Gross (domestic) output – Another government con

The new sheriff in town is Gross (Domestic) Output, or GO. This is a measure that attempts to measure not merely investment, nor final goods, nor consumption, but the quantity and value of intermediate goods. From the vantage point of its proponents, inclusion of this statistic in national income accounts is long overdue. From the perspective of its critics, such as the present authors, it is an invalid statistic, which will create more error and misunderstanding as it is incorporated into official accounts. Keywords: Gross (Domestic) Output (GO); Gross Domestic Product (GDP); Structure of production. JEL Code: E2. Resumen: El nuevo sheriff de la ciudad es la renta (doméstica) bruta. Se trata de una variable que intenta medir no sólo la inversión, los bienes finales, y el consumo, sino la cantidad y el valor de los bienes intermedios. Desde el punto de vista de sus defensores,se debería haber incluido esta estadística en la contabilidad nacional desde hace mucho tiempo. Desde la perspectiva de sus críticos, como los autores del presente trabajo, es una estadística inválida, que creará más errores y malentendidos conforme se incorpore en las cuentas oficiales. Palabras clave: Producción (doméstica) bruta, Producto interior bruto, estructura de la producción. Clasificación JEL: E2

Inflation Dynamics, Globalization and Monetary Policy: Empirical Evidence from Selected South and Southeast Asian Countries

The present study investigated the impact of monetary policy and globalization on inflation. The study utilized an updated measure of globalization along with two other dimensions i.e., de facto and de jure measure of globalization to examine the nature of the globalization-inflation relationship. It measures the impact of monetary policy variables on inflation, ignoring random shocks as these are considered minor fractions for the inconsistency of the policy instruments. The study also used the Hodrick Prescott filter to calculate the domestic output gap to assess the notion that the changes in the domestic output gap are still relevant to inflation variations in the presence of globalization. Structural modeling of dynamic heterogeneous panel data estimation technique, which accounts for endogeneity and serial correlation issues has also been employed. The results of the study confirm that both global and domestic factors have significant and descriptive power for domestic inflation. Furthermore, the interest rate is found to be a major nominal anchor to affect inflation. The results of panel causality showed that there exists bidirectional causality from inflation to interest rate, while mixed results were found for analyzing monetary aggregates, exchange rate, globalization, and domestic output gap relationships.

Compensating for limitations in domestic output performance? Member state delegation of policy competencies to regional international organizations

Cooperation in regional international organizations (RIOs) can help member states to work toward and perhaps achieve policy goals that would not be feasible unilaterally. Thus, RIOs might be used as a means of states to compensate for domestic shortcomings in output performance. Do states equip RIOs with policy competencies in order to compensate corresponding domestic performance shortcomings? The analysis of a novel database on policy competencies of 76 RIOs between 1945 and 2015 reveals that usually RIOs are not usually used as window-dressing devices by which states disguise limited domestic output performance. Instead, governments tend to equip RIOs with policy competencies in order to further strengthen their already good output performance in most policy areas. However, in the policy area, ‘energy’ states tend to confer more competencies to their respective RIOs, the worse they perform domestically, indicating that output-related compensation dynamics might be at play in this field.

VALUE CHAINS AND DOMESTIC COMPETITIVENESS

With international trade increasingly undertaken within vertically fragmented supply chains, this paper considers the impact of changes in trade costs on domestic output. In the context of the UK’s exit from the EU we show that the negative impact on UK output will depend on changes in both domestic and export competitiveness. Since for many firms the majority of their sales are to the domestic market, the domestic competitiveness impact may be quantitatively more important. The impact on output will be more significant the greater the integration of firms in international supply chains, and the greater the asymmetric impact of leaving the EU on UK firms relative to EU firms.

