Showing papers on "Spillover effect published in 1999"
Posted Content•
TL;DR: This paper found that foreign direct investment had a greater positive impact on total factor productivity in firms in the Czech Republic over a four-year period than joint ventures did, suggesting that parent firms transferred more know-how to affiliates than joint venture firms got from their partners.
Abstract: Foreign direct investment had a greater positive impact on total factor productivity in firms in the Czech Republic over a four - year period than joint ventures did, suggesting that parent firms transferred more know-how to affiliates than joint venture firms got from their partners. Firms without foreign partners experienced negative spillover effects, possibly because fewer training efforts made them less able to absorb and benefit from the diffusion of know-how. Firm-level data for the Czech Republic (1992-96) suggest that foreign investment had a positive impact on recipient firms' total factor productivity (TFP) growth. This result is robust to corrections for the sample-selection bias that prevails because foreign investment tends to go to firms with above-average productivity performance. This result is not surprising, given the presumption that foreign investors transfer new technologies and knowledge to partner firms. With some lag, this is likely to be reflected in greater TFP growth. Foreign direct investment appears to have a greater impact on TFP growth than joint ventures, suggesting that parent firms are transferring more know-how (soft or hard) to affiliates than joint venture firms get from their partners. Joint ventures and foreign direct investment together appear to have a negative spillover effect on firms that do not have foreign partnerships. This effect is relatively large and statistically significant. But if the focus is restricted to the impact of foreign-owned affiliates (foreign direct investment) on all other firms in an industry, the magnitude of the negative effect becomes much smaller and loses statistical significance. This result, together with the fact that joint ventures and foreign direct investment together account for significant shares of total output in many industries, suggests that more research is needed to determine how much knowledge diffuses from firms with strong links to foreign firms to firms that do not have such links. Especially important is the extent of spillovers among joint venture firms and between foreign affiliates and firms with joint ventures. Insofar as joint venture firms invest more in technological capacity (as suggested by their training efforts), those firms could be expected to be better able to absorb and benefit from the diffusion of know-how. The absence of such capacity may underlie the observed negative spillover effect on other firms in the industry. Longer time series and collection of data on variables that measure firms' in-house technological effort would help identify the magnitude and determinants of technological spillovers. This paper - a product of the Financial Economics Group - is part of a larger effort in the group to understand the transition process in the Czech Republic.
866 citations
TL;DR: This paper used firm-level data for the Czech Republic to show that during 1992-96, foreign investment had the predicted positive impact on total factor productivity growth of recipient firms and that the magnitude of the spillover becomes much smaller and loses significance with foreign direct investment alone.
Abstract: This article uses firm-level data for the Czech Republic to show that during 1992-96 foreign investment had the predicted positive impact on total factor productivity growth of recipient firms. This result is robust to corrections for the sample bias that arises because foreign companies tend to invest in firms whose initial productivity is above average. Together, joint ventures and foreign direct investment appear to have a negative spillover effect on firms that do not have foreign partnerships. However, with foreign direct investment alone, the magnitude of the spillover becomes much smaller and loses significance. This result, in conjunction with the fact that joint ventures and foreign direct investment account for a significant share of total output in many industries, suggests that further research is required to determine the extent of knowledge diffusion from firms that have foreign links to those that do not.
720 citations
TL;DR: The authors surveys the literature on trade and foreign direct investment as channels for technology transfer and concludes that knowledge spillover is more likely to be national for developing countries than for industrial countries, and that a country's policy on protection of intellectual property rights affects the type of industry it attracts.
