and he GDP deflaor. The former is consruced using daa for average earnings of workers in urban unis available from he China Saisical Yearbook. Daa before 1978 are backdaed by assuming ha he growh rae of wages can be approximaed by he sum of he rae of inflaion and he growh rae in labor produciviy ( Y / L ). Produc variey ( Q ) is measured 8

10 by number of workers ( L ) and real oupu ( Y ). However, some adjusmens for he measure of produc variey are necessary given ha here is a endency for decreasing reurns o R&D due o he increasing complexiy of innovaion (Ha and Howi, 2007). Thus, labor is adjused for produciviy and human capial so ha he following wo addiional measures of research inensiy are also considered: R / AL and R / AH L, where A is oal facor produciviy, and H is he sock of human capial, which is proxied by he average years of schooling. These addiional measures herefore accoun for produciviy or human capial adjusmens or boh. Daa on human capial sock are obained from Wang and Yao (2003) and exended accordingly using he mehodology herein. 3 The ime series plos of he variables used in he empirical analysis are presened in Figure 1. I is eviden ha per capia CO 2 emissions ( C ), per capia energy use ( E ), per capia real oupu ( Y ) and rade openness ( TO ) all show a srong increasing rend over ime. The measures of research inensiy ( R / Y, R / AL and R / AH L) increase sharply during he 1950s and peak in he early 1960s. Since hen, he series have been associaed wih a mild decreasing rend. The decline in he measure for disance o he fronier ( DTF ) indicaes ha he Chinese economy is caching up wih he world echnological leader. 3.2 Economeric Techniques We adop he radiional ARDL approach o he esimaion of he long-run relaionship and he shor-run dynamics for environmenal polluion and is deerminans. Pesaran and Shin (1999) have shown ha he OLS esimaors of he shor-run parameers are consisen, and he ARDL based esimaors of he long-run coefficiens are super-consisen in small sample sizes. Hence, valid inferences on he long-run parameers can be made using sandard normal asympoic heory. Moreover, his esimaor is applicable irrespecive of wheher he regressors are I(0) or I(1). The opimal orders of he ARDL model are seleced using he SIC by allowing for one lag in he esimaion. In order o es he robusness of he resuls, all esimaions are subjec o various diagnosic ess. To provide for robusness checks, he environmenal polluion equaion is also esimaed using hree alernaive single-equaion esimaors, namely he fully-modified OLS (FM-OLS) esimaor of Phillips and Hansen (1990), he fully-modified unresriced error-correcion model (FM-UECM) of Inder (1993) and he dynamic ordinary leas squares (DOLS) echnique of Sock and Wason (1993). 3 These daa are also available from Rawski and Perkins (2008). 9

11 Using he Wald ess, he resuling es saisics from he FM-OLS procedure are "fullymodified" by semiparameric correcions for serial correlaion and for endogeneiy. This fully modified procedure has been found o work well in finie samples, a feaure which is paricularly appealing given he small sample size used in he presen sudy. In implemening he FM-UECM procedure, we follow Bewley (1979) by using he insrumenal variable echnique o correc he sandard errors so ha valid inferences can be drawn. Inder (1993) suggess ha lagged level variables can be used as he insrumens for he firs-differen curren erms o correc for endogeneiy bias. The key advanage of he DOLS procedure is ha i allows for he presence of a mix of I(0) and I(1) variables in he coinegraed sysem. The esimaion involves regressing one of he I(1) variables on he remaining I(1) variables, he I(0) variables, leads (p) and lags (-p) of he firs difference of he I(1) variables, and a consan. By doing so, i correcs for poenial endogeneiy problems and small sample bias, and provides esimaes of he coinegraing vecor which are asympoically efficien Esimaion Resuls 4.1 Long-run and shor-run ARDL esimaes Table 1 presens he resuls for he polluion funcion esimaed using he ARDL esimaor. The able shows he resuls obained for hree models, where each model corresponds o he esimaion resuls using differen measures of research inensiy. In view of sample size, we consider only one lag in he esimaion. The choice of his lag lengh appears o be consisen wih he opimal lag suggesed by sandard informaion crieria such as AIC and SBC. I is eviden ha energy consumpion eners he long-run polluion equaion significanly a he one percen level wih he expeced sign. Specifically, he coefficiens of ln E are found o be in he range of o Using he Wald ess, he null ha he parameer of energy consumpion is equal o one (or H0: β 1 = 1 in Eq. 7) canno be rejeced a he five percen significance level, suggesing ha here is a one-o-one relaionship beween energy use and CO 2 emissions in China. The finding of a posiive effec of energy use is consisen wih Liu (2005) and Ang ( 2007, 2008), among ohers. The income variable ( lny ), however, is found o have no saisically significan impac on he level of polluion, regardless of how research inensiy is measured. 4 All underlying variables are found o be eiher I(0) or I(1), and his allows legiimae use of he ARDL and DOLS esimaors. The uni roo es resuls are no repored here o conserve space, bu hey are available upon reques. 10

12 Trade openness ( lnto ) is found o have a posiive impac on polluion, suggesing ha a more liberalized rade secor ends o harm he environmen. This finding is highly plausible for China given ha he negaive scale effec associaed wih rade liberalizaion on he environmen is likely o ouweigh he posiive echnique effec. Moreover, given China's saus as a developing counry, he polluion haven hypohesis suggess ha is composiion effec of rade is likely o degrade he environmen. Hence, he overall effec of free rade on he environmen is likely o be negaive (see also Anweiler e al., 2001; Cole and Ellio, 2003). ( ln 1 Turning o he measures of R&D inensiy ( ln( X / Q) 1 ) and disance o he fronier DTF ), he resuls srongly sugges ha more R&D aciviy and he ransfer of foreign echnology are effecive mechanisms for abaing polluion. Our esimaes show ha research inensiy has boh direc and indirec effecs on CO 2 emissions. Holding he indirec effec consan, he resuls show ha research inensiy is found o have a direc negaive effec on CO 2 emissions in China, wih a negaive long-run elasiciy in he range of Wih regard o is indirec effec, he ineracion erm is found o be saisically significan and has he expeced negaive sign. In his connecion, i can be inferred ha China s abiliy o assimilae foreign echnical know-how can be enhanced hrough more R&D invesmen, and his highlighs he imporan role of local R&D capabiliy as an effecive channel for apping ino echnology developed in he fronier counries (see Hu e al., 2005). This inerpreaion is obvious when we obain he derivaive of ln C wih respec o ln( X / Q) 1. In Model A, his gives ln( X / Q) 1. Our resuls imply ha more R&D spending will resul in lower polluion via wo channels: 1) direcly miigaing he environmenal damage by faciliaing he innovaion of new producion echniques ha help abae polluan emissions; and 2) enabling firms o more effecively assimilae green echnology developed elsewhere, hus helping narrow he echnology gap beween he fronier and he domesic economy. Wih regard o he direc effec of disance o he fronier, a one percen increase in he echnology gap ends o reduce polluion by o percen, holding research inensiy consan. This finding suggess ha China can gain significan benefis by using echnology developed elsewhere o help comba polluion. The coefficiens associaed wih Reg are found o be negaive and significan in all models. Thus, environmenal regulaion appears o be an effecive device in conaining CO 2 emissions. 11

13 Table 1: ARDL esimaes of he CO 2 emissions equaion ( ) Model A ( X / Q) = ( R/ Y) Model B ( X / Q) = ( R/ AL) Model C ( X / Q) = ( R/ AHL) I. The long-run relaionship ( Dep. = lnc ) Coeff. p-value Coeff. p-value Coeff. p-value Inercep *** ** *** ln E *** *** *** lny lnto *** *** *** ln( X / Q) *** *** *** ln DTF *** ** *** X Q 1 x ln 1 ln( / ) DTF *** *** *** Reg ** * *** II. The shor-run dynamics ( Dep. =Δ lnc ) Inercep *** * *** ECT *** *** *** Δ ln E *** *** *** Δ lny Δ lnto *** ** *** Δ ln( X / Q) *** *** *** Δ ln DTF *** *** *** Δ[ln( X / Q) x ln DTF ] *** *** *** Δ Reg ** ** *** III. Diagnosic checks Tes-sa. p-value Tes-sa. p-value Tes-sa. p-value 2 χ SERIAL χ WHITE χ ARCH χ RESET Noes: χ NORMAL refers o he Jarque-Bera saisic of he es for normal residuals, es saisics for no firs-order serial correlaion, respecively, homoskedasic errors, 2 χ SERIAL is Breusch-Godfrey LM 2 χ WHITE denoes he Whie s es saisic o es for 2 χ ARCH is he Engle s es saisic for no auoregressive condiional heeroskedasiciy and 2 RESET χ is he Ramsey s es saisic for no funcional misspecificaion. *, ** and *** indicae 10%, 5% and 1% levels of significance, respecively. 12

