Optimal Product Variety and Economic Growth: The Trade-off between Internal and External Economies of Scale

The efficiencyof local public goods provision and the functioning of local democracy crucially depend on the size and number of local jurisdictions. This article empirically analyzes voluntary municipal mergers in Finland. Our main focus is on aspects that have been somewhat neglected in prior empirical work: whether local democracy considerations, representation and voter preferences are involved in shaping the resulting municipal structure. The main results imply that some municipalities are forced to merge due to fiscal pressure and have to trade off political power to be accepted by their partners. The study also finds that the median voter's distance from services matters, while population size does not. The latter, somewhat surprising, observation is possibly explained by existing municipal co-operation, which already exhausts potential economies of scale.

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Are Jobs and the Quality of the Environment Mutually Exclusive?

Environment and Planning A Economy and Space ◽

10.1068/a270781 ◽

1995 ◽

Vol 27 (5) ◽

pp. 781-791 ◽

Cited By ~ 3

Author(s):

O Izraeli ◽

L Mobley

Keyword(s):

Economic Growth ◽

Economic Theory ◽

Empirical Evidence ◽

Environmental Quality ◽

General Public ◽

Maintenance Costs ◽

Trade Off

In this paper it is shown that there is no support in economic theory for the suggested trade-off between jobs and the environment. Moreover, improved environmental quality may accelerate economic growth via improved health and productivity of workers, lower maintenance costs, and enhanced productivity of capital inputs. Also, empirical evidence is presented on the preference of the general public regarding environmental quality. The empirical evidence indicates that people are ready to trade part of their income for improved environmental quality.

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Metropolitan governance structure and growth–inequality dynamics in the United States

Environment and Planning A Economy and Space ◽

10.1177/0308518x18810002 ◽

2018 ◽

Vol 51 (3) ◽

pp. 598-616 ◽

Cited By ~ 1

Author(s):

Jaewoo Cho ◽

Jae Hong Kim ◽

Yonsu Kim

Keyword(s):

Economic Growth ◽

Metropolitan Areas ◽

Governance Structure ◽

The United States ◽

Governance Structures ◽

Least Squares Regression ◽

Metropolitan Governance ◽

Trade Off ◽

Using Data ◽

Nonlinear Fashion

While much scholarly attention has been paid to ways in which metropolitan areas are politically structured and operated to achieve a dual goal, economic growth, and equality, relatively less is known about the complex relationship between metropolitan governance structures and growth–inequality dynamics. This study investigates how and to what extent metropolitan governance structures shape regional economic growth and inequality trajectories using data for 267 US metropolitan areas from 1990 to 2010. Findings from a two-stage least squares regression analysis suggest that economic growth is associated with governance structures in a nonlinear fashion, with relatively more rapid growth rates in both highly centralized and decentralized metropolitan areas. However, these regions are also found to experience a larger increase in income inequality, indicating an important trade-off to be considered carefully in exploring ways to reform existing governance settings. These findings further suggest that the so-called growth–inequality trade-off may exist not only in their direct interactions but through their connections via governance or other variables.

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Inflation and Unemployment Trade-off: Is Phillips Curve True for African Developing Countries? Evidence from Sudan

Journal of Economic Science Research ◽

10.30564/jesr.v4i3.3243 ◽

2021 ◽

Vol 4 (3) ◽

Author(s):

Omer Allagabo Omer Mustafa

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Phillips Curve ◽

Economic Thought ◽

Trade Off ◽

Long Run ◽

Short Run ◽

Wage Inflation ◽

The Relationship

The relationship between wage inflation and unemployment (Phillips Curve) is controversial in economic thought, and the controversy is centered around whether there is always a trade-off or not. If this relationship is negative it is called The short-run Fillips Curve. However, in the long run, this relationship may probable not exist. The matter of how inflation and unemployment influence economic growth, is debatably among macroeconomic policymakers. This study examines the behavior of the Phillips Curve in Sudan and its effect on economic growth.