Abstract: The author surveys the literature on trade and foreign direct investment--especially wholly-owned subsidiaries of multinational firms and international joint ventures--as channels for technology transfer. He also discusses licensing and other arm's length channels of technology transfer. He concludes: 1) How trade encourages growth depends on whether knowledge spillover is national or international. Spillover is more likely to be national for developing countries than for industrial countries. 2) Local policy often makes pure foreign direct investment infeasible, so foreign firms choose licensing or joint ventures. The jury is still out on whether licensing or joint ventures lead to more learning by local firms. 3) Policies designed to attract foreign direct investment are proliferating. Several plant-level studies have failed to find positive spillover from foreign direct investment to firms competing directly with subsidiaries of multinationals. (However, these studies treat foreign direct investment as exogenous and assume spillover to be horizontal-when it may be vertical.) All such studies do find the subsidiaries of multinationals to be more productive than domestic firms, so foreign direct investment does result in host countries using resources more effectively. 4) Absorptive capacity in the host country is essential for getting significant benefits from foreign direct investment. Without adequate human capital or investments in research and development, spillover fails to materialize. 5) A country's policy on protection of intellectual property rights affects the type of industry it attracts. Firms for which such rights are crucial (such as pharmaceutical firms) are unlikely to invest directly in countries where such protections are weak, or will not invest in manufacturing and research and development activities. Policy on intellectual property rights also influences whether technology transfer comes through licensing, joint ventures, or the establishment of wholly-owned subsidiaries.
578 citations
TL;DR: In this paper, the authors consider dual approaches to growth accounting (which considers changes in factor prices rather than quantities), spillover effects and increasing returns, taxes, and multiple types of factor inputs.
Abstract: Growth accounting breaks down economic growth into components associated with changes in factor inputs and the Solow residual, which reflects technological progress and other elements. After a presentation of the standard model, the analysis considers dual approaches to growth accounting (which considers changes in factor prices rather than quantities), spillover effects and increasing returns, taxes, and multiple types of factor inputs. Later sections place the growth-accounting exercise within the context of two recent strands of endogenous growth theory—varieties-of-products models and quality-ladders models. Within these settings, the Solow residual can be interpreted in terms of measures of the endogenously changing level of technology.
383 citations
TL;DR: The authors examined how tension is transmitted between the marital dyad and the parent-child dyad on a day-to-day basis and explored how stable and changing aspects of the family moderate this process of tension spillover.
Abstract: This study examines how tension is transmitted between the marital dyad and the parent-child dyad on a day-to-day basis and explores how stable and changing aspects of the family moderate this process of tension spillover. Mothers and fathers (n = 117 couples) separately completed a short diary questionnaire that included a checklist of common daily stressful experiences on each of 42 consecutive days. Hierarchical generalized linear models showed that both mothers and fathers were more likely to have tense interactions with their children on days when there had been some marital tension the previous day. On days when fathers experienced other stressors, such as work overloads or home demands, they were more than twice as likely to experience tension spillover than on stressfree days. Fathers also reported more spillover when their wives were working full-time. In families with adolescents in the house, mothers had more tension spillover Key Words: conflict, daily diary, emotions, marital relations, parent-child relations, spillover. Family and developmental theorists often highlight the interrelatedness of the wife-husband relationship and the parent-child relationship (Belsky, 1990; Parke & Tinsley, 1987). Indeed, several studies have documented that positive parent-child relations are not easily achieved in the face of marital discord. (For a review, see Erel & Burman, 1995.) One explanation for these findings is that negative emotions in one family relationship are likely to transfer to other family relationships. This type of emotional transmission has been referred to as spillover. Spillover takes place when there is a direct transfer of mood, affect, or behavior from one setting to another (Bolger, DeLongis, Kessler, & Wethington, 1989; Repetti, 1987). Although the concept of spillover often has been used to describe the interplay between family and work settings (Crouter, 1984; Staines, 1980), we address a spillover