{"title":"The optimal specific or ad valorem tax when the other tax is exogenously imposed in a free-entry Cournot oligopoly market","authors":"Kojun Hamada, Takao Ohkawa, Makoto Okamura","doi":"10.1111/boer.12422","DOIUrl":"10.1111/boer.12422","url":null,"abstract":"<p>This study examines how optimal specific or ad valorem taxation in a free-entry Cournot oligopoly market is affected by a change in another exogenously given tax. We derive the sufficient conditions for the uniqueness of the optimal tax rate, which are related to the concavity of the marginal revenue and the log-concavity of the first derivative of the average cost function. By guaranteeing the uniqueness, we can conduct a comparative statics analysis on the optimal tax rate. We show that a marginal increase in another tax can paradoxically reduce prices and decrease the optimal tax rate.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"251-266"},"PeriodicalIF":0.8,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134975432","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Outsource to India: The impact of service outsourcing to India on the labor market in the United States","authors":"Jiwon Park","doi":"10.1111/boer.12417","DOIUrl":"10.1111/boer.12417","url":null,"abstract":"<p>Service offshoring raises the fear of job loss for high-skilled workers, unlike goods offshoring, because workers at home compete with highly educated workers in low-income countries. This paper examines whether the increase in the United States's service offshoring to India has reduced the domestic employment of the occupations with greater exposure to Indian service imports. To account for endogeneity, I instrument for the growth of the United States's service imports from India by exploiting the change in Indian exports to European countries. Service offshoring reduces total employment from 2000 to 2006; however, this effect disappears overall and becomes positive for college-educated workers in the later period from 2006 to 2016. Unlike goods offshoring, the employment effect is largely driven by college-educated workers, and the employment growth in the later period is larger.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"203-222"},"PeriodicalIF":0.8,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135826575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Association between foreign background of executives and firm goodwill impairment risk","authors":"Wunhong Su, Chunlin Wang, Zhong-qin Su","doi":"10.1111/boer.12420","DOIUrl":"10.1111/boer.12420","url":null,"abstract":"<p>In recent years, the wave of mergers and acquisitions in the capital market has risen. As a result, the goodwill impairment (<i>GI)</i> of listed firms has been frequent. This study empirically examines the association between the foreign-background characteristics of executives and firm <i>GI</i> risk using data from 2008 to 2020 for A-share listed firms in Shanghai and Shenzhen, China. The results show that there is a positive relationship between the foreign background of executives and the risk of <i>GI</i> of firms. Further results show that executives with foreign working backgrounds have a more significant positive impact on <i>GI</i> risk than executives with foreign study backgrounds. In addition, the positive effect of the foreign background of executives of non-state-owned enterprises (SOEs) on <i>GI</i> risk is more profound than that of SOEs. However, internal controls and institutional investors’ shareholdings weaken the positive association between executives’ foreign backgrounds and <i>GI</i> risk. This study provides evidence of the determinants of <i>GI</i> in firms and the economic consequences of the foreign-background characteristics of executives.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"223-250"},"PeriodicalIF":0.8,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135826299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The roles of foreign and domestic ownership in the corruption–firm innovation nexus","authors":"Gaygysyz Ashyrov, Helery Tasane","doi":"10.1111/boer.12419","DOIUrl":"10.1111/boer.12419","url":null,"abstract":"<p>Previous literature has shown the detrimental impact of corruption on innovation. Conversely, the grease-the-wheel effect, in bribing fuelling firm innovation, has found some empirical support too. Past studies show that foreign-owned firms largely outperform domestic firms in innovation activities. However, little is known about how corruption in developing countries might shape the advantages of foreign-owned firms to innovate. We explored whether bribery, as an institutional dysfunctionality, is differently associated with innovation in the context of foreign owned versus domestically owned firms that operate in overall low research and development intensive economies and engage in exporting. By applying recursive bivariate probit regression, we investigated the link between bribery and innovation engagement among 4118 domestically and foreign-owned exporting firms from 34 developing countries, using data from the World Bank Enterprise Surveys and other databases. We find evidence on the grease-the-wheel effect so that bribery has a stimulating effect on innovation among domestically as well as foreign-owned exporting firms. These findings underscore the importance for developing countries of finding institutional and policy solutions to coordination failure in combatting corruption.