14 The shor-run dynamics of he CO 2 emissions funcion are repored in panel II of Table 1. Similar o he long-run resuls, income growh is found o have no saisically significan impac on he increase in polluion. In firs-differenced form, he variables have expeced signs, consisen wih he resuls obained for he long-run models. The magniudes of all he coefficiens are smaller han heir long-run counerpars, suggesing ha hese variables have sronger effecs on polluion in he long run. For insance, in Model A, a one uni increase in research inensiy is associaed wih a uni reducion in polluion in he long run. However, in he shor run, a one percenage poin increase in he growh rae of research inensiy is correlaed wih only a percenage poin decrease in he growh rae of CO 2 emissions. The error-correcion erm (ECT) capures he evoluion process on he variable of concern, in his case Δ ln E, by which agens adjus for predicion errors made in he las period. The coefficiens on ECT 1, which measure he speed of adjusmen back o he long-run equilibrium value, are saisically significan a he one percen level and correcly signed, i.e., negaive. This implies ha an error-correcion mechanism exiss in he CO 2 emissions funcion so ha he deviaion from long-run equilibrium has a significan impac on he growh rae of polluion. This provides some evidence supporing he presence of he underlying relaionship in he long run. I is found ha he economy will adjus a a speed of 34.4 percen o 56.7 percen a year o resore equilibrium when here is a shock o he seady-sae relaionship. 4.2 Robusness checks The resuls repored in panel III of Table 1 show ha he regression specificaions fi remarkably well. In paricular, in all models, we do no find any evidence of serial correlaion, heeroskedasiciy, auoregressive condiional heeroskedasiciy and funcional misspecificaion a he convenional levels of significance. The srucural sabiliy of he emissions funcion is examined using he cumulaive sum (CUSUM) ess on he recursive residuals. 5 The es is able o deec sysemaic changes in he regression coefficiens. Figure 2 shows ha he saisics generally lie wihin or on he five percen confidence inerval bands, suggesing no srucural insabiliy in he residuals of he emissions equaion. 5 We have also esed for he presence of srucural breaks by ineracing all variables (excep rade openness) in he equaion wih a dummy variable (d) o capure he effecs of he reforms ha ook place since d equals 1 for he pos-reform period and is se o zero before he reform. The reform dae is alernaively assumed o be 1978, 1980 and Wih no excepion, all hese ineracion erms urn ou o be saisically insignifican, providing some suppor ha our resuls are no disored by he regime shifs ha have occurred following he reform episode. 13

15 Figure 2: Plos of cumulaive sum of recursive residuals Model A Model B Model C Noes: The sraigh lines represen criical bounds a he 5% significance level. 4.3 Alernaive esimaors The sensiiviy of he resuls is furher assessed using hree oher esimaors, namely he FM-OLS procedure of Phillips and Hansen (1990), he FM-UECM esimaor of Inder (1993) and he DOLS procedure of Sock and Wason (1993). As Table 2 shows, hese approaches give very similar resuls compared o hose esimaed using he ARDL approach. Alhough he magniude of he coefficiens shows some small variaions, he qualiaive aspecs of he resuls are, by and large, consisen wih hose obained using he ARDL esimaor. An excepion is ha income is found o have a saisically posiive effec on polluion when he models are esimaed using he approaches ha involve a fully-modified procedure. Imporanly, he key findings ha research inensiy, disance o he fronier and heir ineracion help reduce CO 2 emissions remain unalered. The resuls are insensiive o choice of he research inensiy measures. The 14

16 shor-run resuls and diagnosic ess are also similar o hose obained using he ARDL esimaion echnique, and hence no repored here for breviy. We herefore conclude ha he resuls are quie robus overall o he choice of esimaors. Table 2: Alernaive esimaes for he CO 2 emissions equaion ( ) Model A ( X / Q) = ( R/ Y) Model B ( X / Q) = ( R/ AL) Model C ( X / Q) = ( R/ AHL) I. FM- OLS Coeff. p-value Coeff. p-value Coeff. p-value Inercep *** *** *** ln E *** *** *** lny ** *** ** lnto *** *** *** ln( X / Q) *** *** *** ln DTF *** *** ln( X / Q) 1 x ln DTF *** *** *** Reg ** II. FM-UECM Inercep *** *** *** ln E *** *** *** lny *** *** *** lnto *** *** *** ln( X / Q) *** *** *** ln DTF *** *** *** ln( X / Q) 1 x ln DTF *** *** *** Reg * ** III. DOLS Inercep * ln E *** *** *** lny lnto *** *** *** ln( X / Q) *** *** *** ln DTF *** ** *** ln( X / Q) 1 x ln DTF *** *** *** Reg *** ** *** Noes: he shor-run dynamics and he diagnosic es resuls are no repored o conserve space. They are available upon reques. *, ** and *** indicae 10%, 5% and 1% levels of significance, respecively. 15

17 4.3 Alernaive specificaion Our underlying model assumes so far ha all he righ-hand-side variables in Eq. (7) have a direc effec on CO 2 emissions. However, he model may be misspecified since some of hese variables may ac indirecly on CO 2 emissions hrough he channel of energy demand raher han operaing direcly on CO 2 emissions once we conrol for energy demand. In ligh of his, we also esimae a simulaneous equaion sysem o furher examine he robusness of he resuls. 6 For he firs equaion, we assume ha per capia polluan emission (C ) is a funcion of per capia energy consumpion (E ), rade openness (TO ), research inensiy [(X/Q) ] and a dummy variable capuring he effec of environmenal regulaion (Reg), as follows: ln C = χ + χ ln E + χ lnto + χ ln( X / Q) + χ Reg+ μ (9) The second equaion, i.e., he energy demand funcion, is posulaed o ake he form of Eq. (10). Here, per capia energy consumpion (E ) is specified as a funcion of per capia real income (Y ), disance o he fronier (DTF ) and absorpive capaciy [(X/Q) -1 x DTF -1 ], as follows: 7 ln E = δ + δ lny + δ ln DTF + δ [ln( X / Q)x ln DTF] + ν (10) Under his simulaneous framework, we assume ha more R&D invesmen encourages he innovaion of new producion echniques or green echnology ha helps curb CO 2 emissions, and hence χ 3 is expeced o be negaive. Boh echnological backwardness and absorpive capaciy of he domesic economy enables he adopion of energy-efficien echnology developed by he fronier counries, and his effecively reduces energy consumpion. Thus, boh δ 2 and δ 3 are expeced o carry a negaive sign. Eqs. (9) and (10) are joinly esimaed using he seemingly unrelaed regression (SUR) (or Zeller's mehod) and he full informaion maximum likelihood (FIML) esimaors o obain he parameer esimaes of he sysem. The former accouns for boh heeroskedasiciy and 6 We hank an anonymous referee for drawing our aenion o his poin and for recommending his alernaive modelling approach. 7 We have also considered research inensiy in he energy demand equaion due o Fisher-Vanden e al. (2004) and Fisher-Vanden and Jefferson (2008). However, he inclusion of his variable gives unsaisfacory regression resuls and herefore i is omied in he specificaion. 16

18 conemporaneous correlaion in he residuals across all equaions whereas he laer is a fully efficien esimaor which assumes ha he conemporaneous errors have a join normal disribuion. The esimaes repored in Table 3 show ha our earlier resuls are, by and large, insensiive o his alernaive modelling framework. Alhough he legal dummy and disance o he fronier become insignifican in some cases, all variables coninue o have heir expeced signs and are highly significan. The sysem esimaes are also robus o differen measures of research inensiy and he choice of esimaors. Table 3: SUR and FIML esimaes for he simulaneous equaion sysem Model A ( X / Q) = ( R/ Y) Model B ( X / Q) = ( R/ AL) Model C ( X / Q) = ( R/ AHL) SUR FIML SUR FIML SUR FIML I. The Emissions Funcion (Dep. = ln C) Inercep ln E lnto ln( X / Q) Reg *** *** *** *** ** (0.041) *** *** *** *** (0.003) (0.245) E) II. The Energy Demand Funcion (Dep. = ln ln( / ) Inercep lny ln DTF 1 ln X Q 1 x DTF *** *** *** *** *** *** *** (0.009) *** *** *** *** *** * (0.052) *** *** (0.365) *** *** *** *** *** (0.006) (0.232) *** *** (0.677) *** *** *** *** *** (0.317) *** *** (0.178) *** *** *** *** *** (0.002) (0.678) *** *** (0.282) *** Noes: Figures in parenhesis indicae he p-values. *, ** and *** indicae 10%, 5% and 1% levels of significance, respecively. 5. Summary and Conclusions This sudy was moivaed by he observaion of a rapid deerioraion in he environmenal qualiy of China in recen years along wih is srong growh performance, and he lack of any previous aemps o analyze he underlying forces influencing CO 2 emissions a 17