process that involves the transmission of conflict or tense interaction between two family subsystems, the parent-child dyad and the marital dyad. ANALYSIS OF SPILLOVER AT THE FAMILY LEVEL We focus on spillover at the family level of analysis, and we draw not only on theory developed from observations of family systems, but also from empirical research based on the ecological perspective (e.g., Repetti & Wood, 1997). The ecological perspective (Bronfenbrenner, 1989) posits that stressors and other emotionally arousing events outside the family (e.g., work) and inside the family affect individuals and family relationships through the spillover of tension (Brown & Harris, 1978; Margolin, Christensen, & John, 1996). Children, in their interaction with parents, often are the recipients of spillover (Greenberger, O'Neil, & Nagel, 1995). Stressors from outside and inside the family raise demands for adaptation in parents, which may lead to marital tension. This tension then may lead to negative interactions with children. We specifically examine the spillover of tension from one dyad to another. From this perspective, tensions in a particular family subsystem are stressors that lead to additional problems in another family subsystem. Empirical evidence directly documenting spillover effects, however, is not extensive. In an observational study of mothers and children, Repetti and Wood (1997) report that, on average, mothers experiencing stressful work days are more likely to withdraw (become less responsive) than to display irritation with their children. In an earlier study, Repetti (1994) found a similar pattern of withdrawal for fathers coping with job demands. Although emotional withdrawal is not a neutral family behavior (i.e., withdrawal, if persistent, can have negative consequences), it is generally not as immediately detrimental to the emotional state of others as conflict (Bolger, DeLongis, Kessler, & Schilling, 1989). The probability of parent-to-child spillover most likely varies according to the source and the severity of the stressor, as well as other personal and contextual factors. …
327 citations
TL;DR: In this paper, structural equation models were used to investigate the spillover process between recycling and packaging waste prevention in a sample of Danish adults, finding that a positive spillover effect from recycling to personal norms concerning packaging waste preservation is predicted, whereas the reverse is found.
288 citations
TL;DR: This paper measured the spillover effects of multinational enterprises on host countries and found that the importance of the trade channel is much reduced once FDI is included; and the overall spillovers increase significantly with the inclusion of FDI.
Abstract: Attempts to measure the spillover effects of multinational enterprises on host countries have generally been cross-sectional and limited to labour productivity in manufacturing for a single country. Recent work in growth theory has measured the extent to which growth in total factor productivity in a country depends not only on domestic RD the importance of the trade channel is much reduced once FDI is included; and the overall spillovers increase significantly with the inclusion of FDI.
241 citations
TL;DR: The authors found that firms self-select into R&D or non-R&D groups, and that foreign direct investment, local technology purchase, and outward foreign investment are substitutes to research and development activity.
Abstract: Using Taiwanese firm‐level data, we confirm that foreign direct investment and R&D have a positive impact, or spillover effect, on productivity. Furthermore, labour quality, firm size, market structure, and export orientation all affect a firm's productivity. Applying Heckman's [1976] two‐stage estimation method, we find that firms self‐select into R&D or non‐R&D groups. After correcting for this selection bias, we find that foreign direct investment, local technology purchase, and outward foreign investment are substitutes to R&D activity. These results are mainly due to the significant effect of industry‐wide technology spillovers. The major policy implications derived from this study are that governments in developing countries may first wish to adopt policies encouraging foreign direct investment to foster technology transfer and industry‐wide knowledge spillovers in the short run. However, once the country's technological capability is established it appears critical to switch towards policies that p...
237 citations
TL;DR: In this article, a multi-sector, multi-region trade model (MS-MRT) is developed that focuses on the international trade aspects of climate change policy, including the distribution of impacts on economic welfare, international trade and investment across regions, the spillover effects of carbon emission limits in Annex 1 countries on non-Annex 1 countries, carbon leakage, changes in terms of trade and industry output.
131 citations
Posted Content•
TL;DR: Saggi et al. as mentioned in this paper survey the literature on trade and foreign direct investment as channels for technology transfer and conclude that how trade encourages growth depends on whether knowledge spillover is national or international.
