{"title":"The Effect of Mexican Emigration to the US on Trade and Inward FDI in Mexico*","authors":"Michael Gove, Liliana Meza González","doi":"10.1080/10168737.2022.2055107","DOIUrl":"https://doi.org/10.1080/10168737.2022.2055107","url":null,"abstract":"Using a panel data set of the 32 Mexican states and the 10 years from 2008 and 2017, this paper estimates the potential contribution of migration to international trade and foreign direct investment (FDI). In the context of Mexico and the United States, we estimate models with a generalized propensity scores (GPS) methodology in order to account for the endogeneity of the migration decision, in addition to baseline gravity models. We find a generally positive and significant relationship between Mexico-US migration and Mexico-US imports, exports, and inward FDI from the US to Mexico. While mixed evidence is found across the various gravity estimations regarding the relationship between Mexico-US migration and inward FDI from the US to Mexico, the GPS results signal consistency across various estimations. Even when controlling for size of the state population, size of the state economy, distance from the capital city of each state to the Mexico-US border, and the fact that a state is on the Mexico-US border, basic results remain consistent. We conclude that in this context migration complements trade and inward FDI, and point to transnationalism as a central factor that leads to migration’s positive contribution.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41294763","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Foreign Direct Investment and Housing Prices: Evidence from South Korea","authors":"J. Kim, Soohyung Lee","doi":"10.1080/10168737.2022.2055108","DOIUrl":"https://doi.org/10.1080/10168737.2022.2055108","url":null,"abstract":"This paper examines the extent to which Chinese Foreign Direct Investment affect housing prices in South Korea. To identify the effect, we build an econometric model based on the assumption that the amount of housing investments made by the Chinese correlate with the amount of FDI from China to Korea and the share of Chinese residents in a given location. By analyzing housing transaction data, we find that the Chinese FDI accounts for 15.3% of the increase in housing prices between 2011 and 2016. The positive effect of Chinese FDI is particularly pronounced in Seoul and its surroundings, as well as Daegu.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45860213","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Reevaluating the Role of Cost-Push and Technology Shocks in a Sticky Price Model","authors":"Yongseung Jung","doi":"10.1080/10168737.2022.2052743","DOIUrl":"https://doi.org/10.1080/10168737.2022.2052743","url":null,"abstract":"This paper sets up a nominal price rigidity model with catching up with the Joneses to address the relative importance of technology, cost-push, and monetary policy shocks in driving business cycles. This paper shows that the technology shock is the most important source of the post-war U.S. output and inflation variations, and the cost-push shock plays a moderate role in output variations in the model with habit. This finding contrasts with Ireland's results, wherein the cost-push shock explains 80% of output variations in the long run in the sticky price model without habit in consumption.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47280308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of Globalization on the Convergence of Poverty Levels among Asian Countries","authors":"Yilin Li, Jingbu Wang, Keun-Yeob Oh","doi":"10.1080/10168737.2022.2052742","DOIUrl":"https://doi.org/10.1080/10168737.2022.2052742","url":null,"abstract":"This study empirically analyzed the effects of economic globalization on differences in poverty levels among Asian countries using data for a 25-year period, as well as the effects of economic globalization on the process. Trade openness (TO) and foreign direct investment (FDI) data were used as proxy variables for globalization. Using a headcount ratio (HCR) and per capita gross domestic product (PGDP), we analyzed the convergence of poverty levels using the σ- and β-convergence concepts. It was found that poverty levels have been substantially reduced in Asia and that economic globalization assisted in this change. The PGDP gaps among countries have gradually decreased and trade openness and FDI have had a strong effect on poverty reduction. Finally, there was no evidence for convergence in terms of the HCR during the recent globalization period and, therefore, it was concluded that economic globalization has not assisted in the convergence of HCR, while it helped the convergence of PGDP. This implies that the poverty issue is different from the income level issue. Thus, care must be taken to consider policy beyond the simple approach of economic growth.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42638162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Multidimensional Financial Development, Trade Liberalization, and Productivity Growth","authors":"Michael Hsu, Javier Pereira","doi":"10.1080/10168737.2021.2024587","DOIUrl":"https://doi.org/10.1080/10168737.2021.2024587","url":null,"abstract":"Only recently have researchers turned their attention to questions of financial development understood as a multidimensional concept: a combination of depth, access, efficiency, and diversity of financial providers. Using a broad-based index of financial development, we document how the different aspects of financial development affect the relationship between trade and productivity growth across countries. We find that for richer countries, financial depth and access strengthen the effects of trade openness on growth, while for poorer countries, only the degree of efficiency matters. Our results are robust to changes in sample, trade measures, and estimation strategies, and suggest the source of comparative advantage from financial development is different for countries with different levels of income.