Managing Liquidity in Production Networks: The Role of Central Firms

2020 ◽  
Author(s):  
Janet Gao
Keyword(s):  
Cash Holdings ◽  
Production Network ◽  
Production Networks ◽  
Liquidity Management ◽  
Firm Diversification ◽  
Us Economy ◽  
Industry Competition ◽  
The Us ◽  
Cash Policies

Abstract Firms in the US economy are closely interconnected in a production network and are subject to shocks that propagate within the network. This study examines the liquidity management of firms centrally connected in the network. I show that, while central firms are more exposed to aggregate swings, they maintain higher cash holdings to protect themselves and connected firms against such exposure. Central firms’ cash holding motives are alleviated by firm diversification but are aggravated by industry competition. Such motives are not explained by alternative determinants of cash policies. My findings suggest that systematically important firms proactively dampen the propagation of shocks in the production network.

scholarly journals Demand and Defective Growth Patterns: The Role of The Tradable and Non-Tradable Sectors in an Open Economy

2014 ◽  
Vol 104 (5) ◽  
pp. 272-277 ◽  
Author(s):  
Sandile Hlatshwayo ◽  
Michael Spence
Keyword(s):  
Open Economy ◽  
Aggregate Demand ◽  
Value Added ◽  
Growth Patterns ◽  
Structural Elements ◽  
Total Income ◽  
Us Economy ◽  
The Us ◽  
Tradable Sector

This paper examines the underlying structural elements of US growth patterns, pre- and post-crisis. Prior to the recession, the US economy exhibited a defective growth pattern driven by outsized domestic demand. As domestic aggregate demand retreats to more sustainable levels relative to total income, the tradable side of the economy is a catalyst for restoring strong growth. A structural rebalancing is already underway; although it is only a third of the economy, the tradable sector generated more than half of gross gains in value-added since the start of the recovery. However, distributional issues loom on the horizon.

THE ROLE OF EDUCATION SIGNALING IN EXPLAINING THE GROWTH OF THE COLLEGE WAGE PREMIUM

2017 ◽  
Vol 23 (3) ◽  
pp. 1247-1286 ◽  
Author(s):  
Yu Zheng
Keyword(s):  
College Graduates ◽  
The United States ◽  
Skill Premium ◽  
Simultaneous Increase ◽  
Unskilled Labor ◽  
Signaling Mechanism ◽  
College Degrees ◽  
Us Economy ◽  
The Us

This paper incorporates an education signaling mechanism into a dynamic model of production and asks if “higher education as a signal” helps explain the simultaneous increase in the supply and price of skilled relative to unskilled labor in the United States since 1980. The key mechanism is that if college degrees serve as a signal of unobservable talent and talent is productive at the workplace, then improved access to college will enable a higher fraction of the population to signal talent by completing college, resulting in degrees being a better signal about talent and a widening skill premium. When I assess the contribution of signaling in the model calibrated to the US economy from 1980 to 2003, I find that about 10% of the increase in the skill premium can be attributed to the signaling mechanism, after adjusting for the potential decline in the quality of college graduates.

scholarly journals Economic Uncertainty And The Role Of Organizational Development

2010 ◽  
Vol 8 (4) ◽  
Author(s):  
Martin D. Carrigan
Keyword(s):  
Organizational Behavior ◽  
Organizational Development ◽  
Stock Markets ◽  
Economic Uncertainty ◽  
Us Economy ◽  
The Us

The US Economy has entered an era of economic uncertainty.  Stock markets are down. Unemployment is up.  This paper examines the effect of economic uncertainty on organizational behavior. 

scholarly journals Supply and demand shocks in the COVID-19 pandemic: an industry and occupation perspective

2020 ◽  
Vol 36 (Supplement_1) ◽  
pp. S94-S137 ◽  
Author(s):  
R Maria del Rio-Chanona ◽  
Penny Mealy ◽  
Anton Pichler ◽  
François Lafond ◽  
J Doyne Farmer
Keyword(s):  
Supply And Demand ◽  
Production Network ◽  
Demand Shocks ◽  
First Order ◽  
Us Economy ◽  
Work From Home ◽  
Supply And Demand Shocks ◽  
Congressional Budget Office ◽  
The Us ◽  
Occupation Level

Abstract We provide quantitative predictions of first-order supply and demand shocks for the US economy associated with the COVID-19 pandemic at the level of individual occupations and industries. To analyse the supply shock, we classify industries as essential or non-essential and construct a Remote Labour Index, which measures the ability of different occupations to work from home. Demand shocks are based on a study of the likely effect of a severe influenza epidemic developed by the US Congressional Budget Office. Compared to the pre-COVID period, these shocks would threaten around 20 per cent of the US economy’s GDP, jeopardize 23 per cent of jobs, and reduce total wage income by 16 per cent. At the industry level, sectors such as transport are likely to be output-constrained by demand shocks, while sectors relating to manufacturing, mining, and services are more likely to be constrained by supply shocks. Entertainment, restaurants, and tourism face large supply and demand shocks. At the occupation level, we show that high-wage occupations are relatively immune from adverse supply- and demand-side shocks, while low-wage occupations are much more vulnerable. We should emphasize that our results are only first-order shocks—we expect them to be substantially amplified by feedback effects in the production network.