Abstract: How much a developing country can take advantage of technology transfer from foreign direct investment depends partly on how well educated and well trained its workforce is, how much it is willing to invest in research and development, and how much protection it offers for intellectual property rights. Saggi surveys the literature on trade and foreign direct investment - especially wholly owned subsidiaries of multinational firms and international joint ventures - as channels for technology transfer. He also discusses licensing and other arm's-length channels of technology transfer. He concludes: - How trade encourages growth depends on whether knowledge spillover is national or international. Spillover is more likely to be national for developing countries than for industrial countries. - Local policy often makes pure foreign direct investment infeasible, so foreign firms choose licensing or joint ventures. The jury is still out on whether licensing or joint ventures lead to more learning by local firms. - Policies designed to attract foreign direct investment are proliferating. Several plant-level studies have failed to find positive spillover from foreign direct investment to firms competing directly with subsidiaries of multinationals. (However, these studies treat foreign direct investment as exogenous and assume spillover to be horizontal - when it may be vertical.) All such studies do find the subsidiaries of multinationals to be more productive than domestic firms, so foreign direct investment does result in host countries using resources more effectively. - Absorptive capacity in the host country is essential for getting significant benefits from foreign direct investment. Without adequate human capital or investments in research and development, spillover fails to materialize. - A country's policy on protection of intellectual property rights affects the type of industry it attracts. Firms for which such rights are crucial (such as pharmaceutical firms) are unlikely to invest directly in countries where such protections are weak, or will not invest in manufacturing and research and development activities. Policy on intellectual property rights also influences whether technology transfer comes through licensing, joint ventures, or the establishment of wholly owned subsidiaries. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study microfoundations of international technology diffusion. The study was funded by the Bank's Research Support Budget under the research project Microfoundations of International Technology Diffusion. The author may be contacted at ksaggi@mail.smu.edu.
102 citations
TL;DR: In this paper, the authors present a new method to measure technology spillovers at macroeconomic or sectoral level by means of a so-called technology flow matrix, which is used to assess whether or not R&D spillovers lead to a more equal distribution of technology investment over sectors.
TL;DR: The authors found that lagged and disaggrcgated university R&D is a significant determinant of city high technology employment and some evidence for employment effects of innovation, while controlling for wages, prior innovations, state fixed efrccts, and saniple selectivity hias.
Abstract: Using 4 years of data from 36 American cities and 6 high technology groupings we present thc first estimates of University R&D spillover effects on ctnployrnent at this level of disag-gregation, while controlling for wages, prior innovations, state fixed efrccts, and saniple selectivity hias. We find robust evidence that lagged and disaggrcgated university R&D is a significant determinant of city high technology employment and some evidence for employment effects of innovation.
TL;DR: This paper developed a model of an electoral cycle in inflation and output based on rational inflation expectations and rational retrospective voting, where voters are heterogeneous and partially informed about aggregate macroeconomic variables, but their observations of economic activity in other sectors are imprecise.
Abstract: This paper develops a model of an electoral cycle in inflation and output based on rational inflation expectations and rational retrospective voting. Voters are heterogeneous and partially informed about aggregate macroeconomic variables. They observe precisely how monetary policy stimulates their local economies, but their observations of economic activity in other sectors are imprecise. Voters extract information about the incumbent policymaker's economic competence from cross-sectoral spillover effects. The incumbent has incentives to generate preelection "monetary surprises" that stimulate the local economies and generate cross-sectoral spillover effects. He thereby creates an impression of economic competence and furthers his reelection prospects. His policy manipulations are the price of political accountability. On a positive note, the incumbent is more likely to survive voter scrutiny if he is more competent than the average political candidate.
TL;DR: In this article, the authors argue that the outcomes predicted in a large range of conventional economic models for “small” regions converge on input-output results in the long run, where a small region's factor markets are ultimately fully integrated into their national counterparts, there is no regional scarcity of resources at the existing ruling prices.
