Showing papers on "Negative relationship published in 2010"
TL;DR: In this article, the authors investigated the relationship between a firm's commitment to research and development and its innovative outcomes and found that R&D spending was positively related to patents and new product announcements.
620 citations
TL;DR: In this paper, between-group inequality (BGI) has a large, robust, and negative relationship with public goods provision, whereas ELF, cultural fractionalization (CF), and overall inequality do not.
Abstract: groups: between-group inequality (BGI). We show that ELF, cultural fractionalization (CF), and BGI measure different things, and that the choice between them has an important impact on our understanding of which countries are most ethnically diverse. Furthermore, empirical tests reveal that BGI has a large, robust, and negative relationship with public goods provision, whereas CF, ELF, and overall inequality do not. diversity is widely held to make governance more difficult. Such diversity is associated with low production of public goods; poor economic growth; and high levels of corruption, violence, and civil conflict. But diversity hardly sentences a country to poor political and economic outcomes. Latvia, for example, has better governance indicators than Brazil, and Zambia has better governance indicators than Nigeria, even though these pairs of countries have similar levels of ethnolinguistic fractionalization (ELF). Why, then, do some countries cope more successfully with ethnic diversity than others? This article addresses this question by focusing on the
349 citations
TL;DR: In this paper, the authors examined the external antecedents of the choice of market entry mode by meta-analyzing data from 72 independent primary studies and found a strong positive relationship between power distance as a cultural trait of the firm's home country and the propensity to establish a wholly owned subsidiary.
306 citations
TL;DR: This paper examined how the two distinct periods of market-oriented institutional change, institutional friction and institutional convergence, affect business-group affiliated firms and independent firms in their ability to profit from international diversification.
Abstract: Viewing market-oriented institutional change as a two-staged process, we propose that the effects of market-oriented institutional change on two organizational forms – business-group-affiliated and independent firms – are different, depending on the stage of institutional change. Specifically, we examine how the two distinct periods of market-oriented institutional change – that is, institutional friction and institutional convergence – affect business-group-affiliated firms and independent firms in their abilities to profit from international diversification. Using data on 140 Korean manufacturing multinational firms from 1993 to 2003, we find that emerging-economy firms face an international diversification discount – a negative relationship between international diversification and firm performance. We also find that business group affiliation affects the international diversification discount differently during the two periods of market-oriented institutional change, particularly when firm performance is measured by the market-to-book value (MBV). The moderating effect of business group affiliation on the relationship between international diversification and MBV is negative during the institutional frictions period, but becomes positive during the institutional convergence period in the later stage of institutional change. Our findings warn against viewing market-oriented institutional change as a discrete event, highlighting the importance of recognizing the qualitatively distinctive nature of different periods of market-oriented institutional change in future research.
224 citations
TL;DR: In this paper, the authors analyzed the impact of firms' technological strategies on their financial performance by making a distinction between explorative and exploitative as well as collaborative and solitary technological activities.
201 citations
TL;DR: In this article, the authors argue that mechanisms generating a positive inequality-growth relationship work mainly in the short-run and are reflected in difference-based estimators, while mechanisms generating negative relationship work over the longer-term.
Abstract: The empirical literature on the relationship between inequality and growth offers a contradictory assessment: Estimators based on time-series variation indicate a positive link while estimators (also) exploiting the cross-sectional variation suggest a negative relationship. The present paper (i) confirms this conflicting pattern in an expanded dataset; (ii) proposes a simple theoretical framework to highlight the biases associated with the different techniques. We argue that mechanisms generating a positive inequality-growth relationship work mainly in the short-run and are reflected in difference-based estimators. In contrast, mechanisms generating a negative relationship work over the longer term and are reflected in level-based estimators.
186 citations
TL;DR: In this paper, the authors examined the effect of economic growth on the outbreak of Hindu-Muslim riots in 15 Indian states between 1982 and 1995 and found that just a 1% increase in the growth rate decreases the expected number of riots by over 5%.