19 he aggregae level. Amids acive debae on global warming issues, he presen sudy provides imely informaion o guide policy formulaion for China as well as oher developing counries. The analyical framework combines modern growh heoreical underpinnings wih he environmenal lieraure so ha we can focus he analysis on he roles of R&D aciviy and echnology ransfer in reducing polluion. Using aggregae daa for China for more han half a cenury, he empirical resuls show ha an increase in energy use and rade inensiy conribue o higher CO 2 emissions in China. On he oher hand, CO 2 emissions decrease wih increases in research aciviy, disance o he echnological fronier and heir ineracion ha reflecs he abiliy of China o absorb foreign echnology. Given he significan ineracion beween R&D inensiy and he echnology gap, increased domesic R&D aciviy will help he domesic economy o assimilae echnology developed in he leading counries more effecively. Thus, research inensiy exers boh direc and indirec beneficial influences in abaing CO 2 emissions. There is also some evidence ha higher aggregae demand induces more CO 2 emissions bu he adopion of more sringen environmenal regulaions helps in abaing hem. However, i should be highlighed ha since he esimaion resuls are based on ime series aggregae daa, our esimaes may no be consisen wih analysis conduced a he provincial level, which provides more degrees of freedom in esimaion bu involves a much shorer ime horizon. The use of provincial daa is beyond he scope of he presen paper and will be lef for fuure research. Nowihsanding his limiaion, he findings of his paper are broadly in line wih he lieraure and have imporan implicaions for policy design. To he exen ha research inensiy and is ineracion wih disance o he fronier echnology have a posiive effec in reducing CO 2 emissions, policies ha encourage more research aciviy will no only help conain polluion direcly hrough faciliaing more innovaion in producion echniques ha emi less polluions, bu will also enable China o more effecively absorb echnology developed elsewhere and hereby cach up o he fronier s green echnology. Thus, increasing research effors have dual posiive effecs in conaining polluion. These effecs are expeced o coninue given ha China is unlikely o surpass he world echnological leader in he near fuure. Finally, he resuls in his sudy also highligh ha modern R&D-based endogenous growh models can be applied o undersand issues relaed o environmenal polluion even in he conex of developing economies. 18

20 References Ades, A.F. and Glaeser, E.L. (1999). "Evidence on Growh, Increasing Reurns and he Exen of he Marke." Quarerly Journal of Economics 114, pp Aghion, P. and Howi, P. (1992). "A Model of Growh hrough Creaive Desrucion." Economerica 60, pp (1998). Endogenous Growh Theory. Cambridge: MIT Press. Alesina, A.; Spolaore, E. and Wacziarg, R. (2000). "Economic Inegraion and Poliical Disinegraion." American Economic Review 90, pp Ang, J.B. (2007). "CO2 Emissions, Energy Consumpion, and Oupu in France." Energy Policy 35, pp (2008). "The Long-run Relaionship beween Economic Developmen, Polluan Emissions, and Energy Consumpion: Evidence from Malaysia." Journal of Policy Modeling 30, pp Anweiler, W.; Brian, C.R. and Sco, T. (2001). "Is free rade good for he environmen?." American Economic Review 91, pp Auffhammer, M. and Carson, R.T. (2008). "Forecasing he Pah of China s CO2 Emissions Using Province-Level Informaion." Journal of Environmenal Economics and Managemen 55, pp Bernard, A.B. and Jones, C.I. (1996a). "Comparing Apples o Oranges: Produciviy Convergence and Measuremen Across Indusries and Counries." American Economic Review 86, pp (1996b). "Produciviy Across Indusries and Counries: Time Series Theory and Evidence." Review of Economics and Saisics 78, pp Bewley, R. (1979). "The Direc Esimaion of he Equilibrium Response in a Linear Dynamic Model." Economics Leers 3, pp Cameron, G.; Proudman, J. and Redding, S. (2005). "Technological Convergence, R&D, Trade and Produciviy Growh." European Economic Review 49, pp Chan, H. and Lee, S. (1996). "Forecasing he Demand for Energy in China." Energy Journal 17, pp Choudhri, E.U. and Hakura, D.S. (2000). "Inernaional Trade and Produciviy Growh: Exploring he Secoral Effecs for Developing Counries." IMF Saff Papers 47, pp Coe, D.T. and Helpman, E. (1995). "Inernaional R&D spillovers." European Economic Review 39, pp

21 Coe, D.T.; Helpman, E. and Hoffmaiser, A.W. (1997). "Norh-Souh R&D Spillovers." Economic Journal 107, pp Cole, M.A. and Ellio, R.J.R. (2003). "Deermining he Trade Environmen Composiion Effec: The Role of Capial, Labor and Environmenal Regulaions " Journal of Environmenal Economics and Managemen 46, pp Cole, M.A.; Ellio, R.J.R. and Shimamoo, K. (2005). "Indusrial Characerisics, Environmenal Regulaion and Air Polluion: An Analysis of he UK Manufacuring Secor." Journal of Environmenal Economics and Managemen 50, pp Cole, M.A.; Ellio, R.J.R. and Wu, S. (2008). "Indusrial Aciviy and he Environmen in China: An Indusry-Level Analysis." China Economic Review 19, pp Crompon, P. and Wu, Y. (2005). "Energy Consumpion in China: Pas Trends and Fuure Direcions." Energy Economics 27, pp Dinopoulos, E. and Thompson, P. (1998). "Schumpeerian Growh wihou Scale Effecs." Journal of Economic Growh 3, pp Fisher-Vanden, K. and Jefferson, G.H. (2008). "Technology Diversiy and Developmen: Evidence from China s Indusrial Enerprises." Journal of Comparaive Economics 36, pp Fisher-Vanden, K.; Jefferson, G.H.; Liu, H. and Tao, Q. (2004). "Wha Is Driving China s Decline in Energy Inensiy?" Resource and Energy Economics 26, pp Friedl, B. and Gezner, M. (2003). "Deerminans of CO2 Emissions in A Small Open Economy." Ecological Economics 45, pp Griffih, R.; Redding, S. and Reenen, J.V. (2003). "R&D and Absorpive Capaciy: Theory and Empirical Evidence." Scandinavian Journal of Economics 105, pp Griffih, R.; Redding, S. and Reenen, J.v. (2004). "Mapping he Two Faces of R&D: Produciviy Growh in a Panel of OECD Indusries." Review of Economics and Saisics 86, pp Grossman, G.M. and Helpman, E. (1990). "Comparaive Advanage and Long-Run Growh." American Economic Review 80, pp (1991a). "Endogenous Produc Cycles." Economic Journal 101, pp (1991b). "Qualiy Ladders in he Theory of Growh." Review of Economic Sudies 58, pp Guellec, D. and De la Poerie, B.V.P. (2004). "From R&D o Produciviy Growh: Do he Insiuional Seings and he Source of Funds of R&D Maer?" Oxford Bullein of Economics and Saisics 66, pp

22 Ha, J. and Howi, P. (2007). "Accouning for Trends in Produciviy and R&D: A Schumpeerian Criique of Semi-Endogenous Growh Theory." Journal of Money, Credi and Banking 39, pp Holz-Eakin, D. and Selden, T.M. (1995). "Soking he fires? CO2 emissions and economic growh." Journal of Public Economics 57, pp Howi, P. (1999). "Seady Endogenous Growh wih Populaion and R&D Inpus Growing." Journal of Poliical Economy 107, pp (2000). "Endogenous Growh and Cross-Counry Income Differences." American Economic Review 90, pp Hu, A.G.Z.; Jefferson, G.H. and Jinchang, Q. (2005). "R&D and Technology Transfer: Firm- Level Evidence from Chinese Indusry." Review of Economics and Saisics 87, pp Inder, B. (1993). "Esimaing Long-Run Relaionships in Economics: A Comparison of Differen Approaches." Journal of Economerics 57, pp Liu, X. (2005). "Explaining he Relaionship beween CO2 Emissions and Naional Income - The Role of Energy Consumpion." Economics Leers 87, pp Madsen, J.B.; Saxena, S. and Ang, J.B. (2008). "The Indian Growh Miracle and Endogenous Growh." The Ausralian Naional Universiy, Cener for Applied Macroeconomic Analysis (CAMA) Working Papers. Marinez-Zarzoso, I. and Bengochea-Morancho, A. (2004). "Pooled mean group esimaion of an environmenal Kuznes curve for CO2." Economics Leers 82, pp Naional-Bureau-of-Saisics-of-China (1999). Comprehensive Saisical Daa and Maerials on 50 Years of New China. Beijing: China Saisics Press. (various issues). China Saisical Yearbook. Beijing: China Saisics Press. Nielsen, C.P. and Ho, M.S. (2007). "Air Polluion and Healh Damages in China: An Inroducion and Review," Ho, M. S. and Nielsen, C. P. (Ed), In: Clearing he Air: The Healh and Economic Damages of Air Polluion in China. Cambridge and London: MIT Press, Pereo, P. (1998). "Technological Change and Populaion Growh." Journal of Economic Growh 3, pp Pesaran, M.H. and Shin, Y. (1999). "An Auoregressive Disribued-Lag Modelling Approach o Coinegraion Analysis," Srom, S. (Ed), In: Economerics and Economic Theory in he Twenieh Cenury: The Ragnar Frisch Cenennial Symposium. Cambridge: Cambridge Universiy Press, Phillips, P.C.B. and Hansen, B. (1990). "Saisical Inference in Insrumenal Variables Regression wih I(1) Processes." Review of Economic Sudies 57, pp