Abstract: Input-output is the most widely employed general equilibrium model for the analysis of demand disturbances to the regional economy. However, whilst input-output systems are relatively easy to implement, they have severe limitations. These include fixed production and consumption coefficients and a neglect of supply-side constraints. Therefore, although input-output is a convenient technique to use, the key question is whether it is appropriate for modeling a regional market economy. McGregor et al (1996a) argue that the outcomes predicted in a large range of conventional economic models for “small” regions converge on input-output results in the long run. Essentially, where a small region’s factor markets are ultimately fully integrated into their national counterparts, there is no regional scarcity of resources at the existing ruling prices. The addition of cost functions which are linear and homogeneous in input prices and output, together with cost minimization and any form of mark-up pricing, generates the demand-invariant prices which motivate fixed production and consumption coefficients.
TL;DR: In this article, both spillovers in congestable good and crowding are studied and it is shown that an increase the relative strength of the first type of spillover may result in either an increase or decrease in the optimal club size and public good levels.
Posted Content•
TL;DR: In this paper, the Verdoorn Law linking manufacturing output and productivity growth is augmented to include endogenous technical progress involving diffusion, spillover effects and putative human capital effects, and the implications of interregional spillovers are faster productivity growth and higher productivity levels, a trend that is accelerated with endogenously determined spillover.
Abstract: The main item of agreement between the 'new' and 'old' economic geography is the role of increasing returns in regional economic development. This provides a focal point for the model of this paper, which aims to highlight the existence of a 'third way' somewhere between the analysis provided by these two competing modes of explanation. Increasing returns are represented by the Verdoorn Law linking manufacturing output and productivity growth, which is augmented to include endogenous technical progress involving diffusion, spillover effects and putative human capital effects. The model is estimated using data for regions of the EU, thus emphasizing the need to confront theory with data. The approach of the paper thus avoids 'the lost scientific cause' of much of contemporary 'economic geography proper' and the constraints posed by the theory of 'new economic geography'. The implications of the model are explored and assumptions are imposed leading to a 'stochastic steady state' as an approximation to real world turbulence, and as an alternative to the Markov chain stochastic equilibrium suggested by Quah(1993). The paper shows that the implications of interregional spillovers are faster productivity growth and higher productivity levels, a trend that is accelerated with endogenously determined spillover. Without catch up, regional productivity levels diverge with no stable steady state and one region becomes increasingly dominant, but catch up ensures that cross-regional productivity growth rates tend to equality.
Book•
01 Jan 1999
TL;DR: In this article, the authors provide an introduction to innovation and technological change and expand this to include such issues as innovation and economic growth, the appropriability problem, the role of government and the use of patents.
Abstract: This work provides an introduction to innovation and technological change and expands this to include such issues as innovation and economic growth, the appropriability problem, the role of government and the use of patents. It also discusses such topics as technological co-operation, the spillover effects of research, the firm as a learning entity and national systems of innovation. These issues are analyzed using an empirical basis, employing theoretical explanations to support case studies from Europe, the USA and Japan.
TL;DR: The case of the U.S. Auto Parts Industry as mentioned in this paper suggests that even in a developed country FDI can also make a favorable impact on the local industry, but possibly through different channels.
Abstract: Multinationals, Production Efficiency, and Spillover Effects: The Case of the U.S. Auto Parts Industry. — Since the mid-1980s many of the developing countries have attempted to attract foreign direct investment. The primary reason is access to modern technology although the true impact is still controversial. The U.S. case suggests that even in a developed country FDI can also make a favorable impact on the local industry, but possibly through different channels. FDI can increase efficiency substantially through the enhancement of competitive pressure instead of, or in addition to, technology transfer. The manner in which FDI influences the local economy seems to be very different depending on the development stage of recipient countries.
TL;DR: In this paper, the catalytic role of Pt/TiO2 catalysts in oxygen spillover and back spillover was studied by a potential dynamic sweep method, and the characteristics of I-V profiles of Pt and TiO2 electrodes in the three potential sweep regions are different from those of Pt.
