Complex Vertical FDI and Firm Heterogeneity: Evidence from East Asia

In this paper we statistically test the validity of the mechanics of complex VFDI in Japanese machinery FDI to East Asia; we do this by estimating a multiple-spatial lag model. From the theoretical point of view, in complex VFDI, the production activity of affiliates in a given country is positively related to that in neighboring countries which have large differences in factor prices with the given country. Our empirical results show that such mechanics of complex VFDI work in Japanese FDI to East Asia, and that they work more strongly in the MNEs with higher productivity. These results have an important implication for the policies of developing countries in attracting FDI.

Export platform FDI and firm heterogeneity

This paper investigates theoretically and empirically firms' productivity ranking among traditional horizontal foreign direct investment (HFDI), pure platform FDI (PFDI), and complex platform FDI (CFDI). Using data on Japanese outward FDI, we define firms conducting HFDI or PFDI as those Japanese firms that maintain production affiliates only in the U.S. or Mexico, respectively. The firms for CFDI are defined as having production affiliates in both the U.S. and Mexico. The theoretical illustration shows that the CFDI firms should have the highest productivity when trade costs between the U.S. and Mexico are low. By carefully disentangling firms' self-selection effects from learning-by-investing effects, we find some evidence consistent with this hypothesis for a period of relatively low trade costs. Our results indicate the importance of trade costs in developing countries with neighboring markets in attracting foreign investment by highly productive multinational firms.

Backward-bending of labor supply function and free riders

It seems like that backward- bending of labor supply function can be observed in Central Asian Countries such as Uzbekistan and Kazakhstan. People’s basic needs of life are satisfied and they do not increase labor supplies even if wage increases. It is possible to find some cases in which slowdowns increase, when a manager in a firm enforces penalties for workers have slowdowns. This phenomenon occurs because a worker prefers the position of equilibrium on the labor supply function always in the upper direction. This article explains the increase of free-riders by penalties and how to avoid them.

International labor migration in Vietnam and the impact of receiving countries' policies

Labor export has been part of Vietnam’s socio-economic development strategy since the beginning of the doi moi era. Recent years, Vietnam has sent about 80,000 workers abroad per year. Vietnam has become a major source country of unskilled foreign workers for high-income East Asian countries. However, in these receiving countries, the desertion rate among Vietnamese workers is quite high, compared with that for workers from other countries. This paper examines the impact of Korean and Japanese policies for receiving foreign workers applied to and implemented in Vietnam, as well as the impact of Vietnamese labor sending system, on the problem of runaway workers.

Tariff reductions and labor demand elasticities : evidence from Chinese firm-level data

International production fragmentation has been a global trend for decades, becoming especially important in Asia where the manufacturing process is fragmented into stages and dispersed around the region. This paper examines the effects of input and output tariff reductions on labor demand elasticities at the firm level. For this purpose, we consider a simple heterogenous firm model in which firms are allowed to export their products and to use imported intermediate inputs. The model predicts that only productive firms can use imported intermediate inputs (outsourcing) and tend to have larger constant-output labor demand elasticities. Input tariff reductions would lower the factor shares of labor for these productive firms and raise conditional labor demand elasticities further. We test these empirical predictions, constructing Chinese firm-level panel data over the 2000--2006 period. Controlling for potential tariff endogeneity by instruments, our empirical studies generally support these predictions.

Authoritarianism and labor market : preference of labor policies in the Arab Gulf countries

Migrant and labor issues are a primary concern in the Arab Gulf countries. With focus on the economic and political conditions that influence actors' decisions when framing labor policies, this study analyzes how preferences of such policies are formed and explains why the governments of the Arab Gulf countries attempt to implement less economical policies. The findings suggest that governments avoid concessions for enterprises required to implement more economical policies and chose uneconomical ones to maintain authoritarian regimes.

Land and labor reallocation in pre-modern Japan : a case of a northeastern village in 1720-1870

In agricultural societies, adjusting land and labor according to changes of labor endowment that result from family life cycle events is premised on making full use of resources for each farming household and for the economy as a whole. This paper examines how and how well households in pre-modern Japan reallocated land and labor, using a population register covering 150 years from 1720–1870 for a village in the Tohoku region. We find that households reacted to equalize their production factors; land-scarce households tended to acquire or rent-in land and out-migrate their kin members, while land-abundant households tended to release or rent-out land, in-migrate kin members, or employ non-kin members. Estimates suggest that more than 80% of the surplus or deficit area of land was resolved if the household rented or "sold" land. We discuss a potential underlying mechanism; namely, that the village's collective responsibility for tax payment (murauke) motivated both individual households and the village as a whole to reallocate land and labor for the efficient use of resources.

