scholarly journals The usefulness of extended input–output tables incorporating firm heterogeneity

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Satoru Hagino ◽  
Jiyoung Kim
Keyword(s):  
Firm Heterogeneity ◽  
Raw Materials ◽  
Value Added ◽  
Total Output ◽  
Input Output ◽  
Firm Level ◽  
Manufacturing Plants ◽  
Exporting Firms ◽  
Foreign Affiliates ◽  
The Difference

AbstractThis study examines the usefulness of an extended input–output table (EIOT) incorporating the heterogeneity of Japanese firms based on differences in ratios of imported intermediate goods to total output. Using an EIOT, the vertical specialization indicator of Japan was calculated, which corresponds to the foreign value added included in exports. In this process, differences in intermediate input ratios were measured examining different types of firms using firm-level microdata from the Basic Survey of Japanese Business Structure and Activities. The results indicate that distinguishing between exporting and non-exporting firms is relevant for assembly industries such as electronics and automobiles, as widely discussed in the literature. In contrast, for primary materials industries, such as paper, chemical, and metal industries, other distinctions appear to be more relevant. For example, for the chemical industry, wherein firms tend to have large, integrated manufacturing plants, the differences in intermediate import ratios are largest when distinguishing large firms from small and medium firms. For paper and metal industries, which rely on foreign raw materials, the difference is largest when distinguishing between firms with and without foreign affiliates. By incorporating such heterogeneity, the vertical specification indicator increases by 70%; thus, the EIOT captures the foreign value added more comprehensively.

Socioeconomic effects of pension spending: evidence from Spain

2020 ◽  
Vol 47 (5) ◽  
pp. 599-617
Author(s):  
Fernando Bermejo ◽  
Eladio Febrero ◽  
Andre Fernandes Tomon Avelino
Keyword(s):  
Peer Review ◽  
Social Protection ◽  
Pension System ◽  
Decomposition Analysis ◽  
Value Added ◽  
Total Output ◽  
Alternative View ◽  
Input Output ◽  
Structural Decomposition Analysis ◽  
Content Type

PurposeThe purpose of this study is to provide broader understanding of the significant role that the pension system has in the Spanish economy by estimating the sectoral production, employment and income sustained by pensioners' consumption.Design/methodology/approachBased on input–output tables by the World Input–Output Database and consumption data from the Household Budget Survey by the Spanish Statistical Office, a demoeconomic model is applied to quantify the direct impacts, indirect impacts from interindustry links and induced impacts from income–consumption connections over a nine-year period (2006–2014). Then, the factors driving the evolution of total output, employment and value added during such period have been examined by using structural decomposition analysis.FindingsThe growing participation of consumption by pensioner households in final demand had proven crucial during the 2008 crisis to alleviate the negative trend in production and employment derived from the collapse in consumption suffered by the rest of households.Practical implicationsDetermining the underlying factors driving changes in both employment and income during the 2008 crisis can be of interest in political decision-making on the sustainability of the Spanish pension system.Social implicationsThe results of estimating both the employment and income supported by pensioners' consumption reveal the significant stabilizing effect of the public spending on pensions, particularly during the 2008 crisis.Originality/valueThe current Spanish approach of attaining the pension system sustainability by merely reducing social protection costs ignores the adverse consequences of a lower pensioners' demand. This paper addresses an alternative view in which pension spending is not considered a burden on economic growth but rather a means of improving the level of production and employment.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2019-0047

scholarly journals Multi-Scale Assessment of the Economic Impacts of Flooding: Evidence from Firm to Macro-Level Analysis in the Chinese Manufacturing Sector

2019 ◽  
Vol 11 (7) ◽  
pp. 1933 ◽  
Author(s):  
Xi Hu ◽  
Raghav Pant ◽  
Jim W Hall ◽  
Swenja Surminski ◽  
Jiashun Huang
Keyword(s):  
Manufacturing Sector ◽  
Economic Impacts ◽  
Macro Level ◽  
Total Output ◽  
Input Output ◽  
Economic Sectors ◽  
Output Analysis ◽  
Firm Level ◽  
Flood Impacts ◽  
Macroeconomic Impact

