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1 – 10 of 962The purpose of this paper is to investigate the effects of Chinese and non-Chinese import penetration on the inter-industry wage premium, and how such effects vary according to…
Abstract
Purpose
The purpose of this paper is to investigate the effects of Chinese and non-Chinese import penetration on the inter-industry wage premium, and how such effects vary according to the unskilled-labor intensity of the industry and to the implementation of the Nova Matriz Economica policy in 2008.
Design/methodology/approach
The paper empirically examines the effects of the Chinese and non-Chinese import penetration on the wage premium using a linear instrumental variables model and data from Brazilian household surveys and censuses.
Findings
The estimates show the Chinese import penetration positively affecting the wage premium in unskilled-labor intensive. And the implementation of the new macroeconomic policy strengthened this effect.
Originality/value
To the best of the author’s knowledge, this is the first paper to study the effects of Chinese and non-Chinese import penetration on the inter-industry wage premium.
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Richard Makoto and Leonidas Ngendakumana
The purpose of this study is to investigate the impact of Chinese import penetration on industrial production and inflation in low income countries, specifically, the impact on…
Abstract
Purpose
The purpose of this study is to investigate the impact of Chinese import penetration on industrial production and inflation in low income countries, specifically, the impact on textile, wood and furniture, paper and chemical in Zimbabwean industries.
Design/methodology/approach
The study adopted bounds test of co-integration advocated by Pesaran et al. (2001) to distinguish between short- and long-run impacts. A sector-specific regression models were specified for textile, wood and furniture, paper and chemical industries and the other one on inflation
Findings
The effect of Chinese imports varies across industry. A negative impact on wood and furniture and paper industries is confirmed and rejects an anticipated negative effect on textile industries. However, import penetration had a negative effect on inflation.
Practical implications
The study recommends that the country should consider the trade-off between industrial shrinkage and low prices when formulating trade policy, especially import restrictions, as trade protectionism has failed in most African countries. Temporary trade restriction measures should be implemented and this will encourage dynamic efficiency in domestic industries.
Originality/value
The study identified the need for sector-specific impact of Chinese import penetration on manufacturing sector and the dynamics on inflation.
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The purpose of this paper is to examine the impact of trading with China on Botswana’s domestic and third markets. The paper also assesses the structure and magnitude of…
Abstract
Purpose
The purpose of this paper is to examine the impact of trading with China on Botswana’s domestic and third markets. The paper also assesses the structure and magnitude of Botswana–China bilateral trade.
Design/methodology/approach
The paper used descriptive statistics such as graphic analysis to describe and summarize the basic features of the data. To reach conclusions that extend beyond the immediate data alone, the study applied Chenery Decomposition Approach and also applied the extension of Constant Market Share (CMS) analysis.
Findings
Botswana mainly exports primary products to China and imports intermediate and capital goods, which are mainly used as inputs in the development of infrastructure in the country. Increased imports from China into Botswana’s domestic market has mainly replaced imports from other countries, and China’s textile, clothing and footwear (TCF) exports gained market share from Botswana’s TCF exports in the third markets, i.e. South Africa. Unlike Lesotho, the loss of market share by Botswana’s TCF exports in the South African market increased over the period under study. The Botswana Government needs to consider ways of enhancing Botswana’s TCF export competitiveness and learn lessons from China in relation to enhancing productivity in the TCF and other exporting industries.
Research limitations/implications
Because of lack of data, this paper failed to estimate the impact of import penetration in the manufacturing subsectors and analyze the rapidly growing Botswana–China bilateral trade in services. There has been no estimate of the impact of intermediate and capital goods on production costs of Botswana’s productive sectors. Lastly, because of lack of data, there have been no estimates of Botswana’s consumer surplus generated from consuming relatively low-priced goods from China.
Originality/value
This is the first study to carry out an empirical analysis of the Botswana–China trade relation. The study will be of value to academia and to policymakers who are interested in studying the China–Africa relation.
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The purpose of the paper “Commerce, jobs and politics: the impact of the USA–China trade on USA domestic politics” is to examine the impact of Chinese trade with the USA to…
Abstract
Purpose
The purpose of the paper “Commerce, jobs and politics: the impact of the USA–China trade on USA domestic politics” is to examine the impact of Chinese trade with the USA to determine the consequences of the trade on manufacturing employment. The geographic and sectoral impacts of this trade are assessed. The conclusion is that the USA–China trade has affected political polarization in such a way as to affect electoral outcomes. Implications for policy are discussed in the paper.
