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1 – 10 of over 15000This study analyzed Korea's relations table through network analysis. In particular, among the centralities, eigenvector centrality, PageRank centrality and degree were used. The…
Abstract
Purpose
This study analyzed Korea's relations table through network analysis. In particular, among the centralities, eigenvector centrality, PageRank centrality and degree were used. The author studied which network characteristics affected the value-added rate.
Design/methodology/approach
A network analysis method was used.
Findings
It is the inward relationship that affects the value-added ratio of Korea's industries and the outward relationship has less influence. In particular, the inward relationship not only acts as a cost but also has an effect on the rate of added value recently.
Research limitations/implications
Since the three years of 2010, 2015 and 2019 are the target, the data are somewhat insufficient to generalize.
Practical implications
As for the value-added ratio of an industry, input is more important than output (sales). Therefore, where the input is received is very important.
Social implications
It is possible to increase the understanding of the determinants of the value-added rate of Korean industries.
Originality/value
(1) It was clarified which side is inward or outward in determining the industry in Korea. (2) The relationship between PageRank, eigenvector centrality and degree was analyzed in Korean cases. (3) Input is a cost and acts to increase added value.
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The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the…
Abstract
Purpose
The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the alternatives and quantifying the differences.
Design/methodology/approach
This paper systematizes the analytical framework and assesses and quantifies the various methodologies and its main differences.
Findings
The decomposition method of Borin and Mancini (2023), using a source-based approach and an exporting country perspective, should be considered as the standard for decomposing the value added in gross exports. This study finds that alternative approaches and perspectives are methodologically inferior, and that tailored perspectives do not provide an increase in accuracy that compensates their drawbacks.
Originality/value
This paper’s contribution is fourfold: it rejects the alleged equivalence between approaches and perspectives, defending the superiority of a particular method, approach and perspective; it gives quantitative examples of the differences between them; it proves that the drawbacks of tailored perspectives do not compensate their alleged accuracy (as they do not result in big quantitative differences with the standard perspective); and it argues that no valid standard decomposition can forego the calculation of value added exported, which requires the expression of exports in terms of final demand.
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Shih-Mo Lin and Hong Linh Dinh
This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to…
Abstract
This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to estimate the value-chain transition in East Asian production network. Specifically, we calculate and examine the domestic value-added absorbed abroad, foreign value-added embodied in country’s gross exports, and vertical specialization measures to explore the relative positions of major East Asian countries in the global production chain over the period of 1995-2011. The analyses are at country-aggregate, country-sector, bilateral-aggregate and bilateral-sector levels. Based on our results, we answer the important question of whether Taiwan and South Korea have used China’s production chains as an intermediary to re-export their products to other countries in the world. Furthermore, we answer the question that over the 1995-2011 periods, have Taiwan and South Korea exploited cheap labor from China to add value to their products before re-exported them to the rest of the world?
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This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of…
Abstract
Purpose
This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of gross domestic product (GDP). The study specifically focuses on the value-added share as a percentage of GDP in the agricultural, manufacturing, industrial, and service sectors using time series data from 1988 to 2019.
Design/methodology/approach
The study utilizes the autoregressive distributive lag (ARDL) bound test framework for estimation, based on the conclusions drawn from the augmented Dickey-Fuller and Phillips–Perron unit root tests, which provide evidence of a mixed order of integration.
Findings
The result reveals that agriculture value-added (AVA), manufacturing value-added (MVA), industrial value-added (IVA), and services value-added (SVA) have a positive and significant impact on poverty alleviation in both the short and long run. However, the agriculture sector is found to be more effective in reducing poverty compared to the other sectors examined in this study. Additionally, this study challenges the notion that SSA countries have undergone an immature structural transformation. Instead, it reveals a pattern of stagnant structural transformation, as indicated by the lack of growth in the industrial and manufacturing value-added shares of GDP.
Practical implications
To enhance productivity and reduce poverty, SSA economies should adopt a development strategy that prioritizes heavy manufacturing and industrial sectors, leading to a transition from the agricultural to the secondary and tertiary sectors.
Originality/value
The study contributes to the emerging literature on structural transformation by investigating which sector is more efficient in reducing poverty in SSA countries, using the value-added share as a percentage of GDP for agricultural, manufacturing, industrial, and service sectors. The study also aims to determine if SSA countries have experienced immature structural transformation due to the growing share in the service sector.
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Christian Acuña-Opazo and Oscar Contreras González
The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of…
Abstract
Purpose
The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of intellectual capital as determining variables.
Design/methodology/approach
A comparative analysis between family businesses (FB) and non-family businesses (NFB) is proposed to explore significant differences in the impacts on financial performance and added value of companies, through multivariate techniques. It contributes to the literature on the family business, and its performance from an analytical framework that incorporates the theory of intellectual capital and the measurement of its impact.
Findings
The findings show that the value-added coefficient of intellectual capital (VAICTM) is a determining factor in the financial performance of companies and, to a greater extent, in the FB than in their NFB counterparts. It is also verified that the efficiency of intellectual capital in the FB has a direct and greater relationship with the value added of production (VAEmp), with respect to non-family businesses, being an important factor in predicting the performance of companies.
Practical implications
The findings allow us to conclude the importance of efficient management of intangible factors in companies, such as intellectual capital, becoming a competitive advantage factor.
Originality/value
The document explores the relationship and impact of VAICTM in family businesses that belong to an emerging economy and demonstrates the existence of differences between FB and NFB, at the level of intangible factors under a comparative analysis.