We present an empirical study to systemically estimate flooding impacts, linking across scales from individual firms through to the macro levels in China. To this end, we combine a detailed firm-level econometric analysis of 399,356 firms with a macroeconomic input-output model to estimate flood impacts on China’s manufacturing sector over the period 2003–2010. We find that large flooding events on average reduce firm outputs (measured by labor productivity) by about 28.3% per year. Using an input-output analysis, we estimate the potential macroeconomic impact to be a 12.3% annual loss in total output, which amounts to 15,416 RMB billion. Impacts can propagate from manufacturing firms, which are the focus of our empirical analysis, through to other economic sectors that may not actually be located in floodplains but can still be affected by economic disruptions. Lagged flood effects over the following two years are estimated to be a further 5.4% at the firm level and their associated potential effects are at a 2.3% loss in total output or 2,486 RMB billion at the macro-level. These results indicate that the scale of economic impacts from flooding is much larger than microanalyses of direct damage indicate, thus justifying greater action, at a policy level and by individual firms, to manage flood risk.

scholarly journals Measuring Global Value Chains

2018 ◽  
Vol 10 (1) ◽  
pp. 207-236 ◽  
Author(s):  
Robert C. Johnson
Keyword(s):  
Multinational Firms ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Firm Level ◽  
Level Data ◽  
Production Stages

Recent decades have seen the emergence of global value chains (GVCs), in which production stages for individual goods are broken apart and scattered across countries. Stimulated by these developments, there has been rapid progress in data and methods for measuring GVC linkages. The macro approach to measuring GVCs connects national input–output tables across borders by using bilateral trade data to construct global input–output tables. These tables have been applied to measure trade in value added, the length of and location of producers in GVCs, and price linkages across countries. The micro approach uses firm-level data to document firms’ input sourcing decisions, how import and export participation are linked, and how multinational firms organize their production networks. In this review, I evaluate progress in these two approaches, highlighting points of contact between them and areas that demand further work. I argue that further convergence between these approaches can strengthen both, yielding a more complete empirical portrait of GVCs.

scholarly journals ANALISIS NILAI TAMBAH KACANG SANGRAI PADA UD. TARSIUS DI DESA KINNALI KECAMATAN KAWANGKOAN

2016 ◽  
Vol 12 (2A) ◽  
pp. 341348
Author(s):  
Rizky ., Manueke ◽  
Juliana R. Mandei ◽  
Paulus A. Pangemanan
Keyword(s):  
Data Collection ◽  
Production Process ◽  
Direct Observation ◽  
Raw Materials ◽  
Value Added ◽  
Secondary Data ◽  
Primary Data ◽  
Industrial Processing ◽  
The Difference ◽  
The Cost

This research aims to see the difference in value and value added of a product, after experiencing processing in a production process. In the processing of Value Added can be defined as the difference between the value of the product with the cost of raw materials and other inputs not including labor. This Study for to calculate the value 1 kg of raw nuts to 0.73 bean roaster. This research will be implemented since March until June 2016 at UD. Tarsius in Kinali Village, Kawangkoan Sub-district, Minahasa District The data collection includes primary data and secondary data. The primary data obtained through direct interviews with owners of industrial processing of roasted peanuts and employee, as well as direct observation in place research. Secondary data were obtained from various literature related with this study. Research shows that Value Added obtained For 1 kg of raw nuts be roasted peanuts 0.73 that is Rp. 4.105,41 and Value Added to 0.73 bean roaster be roasted beans that have been packaged that is Rp. 6.169,5.*jrm*

scholarly journals ANALISI NILAI TAMBAH KACANG SANGRAI UD. MERPATI DI DESA TOMBASIAN ATAS KECAMATAN KAWANGKOAN BARAT

2020 ◽  
Vol 16 (2) ◽  
pp. 189
Author(s):  
Filia Christi Batas ◽  
Leonardus Ricky Rengkung ◽  
Juliana Ruth Mandei
Keyword(s):  
Data Collection ◽  
Raw Materials ◽  
Value Added ◽  
Added Value ◽  
Primary Data ◽  
Processing Industry ◽  
The Difference