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46759241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Factors of Revenue-Sharing Contracts in Franchising: Evidence from the Korean Franchise Industry","authors":"Jungwon Yeo","doi":"10.1080/10168737.2022.2029929","DOIUrl":"https://doi.org/10.1080/10168737.2022.2029929","url":null,"abstract":"I examine whether the existing theories on revenue-sharing contracts can explain variations in the terms of franchise contracts, including royalty rates, the degree of revenue-sharing, and the mix of franchising and company ownership (contract-mixing), in the Korean franchise industry. This study utilizes a unique dataset that I assembled on 300 franchise systems in the franchised restaurant industry in Korea. I find the capital constraint-based explanation is more consistent in explaining the franchise fee, whereas the moral hazard-based explanation is more consistent in explaining the royalty rate. Also, the contract length is found one of the most significant explanatory variables. These findings confirm the role of revenue-sharing as a tool to align the contracting parties' incentives and suggest it be a commitment device to a continued collaborative partnership between franchisors and franchisees.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"59860271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Choice of Technology and Economic Geography","authors":"Haiwen Zhou","doi":"10.1080/10168737.2021.2018013","DOIUrl":"https://doi.org/10.1080/10168737.2021.2018013","url":null,"abstract":"Empirical evidence shows that firms located in regions with larger population size are on average larger and more productive. To explain this empirical observation, firms producing intermediate goods are assumed to choose their technologies with different levels of fixed and marginal costs. In this general equilibrium model of economic geography, intermediate good producers engage in oligopolistic competition. The model is tractable and leads to interesting and analytical results. An intermediate good producer in the region with a higher population produces a higher level of output and has a lower marginal cost of production regardless of the existence of regional trade. With regional trade, if a worker moves from the region with a lower number of workers to the region with a higher number of workers, intermediate good producers in both regions choose less advanced technologies.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2021-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47675055","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Changes in the Exchange Rate Have an Asymmetric Effect on the Trade Balance between Vietnam and Japan?","authors":"Quang Dong Nguyen, T. Tran, Quang Huy Nguyen","doi":"10.1080/10168737.2021.2012222","DOIUrl":"https://doi.org/10.1080/10168737.2021.2012222","url":null,"abstract":"The paper examines the impact of changes in the exchange rate on Vietnam’s trade balance with Japan based on the employment of both aggregate and industry-level data in a set of linear and nonlinear autoregressive distributed lag models. The results from the models indicate a degree of bias in regression when using aggregate data and a linear ARDL approach. Among the 19 industries under consideration, the NARDL model presents different responses to exchange rate movements from 16 industries, which account for 46% of imports and 63% of exports between Vietnam and Japan. Using aggregate data, the model shows that the exchange rate positively affects the Vietnam-Japan trade balance in the case of currency depreciation, whereas currency appreciation has no impact on the trade balance. Thus, it is concluded that the exchange rate is an effective tool to stimulate exports and improve the trade balance between Vietnam and Japan.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2021-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46667967","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Climate Change on Agricultural Productivity in Tanzania","authors":"Gabriel K. Mafie","doi":"10.1080/10168737.2021.2010229","DOIUrl":"https://doi.org/10.1080/10168737.2021.2010229","url":null,"abstract":"This paper investigates the impact of climate change on agricultural productivity in Tanzania focusing on maize and paddy as the staple food crops. We use Tanzania National Panel Survey (NPS) data for 2008/9, 2010/11, and 2012/13. The results suggest a significant impact of weather variables – temperature and rainfall, and their shocks on agricultural productivity in Tanzania. Also, farmers’ education appears to reduce the impact of temperature shocks on productivity. These findings imply a need for policy intervention to ensure that farmers are equipped for climate change adaptation as well as the use of modern farming technologies and inputs.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2021-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47857986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does the Launch of Shanghai Crude Oil Futures Stabilize the Spot Market? A Financial Cycle Perspective","authors":"Dan Zhang, Arash Farnoosh, Zhengwei Ma","doi":"10.1080/10168737.2021.2001027","DOIUrl":"https://doi.org/10.1080/10168737.2021.2001027","url":null,"abstract":"Based on the examination of price discovery between Shanghai crude oil futures and the spot market, this paper explores whether the introduction of Shanghai crude oil futures can play a stabilizing role in the spot market, alleviating the impact of the financial cycle risk on the crude oil market from March 2018 to December 2019. The results show that there is only a uni-directional relationship of the spot price to futures price, and spot plays a leading role in price discovery. The risk of the financial cycle will increase the volatility of spot price, and the introduction of crude oil futures market can increase the impact of the financial cycle on the spot market. The additional research on the microcosmic mechanism of Shanghai crude oil futures indicates that crude oil futures market mainly influences the spot market fluctuation through the behaviour of traders: speculation increases price volatility in the spot market, which is more pronounced in the high volatility of the financial cycle as oppose to hedging transaction.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2021-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46169564","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}