23 Rawski, T. and Perkins, D.H. (2008). "Forecasing China's Economic Growh o 2025," Brand, L. and Rawski, T. G. (Ed), In: China`s Grea Economic Transformaion. Cambridge: Cambridge Universiy Press, Romer, P.M. (1990). "Endogenous Technological Change." Journal of Poliical Economy 98, pp. S Segersrom, P.S.; Anan, T.C.A. and Dinopoulos, E. (1990). "A Schumpeerian Model of he Produc Life Cycle." American Economic Review 80, pp Sinon, J.E. and Fridley, D.G. (2000). "Wha Goes Up: Recen Trends in China s Energy Consumpion." Energy Policy 28, pp Sock, J.H. and Wason, M.W. (1993). "A Simple Esimaor of Coinegraing Vecors in Higher Order Inegraed Sysems." Economerica 61, pp The-World-Bank (2007). Cos of Polluion in China: Economic Esimaes of Physical Damages. Beijing: The World Bank Wagner, M. (2008). "The Carbon Kuznes Curve: A Cloudy Picure Emied by Bad Economerics?" Resource and Energy Economics 30, pp Wang, Y. and Yao, Y. (2003). "Sources of China's Economic Growh : Incorporaing Human Capial Accumulaion." China Economic Review 14, pp Zachariadis, M. (2003). "R&D, Innovaion, and Technological Progress: A Tes of he Schumpeerian Framework wihou Scale Effecs." Canadian Journal of Economics 36, pp

INSTITUTIONAL INVESTOR SENTIMENT

INSTITUTIONAL INVESTOR SENTIMENT 9. INSTITUTIONAL INVESTOR SENTIMENT AND MARET RETURNS: EVIDENCE FROM THE TAIWAN FUTURES MARET Absrac Ralph Yang-Cheng LU 2 Hsiu-Chuan LEE 3 Peer CHIU 4 This sudy explores he dynamic relaionship beween

More information

GROWTH AND CONVERGENCE IN THE SPACE ECONOMY : EVIDENCE FROM THE UNITED STATES

GROWTH AND CONVERGENCE IN THE SPACE ECONOMY : EVIDENCE FROM THE UNITED STATES GROWTH AND CONVERGENCE IN THE SPACE ECONOMY : EVIDENCE FROM THE UNITED STATES John I. CARRUTHERS *, Michael K. HOLLAR **, Gordon F. MULLIGAN *** Absrac - This paper invesigaes geographic relaionships in

More information

Supply and Demand Model for the Malaysian Cocoa Market

Supply and Demand Model for the Malaysian Cocoa Market MPRA Munich Personal RePEc Archive Supply and Demand Model for he Malaysian Cocoa Marke Amna Awad Abdel Hameed and Akram Hasanov and Nurjihan Idris and Amin Mahir Abdullah and Faimah Mohamed Arshad and

More information

The Long-Run Volatility Puzzle of the Real Exchange Rate. Ricardo Hausmann Kennedy School of Government Harvard University

The Long-Run Volatility Puzzle of the Real Exchange Rate. Ricardo Hausmann Kennedy School of Government Harvard University The Long-Run Volailiy Puzzle of he Real Exchange Rae Ricardo Hausmann Kennedy School of Governmen Harvard Universiy Ugo Panizza Research Deparmen Iner-American Developmen Bank Robero Rigobon * Sloan School

More information

AN ECONOMIC EVALUATION OF THE HASS AVOCADO PROMOTION ORDER S FIRST FIVE YEARS

AN ECONOMIC EVALUATION OF THE HASS AVOCADO PROMOTION ORDER S FIRST FIVE YEARS AN ECONOMIC EVALUATION OF THE HASS AVOCADO PROMOTION ORDER S FIRST FIVE YEARS A REPORT PREPARED FOR THE HASS AVOCADO BOARD BY Hoy F. Carman Lan Li Richard J. Sexon 1 March 30, 2009 1 Hoy F. Carman is Professor

More information

Macro-Finance Determinants of the Long-Run Stock-Bond Correlation: The DCC-MIDAS Specification *

Macro-Finance Determinants of the Long-Run Stock-Bond Correlation: The DCC-MIDAS Specification * Macro-Finance Deerminans of he Long-Run Sock-Bond Correlaion: The DCC-MIDAS Specificaion * Hossein Asgharian, Lund Universiy + Charloe Chrisiansen, CREATES, Aarhus Universiy ++ and Ai Jun Hou, Sockholm

More information

Testing for the Random Walk Hypothesis and Structural Breaks in International Stock Prices

Testing for the Random Walk Hypothesis and Structural Breaks in International Stock Prices Universiy of Wollongong Research Online Faculy of Business - Economics Working Papers Faculy of Business 200 Tesing for he Random Walk Hypohesis and Srucural Breaks in Inernaional Sock Prices S. Chanchara

More information

Título artículo / Títol article: Re-examining the risk-return relationship in Europe: Linear or non-linear trade-off?

Título artículo / Títol article: Re-examining the risk-return relationship in Europe: Linear or non-linear trade-off? Tíulo arículo / Tíol aricle: Re-examining he risk-reurn relaionship in Europe: Linear or non-linear rade-off? Auores / Auors Enrique Salvador Aragó, Chrisos Floros, Vicen Aragó Manzana Revisa: Journal

More information

Inter-regional Transportation and Economic Development: A Case Study of Regional Agglomeration Economies in Japan

Inter-regional Transportation and Economic Development: A Case Study of Regional Agglomeration Economies in Japan Iner-regional Transporaion and Economic Developmen: A Case Sudy of Regional Agglomeraion Economies in Japan Jepan Wewioo a and Hironori Kao b a Deparmen of Civil Engineering, The Universiy of Tokyo 7-3-1,

More information

Analysis of Egyptian Grapes Market Shares in the World Markets

Analysis of Egyptian Grapes Market Shares in the World Markets American-Eurasian J. Agric. & Environ. Sci., 3 (4): 656-66, 008 ISSN 1818-6769 IDOSI Publicaions, 008 Analysis of Egypian Grapes Marke Shares in he World Markes Hamdi A. El- Sawalhy, Mohamed G.M. Abou

More information

Duration models. Jean-Marie Le Goff Pavie-Unil

Duration models. Jean-Marie Le Goff Pavie-Unil Duraion models Jean-Marie Le Goff Pavie-Unil Oher erms for duraion models Duraion models: economery Survival analysis : medical sciences, demography Even hisory analysis, ransiion analysis : social sciences

More information

Transmission of prices and price volatility in Australian electricity spot markets: A multivariate GARCH analysis

Transmission of prices and price volatility in Australian electricity spot markets: A multivariate GARCH analysis Transmission of prices and price volailiy in Ausralian elecriciy spo markes: A mulivariae GARCH analysis Auhor Worhingon, Andrew, Kay-Spraley, Adam, Higgs, Helen Published 2005 Journal Tile Energy Economics

More information

Textos para Discussão PPGE/UFRGS

Textos para Discussão PPGE/UFRGS Texos para Discussão PPGE/UFRGS Programa de Pós-Graduação em Economia Universidade Federal do Rio Grande do Sul ENDOGENEITY AND NONLINEARITIES IN CENTRAL BANK OF BRAZIL S REACTION FUNCTIONS: AN INVERSE