Abstract: Most studies of Hindu—Muslim riots in India have tended to emphasize the effects of social, cultural, or political factors on the occurrence of ethnic violence. In this article, the authors focus on the relationship between economic conditions and riots. Specifically, this article examines the effect of economic growth on the outbreak of Hindu—Muslim riots in 15 Indian states between 1982 and 1995. Controlling for other factors, the authors find that just a 1% increase in the growth rate decreases the expected number of riots by over 5%. While short-term changes in growth influence the occurrence of riots, this study finds no evidence of a relationship between the levels of wealth in a state and the incidence of ethnic riots. Moreover, by including state fixed effects, the authors determine that the negative relationship found between economic growth and riots is driven primarily by the relationship between growth and riots within a state over time rather than across states. These results are robust to controlling for a number of other factors such as economic inequality, demographic variables, political competition, temporal lags, spillover effects from adjacent states, and year effects. Finally, to address potential concerns that economic growth could be a consequence rather than a cause of violence or that other unobserved factors could confound the relationship between economic growth and the occurrence of Hindu—Muslim riots, the authors also employ instrumental variables (IV) estimation, using percentage change in rainfall as an instrument for growth. The results with IV estimation are similar to the results with non-IV estimation in terms of sign and significance, indicating that the negative effect of economic growth on riots is not due to reverse causality or omitted variables bias.
177 citations
TL;DR: The authors show that distance has a negative effect on both margins, but the magnitude of the coefficient is significantly larger and more significant for the extensive margin, while most of the variables capturing language, internal geography, infrastructure and import cost barriers work solely through the extensive margins.
Abstract: One of the most robust empirical results in international economics is the existence
of a negative relationship between trade flows and distance. More recent research on
exporting activity at the firm level has established an apparently equally robust result—
few firms export, and exporting firms do not sell in all possible markets. This paper
uses data on US exports across 156 countries to decompose exports to each market
into the number of firms exporting (the extensive margin) and average export sales
per firm (the intensive margin). We show how the effects of distance and a range of
other proxies for trade costs have different impacts on the two margins. We find that
distance has a negative effect on both margins, but the magnitude of the coefficient is
considerably larger and more significant for the extensive margin. Most of the variables
capturing language, internal geography, infrastructure and import cost barriers work
solely through the extensive margin. We show that these results are consistent with
the predictions of a Melitz-style model of trade with heterogeneous firm productivity
and fixed costs.
140 citations
TL;DR: In this article, the authors examined the impact of exchange rate volatility on real exports of five emerging East Asian countries among themselves as well as to 13 industrialised countries and employed a generalised gravity model.
Abstract: This paper examines the impact of bilateral real exchange rate volatility on real exports of five emerging East Asian countries among themselves as well as to 13 industrialised countries. We recognise the specificity of the exports between the emerging East Asian and industrialised countries and employ a generalised gravity model. In the empirical analysis we use a panel comprising 25 years of quarterly data and perform unit-root and cointegration tests to verify the long-run relationship among the variables. The results provide strong evidence that exchange rate volatility has a negative impact on the exports of emerging East Asian countries. In addition, the results suggest that the pattern of bilateral exports is influenced by third-country variables. An increase in the price competitiveness of other emerging East Asian countries has a negative impact on a country?s exports to a destination market, but the magnitude of the impact is relatively small. These results are robust across different estimation techniques and do not depend on the variable chosen to proxy exchange rate uncertainty. The results of the GMM-IV estimation also confirm the negative impact of exchange rate volatility on exports and suggest that this negative relationship is not driven by simultaneous causality bias.
129 citations
TL;DR: In this paper, the authors found that the stability of institutional ownership plays an important role in determining the cost of debt, and that institutional ownership stability affects the costs of debt to a greater extent for firms that are subject to more severe information asymmetry and greater agency costs.
120 citations
TL;DR: In this paper, the authors study the relationship between competition and quality within a spatial competition framework where firms compete in prices and quality and find that lower transportation costs always lead to higher quality.
TL;DR: This paper investigated the long-run relationship between food and energy prices using a world Computable General Equilibrium model with detailed representations of food markets and found that the omission of macroeconomic linkages has a substantial bearing on this relationship.
TL;DR: For example, this paper found that subsidy receipt in the year before kindergarten is associated with lower reading and math test scores and greater behavior problems at kindergarten entry, and some of these negative effects persist until the end of kindergarten.