What best transfers knowledge? : capital, goods, and innovative labor in East Asia

This paper compares three knowledge carriers—trade, foreign direct investment (FDI), and inventors—as knowledge mediums, and investigates their effects on knowledge flow in East Asia from 1996 to 2010. Using patent citations as a proxy for knowledge flow, this paper shows that FDI and inventor mobility have positive effects on increasing patent citations in East Asia when the technological portfolios of two countries are less similar. While trade shows statistical significance, the effect is inconsistent according to the regression models.

Stability of complementarity between Japanese FDI and import of intermediate goods : agglomeration effects and parent-firm heterogeneity

This paper examines the duration of intermediate goods imports and its determinants for Japanese affiliates in China. Our estimations, using a unique parent-affiliate-transaction matched panel dataset for a discrete-time hazard model over the 2000–2006 period, reveal that products with a higher upstreamness index, differentiated goods, and goods traded under processing trade are less likely to be substituted with local procurement. Firms located in more agglomerated regions with more foreign affiliates tend to shorten the duration of imports from the home country. For parent-firm characteristics, multinational enterprises that have many foreign affiliates or longer foreign production experience import intermediate goods for a longer duration.

Impacts of an HIV counseling and testing initiative -- results from an experimental intervention in a large firm in South Africa

We have run experimental interventions to promote HIV tests in a large firm in South Africa. We combined HIV tests with existing medical check programs to increase the uptake. In the foregoing survey we undertook previously, it was suggested that fears and stigma of HIV/AIDS were the primary reasons given by the employees for not taking the test. To counter these, we implemented randomized interventions. We find substantial heterogeneity in responses by ethnicity. Africans and Colored rejected the tests most often. Supportive information increased the uptake by 6 to 16% points. A tradeoff in targeting resulting in stigmatizing the targeted and a reduction of exclusion error is discussed.

How does firm heterogeneity information impact the estimation of embodied carbon emissions in Chinese exports?

Using an augmented Chinese input–output table in which information about firm ownership and type of traded goods are explicitly reported, we show that ignoring firm heterogeneity causes embodied CO2 emissions in Chinese exports to be overestimated by 20% at the national level, with huge differences at the sector level, for 2007. This is because different types of firm that are allocated to the same sector of the conventional Chinese input–output table vary greatly in terms of market share, production technology and carbon intensity. This overestimation of export-related carbon emissions would be even higher if it were not for the fact that 80% of CO2 emissions embodied in exports of foreign-owned firms are, in fact, emitted by Chinese-owned firms upstream of the supply chain. The main reason is that the largest CO2 emitter, the electricity sector located upstream in Chinese domestic supply chains, is strongly dominated by Chinese-owned firms with very high carbon intensity.

Dealing with Semantic Heterogeneity Issues on the Web

The Semantic Web is an extension of the traditional Web in which meaning of information is well defined, thus allowing a better interaction between people and computers. To accomplish its goals, mechanisms are required to make explicit the semantics of Web resources, to be automatically processed by software agents (this semantics being described by means of online ontologies). Nevertheless, issues arise caused by the semantic heterogeneity that naturally happens on the Web, namely redundancy and ambiguity. For tackling these issues, we present an approach to discover and represent, in a non-redundant way, the intended meaning of words in Web applications, while taking into account the (often unstructured) context in which they appear. To that end, we have developed novel ontology matching, clustering, and disambiguation techniques. Our work is intended to help bridge the gap between syntax and semantics for the Semantic Web construction

The Risk of Using the Q Heterogeneity Estimator for Software Engineering Experiments

All meta-analyses should include a heterogeneity analysis. Even so, it is not easy to decide whether a set of studies are homogeneous or heterogeneous because of the low statistical power of the statistics used (usually the Q test). Objective: Determine a set of rules enabling SE researchers to find out, based on the characteristics of the experiments to be aggregated, whether or not it is feasible to accurately detect heterogeneity. Method: Evaluate the statistical power of heterogeneity detection methods using a Monte Carlo simulation process. Results: The Q test is not powerful when the meta-analysis contains up to a total of about 200 experimental subjects and the effect size difference is less than 1. Conclusions: The Q test cannot be used as a decision-making criterion for meta-analysis in small sample settings like SE. Random effects models should be used instead of fixed effects models. Caution should be exercised when applying Q test-mediated decomposition into subgroups.

