The Technology and Knowledge Spıllover Effects of FDI on Labour Productıvıty—Evıdence from Medıum-Hıgh Industry in Malaysıa

2020 ◽  
Vol 11 (1) ◽  
pp. 110-110
Author(s):  
Norhanishah Mohamad Yunus ◽  
Noraida Abdul Wahob
Keyword(s):  
Developing Country ◽  
Multinational Corporations ◽  
Knowledge Spillovers ◽  
Labour Productivity ◽  
Spillover Effects ◽  
International Technology Transfer ◽  
Technology Acquisition ◽  
Productivity Function ◽  
Short Run ◽  
The Cost

A plethora of studies have revealed the importance of new knowledge transfer from foreign multinational corporations (MNCs) in encouraging higher labour productivity and sustainable competitive advantages. However, less attention is given to low labour productivity issue despite the presence of FDI, especially in the developing country context. Most of the studies only heavily emphasised on 'technology' effects rather than 'knowledge' effects on the host country as a result of the presence of foreign technology. As Malaysia is one of the major FDI recipients in Southeast Asia, the specific spillover effects of each FDI investor country in Malaysia, need to be studied. With an abundance of MNCs, international technology transfer is considered as an imported mode for technology acquisition in a developing country like Malaysia. However, the benefits of FDI spillovers on labour productivity function in Malaysia remain ambiguous, even when classified according to specific investor countries. Globalisation and liberalisation have seen trade and investment activities booming, thus increasing multilateral relations between Malaysia and other countries regardless of their level of development. Thus, this study may help the Malaysian government to justify the cost that should be invested to attract more FDI inflows towards the manufacturing industries in the short run. Keywords: spillover effects, Foreign Direct Investment, labour productivity, technology spillovers, knowledge spillovers

Internationalization of Chinese Research and Development

2021 ◽  
pp. 485-501
Author(s):  
Max von Zedtwitz ◽  
Xiaohong Iris Quan
Keyword(s):  
Research And Development ◽  
Developing Country ◽  
Multinational Corporations ◽  
Chinese Government ◽  
Technology Acquisition ◽  
Global Innovation ◽  
Emerging Country ◽  
Central Coordination ◽  
Innovation Community ◽  
Country Specific

The internationalization of Chinese research and development (R&D) is a fairly recent phenomenon and still ongoing process. What makes the rise of international Chinese R&D remarkable is that this is—alongside India—one of the first such endeavors by a developing country with already one of the most substantial global R&D footprints, even including Western countries. Similar motivations and challenges of earlier R&D globalization are replicated and observed also in the recent Chinese internationalization, with a few emerging country-specific nuances, such as the focus on technology acquisition through merger and acquisition (M&A) and suspected central coordination by the Chinese government, which has given rise to challenges of its own for Chinese multinational corporations (MNCs). In this respect, China seems to have been the victim of its own success; the future of Chinese R&D internationalization bears both opportunities and challenges for the global innovation community.

scholarly journals The Technology and Knowledge Spillover Effects of FDI on Labour Productivity

2021 ◽  
Vol 5 (4) ◽  
pp. 51-58
Author(s):  
Norhanishah Mohamad Yunus ◽  
Noraida Abdul Wahob
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Knowledge Spillovers ◽  
Labour Productivity ◽  
Spillover Effects ◽  
Knowledge Spillover ◽  
Jel Classification ◽  
The Body ◽  
Seemingly Unrelated Regression ◽  
Manufacturing Industries

Objective – The purpose of this study is to investigate both “technology” and “knowledge” effects of foreign direct investment (FDI) on labour productivity in the medium-high manufacturing industries’ classification in Malaysia. Methodology/Technique –This study employs a Seemingly Unrelated Regression (SUR) estimator. Findings – The results conclude that diffusion of knowledge, which increases labour productivity, is greater via “learning effects” as compared to the investor countries’ capital investments in the medium-high manufacturing industries. Novelty –This study expands the body of knowledge about the benefits of FDI spillovers on labour productivity according to specific investor countries, however, are rarely researched particularly in developing countries and at the industry level. Type of Paper: Empirical. JEL Classification: E60, J24 Keywords: Foreign Direct Investment; Labour Productivity; Technology Spillovers; Knowledge Spillovers Reference to this paper should be made as follows: Yunus,N.M; Wahob, N.A. (2021). The Technology and Knowledge Spillover Effects of FDI on Labour Productivity, Journal of Business and Economics Review, 5(4) 51–58. https://doi.org/10.35609/jber.2021.5.4(5)

scholarly journals Application of the theory of decision making under risk and uncertainty at modelling of costs