The purpose of this research is to analyze the value added of raw peanuts to roasted peanuts. This research was conducted at UD. “Merpati” at Tombasian Atas Village, West Kawangkoan Sub-district. Primary data collection is done through direct interviews, with the help of a list of questions, to the owner who is a entrepreneur and manager of the roasted peanuts processing industry and to employees. Added value is the difference in the value of output with the value of the main raw materials and the contribution of other inputs (IDR/ kg). The results showed that the added value obtained of 1 kg of raw peanuts at a price of IDR 4,000 processed into roasted peanuts at a price of IDR. 22,000, - Add value for 1 kg of roasted peanuts that have been packaged, that is IDR. 45,000,-.*eprm*

Trade-employment linkage of FTAs in Korea

2018 ◽  
Vol 22 (4) ◽  
pp. 333-347
Author(s):  
Yong Joon Jang ◽  
Mee Jin Cho ◽  
HanSung Kim
Keyword(s):  
Trade Liberalization ◽  
Labor Productivity ◽  
Comparative Advantage ◽  
Firm Heterogeneity ◽  
Trade Agreement ◽  
Difference In Difference ◽  
Firm Level ◽  
Content Type ◽  
Positive Effects ◽  
The Difference

Purpose The purpose of this paper is to empirically examine the link between trade liberalization and employment through the export channel under Korea’s FTAs by distinguish firm heterogeneity (i.e. size) as well as sector-level international competitiveness (i.e. comparative advantage). Design/methodology/approach Using the firm-level data during 2000–2009, the authors drive the difference-in-difference-in-difference model on Wagner (2007) with the dependent variables of labor productivity and employments and the independent variables of free trade agreement, revealed comparative advantage, firm size and payroll costs. Findings The authors find that the economic benefit of FTAs in Korea is not concentrated in large enterprises or firms with comparative advantage. Accordingly, the authors conclude that FTA or trade liberalization brings positive effects to business as a whole, rather than to specific industries or group of firms. Research limitations/implications The Korean Government has continued its policy of supporting small and medium-sized enterprises (SMEs) for a long time by recognizing them as socially underprivileged. According to the results of this study, an increase in export through FTAs improves firm’s labor productivity and increases employment, especially for SMEs, which can be a practical and efficient support for them. Originality/value The paper provides the empirical evidences that how the effects of trade liberalization on labor depend on firm heterogeneity, industrial competitiveness and/or both and thus how labor is reallocated in response to trade liberalization in Korea.

scholarly journals National Key Economic Area Multiplier Impact On Malaysian Economy: An Input-Output Analysis

2011 ◽  
Author(s):  
Siti Nadiah Ahmad Fuad ◽  
Ahmad Fauzi Puasa
Keyword(s):  
Value Added ◽  
Total Output ◽  
Input Output ◽  
Output Analysis ◽  
Input Output Analysis ◽  
Tourism Education ◽  
The Government ◽  
The Impact ◽  
Further Development ◽  
Total Impact

The ultimate aim of this research is to provide an analysis of the impact multipliers on the Malaysian economy for 12 NKEA sectors. Economic activity is a complicated web of interdependent behaviour. A change in any part of the economy leads to changes elsewhere. Consequently, the estimation of the ultimate total impact of a change in the NKEA requires the measurement of the changes that occur elsewhere in the economy. The technique available to obtain these measurements is called input-output (I-O) analysis. I-O analysis is concerned with studying the interdependence of the producing and the consuming units in the modern economy. Our computation of complete I-O multipliers includes total output, income, employment, value-added, imported commodity, domestic taxes and imported taxes multipliers for the NKEA. Among the NKEA sectors, the palm oil, tourism, education, healthcare and other sectors have great potential for further development and are expected to give a high impact on the Malaysian economy. If the government wishes to boost the Malaysian economy for growth, these are the appropriate sectors for development.   Keywords: NKEA, input-output analysis, multiplier impact.