Semantic Heterogeneity Issues on the Web

The Semantic Web is an extension of the traditional Web in which meaning of information is well defined, thus allowing a better interaction between people and computers. To accomplish its goals, mechanisms are required to make explicit the semantics of Web resources, to be automatically processed by software agents (this semantics being described by means of online ontologies). Nevertheless, issues arise caused by the semantic heterogeneity that naturally happens on the Web, namely redundancy and ambiguity. For tackling these issues, we present an approach to discover and represent, in a non-redundant way, the intended meaning of words in Web applications, while taking into account the (often unstructured) context in which they appear. To that end, we have developed novel ontology matching, clustering, and disambiguation techniques. Our work is intended to help bridge the gap between syntax and semantics for the Semantic Web construction.

Durabilidad de los bloques de tierra comprimida : Evaluación y recomendaciones para la normalización de los ensayos de erosión y absorción

La presente tesis continúa una línea de investigación iniciada en el 2006, centrada en el estudio de nuevas soluciones constructivas que toman la tierra cruda como base. Se pretende la difusión de los resultados obtenidos con el fin de fomentar estas técnicas constructivas, como por ejemplo, los sistemas de eco-construcción. El empleo de tierra cruda como sistema constructivo presenta grandes ventajas; entre ellas, un bajo impacto medioambiental, la capacidad de integración en el paisaje y un menor consumo energético. Con el fin de superar los inconvenientes que presenta el empleo de la tierra como elemento constructivo y afianzar su valor como posible material para la edificación, se estudian las propiedades de durabilidad de la misma y se dan pautas para una posible normativa futura. Se ha llevado a cabo un análisis exhaustivo de las normativas internacionales, estudiando los ensayos propuestos por los diferentes Organismos Internacionales de Normalización para caracterizar la durabilidad de los materiales de tierra. Ante la gran diversidad y heterogeneidad de las especificaciones encontradas en los ensayos que se aplican para un mismo fin, se han desarrollado dispositivos lo suficientemente versátiles para la ejecución de los ensayos propuestos. El conjunto de ensayos desarrollados en esta tesis, ha permitido elaborar una guía de recomendaciones para ensayos aplicados a materiales de tierra cruda. Además, se han estudiado las diferencias de comportamiento de los bloques de tierra comprimidos (BTC) fabricados en España, evaluando su viabilidad como material de construcción. Esta tesis ayuda a consolidar el papel de la tierra cruda en el panorama de edificación actual, solventando las dudas de los técnicos en cuanto a la durabilidad frente al agua y ausencia de normativa. Por tanto, las conclusiones sobre ensayos de durabilidad en materiales de tierra y las mejoras propuestas en algunos ensayos, sirven de referencia para la determinación de la durabilidad en los materiales basados en tierra cruda. De igual manera, es también un objetivo de la tesis que los resultados obtenidos aporten una visión general del estado normativo de los materiales a base de tierra cruda e información útil a aportar para la elaboración de documentos reconocidos sobre tierra en nuestro país, concretamente, apoyando la labor de normalización llevada a cabo en el subcomité de AENOR. This thesis continues a research line begun in 2006, focused on the study of new building solutions based on unbaked earth. With the aim to promote these construction techniques, it seeks the diffusion of the result obtained, for example eco-building systems. The use of unbaked earth as building system has great advantages such as low environmental impact, integrate ability into the landscape and lower energy consumption. In order to overcome the disadvantages of the use of earth as a building element and consolidate its value as possible building material, it is studied the properties of its durability and it is given guidelines for possible future standard. It has carried out an exhaustive analysis of international standards, studying the tests proposed by several International Organizations of Standards in order to characterize the durability of earth materials. Because of the great diversity and heterogeneity of the specifications found in the tests that are applied for the same purpose, we have developed devices versatile enough for the implementation of the proposed tests. The set of developed tests in this thesis has allowed developing a recommendation guideline for tests applied to unbaked earth materials. In addition, we have studied the differences of behavior of compressed earth blocks (CEB) manufactured in Spain, evaluating its viability as building material. This thesis helps to consolidate the role of unbaked earth in the scene of current building, solving the doubts of technicians about durability against rain and lack of standard. Therefore, the conclusions of durability tests in earth materials and the proposed improvements in some tests, serve as a reference for determining the durability of the materials based on raw earth. In the same way, it is also an objective of the thesis that the obtained results provide an overview of standards status of materials based on unbaked earth and useful information for the development documents recognized on earth in our country, supporting the standardization that is taking place at the subcommittee AENOR.