2010 ◽  
Vol 56 (No. 5) ◽  
pp. 201-208 ◽  
Author(s):  
M. Beranová ◽  
D. Martinovičová
Keyword(s):  
Decision Making ◽  
Financial Accounting ◽  
Cost Functions ◽  
Risk And Uncertainty ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Bayesian Theorem ◽  
Long Run ◽  
Short Run ◽  
The Cost

The costs functions are mentioned mostly in the relation to the Break-even Analysis where they are presented in the linear form. But there exist several different types and forms of cost functions. Fist of all, it is necessary to distinguish between the short-run and long-run cost function that are both very important tools of the managerial decision making even if each one is used on a different level of management. Also several methods of estimation of the cost function's parameters are elaborated in the literature. But all these methods are based on the past data taken from the financial accounting while the financial accounting is not able to separate the fixed and variable costs and it is also strongly adjusted to taxation in the many companies. As a tool of the managerial decision making support, the cost functions should provide a vision to the future where many factors of risk and uncertainty influence economic results. Consequently, these random factors should be considered in the construction of cost functions, especially in the long-run. In order to quantify the influences of these risks and uncertainties, the authors submit the application of the Bayesian Theorem.

scholarly journals THU0548 THE ECONOMIC BURDEN OF ANKYLOSING SPONDYLITIS IN SPAIN. RESULTS OF THE SPANISH ATLAS 2017

2020 ◽  
Vol 79 (Suppl 1) ◽  
pp. 514.2-514
Author(s):  
M. Merino ◽  
O. Braçe ◽  
A. González ◽  
Á. Hidalgo-Vega ◽  
M. Garrido-Cumbrera ◽  
...  
Keyword(s):  
Health Care ◽  
Ankylosing Spondylitis ◽  
Health Care Costs ◽  
Health Care Cost ◽  
Labour Productivity ◽  
General Health Questionnaire ◽  
Indirect Costs ◽  
Productivity Losses ◽  
The Cost ◽  
Care Costs

Background:Ankylosing Spondylitis (AS) is a disease associated with a high number of comorbidities, chronic pain, functional disability, and resource consumption.Objectives:This study aimed to estimate the burden of disease for patients diagnosed with AS in Spain.Methods:Data from 578 unselected patients with AS were collected in 2016 for the Spanish Atlas of Axial Spondyloarthritis via an online survey. The estimated costs were: Direct Health Care Costs (borne by the National Health System, NHS) and Direct Non-Health Care Costs (borne by patients) were estimated with the bottom-up method, multiplying the resource consumption by the unit price of each resource. Indirect Costs (labour productivity losses) were estimated using the human capital method. Costs were compared between levels of disease activity using the Bath Ankylosing Spondylitis Disease Activity Index (BASDAI) score (<4 or low inflammation versus ≥4 or high inflammation) and risk of mental distress using the 12-item General Health Questionnaire (GHQ-12) score (<3 or low risk versus ≥3 or high risk).Results:The average annual cost per patient with AS in 2015 amounted to €11,462.3 (± 13,745.5) per patient. Direct Health Care Cost meant an annual average of €6,999.8 (± 9,216.8) per patient, to which an annual average of €611.3 (± 1,276.5) per patient associated with Direct Non-Health Care Cost borne by patients must be added. Pharmacological treatment accounted for the largest percentage of the costs borne by the NHS (64.6%), while for patients most of the cost was attributed to rehabilitative therapies and/or physical activity (91%). The average annual Indirect Costs derived from labour productivity losses were €3,851.2 (± 8,484.0) per patient, mainly associated to absenteeism. All categories showed statistically significant differences (p<0.05) between BASDAI groups (<4 vs ≥4) except for the Direct Non-Healthcare Cost, showing a progressive rise in cost from low to high inflammation. Regarding the 12-item General Health Questionnaire (GHQ-12), all categories showed statistically significant differences between GHQ-12 (<3 vs ≥3), with higher costs associated with higher risk of poor mental health (Table 1).Table 1.Average annual costs per patient according to BASDAI and GHQ-12 groups (in Euros, 2015)NDirect Health CostsDirect Non-Health CostsIndirect CostsTotal CostBASDAI<4917,592.0*557.32,426.5*10,575.8*≥43769,706.9*768.05,104.8*15,579.7*Psychological distress (GHQ-12)<31468,146.8*493.6*3,927.2*12,567.6*≥32609,772.9*807.2*4,512.3*15,092.5*Total5786,999.8611.33,851.211,462.3* p <0.05Conclusion:Direct Health Care Costs, and those attributed to pharmacological treatment in particular, accounted for the largest component of the cost associated with AS. However, a significant proportion of the overall costs can be further attributed to labour productivity losses.Acknowledgments:Funded by Novartis Farmacéutica S.A.Disclosure of Interests:María Merino: None declared, Olta Braçe: None declared, Almudena González: None declared, Álvaro Hidalgo-Vega: None declared, Marco Garrido-Cumbrera: None declared, Jordi Gratacos-Masmitja Grant/research support from: a grant from Pfizzer to study implementation of multidisciplinary units to manage PSA in SPAIN, Consultant of: Pfizzer, MSD, ABBVIE, Janssen, Amgen, BMS, Novartis, Lilly, Speakers bureau: Pfizzer, MSD, ABBVIE, Janssen, Amgen, BMS, Novartis, Lilly