More information

Price convergence in the European electricity market

Price convergence in the European electricity market Price convergence in he European elecriciy marke Dr. E. Dijkgraaf Prof.dr. M.C.W. Janssen Erasmus Compeiion and Regulaion insiue Erasmus Universiy Roerdam Augus 7 7 Conac: Elber Dijkgraaf SEOR-ECRi Erasmus

More information

Market Overreaction and Under-reaction for Currency Futures Prices. January 2008

Market Overreaction and Under-reaction for Currency Futures Prices. January 2008 Marke Overreacion and Under-reacion for Currency Fuures Prices Sephen J. Larson and Sephen E. Wilcox* Minnesoa Sae Universiy, Mankao January 2008 Sephen J. Larson, Ph.D., CFP Minnesoa Sae Universiy, Mankao

More information

Sustainability of external imbalances in the OECD countries *

Sustainability of external imbalances in the OECD countries * Susainabiliy of exernal imbalances in he OECD counries * Oscar Bajo-Rubio (Universidad de Casilla-La Mancha) Carmen Díaz-Roldán (Universidad de Casilla-La Mancha) Vicene Eseve (Universidad de Valencia

More information

Paper for Annual Meeting 2015 Abstract. World Trade Flows in Photovoltaic Cells: A Gravity Approach Including Bilateral Tariff Rates * Abstract

Paper for Annual Meeting 2015 Abstract. World Trade Flows in Photovoltaic Cells: A Gravity Approach Including Bilateral Tariff Rates * Abstract Paper for Annual Meeing 2015 Absrac World Trade Flows in Phoovolaic Cells: A Graviy Approach Including Bilaeral Tariff Raes * Asuko Masumura (Tokyo Inernaional Universiy) Absrac This paper invesigaes he

More information

A Macro Assessment of China Effects on Malaysian Exports and Trade Balances

A Macro Assessment of China Effects on Malaysian Exports and Trade Balances MPRA Munich Personal RePEc Archive A Macro Assessmen of China Effecs on Malaysian Expors and Trade Balances Tze-Haw Chan and Hooi Hooi Lean and Chee Wooi Hooy Graduae School of Business, Universii Sains

More information

What Determines the Future Value of an Icon Wine? New Evidence from Australia. Danielle Wood

What Determines the Future Value of an Icon Wine? New Evidence from Australia. Danielle Wood Wha Deermines he Fuure Value of an Icon Wine? New Evidence from Ausralia Danielle Wood Produciviy Commission Melbourne dwood@pc.gov.au and Kym Anderson (corresponding auhor) School of Economics and Cenre

More information

The Influence of Earnings Quality and Liquidity on the Cost of Equity

The Influence of Earnings Quality and Liquidity on the Cost of Equity Inernaional Business Research; Vol. 8, No. 4; 2015 ISSN 1913-9004 E-ISSN 1913-9012 Published by Canadian Cener of Science and Educaion The Influence of Earnings Qualiy and Liquidiy on he Cos of Equiy Ming-Feng

More information

DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES. Working Papers on International Economics and Finance

DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES. Working Papers on International Economics and Finance DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES Working Papers on Inernaional Economics and Finance DEFI 11-07 Ocober 2011 Susainabiliy of exernal imbalances in he OECD counries Oscar Bajo-Rubio Carmen

More information

Volume-Return Relationship in ETF Markets: A Reexamination of the Costly Short-Sale Hypothesis

Volume-Return Relationship in ETF Markets: A Reexamination of the Costly Short-Sale Hypothesis Journal of Applied Finance & Banking, vol., no. 6,, -4 ISSN: 79-658 (prin version), 79-6599 (online) Scienpress Ld, Volume-Reurn Relaionship in ETF Markes: A Reexaminaion of he Cosly Shor-Sale Hypohesis

More information

The Spillover Effects of U.S. and Japanese Public Information News in. Advanced Asia-Pacific Stock Markets

The Spillover Effects of U.S. and Japanese Public Information News in. Advanced Asia-Pacific Stock Markets The Spillover Effecs of U.S. and Japanese Public Informaion News in Advanced Asia-Pacific Sock Markes Suk-Joong Kim Absrac School of Banking and Finance The Universiy of New Souh Wales UNSW SYDNEY 2052

More information

On the relationship between inventory and financial performance in manufacturing companies Vedran Capkun HEC Paris, Paris, France

On the relationship between inventory and financial performance in manufacturing companies Vedran Capkun HEC Paris, Paris, France The curren issue and full ex archive of his journal is available a www.emeraldinsigh.com/0144-3577.hm On he relaionship beween invenory and financial performance in manufacuring companies Vedran Capkun

More information

International Trade and Finance Association THE EFFECT OF EXCHANGE RATE CHANGES ON TRADE BALANCES IN NORTH AFRICA: EVIDENCE

International Trade and Finance Association THE EFFECT OF EXCHANGE RATE CHANGES ON TRADE BALANCES IN NORTH AFRICA: EVIDENCE Inernaional Trade and Finance Associaion Inernaional Trade and Finance Associaion 15h Inernaional Conference Year 2005 Paper 46 THE EFFECT OF EXCHANGE RATE CHANGES ON TRADE BALANCES IN NORTH AFRICA: EVIDENCE

More information

Taking Advantage of Global Diversification: A Mutivariate-Garch Approach

Taking Advantage of Global Diversification: A Mutivariate-Garch Approach Taking Advanage of Global Diversificaion: A Muivariae-Garch Approach Elena Kaloychou *, Soiris K. Saikouras, Gang Zhao Cass Business School, Ciy Universiy London, 106 Bunhill Row, London EC1Y 8TZ Firs

More information

Out-of-Sample Exchange Rate Forecasting and. Macroeconomic Fundamentals: The Case of Japan

Out-of-Sample Exchange Rate Forecasting and. Macroeconomic Fundamentals: The Case of Japan Ou-of-Sample Exchange Rae Forecasing and Macroeconomic Fundamenals: The Case of Japan Takashi Masuki and Ming-Jen Chang * ABSTRACT: The sudy explores he exchange rae forecasing abiliy of a number of macroeconomic

More information

Economic Computation and Economic Cybernetics Studies and Research, Issue 3/2016, Vol. 50

Economic Computation and Economic Cybernetics Studies and Research, Issue 3/2016, Vol. 50 Economic Compuaion and Economic Cyberneics Sudies and Research, Issue 3/2016, Vol. 50 Assisan Professor Murad A. BEIN, PhD E-mail: mbein@ciu.edu.r Deparmen of Accouning and Finance Faculy of Economics

More information

Investor Herds in the Taiwanese Stock Market

Investor Herds in the Taiwanese Stock Market Invesor Herds in he Taiwanese Sock Marke Rıza Demirer *, Chun-Da Chen ** and Ali M. Kuan *** * Souhern Illinois Universiy Edwardsville ** Tennessee Sae Universiy *** Souhern Illinois Universiy Edwardsville,

More information

Hi-Stat. Discussion Paper Series. Estimating Production Functions with R&D Investment and Edogeneity. No.229. Young Gak Kim.

Hi-Stat. Discussion Paper Series. Estimating Production Functions with R&D Investment and Edogeneity. No.229. Young Gak Kim. Hi-Sa Discussion Paper Series No.229 Esimaing Producion Funcions wh R&D Invesmen and Edogeney Young Gak Kim December 2007 Hosubashi Universy Research Un for Saisical Analysis in Social Sciences A 21s-Cenury

More information

NBER WORKING PAPER SERIES A SIMPLE TEST OF THE EFFECT OF INTEREST RATE DEFENSE. Allan Drazen Stefan Hubrich

NBER WORKING PAPER SERIES A SIMPLE TEST OF THE EFFECT OF INTEREST RATE DEFENSE. Allan Drazen Stefan Hubrich NBER WORKING PAPER ERIE A IMPLE TET OF THE EFFECT OF INTERET RATE DEFENE Allan Drazen efan Hubrich Working Paper 12616 hp://www.nber.org/papers/w12616 NATIONAL BUREAU OF ECONOMIC REEARCH 1050 Massachuses

More information

The Interest Rate Sensitivity of Value and Growth Stocks - Evidence from Listed Real Estate

The Interest Rate Sensitivity of Value and Growth Stocks - Evidence from Listed Real Estate The Ineres Rae Sensiiviy of Value and Growh Socks - Evidence from Lised Real Esae This Version: January 25, 2017 Please reques he mos recen version from he auhors Chrisian Weis, Universiy of Regensburg

More information

PRODUCTIVE EFFICIENCY OF PORTUGUESE VINEYARD REGIONS

PRODUCTIVE EFFICIENCY OF PORTUGUESE VINEYARD REGIONS MARTA-COSTA A., MARTINHO V., SANTOS M., Regional Science Inquiry, Vol. IX, (2), 2017, pp. 97-107 97 PRODUCTIVE EFFICIENCY OF PORTUGUESE VINEYARD REGIONS Ana MARTA-COSTA Corresponding auhor. Assisan Professor.