TL;DR: The authors examined the relationship between income inequality and fiscal support for public education and found that inequality that reduces the median voter's tax share induces higher local spending on public education, and that 11 to 22 percent of the increase in local school spending over this period is attributable to rising inequality.
Abstract: Using a panel of U.S. school districts spanning 1970 – 2000, we examine the relationship between income inequality and fiscal support for public education. In contrast with recent theoretical and empirical work suggesting a negative relationship between inequality and public spending, we find results consistent with a median voter model, in which inequality that reduces the median voter’s tax share induces higher local spending on public education. We estimate that 11 to 22 percent of the increase in local school spending over this period is attributable to rising inequality.
TL;DR: In this article, the authors used a unique dataset-containing information collected in 2006 on individuals aged 40-79 in 21 countries throughout the world to examine whether individual income, relative income in a reference group and income inequality are related to health status across middle/low and high-income countries.
TL;DR: In this article, the authors investigated the relationship between natural resource abundance, human capital and economic growth in two groups of petroleum exporting countries: namely, major petroleum exporters and other petroleum exporter, and the proposed model is tested by panel data for the period 1970-2004.
Abstract: Growth literatures indicate that human capital, education and technology progress are effective factors on economic growth. Empirical studies present that natural resource abundance have an important role on economic growth in natural-resource-rich countries. This paper investigates the relationship natural resource abundance, human capital and economic growth in two groups of petroleum exporting countries: namely A) Major petroleum exporters B) Other petroleum exporters. The paper first, investigated the relationships between related variables by cross section method and then the proposed model is tested by panel data for the period 1970-2004. Findings showed that physical investment and openness have positive impact on economic growth, and resource abundant and government expenditure inversely related with economic growth, but human capital have a different impact in two sample of the paper; so that in first group of countries, human capital have a negative relationship with economic growth while it has a positive relation with economic growth in second group. It is concluded that human capital can be main factor to explain slow growth of resource-rich countries. Abundant of natural resource in this countries and bad usage of natural resource can be cause of negative relationship between human capital and economic growth. In other hands, countries that are rich in mineral and oil neglect the developing of their human resources by devoting inadequate attention and expenditure to education. So these countries have lower growth rate with respect to others.
TL;DR: In this paper, a general pattern of rural development in which increases in per capita income are associated with a decline in the importance of agricultural production and a rise in importance of non-agricultural income sources was proposed.
Abstract: This article proposes a general pattern of rural development in which increases in per capita income are associated with a decline in the importance of agricultural production and a rise in the importance of non-agricultural income sources. Following the approach to examining Engel’s Law, we use data from 15 developing countries and a merged dataset to test whether such a pattern emerges. The analysis shows a strong, positive relationship between per capita income and the share of income earned from rural non-agricultural wage employment and a negative relationship between per capita income and agricultural production.
TL;DR: In this paper, the authors examine the relationship between fragmented intellectual property (IP) rights and innovative performance, taking into consideration the role played by in-licensing of IP, and find that firms facing more fragmented IP landscapes are more likely to report expenditures on inlicensing and for those firms that do incur license costs, a weak positive association between licensing expenditure and fragmented IP rights in the relevant technology.
Abstract: We examine the relationship between fragmented intellectual property (IP) rights and innovative performance, taking into consideration the role played by in-licensing of IP. Controlling for a variety of firm and market characteristics, we find that firms facing more fragmented IP landscapes are more likely to report expenditures on in-licensing and for those firms that do incur license costs we find a weak positive association between licensing expenditure and fragmented IP rights in the relevant technology. We also observe a negative relationship between IP fragmentation and innovative performance, but only for firms that engage in in-licensing and only for product innovation. The relationship between fragmentation and innovative performance also depends on the size of a firm’s patent portfolio, which suggests an important strategic role for defensive patenting in the context of fragmented property rights.
TL;DR: In this article, the role of natural gas consumption in Turkish economic growth by using ARDL model over the period of 1977-2008 was examined, and the results showed that the naturalgas consumption positively impacts the economic growth of Turkey in the short-run and a negative relationship between the variables in long run.