Design/methodology/approach
The overall design is a focused case study in terms of its focus on the USA–China trade relations. There is also a statistical component due to the breakdown of the USA in economic commuting zones.
Findings
The major finding is that Chinese import penetration created substantial political polarization in the USA and that polarization affected electoral outcomes. Chinese import penetration also resulted in a shift of jobs from the eastern heartland to the coasts. Much of the transition was aided by the restructuring of jobs within firms from manufacturing to high-end services.
Research limitations/implications
Perhaps, the biggest limitation concerns how general and durable the findings are. The authors establish that the first decade after Chinese entry into the World Trade Organization (WTO) (2001) was characterized by economic disruption in the USA labor market. Whether the economic effects will have a longer duration is not known.
Practical implications
One practical limitation is that it is difficult to know what policy actions to take on the basis of the research: trade policy, human capital (education) policy or place-based policies which aid particular regions.
Social implications
The social implications in this paper are jobs and employment policy.
Originality/value
The author thinks this is very original work, though based on the work of several economists. But outside of a few articles, the author does not think much has appeared in political science journals.
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Sharon Zhengyang Sun, Samuel MacIsaac, Buck C. Duclos and Meredith B. Lilly
The benefits of trade liberalization on upskilling and skill-based wage premiums for high-skilled workers have recently been questioned in policy circles, in part because of…
Abstract
Purpose
The benefits of trade liberalization on upskilling and skill-based wage premiums for high-skilled workers have recently been questioned in policy circles, in part because of rising income inequality and populist movements in developed economies such as the USA. The purpose of this paper is to determine the effects of trade liberalization on the relative supply and demand for skills.
Design/methodology/approach
Through the systematic review of the literature on trade and skill acquisition, this paper isolates a total of 25 articles published over the past two decades.
Findings
Key findings demonstrate the importance of the relative development of the trading partner, with more developed countries experiencing higher upskilling, while less developed countries experience deskilling. Technology, geographic level of analysis, sector and gender were also found to be important influences on human capital acquisition associated with international trade.
Originality/value
Overall, the authors find support for the idea that trade with developing countries places pressure on low-skill jobs in developed countries but increases the demand for educated workers. The implications of shifts in skills for public policy-making and in terms of the skill premium on wages are discussed.
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The purpose is to establish the impact of trade on manufacturing employment in South Africa.
Abstract
Purpose
The purpose is to establish the impact of trade on manufacturing employment in South Africa.
Design/methodology/approach
Two techniques, the Pooled Mean Group (PMG) and the Dynamic Common Correlated Effects (DCCE), are applied on a panel dataset comprising 26 three-digit manufacturing industries with data observed between 1970 and 2016.
Findings
The impact of trade on employment is miniscule at best and insignificant at worst once the study controls for cross-sectional dependency. This is true for both skilled and unskilled workers. Employment of skilled workers is explained by remuneration while employment of unskilled workers is explained by output dynamics.
Practical implications
Trade is widely attacked for causing labour market disruption through job losses. This hypothesis is not supported by data for South Africa as no link is confirmed between trade and employment of skilled and unskilled workers.
Originality/value
Estimating the trade and employment link for skilled and unskilled workers while controlling for both endogeneity and cross-sectional dependency.
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Micro-, small-, and medium-sized enterprise (MSME) sectors have a strong influence on the Egyptian economy. Yet, effective formulation of integrated cluster along the value chain…
Abstract
Micro-, small-, and medium-sized enterprise (MSME) sectors have a strong influence on the Egyptian economy. Yet, effective formulation of integrated cluster along the value chain can lead MSMEs to become international actors in export-oriented activities. An Agro-Industrial Park is an integrated cluster taking into consideration synergetic agglomeration of agribusiness MSMEs assisting in decreasing deprivation of rural territories. This research aims to present the needs of agriculture MSMEs in Egypt, to describe challenges faced by this specific sector, and to set guidelines for a business model integrating small farmers and producers into an integrated agribusiness cluster. The researcher followed purposive/nonprobability sampling technique of 100 MSMEs research participants. A combination of questionnaires and open-ended interviews were the research instruments of choice along with secondary data. This research focused on agribusiness only and specifically MSMEs in Egypt. There is no agribusiness-integrated cluster in Egypt, even though the agricultural land increased significantly in the past 5 years, leading us to believe that it is imperative to develop agribusiness-integrated clusters in the coming few years.
