scholarly journals Market Integration, Demand, and the Growth of Firms: Evidence From a Natural Experiment in India

2018 ◽  
Vol 108 (12) ◽  
pp. 3583-3625 ◽  
Author(s):  
Robert Jensen ◽  
Nolan H. Miller
Keyword(s):  
Market Integration ◽  
Natural Experiment ◽  
Production Costs ◽  
Limited Information ◽  
Consumer Prices ◽  
Boat Building ◽  
Potential Market ◽  
Average Production ◽  
Non Local ◽  
Labor Specialization

In many developing countries, the average firm is small, does not grow, and has low productivity. Lack of market integration and limited information on non-local products often leave consumers unaware of the prices and quality of non-local firms. They therefore mostly buy locally, limiting firms’ potential market size (and competition). We explore this hypothesis using a natural experiment in the Kerala boat-building industry. As consumers learn more about non-local builders, high-quality builders gain market share and grow, while low-quality firms exit. Aggregate quality increases, as does labor specialization, and average production costs decrease. Finally, quality-adjusted consumer prices decline. (JEL D22, D83, L15, L25, L62, O12, O14)

scholarly journals U.S. milled rice markets and integration across regions and types

2017 ◽  
Vol 20 (5) ◽  
pp. 623-636
Author(s):  
Man-Keun Kim ◽  
Hernan Tejeda ◽  
T. Edward Yu
Keyword(s):  
Market Integration ◽  
Directed Acyclic Graphs ◽  
Rice Production ◽  
Milled Rice ◽  
Vector Error Correction ◽  
Production Region ◽  
Grain Markets ◽  
Potential Market ◽  
Short Run ◽  
Dynamic Relationships

Rice is among the top seven U.S. major crops in terms of harvested acres – covering over 2.6 million acres – and sixth in terms of sales, with annual cash receipts around 3.1 billion dollars. This paper investigates whether U.S. milled rice markets are integrated across regions and whether these markets are integrated by rice types. Understanding dynamic relationships across regions and types provides important insights for risk management and policy making. Of the four major producing regions, three are in the South – Arkansas-Missouri, Louisiana-Mississippi, and Texas – and the other is California. There are different rice types associated with a production region. California mainly produces short and medium grain; while Arkansas, Texas, and Louisiana primarily produce long and also medium grains. We determine the potential market integration of these rice markets by applying a Vector Error Correction Model and Directed Acyclic Graphs to monthly free on board milled rice price data from August 1986 to December 2015. Results suggest that Arkansas-Missouri region is the leading price reference in the long grain markets. Arkansas-Missouri medium grain also plays an important role in the medium grain markets. California medium grain markets are weakly exogenous in the short run, but affected by Arkansas-Missouri medium grain in the longer term. As anticipated, Arkansas-Missouri long grain milled rice markets are driven by rough rice futures price in the longer term. Interestingly, Arkansas-Missouri medium grain market has a sizable impact on long grain markets even though long and medium grains are not substitutes. This may be due to land competition to long grain rice production in Arkansas, a major area of long grain rice production.

scholarly journals An Economic Analysis of The Costs of Producing Tomato Under Greenhouse in Anbar Governorate For the Agricultural Season 2019-2020

2021 ◽  
Vol 904 (1) ◽  
pp. 012061
Author(s):  
I A Mohammed ◽  
M A K Al Dulaimi
Keyword(s):  
Agricultural Sector ◽  
Great Difficulty ◽  
Production Costs ◽  
Coefficient Of Determination ◽  
Optimal Size ◽  
Production Volume ◽  
Fixed Costs ◽  
Average Production ◽  
Local Product