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"167-202"},"PeriodicalIF":0.8,"publicationDate":"2023-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135980397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Firm heterogeneity in competition among the big and the small","authors":"Kenji Fujiwara","doi":"10.1111/boer.12418","DOIUrl":"10.1111/boer.12418","url":null,"abstract":"<p>This paper makes comparative statics in a model in which oligopolistic and monopolistically competitive firms that are heterogeneous in productivity compete. We demonstrate that (i) entry of oligopolistic incumbents, (ii) reduction in entry cost of monopolistically competitive entrants, and (iii) market size expansion improve the average productivity in the whole economy. However, (i) and (iii) raise welfare, but (ii) may lower welfare because of the presence of oligopolistic firms.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"147-166"},"PeriodicalIF":0.8,"publicationDate":"2023-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43731259","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yang Liu, Yaojun Fan, Yifan Wang, Jiayu Huang, Hu Xun
{"title":"City innovation ability and internet infrastructure development: Evidence from the “Broadband China” policy","authors":"Yang Liu, Yaojun Fan, Yifan Wang, Jiayu Huang, Hu Xun","doi":"10.1111/boer.12421","DOIUrl":"10.1111/boer.12421","url":null,"abstract":"<p>“Broadband China” (BC), the new Chinese government implementation in 2013, has led to substantial investments in internet infrastructure development. Furthermore, accurately evaluating its effects is of great significance. BC is taken as a quasinatural experiment in this paper. Data from 278 Chinese cities from 2007 to 2019 are used to evaluate this policy influence on city innovation ability by building a regression discontinuity (RD) design model. In addition, its heterogeneity and mechanism are also analyzed. The results show that (1) city innovation ability is significantly improved by the BC policy, and this is still valid after robustness tests. (2) The influence of the BC policy on city innovation ability is heterogeneous and more significant in more prosperous regions, such as in the eastern regions and in large cities. (3) Mechanism analysis shows that the city innovation ability is enhanced by improving knowledge spillover and stimulating entrepreneurial activities.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"121-146"},"PeriodicalIF":0.8,"publicationDate":"2023-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41818720","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Uniform versus discriminatory tariffs when competition mode is endogenous","authors":"Ki-Dong Lee, Kangsik Choi","doi":"10.1111/boer.12416","DOIUrl":"10.1111/boer.12416","url":null,"abstract":"<p>We examine the welfare implications of two tariff regimes when firms have a forward-looking view on trade policy. Discriminatory tariffs lead to Cournot competition, whereas uniform tariffs lead to diverse competition modes. If exporters are identical in production costs, all the trading countries are better off under the uniform rather than discriminatory tariff regime, which suggests a possibility that countries reach an agreement on the most-favored nation (MFN) as a preferred tariff regime. For asymmetric costs among exporters; however, the competition mode determined endogenously under the uniform tariffs does matter for the welfare comparison. If Cournot competition emerges, then each country's preference is consistent with conventional wisdom. That is, the importing country and high-cost exporters prefer a discriminatory tariff while low-cost exporters have a uniform tariff regime. However, if the uniform regime leads to either Bertrand or asymmetric competition mode, then the cost gap between exporters would be the determinant factor. Only when the cost gap is sufficiently small, the uniform tariff, required by the MFN clause of the World Trade Organization, can be beneficial to all trading countries.