scholarly journals The influence of the Washington Consensus programme on the transitional economies of Eastern Europe - a firm-level analysis

2020 ◽  
Vol 65 (226) ◽  
pp. 9-44
Author(s):  
Peter Howard-Jones ◽  
Jens Hölscher
Keyword(s):  
Market Failure ◽  
Value Added ◽  
Washington Consensus ◽  
The European Union ◽  
Production Networks ◽  
Productivity Improvement ◽  
Firm Level ◽  
International Production ◽  
National Welfare ◽  
And Performance

This research explores the effectiveness of the Washington Consensus (WC) programme as a mechanism for improving national welfare in transition and emerging economies, using its internalisation by the European Union (EU) as a proxy. The results indicate that there is a positive benefit to firms with accession to the EU, leading to greater productivity improvement and performance advantages than in non-member states. Foreign direct investment directly benefitted those firms that became investees, with little evidence of spillovers to domestic companies. The vertical nature of the investment, with an emphasis on international production networks that utilise significant levels of foreign inputs, infers protection of intellectual property and a reduction in value added, with results indicating a failure to achieve an export multiplier. There is evidence of substantial benefits accruing to firms in receipt of loans, but the apparent paucity of their availability may imply market failure. The gains made by innovative firms do not appear to do justice to the initiatives undertaken and may indicate a dilution of national innovative capacity.

Promoting technology spillovers from trade and investments

2014 ◽  
Vol 13 (1) ◽  
pp. 25-34
Author(s):  
Ronald U. Mendoza ◽  
Ailyn Lau
Keyword(s):  
Technology Policy ◽  
Learning By Doing ◽  
Technology Spillovers ◽  
Production Networks ◽  
Firm Level ◽  
Technological Spillovers ◽  
Content Type ◽  
International Production ◽  
Innovation Activities ◽  
Innovation And Technology

Purpose – Trade and investment flows into less-advanced economies could bring about important technological spillovers that could boost firm-level productivity and bolster their long-term economic growth. However, learning by doing and various forms of innovation activities are typically underprovided in a laissez faire policy environment. This brief paper outlines some of the motivations for public sector interventions to support learning by doing and stronger technological spillovers. The paper aims to discuss these issues. Design/methodology/approach – To accomplish this, the paper provides a brief discussion of three key areas for policy attention, covering: the features that make international production networks fertile platforms for these spillovers; the opportunities for technology spillovers in the services sector; and the challenges associated with policies to link SMEs into these sectors that are fertile ground for technology spillovers and innovation. Findings – This paper concludes by presenting a few possible guidelines on innovation and technology policy based on the lessons of industrialization attempts in the last several decades. A key insight tying these strategies together is that of creating incentives to compete and innovate, and ensuring that support is outcome oriented and temporary. Originality/value – This paper contributes to the literature and practitioner-oriented scholarship by providing a clear framework for thinking about how to promote technology spillovers from trade and investments, as part of new industrial policies.

scholarly journals Developments and challenges of measuring M&A performance on a corporate and macroeconomic levels

2017 ◽  
Vol 8 (2) ◽  
pp. 199
Author(s):  
Karolis Andriuskevicius ◽  
Remigijus Ciegis
Keyword(s):  
Empirical Studies ◽  
Value Added ◽  
Scientific Article ◽  
Methodological Framework ◽  
Firm Level ◽  
Performance Framework ◽  
Recent Developments ◽  
Business Cases ◽  
And Performance ◽  
A Performance