More information

The Design of a Forecasting Support Models on Demand of Durian for Export Markets by Time Series and ANNs

The Design of a Forecasting Support Models on Demand of Durian for Export Markets by Time Series and ANNs AIJSTPME (20) 4(2): 49-65 The Design of a Forecasing Suppor Models on Demand of Durian for Expor Mares by Time Series and ANNs Udomsri N. Deparmen of Indusrial Engineering, Faculy of Engineering, King

More information

PRODUCTION PERFORMANCE OF MAIZE IN INDIA : APPROACHING AN INFLECTION POINT

PRODUCTION PERFORMANCE OF MAIZE IN INDIA : APPROACHING AN INFLECTION POINT In. J. Agricul. Sa. Sci., Vol. 10, No. 1, pp. 241-248, 2014 ISSN : 0973-1903 ORIGINAL ARTICLE PRODUCTION PERORMANCE O MAIZE IN INDIA : APPROACHING AN INLECTION POINT Ranji Kumar*, K. Srinivas, Naveen Kumar

More information

Unravelling the underlying causes of price volatility in world coffee and cocoa commodity markets

Unravelling the underlying causes of price volatility in world coffee and cocoa commodity markets MPRA Munich Personal RePEc Archive Unravelling he underlying causes of price volailiy in world coffee and cocoa commodiy markes Noemie Maurice and Junior Davis UNCTAD 011 Online a hps://mpra.ub.uni-muenchen.de/43813/

More information

Prices of Raw Materials, Budgetary Earnings and Economic Growth: A Case Study of Côte d Ivoire

Prices of Raw Materials, Budgetary Earnings and Economic Growth: A Case Study of Côte d Ivoire Prices of Raw Maerials, Budgeary Earnings and Economic Growh: A Case Sudy of Côe d Ivoire Nguiakam Sandrine 1 and Kabore Augusin 1 Ciaion: CTA and FARA. 2011. Agriculural Innovaions for Susainable Developmen.

More information

Employment, Family Union, and Childbearing Decisions in Great Britain

Employment, Family Union, and Childbearing Decisions in Great Britain Employmen, Family Union, and Childbearing Decisions in Grea Briain Arnsein Aassve Simon Burgess Carol Propper Ma Dickson Conens 1. Inroducion... 1 2. Daa... 3 Union formaion and dissoluion... 3 Employmen

More information

Applicability of Investment and Profitability Effects in Asset Pricing Models

Applicability of Investment and Profitability Effects in Asset Pricing Models Disponível em hp://www.anpad.org.br/rac RAC, Rio de Janeiro, v. 21, n. 6, ar. 6, pp. 851-874, Novembro/Dezembro, 2017 hp://dx.doi.org/10.1590/1982-7849rac2017170027 Applicabiliy of Invesmen and Profiabiliy

More information

Working Paper

Working Paper Inernaional Nework for Economic Research Working Paper 010.1 Modelling he Cyclical Behaviour of Wine Producion in he Douro Region Using a Time-Varying Parameers Approach by Mario Cunha (Universidade do

More information

This paper can be downloaded without charge from the Social Sciences Research Network Electronic Paper Collection:

This paper can be downloaded without charge from the Social Sciences Research Network Electronic Paper Collection: = = = = = = = Working Paper A Regime Shif Model of he Recen Housing Bubble in he Unied Saes Rober Van Order Sephen M. Ross School of Business a he Universiy of Michigan Rose Neng Lai Universiy of Macau

More information

POLICY RELEVANCE SUMMARY

POLICY RELEVANCE SUMMARY POLICY RELEVANCE SUMMARY Ensuring Food Securiy in Ghana The Role of Maize Sorage Sysems. Paul W. Armah and Felix Asane 1 Research Findings and Policy Relevance-Summary 1. Research Framework and Objecives

More information

Global financial crisis and spillover effects among the U.S. and BRICS stock markets

Global financial crisis and spillover effects among the U.S. and BRICS stock markets Acceped Manuscrip Global financial crisis and spillover effecs among he U.S. and BRICS sock markes Walid Mensi, Shawka Hammoudeh, Duc Khuong Nguyen, Sang Hoon Kang PII: S1059-0560(15)00227-0 DOI: doi:

More information

THE UNIVERSITY OF TEXAS AT SAN ANTONIO, COLLEGE OF BUSINESS Working Paper SERIES

THE UNIVERSITY OF TEXAS AT SAN ANTONIO, COLLEGE OF BUSINESS Working Paper SERIES THE UNIVERITY OF TEXA AT AN ANTONIO, COLLEGE OF BUINE Working Paper ERIE Dae May 15, 013 WP # 0046FIN-0-013 Commodiy Financializaion and Herd Behavior in Commodiy Fuures Markes Rıza Demirer Deparmen of

More information

Application of Peleg Model to Study Water Absorption in Bean and Chickpea During Soaking

Application of Peleg Model to Study Water Absorption in Bean and Chickpea During Soaking Applicaion of Peleg Model o Sudy Waer Absorpion in Bean and Chickpea During Soaking A. A. Masoumi * Assisan Professor, Deparmen of Farm Machinery. Isfahan Universiy of Technology, IUT Isfahan, Iran 8456-83

More information

Accounting Fundamentals and Variations of Stock Price: Forward Looking Information Inducement

Accounting Fundamentals and Variations of Stock Price: Forward Looking Information Inducement Accouning Fundamenals and Variaions of Sock Price: Forward Looking Informaion Inducemen Sumiyana Gadjah Mada Universiy Absrac This sudy invesigaes a permanen issue abou low associaion beween accouning

More information

Volatility and risk spillovers between oil, gold, and Islamic and conventional GCC banks

Volatility and risk spillovers between oil, gold, and Islamic and conventional GCC banks Volailiy and risk spillovers beween oil, gold, and Islamic and convenional GCC banks Walid Mensi a,b, Shawka Hammoudeh c,d, Idries Mohammad Wanas Al-Jarrah e, Khamis Hamed Al-Yahyaee b*, Sang Hoon Kang

More information

Milda Maria Burzała * Determination of the Time of Contagion in Capital Markets Based on the Switching Model

Milda Maria Burzała * Determination of the Time of Contagion in Capital Markets Based on the Switching Model D YNAMIC E CONOMETRIC M ODELS DOI: hp://dx.doi.org/10.12775/dem.2013.004 Vol. 13 (2013) 69 85 Submied Ocober 10, 2013 ISSN Acceped December 30, 2013 1234-3862 Milda Maria Burzała * Deerminaion of he Time

More information

The Role of Infrastructure Investment Location in China s Western Development

The Role of Infrastructure Investment Location in China s Western Development The Role of Infrasrucure Invesmen Locaion in China s Wesern Developmen By Xubei Luo Developmen of he wesern region is vial o he balanced growh of China. Luo sudies he impacs of infrasrucure invesmen ha

More information

Stock Market Liberalizations and Efficiency: The Case of Latin America

Stock Market Liberalizations and Efficiency: The Case of Latin America MPR Munich Personal RePEc rchive Sock Marke Liberalizaions and Efficiency: he Case of Lain merica João Paulo Vieio and Wing-Keung Wong and Sheung Chi Chow 06 Online a hps://mpra.ub.uni-muenchen.de/68949/

More information

Essays on Board of Directors External Connections. Sehan Kim. B.A., Applied Statistics, Yonsei University, 2001

Essays on Board of Directors External Connections. Sehan Kim. B.A., Applied Statistics, Yonsei University, 2001 Essays on Board of Direcors Exernal Connecions by Sehan Kim B.A., Applied Saisics, Yonsei Universiy, 2001 M.S., Saisics, Purdue Universiy, 2008 Submied o he Graduae Faculy of The Joseph M. Kaz Graduae

More information

Monetary Policy Impacts on Cash Crop Coffee and Cocoa Using. Structural Vector Error Correction Model

Monetary Policy Impacts on Cash Crop Coffee and Cocoa Using. Structural Vector Error Correction Model Moneary Policy Imacs on Cash Cro Coffee and Cocoa Using Srucural Vecor Error Correcion Model By Ibrahim Bamba Michael Reed Preared for resenaion a he Meeing of American Agriculural Economiss Associaion,

More information

Modelling Financial Markets Comovements During Crises: A Dynamic Multi-Factor Approach.