Abstract The research aims to analyze the costs of producing tomato under greenhouses in Anbar Governorate for the agricultural season (2019-2020), based on field data of 16 samples selected randomly. The results of the analysis shows that fixed costs constitute about (44.20%), while variable costs constitute about (55.80%) of the total costs. The average production costs in the research sample are about (109808) dinars/ton. The long-term cubic function was the best among the functions that express the relationship between production costs as a dependent variable and production and the number of greenhouses on the farm as independent variables. This is due to its analogy with the logic of economic theory. The modified coefficient of determination in it R-2 reached (0.98). It is found that the optimal size of the farm includes (3) greenhouses. It achieves the optimum production volume of (21.17) tons/farm. The average cost is about (64193) dinars/ton. (62.5%) of the farmers in the study sample achieve capacity savings, while (31.25%) do not achieve any savings. As for the percentage of farmers who achieve low rates of economic efficiency, they reach about (6.25%). The supply function shows that the elasticity of supply decreases with the increase in production. This means that the farmer faces great difficulty in controlling production in the event of price changes. The study recommended the needed to raise the marketing efficiency of the products of the agricultural sector and to protect the local product to help the Iraqi farmer attain the ability to compete.

Government cooperation, market integration, and energy efficiency in urban agglomerations—Based on the quasi-natural experiment of the Yangtze River Delta Urban Economic Coordination Committee

2021 ◽  
pp. 0958305X2110474
Author(s):  
Da Gao ◽  
Ge Li ◽  
Yi Li
Keyword(s):  
Energy Efficiency ◽  
Yangtze River ◽  
Market Integration ◽  
Natural Experiment ◽  
Yangtze River Delta ◽  
River Delta ◽  
Urban Agglomeration ◽  
The Yangtze River ◽  
The Government ◽  
The Yangtze River Delta

Energy efficiency is the key to green development, and the government plays a vital role in energy efficiency. This paper clarifies the mechanism by which the Yangtze River Delta Economic Coordination Committee affects the energy efficiency of urban agglomeration by promoting market integration. Based on panel data of China's prefecture-level cities from 2004 to 2017, we take the Yangtze River Delta Economic Coordination Committee as a quasi-natural experiment of government cooperation and use the difference-in-difference method to test whether this organization has enhanced the energy efficiency of urban agglomeration. The results show that the Yangtze River Delta Economic Coordination Committee can significantly improve energy efficiency in urban agglomerations. The mechanism analysis shows that it reduces the energy consumption per unit of gross domestic product by enhancing the marketization level, perfecting the relationship between the government and the market, and improving the factor market development. The heterogeneity analysis shows that cities with lower city size, lower level of innovation, and cleaner industrial structures gain more benefits in energy efficiency from government cooperation in urban agglomeration. This paper provides empirical evidence for cities to realize integrated energy conservation through government cooperation and market integration.

scholarly journals Urban Water Pricing and Private Interests’ Lobbying in Small Rural Communities

Water ◽  
2020 ◽  
Vol 12 (12) ◽  
pp. 3509
Author(s):  
Fernando Alguacil-Duarte ◽  
Francisco González-Gómez ◽  
Salvador del Saz-Salazar
Keyword(s):  
Rural Communities ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Water Cycle ◽  
Production Costs ◽  
Urban Water ◽  
The European Union ◽  
Main Hypothesis ◽  
Private Interests ◽  
Average Production

It is difficult for small municipalities to ensure their urban water cycle complies with the principle of cost recovery established in the European Union (EU) Water Framework Directive. Unlike more populous municipalities, small municipalities face higher average production costs. However, at least in Spain, the price of water is, on average, lower in small municipalities. We question whether the low price of water in rural areas is due, at least in part, to people linked to agriculture, i.e., do farmers constitute a special interest group that hinders increases in the price of water? The main hypothesis was tested with data taken from Torre-Cardela, a municipality in southern Spain with close to 800 inhabitants. In the research a contingent valuation analysis was carried out to analyze respondents’ willingness to pay in the event of a hypothetical increase in the price of water to help cover the service costs. Contrary to expectations, the study yields no evidence that the agricultural population is more resistant to price rises than the rest of the citizens surveyed. In fact, results show that people involved in the agricultural sector would be willing to accept a hypothetical increase in water tariffs in between 15% and 25% over the current tariff, while for the rest of the population this same increase would be lower (in between 9% and 20%).