Research background: This study presents the results of the research which aimed to iden-tify and critically discuss existing methodologies in the merger and acquisition field. Value creation to merging and acquiring firms and national countries constitute the center of the research. This study distinguishes between specific methodologies employed to gauge M&A performance on a micro- (corporate) and macro- (economy and society) economic levels. The final section of the paper concludes with a theoretical methodological framework integrating methodologies employed to measure M&A performance on a firm level and methodologies measuring consequences and effects of M&A on the economy. The aim of the analysis described in the paper is to ascertain and evaluate theoretically existing methodologies used in empirical studies that would allow proper and critical understanding of the results of various findings in the holistic and global M&A area.Purpose of the article: The purpose of the paper is to investigate and critically discuss the methodologies employed within the M&A performance framework with the focus on specific anticipated outcomes of the M&A deal and methodology measuring this outcome. The following objectives are being raised: (1) To identify recent developments in the M&A market and determine challenges and changes they encompass; (2) To identify and critically discuss anticipated outcomes of the M&A deal and existing methodologies measuring M&A performance on the corporate level; (3) To identify and critically discuss anticipated outcomes of the M&A deal on the economy and methodologies measuring consequences and effects of M&As on the macro- economic level; (4) To integrate methodologies measuring M&As performance on a micro- and macro- eco-nomic levels into theoretical methodological framework enabling scholars and practitioners to evaluate M&A performance from a holistic perspective.Methods: Based on previous studies, the authors conduct a structured literature review aimed to critically discuss and evaluate developments and challenges of measuring M&A performance on corporate and macroeconomic levels. The research is carried out as a struc-tured assessment of past literature. The findings from scientific articles and studies by various scholars are being categorized, grouped and summarized to discern a meta‐analytic view of the work carried out to date. Finally, deep analysis of scientific literature, logical comparative analysis, systematization of scientific article and business cases are employed in the article.Findings & Value added: The paper evidences developments and challenges of measuring M&A performance on corporate and macroeconomic levels.  The re-search elaborates on several key developments in M&A methodology and performance studies carried out in empirical works during the last two decades. The findings help to independently and objec-tively assess performance of M&A from a holistic perspective.

scholarly journals Measuring Global Value Chains

2018 ◽  
Vol 10 (1) ◽  
pp. 207-236 ◽  
Author(s):  
Robert C. Johnson
Keyword(s):  
Multinational Firms ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Firm Level ◽  
Level Data ◽  
Production Stages

Recent decades have seen the emergence of global value chains (GVCs), in which production stages for individual goods are broken apart and scattered across countries. Stimulated by these developments, there has been rapid progress in data and methods for measuring GVC linkages. The macro approach to measuring GVCs connects national input–output tables across borders by using bilateral trade data to construct global input–output tables. These tables have been applied to measure trade in value added, the length of and location of producers in GVCs, and price linkages across countries. The micro approach uses firm-level data to document firms’ input sourcing decisions, how import and export participation are linked, and how multinational firms organize their production networks. In this review, I evaluate progress in these two approaches, highlighting points of contact between them and areas that demand further work. I argue that further convergence between these approaches can strengthen both, yielding a more complete empirical portrait of GVCs.

scholarly journals A Review of Literature of Global Value Chains

2021 ◽  
Author(s):  
Sourish Dutta
Keyword(s):  
Large Scale ◽  
Value Added ◽  
Global Value Chains ◽  
Division Of Labour ◽  
Value Chains ◽  
Production Networks ◽  
International Production ◽  
International Borders ◽  
Home Based ◽  
Business Functions

The phenomenon of global value chains (GVCs) indicates a division of labour type production structure in which tasks and business functions are distributed among several companies, globally, or regionally (Grossman and Rossi-Hansberg 2008). The critical features of GVCs are therefore the international dimension of the production process and the "contractualisation" of buyer and seller relationships, often across international borders (Antras 2016). As a result, these international production networks are highly complex regarding geography, technology, and the different types of firms involved (from large retailers and highly large-scale mechanised manufacturers to small home-based production). Sometimes it may be impossible even to identify all the countries that are involved or the extent of their involvement (Gereffi and FernandezStark 2016). However, the recent development of OECD-WTO’s Trade-in Value Added (TiVA) data represents a fundamental step forward in understanding GVC trade. Grossman & RossiHansberg (2008, 2012) rightly point out that the different tasks, rather than sectors, define the specialisation of countries in the value chains.

scholarly journals A Review of Literature of Global Value Chains

2021 ◽  
Author(s):  
Sourish Dutta
Keyword(s):  
Large Scale ◽  
Value Added ◽  
Global Value Chains ◽  
Division Of Labour ◽  
Value Chains ◽  
Production Networks ◽  
International Production ◽  
International Borders ◽  
Home Based ◽  
Business Functions