Modelling Financial Markets Comovements During Crises: A Dynamic Multi-Factor Approach. Modelling Financial Markes Comovemens During Crises: A Dynamic Muli-Facor Approach. Marin Belvisi, Riccardo Pianei, Giovanni Urga February 24, 2014 We wish o hank paricipans in he Finance Research Workshops

More information

IRREVERSIBLE IMPORT SHARES FOR FROZEN CONCENTRATED ORANGE JUICE IN CANADA. Jonq-Ying Lee and Daniel S. Tilley

IRREVERSIBLE IMPORT SHARES FOR FROZEN CONCENTRATED ORANGE JUICE IN CANADA. Jonq-Ying Lee and Daniel S. Tilley SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1983 IRREVERSIBLE IMPORT SHARES FOR FROZEN CONCENTRATED ORANGE JUICE IN CANADA Jonq-Ying Lee and Daniel S. Tilley Canada is he mos imporan U.S. expor

More information

LIQUID FLOW IN A SUGAR CENTRIFUGAL

LIQUID FLOW IN A SUGAR CENTRIFUGAL LIQUID FLOW IN A SUGAR CENTRIFUGAL C.P. Please, N.D. Fowkes, D.P. Mason, C.M. Khalique, A. Huchinson and M. C. Rademeyer Indusry represenaives Richard Loubser and Seve Davis Absrac Massecuie is a mixure

More information

TABIE l.~ Yields of Southern Peas In Relation to Seed Coat Color and Season. Pounds per Acre of "Whole-Pod F^asgT 19?5-196l#

TABIE l.~ Yields of Southern Peas In Relation to Seed Coat Color and Season. Pounds per Acre of Whole-Pod F^asgT 19?5-196l# HALSEY: SOUTHERN PEAS 233 SOUTHERN PEA VARIETIES, CULTURE AND HARVESTING AS RELATED TO PRODUCTION FOR HANDLING AND PROCESSING L. H. Halsey Florida Agriculural Experimen Saion Gainesville Much emphasis

More information

The Determinants of Supply of Kenya s Major Agricultural Crop Exports from 1963 to 2012

The Determinants of Supply of Kenya s Major Agricultural Crop Exports from 1963 to 2012 Inernaional Journal of Buine, Humaniie and Technology Vol. 3 No. 5; May 13 The Deerminan of Supply of Kenya Major Agriculural Crop Expor from 1963 o 1 Leniy Kananu Maugu Lecurer in Economic, Chuka Univeriy

More information

Deakin Research Online

Deakin Research Online Deakin Research Online This is he published version: Widjaja, Wany 2010, Modelling he cooling of coffee : insighs from a preliminary sudy in Indonesia, in MERGA 2010 : Shaping he fuure of mahemaics educaion

More information

Jordan Journal of Mathematics and Statistics (JJMS) 8(3), 2015, pp

Jordan Journal of Mathematics and Statistics (JJMS) 8(3), 2015, pp Jordan Journal of Mahemaics and Saisics (JJMS) 8(3), 015, pp. 57-70 FORECASTING THE TEA PRODUCTION OF BANGLADESH:APPLICATION OF ARIMA MODEL ** MD. MOYAZZEM HOSSAIN (1) AND FARUQ ABDULLA () ABSTRACT: Bangladesh

More information

Economics of grape production in Marathwada region of Maharashtra state

Economics of grape production in Marathwada region of Maharashtra state Volume 5 Issue 2 Sepember, 2014 179-183 e ISSN-2231-6434 Inernaional Research Journal of Agriculural Economics and Saisics Visi Us - www.researchjournal.co.in DOI : 10.15740/HAS/IRJAES/5.2/179-183 Research

More information

Citation for published version (APA): Hai, L. T. D. (2003). The organization of the liberalized rice market in Vietnam s.n.

Citation for published version (APA): Hai, L. T. D. (2003). The organization of the liberalized rice market in Vietnam s.n. Universiy of Groningen The organizaion of he liberalized rice marke in Vienam Hai, L.T.D. IMPORTNT NOTE: You are advised o consul he ublisher's version (ublisher's PDF) if you wish o cie from i. Please

More information

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia ICC 122-6 7 September 2018 Original: English E International Coffee Council 122 st Session 17 21 September 2018 London, UK Emerging coffee markets: South and East Asia Background 1. In accordance with

More information

Working Paper Series. The reception of. in financial markets what if central bank communication becomes stale? No 1077 / august 2009

Working Paper Series. The reception of. in financial markets what if central bank communication becomes stale? No 1077 / august 2009 Woring Paper Series No 1077 / augus 009 The recepion of pubic signas in financia mares wha if cenra ban communicaion becomes sae? by Michae Ehrmann and David Sondermann WORKING PAPER SERIES NO 1077 / AUGUST

More information

Effects of Policy Reforms on Price Transmission and Price Volatility in Coffee Markets: Evidence from Zambia and Tanzania

Effects of Policy Reforms on Price Transmission and Price Volatility in Coffee Markets: Evidence from Zambia and Tanzania Aus dem Insiu für Ernährung und Verbrauchslehre der Chrisian-Albrechs- Universiä zu Kiel Effecs of Policy Reforms on Price Transmission and Price Volailiy in Coffee Markes: Evidence from Zambia and Tanzania

More information

Preview. Introduction (cont.) Introduction. Comparative Advantage and Opportunity Cost (cont.) Comparative Advantage and Opportunity Cost

Preview. Introduction (cont.) Introduction. Comparative Advantage and Opportunity Cost (cont.) Comparative Advantage and Opportunity Cost Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade Wages

More information

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model. Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade Wages

More information

Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model. Pearson Education Limited All rights reserved.

Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model. Pearson Education Limited All rights reserved. Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 1-1 Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade

More information

Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model

Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade Wages

More information

Preview. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model

Preview. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade Wages

More information

Red wine consumption in the new world and the old world

Red wine consumption in the new world and the old world Red wine consumption in the new world and the old world World red wine market is expanding. In 2012, the total red wine trade was over 32 billion dollar,most current research on wine focus on the Old World:

More information

Ethyl Carbamate Production Kinetics during Wine Storage

Ethyl Carbamate Production Kinetics during Wine Storage Ehyl Carbamae Producion Kineics during Wine Sorage J. Xue,*, F. Fu, M. Liang, C. Zhao, D. Wang, Y. Wu * () China Naional Research Insiue for Food and Fermenaion Indusries, Beijing 7, China () Deparmen

More information

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 1-1 Preview Opportunity costs and comparative advantage A one-factor Ricardian model Production possibilities Gains from trade

More information

"Primary agricultural commodity trade and labour market outcome

Primary agricultural commodity trade and labour market outcome "Primary agricultural commodity trade and labour market outcomes" FERDI - Fondation pour les Etudes et Recherches sur le Developpement International African Economic Conference 2014 - Knowledge and innovation

More information

Flexible Working Arrangements, Collaboration, ICT and Innovation

Flexible Working Arrangements, Collaboration, ICT and Innovation Flexible Working Arrangements, Collaboration, ICT and Innovation A Panel Data Analysis Cristian Rotaru and Franklin Soriano Analytical Services Unit Economic Measurement Group (EMG) Workshop, Sydney 28-29

More information

Gasoline Empirical Analysis: Competition Bureau March 2005

Gasoline Empirical Analysis: Competition Bureau March 2005 Gasoline Empirical Analysis: Update of Four Elements of the January 2001 Conference Board study: "The Final Fifteen Feet of Hose: The Canadian Gasoline Industry in the Year 2000" Competition Bureau March

More information

The 2006 Economic Impact of Nebraska Wineries and Grape Growers

The 2006 Economic Impact of Nebraska Wineries and Grape Growers A Bureau of Business Economic Impact Analysis From the University of Nebraska Lincoln The 2006 Economic Impact of Nebraska Wineries and Grape Growers Dr. Eric Thompson Seth Freudenburg Prepared for The

More information

Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model

Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Introduction Theories of why trade occurs: Differences across countries in labor, labor skills, physical capital, natural resources,

More information

1/17/manufacturing-jobs-used-to-pay-really-well-notanymore-e/

1/17/manufacturing-jobs-used-to-pay-really-well-notanymore-e/ http://www.washingtonpost.com/blogs/wonkblog/wp/2013/0 1/17/manufacturing-jobs-used-to-pay-really-well-notanymore-e/ Krugman s Trade Policy History Course: https://webspace.princeton.edu/users/pkrugman/wws%205

More information

Recent U.S. Trade Patterns (2000-9) PP542. World Trade 1929 versus U.S. Top Trading Partners (Nov 2009) Why Do Countries Trade?