Abstract: Oxygen spillover and back spillover on Pt/TiO2 catalysts have been studied by a potential dynamic sweep method. The characteristics of I-V profiles of Pt/TiO2 electrodes in the three potential sweep regions are different from those of Pt and TiO2 electrodes. The catalytic role of Pt/TiO2 in oxygen spillover and back spillover is identified. It decreases, and the electrochemical oxygen adsorption (or desorption) increases with elevating temperature of hydrogen post-treatment of Pt/TiO2; to a certain extent (hydrogen post-treatment of Pt/TiO2 at 700 degrees C), the control step of oxygen electrode process (anodic oxidation or cathodic reduction) changes from oxygen diffusion to electrochemical oxygen adsorption or desorption, respectively. Increasing the amount of Pt supported on TiO2 enhances the processes of oxygen spillover and back spillover. (C) 1999 Elsevier Science B.V. All rights reserved.
TL;DR: In this paper, the effects of respondents' job and family attributes on work-family conflict were examined by examining three different types of job-to-home spillover: job responsibilities preventing workers from doing usual housework, attending family occasions and caring for a sick child or relative.
Abstract: In this paper, I examine the effects of respondents' job and family attributes on work-family conflict. This paper builds on previous research by examining three different types of job-to-home spillover: job responsibilities preventing workers from 1) doing usual housework, 2) attending family occasions and 3) caring for a sick child or relative. This paper also examines whether these determinants are the same for working men and women. I predict that respondents with highly demanding jobs will be more likely to experience work-family conflict than those with less demanding jobs. Likewise, those with more family demands will have more conflict. These hypotheses are developed and tested with data from the 1996 General Social Survey Gender Module. The results indicate that the determinants of job-to-home spillover vary across the measures of job-to-home spillover used in the study, yet the conditions under which women and men have job-to-home spillover are remarkably similar.
TL;DR: In this paper, a framework for analyzing the nexus between financial development and economic growth in terms of spillover effects is proposed based on the production function theory and consists of two versions of the two-sector model.
TL;DR: This paper used a panel of firm-level financial and strikes data for a large sample of Australian manufacturing firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action.
Abstract: While it is generally accepted that strikes can have a negative impact on a firm's performance, the direct effects of a strike on the affected firm may be only one component of the total impact resulting from the action The existence of indirect or “spillover” effects can also have important implications for the economic performance of competing firms This paper uses a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action
01 Jan 1999
TL;DR: This article used a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action, and found that the existence of indirect or "spillover" effects can also have important implications for the economic performance of competing firms.
Abstract: While it is generally accepted that strikes can have a negative impact on a firm's per- formance, the direct effects of a strike on the affected firm may be only one component of the total impact resulting from the action. The existence of indirect or "spillover" effects can also have important implications for the economic performance of competing firms. This paper uses a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action.
TL;DR: The authors summarizes some of the basic economic theory on the working of the patent system and provides alternatives to the patent systems. But they do not discuss the role of technology in economic development and the way in which economic theory has approached the technology-economy relationship.
Abstract: This chapter broadly summarizes some of the basic economic theory on the working of the patent system. It starts by outlining the role technology plays in economic development, and the way in which economic theory has approached the technology-economy relationship. It then reviews the basic economic motive for establishing a patent system: to solve the incentive problem that firms face when they develop new technologies with potential spillover effects to other firms and consumers. A discussion of alternatives to the patent system is also provided. From an economic point of view, however, a crucial aspect of patents is that they leave some opportunity for spillovers. In other words, patents should not provide a pure monopoly to the inventing firm.
TL;DR: In this paper, the authors use cross-country regressions to account for sub-Saharan Africa's growth performance over the past 30 years and to suggest policies to promote growth over the next 30 years.