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The paper analyzes the response of agricultural value added to credit and real interest rate shocks in the West African Economic and Monetary Union (WAEMU) and make a short-term…
Abstract
Purpose
The paper analyzes the response of agricultural value added to credit and real interest rate shocks in the West African Economic and Monetary Union (WAEMU) and make a short-term comparative effect analysis of credit granted to the agricultural sector on agricultural value added among member countries.
Design/methodology/approach
First, in order to estimate impulse response functions (IRFs) and study shocks, a panel VAR model is used. Second the paper uses an autoregressive distributed lag (ARDL) model with the associated error correction model to make a comparative analysis of the effect of agricultural credit on agricultural value added in the WAEMU.
Findings
Results shows that: (1) credit stimulates agricultural value added only in the medium and long term; (2) in the case of WAEMU, credit only becomes a means of lifting the constraint of capital underutilization after three years; (3) short-term credit granted to agriculture in WAEMU has a weak and differentiated effect on agricultural value added from one country to another.
Practical implications
It is imperative to implement a policy of lowering real short-term interest rates. Moreover, a monetary policy that favors direct financing of agriculture to the detriment of that oriented toward market financing is to be prioritized.
Originality/value
The originality of this paper is that it makes the link between macroeconomics and agriculture. It shows how the monetary instrument can be manipulated to improve the performance of agriculture. Actually, in WAEMU, the financing of agriculture is provided by the market. This paper proposes a new approach which is direct financing. The paper offers possibilities for the coordination of agricultural policies in the WAEMU.
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The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of…
Abstract
Purpose
The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.
Design/methodology/approach
Based on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.
Findings
The estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.
Originality/value
This article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.
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A number of literature contributions have underlined the importance of developing value-added logistics activities or VALS in order to help improve customers’ satisfaction…
Abstract
A number of literature contributions have underlined the importance of developing value-added logistics activities or VALS in order to help improve customers’ satisfaction. However, there is usually very little attention given regarding where to perform these VALS. This study aims to: (1) identify a comprehensive set of factors which may influence the location of VALS, (2) to analyze to what extent those factors influence location decisions, and (3) to distinguish the determinants behind the location choices for distribution centers and for the kind of VALS that will be developed in these distribution centers.
In this paper, we will present a conceptual framework on the locations of VALS in view of the identifying determinants for assigning VALS to logistical centers. We argue that the optimal location of VALS is determined by complex interactions between the determinants at the level of the choice of a distribution system, distribution center location factors, and different logistical characteristics regarding products.
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Grace W.Y. Wang, Qingcheng Zeng, Chenrui Qu and Joan Mileski
Regardless of the facts showing a booming Chinese cruise market, cruise operations in China are very different from the current practices of the two major cruise markets – the US…
Abstract
Purpose
Regardless of the facts showing a booming Chinese cruise market, cruise operations in China are very different from the current practices of the two major cruise markets – the US and the Mediterranean Sea. This study aims to quantify pricing strategies and possible incentive mechanisms of cruise operations in China.
Design/methodology/approach
Using optimization in economic-based game theory, the complexity of the pricing strategies and interaction and/or possible coordination within the cruise value-added chain can be captured.
Findings
The results show that a coordinative pricing strategy with Shapley profit redistribution within the value-added chain offers benefits to both cruise passengers and service suppliers. With two subsidy scenarios, one to the passenger and the other to the travel agent, a cooperative pricing strategy outperforms other strategies and successfully increases market shares and total revenue.
Originality/value
The advantages of coordination between participants in cruise value chain are quantified. Effective strategies for attracting players participating in cruise value chain are designed. This paper will provide market participants with strategies to enhance their decision-making processes.
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Mai Mohsen Ibrahim, Ola Elkhawaga and Adla Ragab
This paper aims to study the inter-sectoral linkages in the Egyptian economy, to increase the efficiency of allocating L.E 100bn fiscal stimulus package (FSP) to tackle the…
Abstract
Purpose
This paper aims to study the inter-sectoral linkages in the Egyptian economy, to increase the efficiency of allocating L.E 100bn fiscal stimulus package (FSP) to tackle the economic fallout from COVID-19 based on the strength of the backward and forward linkages of various sectors, and the values of both employment and value-added multipliers. The paper also measures the impact of the new FSP on the capability of various sectors in creating job opportunities and increasing economic growth.
Design/methodology/approach
The paper studies the intersectoral linkages by calculating backward and forward linkages index based on the latest input and output tables available for the Egyptian economy published in 2018. It also depends on a bivariate optimization model to distribute new investments allocated through the FSP based on the values of both employment and value-added multiplier for those sectors. The paper calculated both employment and value-added coefficients to measure the impact of the FSP on creating job opportunities and increasing growth rates.
Findings
Based on the results of the empirical analysis, both key sectors (with strong backward and forward linkages) and sectors with strong backward linkages have the highest impact on creating job opportunities and increasing growth rates in the Egyptian economy, which means that allocating FSPs in a way which targets those sectors, especially during economic crisis, could help in increasing the positive impacts of those packages.
Originality/value
The paper is based on the unbalanced growth theory of Hirschman and uses the empirical analysis to study the intersectoral linkages and allocate new investments through FSP through different sectors. The main policy implication of the empirical results of this paper suggests targeting the key sectors and the sectors with strong backward linkages during tough economic times related to COVID-19, to increase the positive impact of the package on the whole economy.
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