Variation in oil concentration and economic return from tea-tree (Melaleuca alternifolia Cheel) oil

1990 ◽  
Vol 30 (5) ◽  
pp. 675 ◽  
Author(s):  
GJ Murtagh ◽  
RJ Etherington
Keyword(s):  
Dry Weight ◽  
Production Costs ◽  
Melaleuca Alternifolia ◽  
Tea Tree ◽  
Percentage Points ◽  
Average Production ◽  
Oil Concentration ◽  
The Mean ◽  
Set Up ◽  
Returns On Investment

The oil concentration in tea-tree (Melaleuca alternifolia Cheel) twigs was measured over 8 consecutive days during November 1987, and over 10 out of 12 consecutive days in January 1989. The oil concentration, measured in units of volume of oil per unit dry weight of twigs (v/DW), varied markedly between successive days, from 2.9-1.8% v/DW (a 38% decrease) to 1.8-3.4% v/DW (a 89% increase). The reason for such variation is unknown but it had a pronounced effect on the profitability of growing the crop. The profit, which was expressed as a return on the total set-up cost of $A17 2591ha, was estimated for each of the measured oil concentrations and fixed values of biomass yield, the price of oil and average production costs. The extreme daily variations in oil concentration mentioned above caused the return on investment to decline by 11 percentage points and increase by 16 points, respectively. When measured at the same site, the mean oil concentration increased from 3.1% vPW in November 1987 to 5.8% v/DW in January 1989. As a consequence, the respective mean returns on investment increased from 0 to 26%.

Management Impacts on Christmas Tree Returns

1988 ◽  
Vol 5 (1) ◽  
pp. 51-55
Author(s):  
Theodore E. Howard ◽  
John T. Walkowiak
Keyword(s):  
New England ◽  
Management Practices ◽  
Production Costs ◽  
Christmas Tree ◽  
Management Scenarios ◽  
Market Prices ◽  
Management Regime ◽  
Trade Offs ◽  
Average Production ◽  
Northern New England

Abstract Existing Christmas tree production cost and return models do not link the number and average price of merchantable trees to management practices. This model simulates number and price as functions of specific management practices accomplished within a rotation. The model allows evaluation of the trade-offs between additional management costs and resulting revenues. Using average production costs, investment of typical and intensive management scenarios in Northern New England were simulated. Real rates of return from 6 to 18% were obtained depending on the management regime and market prices. North. J. Appl. For. 5:51-55, March 1988.

scholarly journals Analisis Perhitungan Dan Penentuan Harga Pokok Produksi Pada PT. Mutifa Medan

2019 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
John Fisher Gulo ◽  
Kamil Mustafa ◽  
Ninny Siregar
Keyword(s):  
Production Cost ◽  
Raw Materials ◽  
Descriptive Analysis ◽  
Production Costs ◽  
Total Production ◽  
Labor Costs ◽  
Average Production ◽  
Qualitative Descriptive ◽  
Cost Of Production ◽  
The Cost

<p>The cost of production is needed to determine the cost of production of a product. Costs incurred to produce the product must be clear, so that the determination of the cost of production would be appropriate. Imprecision in calculating the cost of production will be misleading in making management decisions. Data collection methods used in this study include: Documentation, Interview, Observation. This study analyzed using qualitative descriptive analysis comparing the theory with actual results of the company. PT MUTIFA in determining the cost of production using the full costing method. PT MUTIFA in determining the cost of production, all costs incurred are treated as production costs, both the cost of major raw materials, cost of auxiliary materials, packaging materials costs and production overhead. Classification of production costs in accordance with the theory that exists is composed of material costs, labor costs and production overhead costs. Total production cost per month of each element calculation the average monthly cost is Rp. 73.111.118,260,- and the average number of finished products Paracetamol tablet 500 mg tablet is as much 566,666.67 per month. Based on data on average production costs in 2009, then the production cost per tablet is .Rp. 129,019.</p>

scholarly journals ANALISA PENGARUH TUNDA JUAL GABAH KERING PANEN TERHADAP PENDAPATAN PETANI PADI DI DESA KARANG BINANGUN BELITANG MADANG RAYA OKU TIMUR