Abstract: This paper examines the role of natural gas consumption in the Turkish economic growth by using ARDL model over the period of 1977–2008. In the study, economic growth and natural gas consumption variables used for bound test approach in empirical analysis was different order of integration (I(0) and I(1)). The results show that the natural gas consumption positively impacts the economic growth of Turkey in the short-run and a negative relationship between the variables in long run.
TL;DR: In this paper, a cross-sectional study was conducted with small-scale farmers in the Brazilian savannah, in a transitional region between the Cerrado and the Amazon rain forest.
TL;DR: In this article, the authors investigated the relationship between initial village inequality and subsequent household income growth for a large sample of households in rural China, and found that households located in higher inequality villages experienced significantly lower income growth through the 1990s.
Abstract: This paper estimates the relationship between initial village inequality and subsequent household income growth for a large sample of households in rural China. Using a rich longitudinal survey spanning the years 1987-2002, and controlling for an array of household and village characteristics, the paper finds that households located in higher inequality villages experienced significantly lower income growth through the 1990s. However, local inequalitys predictive power and effects are significantly diminished by the end of the sample. The paper exploits several advantages of the household-level data to explore hypotheses that shed light on the channels by which inequality affects growth. Biases due to aggregation and heterogeneity of returns to own-resources, previously suggested as candidate explanations for the relationship, are both ruled out. Instead, the evidence points to unobserved village institutions at the time of economic reforms that were associated with household access to higher income activities as the source of the link between inequality and growth. The empirical analysis addresses a number of pertinent econometric issues including measurement error and attrition, but underscores others that are likely to be intractable for all investigations of the inequality-growth relationship.
01 Jul 2010
TL;DR: In this article, the authors examined the long run as well as short run relationship between the fiscal deficits, which is outcome of high government expenditure over the level of tax revenue collection, and poverty.
Abstract: The study examines the long run as well as short run relationship between the fiscal deficits, which is outcome of high government expenditure over the level of tax revenue collection, and poverty. The results reveal a negative relationship between government expenditure and poverty based on time series data from 1976 to 2010. The short run and long run relationships between poverty and other variables are identified by ECM model and Johnson Cointegration test respectively. The results show that there exist short run as well as long run relation between the poverty and government expenditure.
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TL;DR: In this paper, the authors revisited the relationship between income and fertility and found that fertility is negatively related to income in most countries at most times, and that several special assumptions are needed to generate the negative relationship.
Abstract: In this chapter we revisit the relationship between income and fertility There is overwhelming empirical evidence that fertility is negatively related to income in most countries at most times Several theories have been proposed in the literature to explain this somewhat puzzling fact The most common one is based on the opportunity cost of time being higher for individuals with higher earnings Alternatively, people might differ in their desire to procreate and accordingly some people invest more in children and less in market-specific human capital and thus have lower earnings We revisit these and other possible explanations We find that these theories are not as robust as is commonly believed That is, several special assumptions are needed to generate the negative relationship Not all assumptions are equally plausible Such findings will be useful to distinguish alternative theories We conclude that further research along these lines is needed
TL;DR: In this article, the authors consider the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input.
TL;DR: This paper used U.S. county data on land inequality over the period 1890 to 1930 to help address this fundamental question in political economy and found that greater inequality is significantly associated with less redistribution.
Abstract: Does economic inequality affect redistributive policy? This paper turns to U.S. county data on land inequality over the period 1890 to 1930 to help address this fundamental question in political economy. Redistributive policy was primarily decided at the local level during this period, making county-level data particularly informative. Examining within-state variation also reduces the potential impact of latent institutional and political variables. The paper also uses a variety of identification strategies, including historic variables as well as county weather and crop characteristics, as instruments for land inequality. The evidence consistently suggests that greater inequality is significantly associated with less redistribution. This negative relationship is especially large in heavily rural counties, where concentrated landownership implied that landed elites also controlled the majority of economic production.
TL;DR: The authors argue that the commonly used nominal measure of natural resource dependence, the share of exports of primary products in GNP, understates in growth regressions the negative link between NRC dependence and per capita GDP growth.
TL;DR: In this article, the negative relationship between associational involvement and attitudes of social and political tolerance, the "dark side" of social capital, was further investigated, and it was shown that when members of voluntary associations build particularized trust rather than generalized trust, this decreases their already low levels of social tolerance.
