scholarly journals The Micro Origins of International Business-Cycle Comovement

2018 ◽  
Vol 108 (1) ◽  
pp. 82-108 ◽  
Author(s):  
Julian di Giovanni ◽  
Andrei A. Levchenko ◽  
Isabelle Mejean
Keyword(s):  
Business Cycle ◽  
International Business ◽  
Value Added ◽  
Foreign Country ◽  
Firm Level ◽  
International Business Cycle ◽  
French Firm ◽  
Micro Level ◽  
Using Data ◽  
The Impact

This paper investigates the role of individual firms in international business-cycle comovement using data covering the universe of French firm-level value added and international linkages over the period 1993–2007. At the micro level, trade and multinational linkages with a particular foreign country are associated with a significantly higher correlation between a firm and that foreign country. The impact of direct linkages on comovement at the micro level has significant macro implications. Without those linkages the correlation between France and foreign countries would fall by about 0.098, or one-third of the observed average correlation of 0.291 in our sample of partner countries. (JEL F14, F23, F44, F62, L14)

scholarly journals Multinational Firms and International Business Cycle Transmission*

2016 ◽  
Vol 132 (2) ◽  
pp. 921-962 ◽  
Author(s):  
Javier Cravino ◽  
Andrei A. Levchenko
Keyword(s):  
Business Cycle ◽  
International Business ◽  
Multinational Firms ◽  
Quantitative Model ◽  
Individual Country ◽  
Firm Level ◽  
Data Set ◽  
International Business Cycle ◽  
The Impact ◽  
Foreign Shocks

Abstract We investigate how multinational firms contribute to the transmission of shocks across countries using a large multicountry firm-level data set that contains cross-border ownership information. We use these data to document two novel empirical patterns. First, foreign affiliate and headquarter sales exhibit strong positive comovement: a 10% growth in the sales of the headquarter is associated with a 2% growth in the sales of the affiliate. Second, shocks to the source country account for a significant fraction of the variation in sales growth at the source-destination level. We propose a parsimonious quantitative model to interpret these findings and to evaluate the role of multinational firms for international business cycle transmission. For the typical country, the impact of foreign shocks transmitted by all foreign multinationals combined is non-negligible, accounting for about 10% of aggregate productivity shocks. On the other hand, since bilateral multinational production shares are small, interdependence between most individual country pairs is minimal. Our results do reveal substantial heterogeneity in the strength of this mechanism, with the most integrated countries significantly more affected by foreign shocks.

scholarly journals Center-Based Child Care and Differential Improvements in the Child Development Outcomes of Disadvantaged Children

2021 ◽  
Author(s):  
Sarah Anne Reynolds
Keyword(s):  
Child Care ◽  
Child Development ◽  
Economic Status ◽  
Value Added ◽  
Additional Time ◽  
Nationally Representative ◽  
Using Data ◽  
Development Outcomes ◽  
One Year ◽  
The Impact

Abstract Background Research finds center-based child care typically benefits children of low socio-economic status (SES) but few studies have examined if it also reduces inequalities in developmental disadvantage. Objective I test if the length of time in center-based care between ages one and three years associates with child development scores at age three years, focusing on the impact for groups of children in the lower tercile of child development scores and in the lower SES tercile. Method Using data from 1,606 children collected in a nationally representative Chilean survey, I apply a value-added approach to measure gains in child development scores between age one and three years that are associated with length of time in center-based child care. Results Disadvantages at age one year were associated with lower child development scores at age three years. No benefits of additional time in center-based care were found for the non-disadvantaged group, but positive associations were found between more time in center-based care and child development outcomes for children with the SES disadvantage only. Center-based care was not associated with child development trajectories of children with lower child development scores at age one year, no matter their SES status. Conclusions There is evidence that Chilean center-based child care reduces SES inequality in child development scores between ages one and three years, but only if children already were not low-scorers at age one year.

scholarly journals Pakistan’s Experience with the Pakistan–China FTA: Lessons for CPEC

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 1-24 ◽  
Author(s):  
Theresa Theresa ◽  
Nida Jamil ◽  
Azam Chaudhry
Keyword(s):  
Free Trade Agreement ◽  
Market Access ◽  
Value Added ◽  
Trade Agreement ◽  
Policy Implications ◽  
Firm Level ◽  
Trade Data ◽  
Chinese Markets ◽  
The Impact ◽  
Tariff Reductions

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

The Impact of Rent from Unequal Exchange on Shaikh’s Classical-Keynesian Political Economic Analysis: The Example of Facebook

2020 ◽  
Vol 52 (2) ◽  
pp. 239-258 ◽  
Author(s):  
Ron Baiman
Keyword(s):  
Market Research ◽  
Phillips Curve ◽  
Value Added ◽  
Firm Level ◽  
Unequal Exchange ◽  
Classical Political Economy ◽  
Sample Test ◽  
Surplus Extraction ◽  
Political Economic ◽  
The Impact

In this paper, Shaikh’s 1949–2011 classical Phillips curve (CPC) is replicated and extended to 2016. This updated CPC does not follow the pattern anticipated by Shaikh for the years 2012 to 2016. This paper hypothesizes that this divergence is a result of an increasingly “rentier” economy based on surplus extraction through unequal exchange (UE). Andrea Ricci’s methodology is then applied to the 2014 US advertising and market research (A&MR) sector as a sample test of this hypothesis. This analysis shows that UE accounts for $64 billion, or almost a half (45.3 percent), of total US A&MR value added ($141.3 billion) in 2014. A modification of Ricci’s methodology for a firm-level UE estimation finds that in 2014 Facebook alone was able to extract a within-industry, within-country, between-firm absolute rent of $3.8 billion. The paper concludes that Shaikh’s analysis needs to be extended with non-classical political economy UE, or “rentier economy,” analysis.

scholarly journals Understanding the Impact of Relationship Disruptions

2019 ◽  
Vol 84 (1) ◽  
pp. 66-87 ◽  
Author(s):  
Christian Schmitz ◽  
Maximilian Friess ◽  
Sascha Alavi ◽  
Johannes Habel
Keyword(s):  
International Business ◽  
Interpersonal Relationship ◽  
Relationship Management ◽  
Firm Level ◽  
Positive Effects ◽  
Life Cycle Theory ◽  
Overall Performance ◽  
The Impact ◽  
The Relationship ◽  
Business To Business

Personal relationships between salespeople and customers are essential for the success of business-to-business relationships, and research has shown that a change of the salesperson can severely harm financial performance. However, such interpersonal relationship disruptions may also have positive effects by encouraging vitalizing reexplorations of the relationship. Using multilevel loyalty theory and relationship life cycle theory, the authors offer a comprehensive conceptualization of potentially countervailing consequences of relationship disruptions. In particular, disruptions may have different effects on resale revenue (from previously sold products) versus new sale revenue (from newly sold products), contingent on both the history and expected future development of the relationship. Therefore, this study examines moderators on the firm-level relationship prior to disruption and salesperson relationship management afterward. Longitudinal data from 2,040 customers of an international business-to-business firm reveal that a disruption can increase overall performance by more than 29%, depending on the firm-level relationship before disruption and the new salesperson’s relationship management. Managers can use these findings proactively to evaluate and manage the risks and opportunities involved in relationship disruptions.

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