Does the Linder hypothesis hold? Recent Japanese case

The theory of comparative advantage has for a long time played one of the most important roles among the theories of international economics. The theory says that a country has to specialize in producing and exporting goods and services that the country can produce at lower opportunity cost than other goods and services. Achieving this, both countries can benefit. The Linder hypothesis focuses on internal demand in a country. It states that the pattern of export goods is determined by internal demand structure. This study empirically analyzes this Linder hypothesis for the recent case of Japan. The Gravity model can be used to obtain theory-consistent estimates of the Linder hypothesis. This model can estimate bilateral international trade on the basis of cross-section data. The results show that the Linder effect has been holding well. Also, FTA (Free Trade Agreement) has been having positive impacts on international trade.

Quantifying the structure of residential water demand in the United States: a Generalized Exact Affine Stone Index demand framework

We utilize a Generalized Exact Affine Stone Index system to evaluate the structure of residential water demand that recognizes demand interrelationship between residential and bottled water in the United States, allowing for precommitted consumption. Further, we address expenditure and price endogeneity by accounting for the supply side of the price determination mechanism. A significant substitutability relationship between residential and bottled water is found, while substantial precommitments are established in both residential and bottled water consumption. Residential demand becomes price-elastic once the precommitted level is reached. Finally, ignoring substitutability, precommitments, or endogeneity distorts the demand structure, resulting in erroneous policy implications.

Spatial Distribution and Geographical Mechanism of Natural Resources in China under the Orientation of the New Economic Demands

The demand structure of resources for new economy is different from the traditional one in that its development may significantly change China’s economic location map and spatial pattern. Based on 343 administrative units of prefecture-level cities in China, this research constructs the measurement index system of terrestrial surface natural resources under the orientation of the new economic demands; this research mainly analyses the spatial distribution characteristics and geographical mechanism of natural resources by means of the spatial autocorrelation and spatial similarity calculation methods. The results show that: (1) The structure and endowment of natural resources under the orientation of the new economic demands need to be reexamined. The significance of a good environment and ecological resources has been highlighted. The coupling of resource elements better reveals the availability of natural resources. (2) The natural resources decrease from southeast to northwest, showing a pattern of “abundant in the south and east and scarce in the north and west”. Natural resources have a significant positive correlation in spatial distribution with two types of agglomeration: high-high agglomeration and low-low agglomeration, showing the local agglomeration feature of “high in the south and low in the north”. (3) Natural factors such as temperature, precipitation and altitude affect the spatial distribution of natural resources, with the temperature being the most significant. This indicates that the original natural environment and its role are the geographical mechanism for the formation and distribution of natural resources. The results could provide a reference for the development and the optimization of China’s new economy.

RESEARCH ON IMPROVING THE CAPACITY OF NGOS TO UNDERTAKE GOVERNMENT PURCHASE OF PUBLIC SERVICES BASED ON 7S MODEL

Under the background of government purchasing public services (GPPS), the development of NGOs faces new opportunities and challenges. To promote the development of NGOs and optimize the quality of public services. This paper analyzes the internal problems of NGOs undertaking GPPS, such as structural mismatch, low employee autonomy, high mobility and lack of professionalism, and government departments in the GPPS management loopholes, unclear regulatory responsibilities, inadequate supervision and other external factors. With the help of 7S model, this paper puts forward that the government provides a good cooperation environment for NGOs to undertake public service projects by changing management mode, strengthening system construction and training employees. NGOs define their own positioning by formulating strategic planning, matching the demand structure of public services, improving working methods, and updating service concepts. The government and NGOs work together to achieve the win-win goal of optimizing public service quality and promoting the development of NGOs.

Too Much of a Good Thing: Quality-Differentiated Demand and Monopoly Bias

Previous teaching notes focused on the logic and mechanics of a quality-differentiated linear demand structure. This note takes up the question of potential bias in how markets respond to quality-related aspects of consumer choice. Earlier examples demonstrated instances where monopoly interests might conflict with those of consumers in matters of quality choice. This article points to a more general propensity toward excessively high levels of quality under a monopoly market structure. JEL Classifications: D4, D41, D42

Research on driving factors of China’s carbon emissions based on structural decomposition

After further processing the input-output tables of 2007, 2012 and 2017, the carbon emissions are decomposed into four driving factors: energy intensity effect, Leontief technology effect, final demand structure effect and final total demand effect through IO-SDA model. The results show that the energy intensity effect has a significant negative effect, which is the main factor to promote the reduction of carbon emissions. The Leontief technical effect and the final total demand effect are positive effects, and the total final demand effect is the main factor leading to the increase in carbon emissions, and the effect of the final demand structure effect is not significant. In addition, the results of the influence coefficient and the inductance coefficient show that: metal smelting and rolling manufacturing, petroleum processing and coking and nuclear fuel processing, coal mining and processing, and oil and gas mining and processing industries are high-energy-consuming industries, but the status of the basic industry makes it possible to formulate energy-saving policies only in terms of technological progress.

COMPONENTS OF FORMATION OF COMPETITIVE ADVANTAGES OF UKRAINIAN MINERAL PRODUCTS ON THE WORLD MARKET IN CONSIDERATION OF REGIONAL PROCESSES

The article considers the issue of studying the competitiveness of Ukrainian mineral products and establishing prospects for its increase in the world market in terms of regional processes. Factors influencing the competitiveness of the industry and products were identified internal and external. External ones include: activities of state authorities, economic conditions, development of new technologies, new materials and energy sources, market capacity and demand structure, consumer requirements, etc. The competitive advantages of the industry are resource and technology. To internal - the reputation of the enterprise, its organizational and production activities, staff qualifications, efficiency of resource potential, system of technological equipment, volumes and costs of sales. Among the factors of product competitiveness are the following: usefulness for the consumer (compliance with the requirements for this product by the buyer), product price, novelty (originality and uniqueness of the product), product quality. Based on the analysis of the competitiveness of Ukrainian mineral products on the world market, it was determined that Ukraine has a very large potential in the development of this sector on the world stage, as it is well supplied with many mineral resources. However, they are not always extracted rationally. During 2014-2020, the share of mineral products in total exports of Ukrainian goods decreased, which was due to reduced production during this period, state protectionism in traditional for Ukrainian products importing countries, lower prices for goods, including energy, closing Russian market for Ukrainian products. At the same time, during the analyzed period, the volume of exports of Ukrainian mineral products increased. Demand for mineral products in the raw materials market is increasing, especially for scarce products, but imports significantly outweigh exports, due to lack of state support for the development of Ukraine's mineral resources, significant depreciation of technologies and lack of development of new deposits and efficient use of existing ones.