Path dependence, the COVID-19 crisis, and inequality in the United States

2021 ◽  
Vol 18 (2) ◽  
pp. 198-206
Author(s):  
Daniele Tavani
Keyword(s):  
Great Recession ◽  
Path Dependence ◽  
The United States ◽  
Economic Security ◽  
The Great Recession ◽  
Us Economy ◽  
Long Run ◽  
The Us ◽  
Historical Trajectory

This paper considers both secular and medium-run trends to argue that the US economy was already vulnerable to shocks before the COVID-19 crisis. Long-run trends have shown a pattern of secular stagnation and increasing inequality since the 1980s, while the economy has displayed hysteresis during the sluggish recovery from the Great Recession. The immediate policy response through the Coronavirus, Relief and Economic Security (CARES) Act highlighted the coordinating role of fiscal policy on the economy, but also showcased limits, especially with regard to the paycheck protection program. The historical trajectory of the US economy before the COVID-19 crisis cast serious doubts on recent cries of ‘overheating’ and inflationary pressures that should supposedly arise from the $1.9 trillion relief package just signed into law by President Biden. Projecting forward to the long run, redistribution policies may provide useful first steps in reversing the trends of rising inequality and declining productivity growth that the US economy has seen over the last few decades.

scholarly journals The role of intermediaries in governance of global production networks: Restructuring work relations in Pakistan’s apparel industry

2017 ◽  
Vol 71 (4) ◽  
pp. 560-583 ◽  
Author(s):  
Kamal Munir ◽  
Muhammad Ayaz ◽  
David L Levy ◽  
Hugh Willmott
Keyword(s):  
Price Competition ◽  
Adjustment Process ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Work Relations ◽  
Professional Management ◽  
Restructuring Process ◽  
Apparel Companies

This article locates the reorganization of work relations in the apparel sector in Pakistan, after the end of the Multi-Fibre Arrangement (MFA) quota regime, within the context of a global production network (GPN). We examine the role of a network of corporate, state, multilateral and civil society actors who serve as intermediaries in GPN governance. These intermediaries transmit and translate competitive pressures and invoke varied, sometimes contradictory, imaginaries in their efforts to realign and stabilize the GPN. We analyse the post-MFA restructuring of Pakistan’s apparel sector, which dramatically increased price competition and precipitated a contested adjustment process among Pakistani and global actors with divergent priorities and resources. These intermediaries converged on a ‘solution’ that combined and enacted imaginaries of modernization, competitiveness, professional management and female empowerment, while also emphasizing low costs and female docility. We highlight the intersection of economic, political and cultural dynamics of GPNs, and reveal the gendered dimensions of GPN restructuring. We theorize the role of these actors as a transnational managerial elite in GPN governance, who led a restructuring process that preserved the hegemonic stability of the GPN and protected the interests of western branded apparel companies and consumers, but did not necessarily serve the interests of workers.

The Logic of Production Networks

2018 ◽  
Author(s):  
Henry Wai‐chung Yeung
Keyword(s):  
Economic Integration ◽  
Economic Geography ◽  
Power Relations ◽  
Regional Economies ◽  
Production Network ◽  
Production Networks ◽  
Future Directions ◽  
Geographical Research ◽  
Global Production Network

This chapter highlights and evaluates the most significant economic–geographical research that examines the logic and role of production networks in facilitating global–local economic integration. It first explains how the global production network (GPN) approach describes and explains the logic of this global–local economic integration. Advocating a network understanding of the economic–geographical process of value transformation in a global mosaic of local and regional economies, this approach has deployed or developed three central concepts—power relations, network and territorial embeddedness, and strategic coupling. The chapter then considers the significance of this GPN literature, its key controversies, and the prospects and future directions for research in, what might be termed, GPN 2.0 research in economic geography in the next ten to fifteen years.

scholarly journals Filtering strategic coupling: territorial intermediaries in oil and gas global production networks in Southeast Asia

2018 ◽  
Vol 19 (4) ◽  
pp. 829-851 ◽  
Author(s):  
Moritz Breul ◽  
Javier Revilla Diez ◽  
Maxensius Tri Sambodo
Keyword(s):  
Economic Development ◽  
Southeast Asia ◽  
Global Economy ◽  
Oil And Gas ◽  
Explanatory Power ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Global Production Network

Abstract The Global Production Network (GPN) approach has not yet considered the importance of territorial intermediaries for strategic coupling. This article demonstrates how the prospects of strategic coupling for the case of Vietnam and Indonesia with the oil and gas GPN are affected by the gateway role of Singapore. Based on interviews, the analysis reveals how Singapore influences regional economic development along the GPN through different filtering mechanisms, limiting the potential for strategic coupling for Vietnam and Indonesia. For GPN research, the identified filtering mechanisms illustrate how the territoriality of GPNs contributes to differentiated territorial outcomes. The findings therefore indicate the need to intensify the appreciation of the particular territorial configuration of GPNs as this yields considerable explanatory power for understanding the unequal contours of the global economy.

The Role of Federal Research and Development in Advancing Energy Efficiency: A $50 Billion Contribution to the US Economy

1987 ◽  
Vol 12 (1) ◽  
pp. 357-395 ◽  
Author(s):  
Howard Geller ◽  
Jeffrey P. Harris ◽  
Mark D. Levine ◽  
Arthur H. Rosenfeld
Keyword(s):  
Energy Efficiency ◽  
Research And Development ◽  
Us Economy ◽  
Federal Research ◽  
The Us
Sign in / Sign up

Export Citation Format

Share Document