PEMETAAN TEKNOLOGI INDUSTRI KELAPA SAWIT NASIONAL DAN KEBIJAKAN PENGEMBANGANNYA

2013 ◽  
Vol 13 (1) ◽  
Author(s):  
Subiyanto Subiyanto
Keyword(s):  
Palm Oil ◽  
Government Policy ◽  
Value Chain ◽  
Raw Materials ◽  
Value Added ◽  
Oil Industry ◽  
Missing Value ◽  
Technology Capability ◽  
The Government

Palm oil industry in Indonesia has been growing rapidly. But, unfortunately the growth is only effective on upstream industry with low value products, such that potential downstream value added are not explored proportionally. The government is therefore in the process of developing an appropriate policy to strengthen the national palm oil downstream industry. This paper proposes that an approriate policy for developing palm oil downstream industry could be derived from the maps of value chain and existing technology capability of the industry. The result recommends that government policy should emphasize on the supply of raw materials, infrastructure and utilities, as well as developing the missing value chain industry, especially ethoxylation and sulfonation.

The End of Multi-Fibre Arrangement and Firm Performance in the Textile Industry: New Evidence

2013 ◽  
Vol 52 (2) ◽  
pp. 97-126 ◽  
Author(s):  
Zara Liaqat
Keyword(s):  
Textile Industry ◽  
Manufacturing Industry ◽  
Firm Heterogeneity ◽  
Production Functions ◽  
Firm Level ◽  
Quality Ladders ◽  
Sectoral Differences ◽  
The Mean ◽  
New Evidence ◽  
Empirical Methodology

Using a sample of 321 textile and clothing companies for the years 1992 to 2010, this paper analyses the effect of quota phase-outs on firm-level efficiency in Pakistan following the end of the Multi-Fibre Arrangement (MFA). It highlights sectoral heterogeneity within the manufacturing industry as a result of MFA expiration. The empirical methodology uses the structural techniques proposed by Olley and Pakes (1996), and Levinsohn and Petrin (2003) in order to take care of endogeneity in the estimation of production functions. The results differ for the two industries: MFA expiration lead to an increase in the average productivity of textile producing firms but a significant reduction in the mean productivity of clothing producers. We offer a number of explanations for this outcome, such as a change in the input and product mix, entry by non-exporters in the clothing sector, and sectoral differences in quality ladders. A number of crucial policy lessons can be drawn from the findings of this study. JEL Classification:F13; F14; D24; C14; O19 Keywords: Multi-Fibre Arrangement, Trade Liberalisation, Productivity, Firm Heterogeneity, Simultaneity and Production Functions, Endogeneity of Protection

SELISIH BIAYA PRODUKSI SEBAGAI ALAT PENGENDALIAN MANAJEMEN PT INDO PUSAKA BERAU

2019 ◽  
Vol 3 (02) ◽  
pp. 397
Author(s):  
SAFITRI NURHIDAYATI ◽  
RIZKI AMELYA SYAM
Keyword(s):  
Raw Materials ◽  
Field Research ◽  
Analytical Tool ◽  
Production Costs ◽  
Raw Material ◽  
Labor Costs ◽  
Material Costs ◽  
Library Research ◽  
The Difference ◽  
The Cost

This study aims to analyze whether the difference that occurs in the cost of raw materials, direct labor, and factory overhead costs between the standard costs and the actual costs in PLTU LATI is a difference that is favorable or unfavorable. Data collection techniques with field research and library research. The analytical tool used is the analysis of the difference in raw material costs, the difference in direct labor costs and the difference in factory overhead costs. The hypothesis in this study is that the difference allegedly occurs in the cost of raw materials, direct labor costs, and factory overhead costs at PT Indo Pusaka Berau Tanjung Redeb is a favorable difference. The results showed that the difference in the cost of producing MWh electricity at PT Indo Pusaka Berau Tanjung Redeb in 2018, namely the difference in the price of raw material costs Rp. 548,029.80, - is favorable, the difference in quantity of raw materials is Rp. 957,216,602, - is (favorable) , the difference in direct labor costs Rp 2,602,642,084, - is (unfavorable), and the difference in factory overhead costs Rp 8,807,051,422, - is (favorable) This shows that the difference in the overall production cost budget is favorable or profitable. This beneficial difference shows that the company is really able to reduce production costs optimally in 2018.  

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