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Clans and Ploughs: Traditional Institutions and Production Decisions of Kazakhs under Russian Colonial Settlement

The Journal of Economic History ◽

10.1017/s0022050716000462 ◽

2016 ◽

Vol 76 (1) ◽

pp. 76-108 ◽

Cited By ~ 2

Author(s):

Catherine Guirkinger ◽

Gani Aldashev

Keyword(s):

Economies Of Scale ◽

Late Nineteenth Century ◽

Nomadic Pastoralism ◽

Traditional Institutions ◽

Late Nineteenth ◽

Clan Identity ◽

Organization Of Production ◽

Colonial Settlement ◽

External Economies Of Scale ◽

Land Pressure

This article investigates how, with increasing land pressure during Russian settlement in Kazakh steppes in the late nineteenth century, clan institutions affected the transition from nomadic pastoralism to settled agriculture. Using a novel dataset constructed from Russian colonial expedition materials matched with clan genealogies, we find that, controlling for geographic factors, clan identity strongly influenced the duration of transhumance period, the organization of production, and the acquisition of new agricultural tools. Information transmission within clans, external economies of scale in nomadic pastoralism, and clan-specific values and norms underlie the results.

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ANALISIS HUBUNGAN ANTARA PERTUMBUHAN PENDUDUK DAN EKONOMI KASUS EKONOMI DI ASEAN-5, 1980-2013.

Jurnal Ekonomi dan Bisnis Airlangga ◽

10.20473/jeba.v26i12016.1-11 ◽

2016 ◽

Vol 26 (1) ◽

pp. 1

Author(s):

Abdulrahman Taresh Abdullah A.

Keyword(s):

Economic Growth ◽

Human Resources ◽

Population Growth ◽

Economies Of Scale ◽

Annual Data ◽

Labor Costs ◽

Goods And Services ◽

Vector Error ◽

The Relationship ◽

Quantity Of Children

This study empirically examines the causal relationship between population growth and economic growth, aswell as to analyze the influence of capital, labor, population growth and human resources on economic growth,using the annual data of ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), over theperiod of 1980-2013. The method used in this study is the Granger Causality and Vector Error CorrectionModel (VECM). VECM is used because the data is stationary at first difference and there is cointegrationbetween variables.From the results estimation which is conducted, it is concluded that, overall, the relationship betweenpopulation growth and economic growth in ASEAN-5 is strong and negative flow from economic growth topopulation growth. This study supports the opinion of theoretical and empirical claims; as income increases,households value quality over quantity of children. Concurrently, population can be a stimulus for economicgrowth through the realization of favorable economies of scale induced by low labor costs, enhancingaggregate demand for goods and services and promoting human capital, and improved efficiency.

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Firm-Level Determinants of Foreign Investment and M&A Activity

Foreign Direct Investments ◽

10.4018/978-1-7998-2448-0.ch074 ◽

2020 ◽

pp. 1676-1705

Author(s):

Mine Uğurlu

Keyword(s):

Economic Growth ◽

Foreign Investment ◽

Economies Of Scale ◽

Foreign Direct Investments ◽

International Expansion ◽

Firm Level ◽

Policy Makers ◽

Economic Implications ◽

Cross Border ◽

Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

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Optimal Number of Mobile Service Providers in India

Mobile Computing ◽

10.4018/978-1-60566-054-7.ch184 ◽

2009 ◽

pp. 2306-2322

Author(s):

Rohit Prasad ◽

Varadharajan Sridhar

Keyword(s):

Economies Of Scale ◽

Service Providers ◽

Optimal Number ◽

Policy Implications ◽

Mobile Service ◽

Trade Off ◽

Unit Costs ◽

Mobile Industry ◽

The World ◽

Mobile Subscriber

With 225 million subscribers, India has the world’s third largest mobile subscriber base in the world. The Indian mobile industry is also one of the most competitive in the world with 4-7 operators in each service area. A large number of operators bring competition and its associated benefits such as decrease in price and hence corresponding growth of the market. On the other hand in the presence of economies of scale, too many operators may result in inefficient scales and high unit costs. This article analyses the trade-off between competition and economies of scale by estimating the production function for mobile subscribers and traffic carried. Analysis of panel data reveals the existence of economies of scale in the Indian mobile sector. We then derive an upper bound on the optimal number of operators in each license area and discuss policy implications.

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