Showing papers on "Spillover effect published in 2001"

The Moderating Role of Commitment on the Spillover Effect of Marketing Communications

Abstract: Spillover refers to the extent to which a message influences beliefs related to attributes that are not contained in the message. The authors find that when consumers are not familiar with a brand, negative information spills over to attributes that are associated with the target attribute but not mentioned in the message. However, positive information does not. When consumers like the brand, a spillover occurs for the positive information as well. When consumers are committed to the brand, the spillover of negative information is minimized, but positive information spills over more freely to other associated but unmentioned attributes.

The determinants of host country spillovers from foreign direct investment: a review and synthesis of the literature

Abstract: The existence of spillover efficiency benefits to host country economies from inward foreign direct investment (FDI) is well documented in the literature.1 The determinants of the size and scope of the spillover benefits have also been studied, but they are not as clearly and consistently documented as the existence and magnitude of the relevant externalities.

Trade regimes and spillover effects of FDI: Evidence from Uruguay

Abstract: Trade Regimes and Spillover Effects of FDI: Evidence from Uruguay. — This paper examines differences in the character and impact of FDI entering Uruguay during import substitution, pursued until 1973, and the subsequent more outwardoriented trade regime. Regression analysis shows that the labor productivity of local firms is positively related to the presence of older import-substituting MNCs in their industry. The presence of foreign affiliates established after 1973 has no apparent impact on local productivity, but seems to raise the likelihood that local firms engage in exporting. This may be a sign of export spillovers, indicating that local firms may pick up some exportrelated skills from the operations of outward-oriented foreign MNCs.

Returns synchronization and daily correlation dynamics between international stock markets

Abstract: The use of close-to-close returns underestimates returns correlation because international stock markets have different trading hours. With the availability of 16:00 (London time) stock market series, we find dynamics of daily correlation and covariance, estimated using two non-synchroneity adjustment procedures, to be substantially different from their synchronous counterparts. Conditional correlation may have different signs depending on the model and data type used. Other findings include volatility spillover from the US to the UK (and France), and a reverse spillover which is not documented before. Also, unlike previous findings, we found the increase in daily correlation is prominent only under extremely adverse conditions when a large negative return has been registered.

Direct Foreign Investments and Productivity Growth in Hungarian Firms, 1992-1999

Abstract: The impact of FDI on total factor productivity in Hungary during the 1990s’ is assessed with a large enterprise panel. Foreign equity is associated with higher productivity levels and has a substantial, positive spillover effect on aggregate TFP growth. However, this benefit is significant only when associated with export orientation, while inward-looking FDI has negative side effects. Regionally, the north-western area, close to EU borders, benefits much more from FDI, whether foreign-owned or locally-owned private firms are considered. Otherwise, only the later absorb a reduced volume of externalities. Finally, State ownership implies lower levels of productivity, but does not hinder the capacity to respond to market incentives, including FDI induced externalities.

Foreign direct investment and intra-industry spillovers: a review of the literature

Abstract: Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper reviews the possible sources of such spillovers and the empirical evidence for their existence in developing, developed and transitional economies. Although theory can identify a range of possible spillover channels, empirical support is hard to find. In the light of this, the paper concludes with a review of policy aspects. Outline

Barriers to knowledge spillovers and regional convergence in an evolutionary model

Abstract: This paper will present a multi-region/multi-country model in which inter-regional knowledge spillovers determine the growth of regions. Key parameters in the model are the learning capability of a region and the rate of knowledge generation (R&D). The intensity of spillovers depends on geographical distance between regions. The model is investigated by means of simulation techniques. What results is a core-periphery situation, the exact form of which depends on the assumed spatial structure. The impact of economic integration is investigated by introducing barriers-to-knowledge-spillovers in the model in the form of borders between countries. Contrary to the popular belief and some economic theories, we find that removing such spillover barriers may result in larger disparity of income levels between regions.

Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis

Abstract: In this Paper we aim to examine the regional impact of foreign-owned establishments on the performance of domestic establishments in the electronics industry in the UK. We use establishment-level data taken from the UK Census of Production (the ARD) to this end. In the econometric specification, we allow for the time-varying endogeneity of the factors of production function, and correct for the sample-selection bias generated by plants with larger capital stocks surviving in spite of lower productivity realisations. The FDI spillover literature has so far abstracted from the selection problem generated by plant exit. To our knowledge, this is the first Paper that simultaneously attempts to correct the production parameter estimates for selectivity induced by plant exit as well as time-varying endogeneity (the 'not so fixed' effect), before identifying the impact of foreign direct investment on domestic plant's productivity. The results indicate that positive spillovers exist but are mostly confined to the region in which the MNE locates. A number of characteristics influence their level, they are higher from non-US firms (in particular Japanese firms) and in more-developed regions.

FDI, Regional Economic Integration and Endogenous Growth: Some Evidence from Southeast Asia

Abstract: This empirical study investigates whether FDI caused spillover effects which led to the economic growth of the ASEAN-5 economies (1970–96), and, if that is so, whether the ASEAN Preferential Trade Agreement (APTA) had a significant effect in attracting FDI to the region. Its findings are that FDI has stimulated economic growth most effectively through human factors, and knowledge/technological learning-by-doing effects; and that the formation of the APTA had a lagged influence on FDI inflows to the advantage of the more-developed member countries, and disadvantage of the less-developed member countries.

Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis

Abstract: In this Paper we aim to examine the regional impact of foreign-owned establishments on the performance of domestic establishments in the electronics industry in the UK. We use establishment-level data taken from the UK Census of Production (the ARD) to this end. In the econometric specification, we allow for the time-varying endogeneity of the factors of production function, and correct for the sample-selection bias generated by plants with larger capital stocks surviving in spite of lower productivity realisations. The FDI spillover literature has so far abstracted from the selection problem generated by plant exit. To our knowledge, this is the first Paper that simultaneously attempts to correct the production parameter estimates for selectivity induced by plant exit as well as time-varying endogeneity (the ‘not so fixed’ effect), before identifying the impact of foreign direct investment on domestic plant’s productivity. The results indicate that positive spillovers exist but are mostly confined to the region in which the MNE locates. A number of characteristics influence their level, they are higher from non-US firms (in particular Japanese firms) and in more-developed regions.

Direct Foreign Investments and Productivity Growth in Hungarian Firms, 1992-1999

Abstract: The impact of FDI on total factor productivity in Hungary during the 1990s is assessed with a large enterprise panel. Foreign equity is associated with higher productivity levels and has a substantial, positive spillover effect on aggregate TFP growth. However, this benefit is significant only when associated with export orientation, while inward-looking FDI has negative side effects. Regionally, the north-western area, close to EU borders, benefits much more from FDI, whether foreign-owned or locally-owned private firms are considered. Otherwise, only the later absorb a reduced volume of externalities. Finally, State ownership implies lower levels of productivity, but does not hinder the capacity to respond to market incentives, including FDI induced externalities.

Information flows between non-deliverable forward (NDF) and spot markets: Evidence from Korean currency

Abstract: This paper investigates the interrelation and information flows between the Won–Dollar spot and offshore forward, i.e., NDF markets. In particular, this paper focuses on the impact of the reform in the Korean exchange rate systems, which occurred in December 1997 in response to the currency crisis, on the relation between the two markets. Using the augmented GARCH formulation, this paper finds that during the pre-reform period a mean spillover effect exists from the spot to the NDF market but not vice versa, and a volatility spillover effect exists in both directions. After the reform, however, the results are reversed and a mean spillover effect exists from the NDF to the spot market. Also, the volatility spillover effect exists only in the same direction. These findings suggest that there are information flows between the two markets, and the reform has changed the direction of the dynamic relation.

Domestic Division of Labor and Self/Organizationally Employed Differences in Job Attitudes and Earnings

Abstract: This study analyzes the association between self-employment and work-related outcomes including negative spillover between work and home, earnings, and job attitudes. National Study of the Changing Work Force 1997 data support the idea that self-employment provides workers with more scope for matching work activities to their presumed roles in the domestic division of labor. Among married women, the self-employed experience is associated with less negative spillover from job-to-home, greater job satisfaction, and less job burnout. Where pre-school children are present, the earnings of self-employed women are much less than the earnings of the organizationally employed. Among men, self-employment is associated with more job-to-home spillover when there are small children in the family, and with greater job satisfaction.

Fiscal Policy Spillovers in the Euro Area: Where are they? CEPS Working Document No. 176, November 2001

Abstract: What impact would a fiscal expansion in Germany have on the rest of the euro area? It has been generally suggested that it could go in either of two opposite directions, depending on the relative strength of two effects: the direct trade linkage and the financial market repercussions. A review of the results from four major macroeconomic models shows that the cross-country spillover effects of fiscal policy are indeed of uncertain sign and magnitude. Different models give quite different results if used in standardised simulations in terms of the sign, magnitude and time profile of the impact of a fiscal expansion in one member country (e.g. Germany) on other euro area countries. Fewer results are available concerning the potential spillover effects of structural policies, but they are similar to the ones concerning a budgetary stimulus: the magnitude of the spillover is small and varies across countries and over time.

Are There Spillover Effects Between Coastal and Non-Coastal Regions in China ?

Abstract: The evolution of regional policy between the Mao era and the Deng era generated much debate concerning inter-provincial disparities and the trade-off between efficiency and equity. The aim of this paper is to explore the existence of regional growth spillover effects looked for Deng’s policy. Indeed, the main objective was the spread of coastal provinces’ growth onto inland provinces’ growth. After reviewing the theoretical underpinnings of such effects, their existence is tested with panel data, for the period 1981-1998. Moreover, the hypothesis of an equal distribution of these effects over all the inland provinces is also tested. A relative failure to boost development of the western provinces from the coastal provinces’ growth is observed. Hence, it would seen to be an error to wait for spillover effects to be sufficient to reduce disparities between Chinese provinces in the short run.