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"95-120"},"PeriodicalIF":0.8,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46953807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Loyalty of rural microfinance borrowers: International evidence","authors":"Md Aslam Mia","doi":"10.1111/boer.12415","DOIUrl":"10.1111/boer.12415","url":null,"abstract":"<p>The growth and financial sustainability of a firm is tied to its ability to retain existing and potential clients. On the contrary, the defection of customers has a huge implication on firms including microfinance institutions (MFIs), suggesting that the attainment of customer loyalty is an important strategy for MFIs to improve their performance. Hence, this study attempts to investigate the level of loyalty demonstrated by rural microfinance borrowers toward their respective service providers. To accomplish this, an unbalanced panel data, comprising 1101 unique MFIs and spanning the timeframe 2010–2018, were obtained from the World Bank database and thereafter subjected to conventional econometric techniques and a series of robustness tests, including endogeneity-corrected methods, alternative proxies, and sub-sample analyses. The findings indicate that rural microfinance borrowers generally demonstrate loyalty to their service providers, particularly when measured by borrower retention rates; however, these findings vary with the adopted techniques, sub-samples, and proxies employed during the analysis.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"67-94"},"PeriodicalIF":0.8,"publicationDate":"2023-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"63490354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Smart access and smart protection for welfare gain in Europe during COVID-19: An empirical investigation using real-time data","authors":"Humaira Kamal Pasha","doi":"10.1111/boer.12414","DOIUrl":"10.1111/boer.12414","url":null,"abstract":"<p>The COVID-19 (Coronoavirus Disease 2019) pandemic has had many disastrous effects on welfare globally, particularly in European countries. In recent research, a new debate has arisen as a result of the shift of day-to-day activities to virtual platforms, which has augmented concerns related to smart (data) access and smart (data) protection. This study examines the economic, social, and psychological indicators of welfare gain within the context of the COVID-19 pandemic and examines their impact on smart access and smart protection using the data of Survey of Health, Ageing and Retirement in Europe and real-time Google Trends from June to August 2020. The findings indicate a negative relationship between smart access and economic crisis caused by COVID-19, while households with sufficient resources support smart protection. Psychological effects including nervousness and anxiety are highly related to smart access. Likewise, being helpful in a time of uncertainty, societal contact, and social measures (hygiene and face mask) significantly and positively impact smart protection. The findings suggest that countries should combine their welfare agencies with health and economic institutes, and initiate projects related to cybersecurity.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"41-66"},"PeriodicalIF":0.8,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47027259","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christian Lambert Nguena, Fulbert Tchana Tchana, Albert Zeufack
{"title":"On threshold effect of housing finance on shared prosperity: Evidence from sub-Saharan Africa","authors":"Christian Lambert Nguena, Fulbert Tchana Tchana, Albert Zeufack","doi":"10.1111/boer.12413","DOIUrl":"10.1111/boer.12413","url":null,"abstract":"<p>Applying panel threshold regression technics along with alternative econometric investigation on a panel database of 48 sub-Saharan African (SSA) countries over the period 2000–2012, this paper analyzes the structure of housing finance in SSA countries and mainly verifies if there is a threshold effect on shared prosperity. Independently of the method used, our findings offer strong evidence of an inverted U-shaped relationship between housing finance and inequality. The current level of development of housing finance in SSA, which is at its very early stage, is not yet an effective tool for reducing economic inequality; however, beyond a given threshold, housing finance becomes effective in reducing inequality. Indeed, higher values of housing finance depth above a certain threshold of 6.35% reduce inequality, whereas values below 6.35% and very high values have no significant impact. In addition, there is a slightly positive relationship between housing finance and labor productivity growth in SSA. Results also show that the way housing finance impact inequality is highly dependent on their ability to implement effective crisis fight policies. Controlling for countries’ income levels, legal origin, and regional proximity revealed relative benchmarking, typology, and characteristics of SSA housing finance. These findings suggest some policies to stimulate the development of housing finance in SSA. As a bonus, this paper also highlights several other pillars that can be used to support shared prosperity in SSA.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 1","pages":"5-40"},"PeriodicalIF":0.8,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42788873","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}