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Article
Publication date: 1 April 2004

Dodo J. Thampapillai and Shandre M. Thangavelu

The paper presents a simple method of valuation that can sit beside ideology of a unitary economics, which seeks a synergy between materialistic and non‐materialistic…

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Abstract

The paper presents a simple method of valuation that can sit beside ideology of a unitary economics, which seeks a synergy between materialistic and non‐materialistic aspects of welfare. The non‐materialistic item considered here is environmental stewardship, the lack of which is widespread among neoclassical economists. This is due to the belief that technology could always offset the problems of resource scarcity. The paper uses the basic tools of neoclassical economics to illustrate that resource scarcity is a real issue and that an improved sense of environmental stewardship is warranted. This illustration involves the valuation of environmental capital from the statement of national accounts. Scarcity indicators are defined in terms of the price of environmental capital. This price, which consists of an interest rate and a cost of depreciation, is empirically estimated for Australia.

Details

International Journal of Social Economics, vol. 31 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 2 August 2011

Sanja Samirana Pattnayak and Shandre M. Thangavelu

This paper aims to examine production linkage and technology spillovers due to the presence of foreign firms in the Indian pharmaceutical industry.

796

Abstract

Purpose

This paper aims to examine production linkage and technology spillovers due to the presence of foreign firms in the Indian pharmaceutical industry.

Design/methodology/approach

This study employs the semi‐parametric estimation method suggested by Olley and Pakes to control for unobserved firm heterogeneity that accounts for the endogeneity of input selection with respect to productivity.

Findings

The results suggest that R&D activities of foreign firms lead to positive technology spillover to local firms. However, we also found negative linkage from the activities of foreign firms. The negative linkage could be explained by the large reverse engineering activities that occur on existing drugs in the Indian pharmaceutical industry, where the enclave activities of foreign firms might be a preemptive strategy to reduce the flow of technologies to downstream local firms and to protect their firm‐specific (product) technology.

Originality/value

The results provide support for strong institutional arrangements such as giving protection for Intellectual Property Rights, which might be important for attracting and creating linkages with activities of foreign firms in the host country.

Details

Journal of Economic Studies, vol. 38 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 3 August 2010

Ananda Jayawickrama and Shandre M. Thangavelu

The purpose of this paper is to examine the trade linkages and degree of export competitiveness between Singapore, China and India.

2970

Abstract

Purpose

The purpose of this paper is to examine the trade linkages and degree of export competitiveness between Singapore, China and India.

Design/methodology/approach

Balassa's export performance index and the dynamic RCA index was adopted, as suggested by Kreinin and Plummer to identify the revealed comparative advantage (RCA) of the above countries in industrial products by SITC 1‐ and 2‐digit levels. The Spearman's rank correlation coefficient is used to identify the degree of complementarity between RCA indices.

Findings

Given the abundant resources, China and India have comparative advantage in a broad range of manufactured goods as compared to Singapore. From the disaggregated analysis at 2‐digit level, the paper finds that the Singapore and China exports are complements, although the degree of complementarity has being declining over time. Meanwhile, Singapore and India exports are found to be stronger complements and stable over time. The results also show that China and India exports are strong substitutes. The paper also finds that the export specialization of China and India has experienced significant changes and shifting to new export products over time.

Originality/value

Given the recent trade agreements between China and Singapore and India and Singapore, it is important to examine the trade linkages (complementarity/substitutability of trade) between these countries. The paper highlights the importance of China and India in complementing countries such as Singapore as it climbs the technological ladder to maintain its competitiveness in the world market.

Details

Journal of Economic Studies, vol. 37 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 8 August 2016

Shandre Mugan Thangavelu

The purpose of this paper is to study the impact of large inflow of foreign workers on the Singapore manufacturing productivity using a panel data at the disaggregated…

2073

Abstract

Purpose

The purpose of this paper is to study the impact of large inflow of foreign workers on the Singapore manufacturing productivity using a panel data at the disaggregated industry level from 1998 to 2008. The results indicate that foreign workers do make productive contribution to manufacturing productivity, but it is much lower as compared to local workers. However, the author observe the declining capital-labour ratio with the increase in the flow of foreign workers. This is expected to have direct impact on the competitiveness of the manufacturing in the export market. Since new technologies are embodied in new capital investment, the declining capital-labour ratio indicates that workers might be producing output with less technology-intensive capital. Conversely, local workers are more productive with high capital investment, indicating that local workers are more skilled and hence there is more complementarity between capital investments and local human capital.

Design/methodology/approach

The author implement a panel estimation of disaggregated industry level data of Singapore manufacturing from 1998 to 2008. The author use GMM estimation to control for any endogeneity issues in the estimation.

Findings

The results indicate that foreign workers do make productive contribution to manufacturing productivity; but it is much lower as compared to local workers. However; the author observe the declining capital-labour ratio with the increase in the flow of foreign workers.

Research limitations/implications

The data for foreign workers at the disaggregated level is not publically available and this is given for this research purpose. The data for foreign workers is limited as it does not have by educational levels.

Practical implications

This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data. There are important policy implications for managing foreign workers and achieving sustainable growth for the Singapore economy.

Social implications

The welfare and social impacts of foreign workers on the Singapore economy is discussed. There is also the issue of policy calibration to balance the flow of foreign workers in the Singapore economy.

Originality/value

This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data.

Details

Journal of Economic Studies, vol. 43 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 11 August 2020

Chukwuebuka Bernard Azolibe

This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data…

2113

Abstract

Purpose

This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017.

Design/methodology/approach

The study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship.

Findings

The results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country.

Practical implications

MENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth.

Originality/value

Previous empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

Details

International Trade, Politics and Development, vol. 5 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

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