2018 ◽  
Vol 4 (01) ◽  
pp. 1-11
Author(s):  
Munsirum
Keyword(s):  
Sampling Method ◽  
Production Costs ◽  
Survey Method ◽  
Land Area ◽  
Average Income ◽  
Direct Selling ◽  
Average Production ◽  
Significant Difference ◽  
C Value ◽  
The Difference

The purpose of this study is to determine the amount of income obtained by farmers who sell grain directly after harvest and farmers who delay selling grain and to find out the difference in income of farmers who sell unhulled grain directly after harvest with farmers who delay selling grain. This research was conducted using a survey method. Sampling of farmers who postpone selling grain and storing them waiting until the price of grain is high was carried out by using the census method for all populations totaling 17. Meanwhile, sampling of farmers who directly sell grain to 17 farmers from 374 populations was carried out using purposive sampling method with criteria respondents are farmers who have their own land with a land area of> 0.5 Ha. The results showed that the average production cost for the farmers to postpone selling GKP was IDR 12,911,329 / Ha / MT, the income was IDR 23,215,058 / Ha / MT, so that the income was IDR 10.303,729 / Ha / MT The production costs for direct selling GKP farmers are IDR 12,107,847 / Ha / MT, revenue is IDR 21,527,265 / Ha / MT, so you get an income of IDR 9,419,417 / Ha / MT. The average income of the respondent's delay in selling GKP was higher than that of the respondent who was selling GKP directly with the average difference in income of IDR 884,312 / Ha / MT. The R-C value of the delay in selling GKP is 1.80, while the direct selling value is 1.78. Statistically, there is a significant (significant) difference between the income of the respondent with the delay in selling GKP and the respondent from selling GKP directly. This can be seen from the t value of 3.42 and the t value of 2.036.

scholarly journals Supplier's cooperation strategy with two competing manufacturers under wholesale price discount contract considering technology investment

2021 ◽  
Author(s):  
Shanxue Yang ◽  
Hongwei Liu ◽  
Guoli Wang ◽  
Yifei Hao
Keyword(s):  
Production Cost ◽  
Wholesale Price ◽  
Production Costs ◽  
Investment Efficiency ◽  
Price Discount ◽  
Technology Investment ◽  
Potential Market ◽  
Cooperation Strategy ◽  
Improve Production Technology ◽  
Technology Investments

Abstract Cooperation between upstream suppliers and downstream manufacturers in technology investment is a popular way to improve production technology for reducing suppliers' production costs of key components. Technology investments undertaken by manufacturers and wholesale price discount contract provided by suppliers have an important impact on their cooperation. This paper explores whether a supplier should cooperate with two downstream competing manufacturers to accept their technology investments to reduce the supplier's production cost of a key component. Specifically, we consider the following three cooperation strategies: the supplier does not accept manufacturers' technology investments, only accepts one manufacturer's technology investment and accepts both manufacturers' technology investments. Our results demonstrate that the wholesale price discount contract and the technology investment can enhance the profits of the supplier and two manufacturers when the discount degree is low. Further, we conclude that when the discount degree is relatively low or when the discount degree and the technology investment efficiency are relatively high, the supplier's optimal cooperation strategy with two manufacturers is to accept both manufacturers' technology investments for reducing the supplier's production cost of the key component and both manufacturers are also willing to invest simultaneously. At last, we extend the model to the asymmetric potential market size and show that our theoretical results are robust.

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