Abstract: Africa's economic history since 1960 fits the classical definition of tragedy: potential unfulfilled with disastrous consequences. The authors use one mehthodology - cross-country regressions - to account for sub-Saharan Africa's growth performance over the past 30 years and to suggest policies to promote growth over the next 30 years. They statistically quantify the relationship between long-run growth and a wider array of factors than any previous study. They consider such standard variables as initial income to capture convergence effects, schooling, political stability and indicators of monetary, fiscal, trade, exchange rate, and financial sector policies. They also consider such new measures as infrastructure development, cultural diversity, and economic spillovers from neighbors' growth. Their analysis: 1) improves substantially on past attempts to account for the growth experience of sub-Saharan African countries; 2) shows that low school attainment, political instability, poorly developed financial systems, large black-market exchange-rate premia, large government deficits, and inadequate infrastructure are associated with slow growth; 3) finds that Africa's ethnic diversity tends to slow growth and reduce the likelihood of adopting good policies; 4) identifies spillovers of growth performance between neighboring countries. The spillover effects of growth have implications for policy strategy. Improving policies alone boosts growth substantially, but if neighboring countries act together, the effects on growth are much greater. Specifically, the results suggest that the effects of neighbor's adopting a policy change is 2.2 times greater than if a single country acted alone.
TL;DR: In this paper, the short-, intermediate and long-run effects of anticipated supply side policies within a two-country model of a currency union were analyzed, and the authors showed that both a reduction of labor extra-costs and a revenue neutral cut in the employers' contribution to the social security has indeterminate short run effects resulting from an ambiguous exchange-rate jump in the announcement interval.
Abstract: The paper analyses the short-, intermediate- and long-run effects of anticipated supply side policies within a two-country model of a currency union that is characterized by perfect foresight dynamics, saddle-point stability and the incorporation of intermediate goods imports We show that both a reduction of labor extra-costs and a revenue neutral cut in the employers’ contribution to the social security has indeterminate short-run effects resulting from an ambiguous exchange-rate jump in the announcement interval However, the policies achieve in the long-run an unambiguous rise in aggregate output and employment The employment increase is stronger than the output expansion due to a decline in the producers’ real wage rate and a rise in the real factor price of the intermediate goods imports Our results display positive long-run output and employment effects as well, if the employers’ and the employees’ contributions to the social security are reduced simultaneously and the revenue loss is compensated by an under-proportional rise of the VAT-rate Unilateral supply side policies have ambiguous spillover effects in the second member country of the union
TL;DR: In this paper, the authors present a model for panel data analysis that can have a crucial effect on the interpretation of the analyzed phenomenon, which is demonstrated by an application on research and development spillover.
TL;DR: In this article, the authors examine the importance of spillover benefits from modernization efforts, both horizontal spillovers to rivals of program clients and vertical spillover to clients' customers, and the implications for these policy and programmatic issues.
01 Jan 1999
TL;DR: In this article, the authors gratefully acknowledge the financial support of the IWT/VTO project on 'Knowledge diffusion and cooperation' and of the FKFO project 'Spillovers, networks and company innovation efforts' n° G 0131.98.
Abstract: ° The authors would like to thank Bruno van Pottelsberghe de la Potterie and Bart Verspagen for making available the IO and technology matrices. The authors gratefully acknowledge the financial support of the IWT/VTO project on 'Knowledge diffusion and cooperation' and of the FKFO project 'Spillovers, networks and company innovation efforts' n° G 0131.98.
TL;DR: In this article, the authors assess the economic impacts of two scenarios of offshore oil development in Canada's Arctic: one based on pipeline transportation and the other based on tanker transportation, and show that the pipeline scenario yields greater benefits for the Northwest Territories than the tanker scenario.
Abstract: In this paper we assess the economic impacts of two scenarios of offshore oil development in Canada's Arctic: one based on pipeline transportation and the other based on tanker transportation. A dynamic multiregional input—output model is specified in order to take account of substantial regional spillover effects and capacity expansion effects within the Northwest Territories. The results indicate that in both scenarios a large share of the economic benefits accrue to other regions, but that the pipeline scenario yields greater benefits for the Northwest Territories. Differences between the two scenario results are explained in terms of the spatial and sectoral patterns of input requirements and differences in capacity expansion effects.