Abstract: In the debate on social capital, it is usually assumed that membership in voluntary associations is highly beneficial for the formation of civic values among the association’s affiliates. Despite these theoretical expectations, comparative studies have so far found only a weak statistical relationship between associational involvement and tolerance in Western democracies and a nonsignificant or even negative relationship in the case of Eastern and Central European countries. In this article, the author further investigates the negative relationship between associational involvement and attitudes of social and political tolerance, the “dark side” of social capital. The author shows that when members of voluntary associations build particularized trust rather than generalized trust, this decreases their already low levels of social tolerance. Such situations are especially common in the countries of Eastern and Central Europe. Associational involvement also has negative effects on political tolerance. Assoc...
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TL;DR: The Association of Community Health Councils has launched a health news briefing document titled 'Health and wealth - a review of health inequalities in the UK' which states that the evidence linking ill health and mortality with poverty is overwhelming.
Abstract: This paper analyses the relationship between net wealth and health using Waves 1 to 3 of the Survey of Family, Income and Employment (SoFIE). The results show that lower net wealth is associated with worse health over a range of differing measures of health. The paper acknowledges but does not attempt to resolve the complex issue of causality; does health cause wealth or vice versa? Physical and mental wellbeing were both found to be positively associated with net wealth. These measures of wellbeing were decomposed by the occurrence of a health failure, defined as an injury or illness lasting more than one week. The results led to further inspection of the characteristics associated with health failures. This revealed that those who experienced a health failure had, on average, less wealth and worse self-rated health than those who did not. The progressive nature of poor health and lower net wealth was reinforced by considering self-rated health. There was a clear negative relationship between poor self-rated health and lower net wealth over the five categories of self-rated health. A series of chronic health conditions were also examined. The presence of these conditions was associated with lower net wealth though certain conditions were not always significant. Other than the presence of depression or schizophrenia, each chronic condition was decomposed by age of diagnosis revealing that asthma is more significant in the short term. For conditions other than asthma the coefficients were not significantly different. The analysis of wealth excluded those with zero or negative values for their wealth. To provide a more complete picture, the probability of having zero or negative net wealth was modelled. This revealed that individuals reporting poorer health were more likely to have non-positive net wealth. This study has relied on cross-sectional data from SoFIE. Once the full eight years of longitudinal data become available, a richer analysis of the impact of changes in health status over time on assets, liabilities and net wealth will be possible.
TL;DR: In this article, the authors examined the relationship between individual values, using Schwartz's basic human values theory, and psychological well-being (PWB) and affective organizational commitment, and found that organizational commitment was negatively related to achievement and positively related to power.
Abstract: Purpose – There has been a growing trend recently to examine individual‐level values in order to better understand the attitudes and behaviors of employees in the workplace. This paper aims to continue this trend by examining the relationship between individual values, using Schwartz's basic human values theory, and psychological well‐being (PWB) and affective organizational commitment. It also seeks to examine whether demographic variables control the relationship between individual values and the two dependent variables.Design/methodology/approach – The sample is comprised of 271 police officers enrolled in an undergraduate program in an Israeli university.Findings – As expected, the regression analysis showed a positive relationship between PWB and the values of benevolence, self‐direction, and achievement, and a negative relationship between PWB and the values of power and tradition. Surprisingly, organizational commitment was negatively related to achievement and positively related to power – the rev...
TL;DR: In this article, the effects of industrial disputes legislation and the dispute-settlement process on informal versus formal employment in India were assessed using indicators of pro-worker court awards and court efficiency as well as amendments to the Industrial Disputes Act at the level of Indian states.
Abstract: This study assesses the effects of industrial disputes legislation and the dispute-settlement process on informal versus formal employment in India. It uses indicators of pro-worker court awards and court efficiency as well as amendments to the Industrial Disputes Act (IDA) at the level of Indian states. The state-level IDA amendments are classified in relation to their pro-worker stance and ability to enforce existing legislation. The main finding is that the relationship between formal employment in both the industrial and service sectors and the judicial indicators is weak. Results are not robust to model specification. Thus, the evidence is neither robust nor strong enough to confirm the much claimed negative relationship between pro-worker judicial change and the degree of formal work in the entire service or industrial sectors.