Recent U.S. Trade Patterns (2000-9) PP542. World Trade 1929 versus U.S. Top Trading Partners (Nov 2009) Why Do Countries Trade? PP542 Trade Recent U.S. Trade Patterns (2000-9) K. Dominguez, Winter 2010 1 K. Dominguez, Winter 2010 2 U.S. Top Trading Partners (Nov 2009) World Trade 1929 versus 2009 4 K. Dominguez, Winter 2010 3 K.

More information

Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model

Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model Krugman, P.R., Obstfeld, M.: International Economics: Theory and Policy, 8th Edition, Pearson Addison-Wesley, 27-53 1 Preview

More information

Pub mentors. Greets Inn, Warnham. The Great Lyde, Yeovil. The Elephant, Bristol. College Arms, Stratford

Pub mentors. Greets Inn, Warnham. The Great Lyde, Yeovil. The Elephant, Bristol. College Arms, Stratford Pub menors Offering help in overcoming he significan challenges facing pubs is he key heme of Pub Menor, he brand-new join iniiaive from Coca-Cola Enerprises Open More Business and he Publican s Morning

More information

DETERMINANTS OF GROWTH

DETERMINANTS OF GROWTH POLICY OPTIONS AND CHALLENGES FOR DEVELOPING ASIA PERSPECTIVES FROM THE IMF AND ASIA APRIL 19-20, 2007 TOKYO DETERMINANTS OF GROWTH IN LOW-INCOME ASIA ARI AISEN INTERNATIONAL MONETARY FUND Paper presented

More information

International Trade CHAPTER 3: THE CLASSICAL WORL OF DAVID RICARDO AND COMPARATIVE ADVANTAGE

International Trade CHAPTER 3: THE CLASSICAL WORL OF DAVID RICARDO AND COMPARATIVE ADVANTAGE International Trade CHAPTER 3: THE CLASSICAL WORL OF DAVID RICARDO AND COMPARATIVE ADVANTAGE INTRODUCTION The Classical economist David Ricardo introduced the comparative advantage in The Principles of

More information

Relationships Among Wine Prices, Ratings, Advertising, and Production: Examining a Giffen Good

Relationships Among Wine Prices, Ratings, Advertising, and Production: Examining a Giffen Good Relationships Among Wine Prices, Ratings, Advertising, and Production: Examining a Giffen Good Carol Miu Massachusetts Institute of Technology Abstract It has become increasingly popular for statistics

More information

Demographic Change, Price Subsidy and the Rising Oil Demand in OPEC

Demographic Change, Price Subsidy and the Rising Oil Demand in OPEC Demographic Change, Price Subsidy and the Rising Oil Demand in OPEC Hasanov Fakhri and Xun Xu 40th Annual IAEE International Conference, Singapore June 19, 2017 Outline Motivation and Objective Contribution

More information

Midterm Economics 181 International Trade Fall 2005

Midterm Economics 181 International Trade Fall 2005 Midterm Economics 181 International Trade Fall 2005 Please answer all parts. Please show your work as much as possible. Part I (20 points). Short Answer. Please give a full answer. If you need to indicate

More information

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model

Preview. Introduction. Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Copyright 2012 Pearson Addison-Wesley. All rights reserved. Preview Opportunity costs and comparative advantage A one-factor

More information

Labor Supply of Married Couples in the Formal and Informal Sectors in Thailand

Labor Supply of Married Couples in the Formal and Informal Sectors in Thailand Southeast Asian Journal of Economics 2(2), December 2014: 77-102 Labor Supply of Married Couples in the Formal and Informal Sectors in Thailand Chairat Aemkulwat 1 Faculty of Economics, Chulalongkorn University

More information

Asia-Pacific Interest Rate Movements: A Tale Of A Two-Horse Sleigh. Do Quoc Tho Nguyen, Thi Thu Ha Phi, Thuy-Duong Tô * Abstract

Asia-Pacific Interest Rate Movements: A Tale Of A Two-Horse Sleigh. Do Quoc Tho Nguyen, Thi Thu Ha Phi, Thuy-Duong Tô * Abstract Asia-Paifi Ineres Rae Movemens: A Tale Of A Two-Horse Sleig Do Quo To Nguyen, Ti Tu Ha Pi, Tuy-Duong Tô * Absra We sudy e spillover effes of e U.S. s and e euro area s maroeonomi news on e Asia-Paifi ineres

More information

ICT Use and Exports. Patricia Kotnik, Eva Hagsten. This is a working draft. Please do not cite or quote without permission of the authors.

ICT Use and Exports. Patricia Kotnik, Eva Hagsten. This is a working draft. Please do not cite or quote without permission of the authors. ICT Use and Exports Patricia Kotnik, Eva Hagsten This is a working draft. Please do not cite or quote without permission of the authors. September 2012 Introduction Studies have shown that two major distinguishing

More information

The Economic Impact of the Craft Brewing Industry in Maine. School of Economics Staff Paper SOE 630- February Andrew Crawley*^ and Sarah Welsh

The Economic Impact of the Craft Brewing Industry in Maine. School of Economics Staff Paper SOE 630- February Andrew Crawley*^ and Sarah Welsh The Economic Impact of the Craft Brewing Industry in Maine School of Economics Staff Paper SOE 630- February 2017 Andrew Crawley*^ and Sarah Welsh School of Economics, University of Maine Executive Summary

More information

Lack of Credibility, Inflation Persistence and Disinflation in Colombia

Lack of Credibility, Inflation Persistence and Disinflation in Colombia Lack of Credibility, Inflation Persistence and Disinflation in Colombia Second Monetary Policy Workshop, Lima Andrés González G. and Franz Hamann Banco de la República http://www.banrep.gov.co Banco de

More information

External Trade And Income Distribution (Development Centre Studies) By Francois Bourguignon;Christian Morrisson READ ONLINE

External Trade And Income Distribution (Development Centre Studies) By Francois Bourguignon;Christian Morrisson READ ONLINE External Trade And Income Distribution (Development Centre Studies) By Francois Bourguignon;Christian Morrisson READ ONLINE If you are looking for a book External Trade and Income Distribution (Development

More information

Chapter 1: The Ricardo Model

Chapter 1: The Ricardo Model Chapter 1: The Ricardo Model The main question of the Ricardo model is why should countries trade? There are some countries that are better in producing a lot of goods compared to other countries. Imagine

More information

Investment Wines. - Risk Analysis. Prepared by: Michael Shortell & Adiam Woldetensae Date: 06/09/2015

Investment Wines. - Risk Analysis. Prepared by: Michael Shortell & Adiam Woldetensae Date: 06/09/2015 Investment Wines - Risk Analysis Prepared by: Michael Shortell & Adiam Woldetensae Date: 06/09/2015 Purpose Look at investment wines & examine factors that affect wine prices over time We will identify

More information

The Financing and Growth of Firms in China and India: Evidence from Capital Markets

The Financing and Growth of Firms in China and India: Evidence from Capital Markets The Financing and Growth of Firms in China and India: Evidence from Capital Markets Tatiana Didier Sergio Schmukler Dec. 12-13, 2012 NIPFP-DEA-JIMF Conference Macro and Financial Challenges of Emerging

More information

Dietary Diversity in Urban and Rural China: An Endogenous Variety Approach

Dietary Diversity in Urban and Rural China: An Endogenous Variety Approach Dietary Diversity in Urban and Rural China: An Endogenous Variety Approach Jing Liu September 6, 2011 Road Map What is endogenous variety? Why is it? A structural framework illustrating this idea An application

More information

Demand, Supply and Market Equilibrium. Lecture 4 Shahid Iqbal

Demand, Supply and Market Equilibrium. Lecture 4 Shahid Iqbal Demand, Supply and Market Equilibrium Lecture 4 Shahid Iqbal Markets & Economics A market is a group of buyers and sellers of a particular good or service. The terms supply and demand refer to the behavior

More information

SMALLHOLDER TEA FARMING AND VALUE CHAIN DEVELOPMENT IN CHINA

SMALLHOLDER TEA FARMING AND VALUE CHAIN DEVELOPMENT IN CHINA SMALLHOLDER TEA FARMING AND VALUE CHAIN DEVELOPMENT IN CHINA Intersessional Meeting of the Intergovernmental Group on Tea Rome, 5-6 May 2014 Cheng Fang, Economist, Trade and Markets Division, FAO Yanjiong

More information

Since the cross price elasticity is positive, the two goods are substitutes.

Since the cross price elasticity is positive, the two goods are substitutes. Exam 1 AGEC 210 The Economics of Agricultural Business Spring 2013 Instructor: Eric Belasco Name Belasco KEY 1. (15 points, 5 points each) The following questions refer to different elasticity measures

More information