The phenomenon of global value chains (GVCs) indicates a division of labour type production structure in which tasks and business functions are distributed among several companies, globally, or regionally (Grossman and Rossi-Hansberg 2008). The critical features of GVCs are therefore the international dimension of the production process and the "contractualisation" of buyer and seller relationships, often across international borders (Antras 2016). As a result, these international production networks are highly complex regarding geography, technology, and the different types of firms involved (from large retailers and highly large-scale mechanised manufacturers to small home-based production). Sometimes it may be impossible even to identify all the countries that are involved or the extent of their involvement (Gereffi and FernandezStark 2016). However, the recent development of OECD-WTO’s Trade-in Value Added (TiVA) data represents a fundamental step forward in understanding GVC trade. Grossman & RossiHansberg (2008, 2012) rightly point out that the different tasks, rather than sectors, define the specialisation of countries in the value chains.

scholarly journals The dilemma over Washington consensus guidelines or industrial policy

Notitia ◽  
2020 ◽  
Vol 6 (1) ◽  
pp. 49-62
Author(s):  
Sanja Franc ◽  
Antea Barišić ◽  
Zoran Wittine
Keyword(s):  
European Union ◽  
Industrial Policy ◽  
Global Financial Crisis ◽  
World Trade Organisation ◽  
Dutch Disease ◽  
Washington Consensus ◽  
The European Union ◽  
International Production ◽  
Tourism Sector ◽  
Contemporary Development

During the 1990s Croatia went through the process of transition to market economy mostly following the Washington Consensus policy guidelines. Since the period before the last global financial crisis, Croatia has shown almost no convergence to developed European Union member states and has been among the least developed ones. This paper examines the causes of Croatian development lag, while providing an overview of contemporary development policies and international production fragmentation trends that affected them. The paper points out to several important factors that shaped the Croatian development path. Expectations from foreign capital were overrated, as the foreign direct investment consisted mainly of brownfield investment in large monopolistic companies and was rarely directed to export-oriented sectors. Accession to the World Trade Organisation was followed by stronger growth of imports than exports and joining the European Union did not bring economic growth as fast as expected. Lack of industrial policy implementation has led Croatia to deindustrialisation and increasing importance of the tourism sector as a form of the Dutch disease.

scholarly journals International Production Sharing and Export Development: An Examination for China and Vietnam

2017 ◽  
Vol 3 (2) ◽  
pp. 196
Author(s):  
Klimis Vogiatzoglou
Keyword(s):  
Export Performance ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Economic Sectors ◽  
International Production ◽  
Production Sharing ◽  
Export Expansion ◽  
The Relationship

The phenomenon of international production sharing networks (also known as production fragmentation, global value chains, or vertical production networks), which is associated with offshoring/outsourcing, has gained increasingly importance in the contemporary globalization process. This paper analyzes the patterns and trends in international production sharing and export growth in China and Vietnam over the last twenty years. More specifically, in addition to overall trends, our study examines the developments across four broad economic sectors and fifteen manufacturing industries. Furthermore, for both countries the relationship between a country’s participation in international production sharing networks and a country’s export development (in terms of the domestic value-added content of exports) is investigated through a statistical analysis. The empirical results indicate that China and Vietnam have increased substantially their participation in production networks. Moreover, we find that the extent of a country’s involvement in international production sharing highly correlates with improved export performance. This suggests that China’s and Vietnam’s impressive export expansion over the last twenty years can be attributed, in part, to increasing integration into global value chains.

scholarly journals Investment and performance of firms: Correlation or causality?

2008 ◽  
Vol 6 (2) ◽  
pp. 268-282 ◽  
Author(s):  
Almas Heshmati ◽  
Hans Lööf
Keyword(s):  
Performance Indicators ◽  
Value Added ◽  
Physical Capital ◽  
Significant Heterogeneity ◽  
Firm Level ◽  
Vector Autoregressive ◽  
Performance Variables ◽  
Show Evidence ◽  
And Performance ◽  
Performance Behavior

This paper provides an empirical analysis of the two-way causal relationship between investment and performance indicators at the firm level. The performance variables include sales, value added, profit, cash flow, capital structure and employment. The investment variables are research and development and physical capital. A multivariate vector autoregressive approach is applied to a panel of Swedish firms observed between 1992 and 2000. Results show evidence of some two-way causal relationships, which are mainly transitory in character. Significant heterogeneity is observed in the firms’ investment and performance behavior by their size.

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

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