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The Korean manufacturing sector has undergone structural changes in a transition from labor- to capital-intensive industries. These changes seem to be relevant to the weakening of…
Abstract
Purpose
The Korean manufacturing sector has undergone structural changes in a transition from labor- to capital-intensive industries. These changes seem to be relevant to the weakening of the export effect on employment that began in 1990. In light of the importance of exports in the Korean labor market, the purpose of this paper is to shed light on the primary reasons why export growth does not lead to sufficient job creation as it did in the past.
Design/methodology/approach
The authors first use the growth accounting approach to show that the weakening of the linkage between exports and employment is closely related to the composition of export products, which has changed toward being more labor-saving. An empirical analysis (i.e. first difference A-B generalized method of moments estimator) on the employment effect of exports confirms that as the capital-intensity of exports increases employment effect decreases.
Findings
The main findings of the study can be summarized as follows. First, the reduction in the export effect on exports is highly correlated with changes in the composition of export products. Second, an increase in exports leads to an increase in manufacturing jobs, and the export elasticity of employment decreases as capital-intensity increases. Third, the export elasticity of employment tends to be higher when the export proportion of SMEs’ products is larger.
Originality/value
Despite the many literatures on the link between exports and employment, there is no consensus on this topic. However, it is generally agreed that the employment effect of exports has been considerably weakened, compared to that of the past, at least in Korea. Nevertheless, few studies attempt to address why this trend has occurred. In this paper, we focus on the structural factors that are the major cause of the weakening of the virtuous cycle between exports and employment. This allows us to provide valuable information to policy makers who are concerned with developing export policies that are related to effective job creation.
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Mumin Dayan, Frank Yat Cheong Leung and Muammer Ozer
Drawing on the resource dependence theory (RDT), this paper investigates ownership composition, export intensity, and industry class as moderating factors to investigate the role…
Abstract
Purpose
Drawing on the resource dependence theory (RDT), this paper investigates ownership composition, export intensity, and industry class as moderating factors to investigate the role of imported raw materials in performance of inward foreign direct investment (IFDI) in Ethiopia.
Design/methodology/approach
The hypotheses were tested using secondary data obtained from the 2016 Central Statistical Agency (CSA) on Large- and Medium-Scale Manufacturing and Electricity Industries Survey. The data included basic quantitative information on the country's manufacturing industry. The data items for the 2016 manufacturing and electricity industries surveyed are the numbers of proprietors or establishments involved in various sectors. The report did not record small firms that employed fewer than 10 people and did not use power-driven machinery. Two-Stage least squares (2SLS) regression analysis was performed to test the proposed hypotheses.
Findings
The results of this study indicate that three moderators (ownership composition, export intensity, and industry classification) interact with the hypothetical relationships between imported raw materials and performance. These findings enrich the knowledge of IFDI firms' operations in Ethiopia and in other least-developed countries (LDCs). The findings could provide information for IFDI firms that are looking to invest in LDCs.
Research limitations/implications
Like all social science research, this study has some limitations. First, the research was conducted with the data found in the Report on Large- and Medium-Scale Manufacturing and Electricity Industries Survey In 2016. This was the first year of the second five-year Growth and Transformation Plan (GTP II), a national development plan for the 2016–2020 period. Continual research on IFDI in Ethiopia in the following years will be needed to get a full picture of the effects of the determinants on IFDIs.
Practical implications
To IFDI investors, the result of this thesis demonstrates several alternatives to overcoming hurdles in manufacturing operation. The results find that J.V. firms make better use of imported raw materials than W.O. subsidiaries in order to achieve better performance. Concerning the choice between focusing on export or domestic markets, the study suggests that domestic market—oriented companies require less imported raw materials to achieve better performance. Concerning the comparative advantage on different industries, this study found the performance of firms in Industry 12 depended on imported raw materials. These findings highlight the challenges and opportunities for potential foreign investors. Ownership composition, market factors, and industry factors should be well considered in making investment decisions.
Originality/value
This is one of few studies on IFDI in Ethiopia, the most populous LDC. Ownership composition, export intensity, and industry class are used as moderating variables to investigate the difference between imported raw materials and the level of expatriate deployment to IFDI performance. For IFDI investors, the results of this study demonstrate several alternatives to overcoming hurdles in manufacturing operation.
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