The Macro‐Economic Effects of Directed Credit Policies: A Real‐Financial CGE Evaluation for India

Abstract: The effectiveness of directed credit programmes as an instrument for economic development is the subject of considerable debate. However, the focus of this debate is almost exclusively on the intra-sectoral effects of directed credit and its adverse effects on financial sector performance, neglecting possible spillover effects on demand, production and investment in the rest of the economy. This article tries to fill this gap by examining the macroeconomic effects of directed credit in India with the help of a novel realfinancial computable general equilibrium (CGE) model. Focusing on credit rather than money, the model goes beyond earlier modelling approaches by (1) incorporating directed credit policy and credit rationing; (2) recognizing the dual role of credit for working capital and investment; and (3) allowing for switches between credit-constrained, capacity-constrained and demandconstrained regimes. The results from short- and medium-term simulation experiments with the model indicate that, when credit market failures result in rationing as in India’s agricultural and small-scale industrial sectors, the macro-economic effects of directed credit are likely to be significant and positive.

International Transmission of Stock Market Movements : A Wavelet Analysis on MENA Stock Markets

Abstract: As international financial markets have become increasingly interdependent, new evidence on international spillover effects has widely been discussed around the globe. However, the MENA region has received little attention concerning international transmission of stock market movements. In this paper, we discuss international spillover effects between the major developed markets (U.S., Japan and Germany) and the emerging markets in the MENA region (Turkey and Egypt). While GARCH-type models have mainly been used to investigate international stock market spillovers in much of previous studies, we develop new testing strategies based on discrete wavelet decomposition. The basic finding is that price as well as volatility spillover effects exist from the developed stock markets to the MENA counterparts, but not vice versa. Also discussed is on the interdependence of the major MENA

Nonlinear dynamics, spillovers and growth in the G7 economies: an empirical investigation

Abstract: This paper proposes an empirical growth model which is consistent with a stochastic steady-state labour productivity level varying over time and across countries, where the disequilibrium mechanism leading to long-run equilibrium follows a nonlinear equilibrium correction model. Using data for the G7 economies during the postwar period since 1950, the empirical analysis yields a long-run model which implies plausible estimates of the production function parameters. Postwar economic growth in each of the G7 countries appears to be well characterized by a nonlinear equilibrium correction model where the dynamic adjustment towards long-run equilibrium is governed by a logistic function, while also capturing spillover effects in growth dynamics.

Technological competition, economic performance and strategic behaviour of international firms

Abstract: This paper analyses the relationship between R&D rivalry, spillovers and productivity at the firm level. A particular attention is put on the way technological spillovers are formalised. The analysis is based upon a data set composed of 625 world-wide R&D-intensive manufacturing firms whose information has been collected for the period 1987-1994. Given the panel data structure of the sample, econometric techniques which deal with both firm's unobserved heterogeneity and weak exogeneity of the right hand-side variables are implemented. The R&D reaction patterns for the main R&D-intensive industries show that if firms are to different degrees sensitive to what competitors allocate to their activities, the behaviours are not homogeneous across industries and among countries. The empirical results give clue that spillover effects influence significantly firm's productivity. Nevertheless the effects differ substantially among the pillars of the Triad. The United States are mainly sensitive to their national stock of spillovers while Japan appears to draw from the international stock. On its side, Europe shows some pains to internalise spillovers.

Do productivity spillovers from Japanese and U.S. FDI differ

Abstract: FDI comes from different sources, with different levels of technology, different modes of transferring it and into different industries. The spillover effects of FDI may therefore differ. The paper attempts to study empirically the spillover effects of Japanese and U.S. FDI on the total factor productivity growth of the Indian firms, both at the firm and the industry level. The results show that the presence of Japanese equity in the industry has a positive spillover effect while the market share of Japanese firms is negatively associated with the productivity growth of the Indian firms. However, the net spillover effect at the industry level is positive. The spillover effects from U.S. FDI are however not significant. JEL CLASSIFICATION: F23, L22, L60, O33

Financial Market Spillovers: How Different are the Transition Economies?

Abstract: Motivated by recent financial crises, a large number of theoretical and empirical studies are attempting to understand how financial market shocks are transmitted across countries. Some of this research takes the form of large cross-country studies aimed at assessing the importance of “contagion” effects.1 Other studies focus on regional spillovers around a single event, mainly in Asia and Latin America.2 This chapter takes a closer look at the experience of transition economies. It documents spillover patterns and attempts to draw policy lessons from them.3

Hydrogen spillover on a carbon supported platinum fuel cell catalyst: a computational and inelastic neutron scattering study

Abstract: We are undertaking a study of hydrogen spillover using neutron scattering techniques allied with computer modelling. We report the direct observation of spillover hydrogen on a Pt/C fuel cell catalyst and a computational model of the interaction of spillover hydrogen with the catalyst support. Dihydrogen molecules dissociate on the Pt component of the catalyst and H atoms spillover onto the carbon support. The spillover H atoms comprise a mobile phase on the surface of the carbon characterised by a broad inelastic neutron scattering spectrum. A quantum mechanical calculation of the interaction energy of H atoms with the carbon surface shows that the energy differences between different potential binding sites are no more than a few kJ. Thus the spillover hydrogen is in the form of a layer on the carbon of weakly bound, mobile H atoms.