Produksi Jagung dan Umbi-Umbian, dan Peranannya dalam Perekonomian Indonesia

This study aims to determine the performance of Indonesian maize and tuber production and forward linkages with the agro-industry sector. Through this research it can be seen the role of maize and tuber commodities in the Indonesian economy. The results showed that corn production increased by 91.24% during the period 2000-2013, with an average growth of 5.22% per year. Tuber production consisting of cassava increased by 27.44% over the period 2000-2013 with an average growth of 2.91% per year, and sweet potatoes increased by 30.59% with an average of 2.18% per year. The domestic output of the corn sector increased from Rp. 855,554 million in 1985 to Rp. 74,817,036 million in 2008 and the tuber sector increased from Rp. 1,798,023 million in 2000 to Rp. 29,209,547 million in 2008. Transactions in the corn sector line and tubers showed a significant increase during the 1985-2008 period, from six transactions to 14 transactions. An increase in the forward linkages between the corn sector and the agro-industry sector from 0.188 to 0.258 in the period 2005-2008, showed an increase in the contribution of the corn sector as an intermediate input for the agro-industry sectors, while in the tuber sector there was no increase.

Inflation, Globalization and Interest Rate Nexus to Curb Price volatility: An Empirical Cross-Country Analysis

The aim of the present study is to investigate the long run impact of monetary policy and globalization on inflation in the selected South and South East Asian countries. The study measures the impact of monetary policy variables on inflation, ignoring random shocks as these are considered fewer fractions for the inconsistency of the policy instruments. Two exclusive dimensions, defacto and dejure measure of globalization, are taken into account. The study also employed Hodrick Prescott filter to calculate the domestic output gap in order to assess that still changes in domestic output gap is relevant to inflation variation. It employed structural modeling dynamic heterogeneous Panel data estimation technique, which accounts for endogeneity and serial correlation issues. The results of the study confirm that both global and domestic factors have significant and descriptive power for domestic inflation and interest rate is found to be a best nominal anchor to effect inflation.

Business Cycle Drivers in an Open Economy

In this paper, I investigated the sources of business cycles in Nigeria over the period, 1960-2013. Nigeria was a lower middle class economy that pursued open economy policies. The propositions tested in the study cut across most of the schools of thought prominent in the subject area. All policies/factors examined were assumed to generate cycles that were subsequently tested for causal relations with the cycles of domestic output and industrial productions. The causality approach adopted for the analysis was of the Granger type. Detrending of the various data series was undertaken using two filters. Unit root tests were conducted to assure integration of the cyclical components of detrended series. The analysis produced some interesting results showing in particular that only monetary policy cycles and cycles linked to exogenous shocks of different varieties credibly drove the cycles of domestic output and industrial productions in the country.

Landscape Design to Improve the Tourism Quality As the Part of Riverside Settlement’s Revitalization

This research of riverside settlement in Kampung Beting extends our understanding of Kapuas riverside as a place to live and make a living. Kampung Beting set on the delta of Kapuas river branching and put it in the history as the part of Pontianak urban city developments. This research explores the phenomenon of the residents that live above the water can adapt and use the Kapuas River as their place to grow and cultivate their domestic productions. The finding shows that there are no specific programs from the residents and also from the government to improve the quality of the domestic output, so the home-based business (hydroculture) are poorly handled. Connected floating corridors, the genuine of water culture, and riverside picturesque are several of the potential factors that can be improved to transform Kampung Beting into an attractive tourist area. The study suggests the landscape design of river aquaculture that can escalate the variation of the venture, increase the resident’s productivity, and create a conducive environment for stability. Designing tourist routes within Kampung Beting, not only introduces cultural and historical values but also aims to increase income for the community.

Trade Effects Based on Trade Equilibrium

The Rybczynski theorem describes the trade effect within production analyses between factor endowments and outputs. The Stolper-Samuelson theorem focuses on cost analyses between factor reward and commodity price. This paper examines the trade effect of changes of factor endowments on prices, based on general equilibrium. The study shows that changes of factor endowments cause domestic output changes (the Rybczynski effect), which affect output prices and factor prices (the Stolper-Samuelson effect). It is like a chain of effects that the Rybczynski’s trade effect triggers the Stolper-Samuelson’s trade effect. The analysis of this paper shows that a small increase of a factor endowment of any country rewards another factor and the commodity using the latter factor intensively. It displays a tuneful circle. Trade brings a well-balanced development to the world.