scholarly journals Getting Prices Right: What Should Be Done?

1998 ◽  
Vol 12 (1) ◽  
pp. 37-46 ◽  
Author(s):  
Angus Deaton
Keyword(s):  
Cost Of Living ◽  
Identification Problems ◽  
Single Index ◽  
Rate Of Increase ◽  
Price Indexes ◽  
Short Run ◽  
The Cost ◽  
Heterogeneous Consumers

Much of the profession accepts that the CPI likely overstates the rate of increase of the cost-of-living. It is less clear that there are sound and feasible steps that the BLS can adopt to improve matters in the short run. There are unresolved conceptual and identification problems in the measurement of quality. Superlative price indexes are not feasible, and feasible approximations are not superlative, and may not even be better. The need for a single index that aggregates over heterogeneous consumers with different incomes, tastes, and needs casts serious doubt on the cost-of-living approach.

scholarly journals Stability Analysis of R&D Cooperation in a Supply Chain

2015 ◽  
Vol 2015 ◽  
pp. 1-10 ◽  
Author(s):  
Luyun Xu ◽  
Dong Liang ◽  
Zhenjie Duan ◽  
Xu Xiao
Keyword(s):  
Game Theory ◽  
Stability Analysis ◽  
Knowledge Spillovers ◽  
Opportunistic Behavior ◽  
Collaborative Process ◽  
Level Of Knowledge ◽  
The Stability ◽  
The Cost ◽  
Inherent Quality

R&D outsourcing becomes the often-adopted strategy for firms to innovate. However, R&D cooperation often ends up with failure because of its inherent quality of instability. One of the main reasons for cooperation failure is the opportunistic behavior. As the R&D contract between firms is inherently incomplete, opportunistic behavior always cannot be avoided in the collaborative process. R&D cooperation has been divided into horizontal and vertical types. This paper utilizes game theory to study opportunistic behavior in the vertical R&D cooperation and analyzes the equilibrium of the cooperation. Based on the equilibrium and numerical results, it is found that the vertical R&D cooperation is inherently unstable, and the downstream firm is more likely to break the agreement. The level of knowledge spillovers and the cost of R&D efforts have different effects on firms’ payoffs. When the level of knowledge spillover is low or the cost of R&D efforts is high, mechanisms such as punishment for opportunism may be more effective to guarantee the stability of cooperation.

scholarly journals ESTIMATING PROFIT , COST FUNCTION AND TECHNICAL EFFICIENCIES OF RICE PRODUCTION IN NEJAF FOR SEASON 2016*

2019 ◽  
Vol 50 (5) ◽  
Author(s):  
Al-Mashhdani & Mahmood
Keyword(s):  
Cost Function ◽  
Output Level ◽  
Average Output ◽  
Optimal Output ◽  
Long Run ◽  
Actual Output ◽  
Short Run ◽  
Profit Maximizing ◽  
Economic Price ◽  
The Cost

The aim of this study was to estimate the profit and cost functions as well as economic, price, cost, and technical efficiencies beside the other economic indices at actual, optimal and profit-maximizing output of rice. A random sample of 240 rice  farms in Nejaf province was used during the agricultural season 2016. From efficiency scales of profit function, it was shown that the output quantity had the greatest impact on the profit compared to other variables (average output costs and price). According to the cost function, the optimum output level and the profit- maximizing output  level for the short run were 64.84 tons and 117.4 tons respectively. The lowest price that the farmer can accept was 194.83 thousand dinars / ton. At this price, the producer loss all fixed costs in the short run, hoping that the price of rice will improve in the long run. Net profit was estimated on the basis of actual output, cost minimizing output (optimal) and profit-maximizing output, which amounted to 8084.32, 30852.65 and 45547.5 thousand dinars, respectively. The of technical efficiency were 34%. and the cost efficiency was 0.52. We conclude from the study that economic resources have not been exploited optimally, indicating that actual output is far from optimal output. The study recommends a output policy aimed at increasing economic efficiency and optimizing the use of available resources.

scholarly journals THE MEASUREMENT OF HIERARCHICALLY SPATIAL INDUSTRIAL KNOWLEDGE SPILLOVER EFFECTS

2018 ◽  
Vol 6 (6) ◽  
pp. 67-74
Author(s):  
Qianting Ye
Keyword(s):  
Industrial Structure ◽  
Knowledge Spillovers ◽  
Three Dimensional ◽  
Guangdong Province ◽  
Spillover Effects ◽  
Spatial Effect ◽  
The Hierarchical Structure ◽  
Economic Reality ◽  
Spatial Autoregressive ◽  
The Relationship

Based on the “year–region–industry” three - dimensional unbalanced industrial production panel data of Guangdong Province in China from 2005-2013, the relationship between knowledge spillovers and industrial structure is investigated by hierarchically spatial lagged with spatial autoregressive error (HSARAR) model. The empirical results indicate that the impacts of MAR, Jacobs, and Porter spillover on Guangdong's industry economic growth is positive and statistically significant. The industrial HSARAR model considers the hierarchical structure and spatial effect simultaneously, which has a better description on economic reality than the pooled model and SARAR model.

scholarly journals The Spillover Effects on Strategic Interdependence Neighboring Countries: A Game Theory Approach

2021 ◽  
Author(s):  
Oyundelger Sharkhuu ◽  
Pu Yongjian ◽  
Batdelger Tsogt-Ochir ◽  
Tugs Sanjdorj
Keyword(s):  
Game Theory ◽  
Time Series Data ◽  
Spillover Effects ◽  
Three Dimensions ◽  
Series Data ◽  
Theory Approach ◽  
Vector Error Correction ◽  
Long Run ◽  
Inbound Tourism ◽  
Short Run

The main aim of sustainable development is to ensure an intelligible and long-lasting balance between the economy, society, and the environment. Sustainable tourism could only be successful if the inter-relationships between all three dimensions are accepted. In the limited number of research analyses, the focus of the research is on competition between tourist countries and destinations. This study has used Game theory to analyze the competition applies time-series data in selected neighboring countries measure of a VAR-based spillover index, developed by [1] to investigate the time-varying relationship between tourism and Gross Domestic Product. Each country analyzed Vector Error Correction (VEC) and Granger analysis to explore the causal short and long-term tourism and use a sample that spans from 1997 to 2019. From the main results of Cholesky, the total spillover index is 59.0% between Russia and Mongolia which suggests a moderate interdependence among the four variables. Findings indicate that neither China nor Mongolia have a short-run influence on tourism development. China's inbound tourism is affected in the long run by Mongolia's inbound tourism but not vice versa can be explained by the fact that the number of tourists visiting Mongolia would include China in their travels.

Cost Effectiveness of Whole Exome Sequencing for Children with Developmental Delay in a Developing Country: A Study from Jordan

2021 ◽  
Author(s):  
Amira Masri ◽  
Hanan Hamamy
Keyword(s):  
Cost Effectiveness ◽  
Exome Sequencing ◽  
Developmental Delay ◽  
Developing Country ◽  
Whole Exome Sequencing ◽  
Financial Burden ◽  
Indirect Costs ◽  
Cost Effective ◽  
Whole Exome ◽  
The Cost

AbstractThis retrospective study was aiming to determine the cost effectiveness of whole exome sequencing (WES) in the diagnosis of children with developmental delay in a developing country. In this study of 40 patients, the average cost of traditional investigations and indirect costs related to rehabilitation and medications per child were USD847 and 6,585 per year, respectively. With a current cost for WES of approximately USD1,200, we concluded that performing WES could be cost effective, even in countries with limited resources, as it provides the option for genetic counseling in affected families with an ultimate reduction of overall financial burden to both parents and health care system.

Sign in / Sign up

Export Citation Format

Share Document