The tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can ... more The tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can request to use the tariff preferences, but must then show that the imported goods fulfil the formal requirements (e.g. rules of origin) of the FTA. This is costly, which is a likely reason why tariff preferences are not always used. This research note examines preference utilization under the FTA between the EU and South Korea, which was formally ratified in 2015 (but had been provisionally applied from 2011). We use firm and transaction level data for Swedish imports from South Korea during November 2016 to answer the question ‘Who uses the EU's FTAs?’ With information on firm size, product category, import mode (direct imports or customs warehousing), preference margin, potential duty savings, and transaction size, we provide a detailed picture of when firms choose to utilize the tariff preferences. The results suggest that the differences across importers are not primarily related...
PurposeThe present study evaluates the impact of special economic zones (SEZs) on poverty, both r... more PurposeThe present study evaluates the impact of special economic zones (SEZs) on poverty, both rural and urban with special reference to Andhra Pradesh in India, using household consumption expenditure data. In addition to estimating the effects of the SEZs on poverty, the authors explore some of the possible mechanisms generating these effects.Design/methodology/approachThe authors apply a difference-in-differences (DID) technique on a pooled, cross-sectional, district-level dataset based on official annual household surveys for the period from 2001 to 2012 to estimate the average effects of SEZs on household expenditure per capita, a commonly used measure of household poverty.FindingsThe establishment of the SEZs constituted a major exogenous shock to rural economies by creating demand for large chunks of land, which had an immediate impact on the economic and social settings of these economies and aggravated rural poverty. However, over time the poverty aggravating effects of SE...
The development of a new energy vehicle industry is considered a sustainable approach to solving ... more The development of a new energy vehicle industry is considered a sustainable approach to solving the global energy crisis and the problem of environmental pollution. The sales of new energy vehicles in China are the highest in the world, and China’s new energy vehicle enterprises have played an important role in this. The business model, as a method for enterprises to achieve their strategic goals, utilizes resource advantages to deliver value to consumers, and is affected by enterprises’ ownership, competitive strategy, and resources. Based on the resource-based view (RBV) theory, the article uses a mixed quantitative and qualitative methodology, selects 30 vehicle enterprises from the mainstream market, and takes product value, suppliers, dealers and external relations, research capabilities, shareholders, and profitability as potential explanatory elements to analyze business model differentiation between different ownership categories. The article explores the reasons for the di...
In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980... more In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980s, many developing countries, particularly in Latin America, ran into serious debt-servicing difficulties. To cope with this debt crisis, radical policy changes were introduced. These ‘structural adjustment programmes’ generally included deregulation and privatization of the economies, and opening them to external markets and competition.1 The shift from inward to outward orientation has involved shifting production from domestic to export markets. In this study, we examine the extent to which a number of heavily-indebted Latin American countries have redirected their sales of manufactured goods to world markets and the role of multinational corporations in this shift. We are particularly interested in investigating whether affiliates of multinational firms are better equipped to redirect their sales than local firms in developing countries.2
Multinational firms may initiate affiliate activities abroad in two different ways; either by bui... more Multinational firms may initiate affiliate activities abroad in two different ways; either by building a new establishment (greenfield investment) or by taking over an already existing firm (acquisition).The two methods can be expected to yield different costs and benefits for the host economy. Some argue, for example, that acquisitions have few positive effects on productive capacity, employment or market concentration, and that foreign purchases of local firms should therefore be prevented. Others are less pessimistic and point to possible long- run effects on the host economy, such as improvements in technology and management practices.
The fact that multinational companies do not undertake all their research and development activit... more The fact that multinational companies do not undertake all their research and development activities at home has become a matter of recent concern, both in the home and host countries of these companies. Some empirical work has been done on the question of why MNCs decentralize their RD Lall, 1979a; Hakansson, 1980; and Hirschey and Caves, 1981).1 The study by Hakansson (1980) is one of the few that deal with the determinants of the R&D intensity of MNC affiliates, but it is confined to subsidiaries that carry out R&D, while foreign affiliates that do not are excluded.2 Furthermore, the analysis does not take into account the characteristics of the MNC to which the affiliates belong.
During the spring and early summer of 1997, there was widespread speculation against the Thai bah... more During the spring and early summer of 1997, there was widespread speculation against the Thai baht. The currency was closely tied to a basket dominated by the US dollar. The gradual appreciation of the dollar after the early 1990s had made the Thai baht more expensive, weakened export competitiveness, and contributed to a current account deficit of around 8 per cent of GDP. Worsening the problems related to the increasingly overvalued currency, there were also severe troubles in the financial sector. Asset prices had risen ...
Since the introduction of comprehensive economic reforms in the mid-1980s, Vietnam has become an ... more Since the introduction of comprehensive economic reforms in the mid-1980s, Vietnam has become an attractive production location for foreign direct investment. By the end of 1995, the Vietnamese authorities had issued foreign direct investment (FDI) licenses for a total investment ...
The tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can ... more The tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can request to use the tariff preferences, but must then show that the imported goods fulfil the formal requirements (e.g. rules of origin) of the FTA. This is costly, which is a likely reason why tariff preferences are not always used. This research note examines preference utilization under the FTA between the EU and South Korea, which was formally ratified in 2015 (but had been provisionally applied from 2011). We use firm and transaction level data for Swedish imports from South Korea during November 2016 to answer the question ‘Who uses the EU's FTAs?’ With information on firm size, product category, import mode (direct imports or customs warehousing), preference margin, potential duty savings, and transaction size, we provide a detailed picture of when firms choose to utilize the tariff preferences. The results suggest that the differences across importers are not primarily related...
PurposeThe present study evaluates the impact of special economic zones (SEZs) on poverty, both r... more PurposeThe present study evaluates the impact of special economic zones (SEZs) on poverty, both rural and urban with special reference to Andhra Pradesh in India, using household consumption expenditure data. In addition to estimating the effects of the SEZs on poverty, the authors explore some of the possible mechanisms generating these effects.Design/methodology/approachThe authors apply a difference-in-differences (DID) technique on a pooled, cross-sectional, district-level dataset based on official annual household surveys for the period from 2001 to 2012 to estimate the average effects of SEZs on household expenditure per capita, a commonly used measure of household poverty.FindingsThe establishment of the SEZs constituted a major exogenous shock to rural economies by creating demand for large chunks of land, which had an immediate impact on the economic and social settings of these economies and aggravated rural poverty. However, over time the poverty aggravating effects of SE...
The development of a new energy vehicle industry is considered a sustainable approach to solving ... more The development of a new energy vehicle industry is considered a sustainable approach to solving the global energy crisis and the problem of environmental pollution. The sales of new energy vehicles in China are the highest in the world, and China’s new energy vehicle enterprises have played an important role in this. The business model, as a method for enterprises to achieve their strategic goals, utilizes resource advantages to deliver value to consumers, and is affected by enterprises’ ownership, competitive strategy, and resources. Based on the resource-based view (RBV) theory, the article uses a mixed quantitative and qualitative methodology, selects 30 vehicle enterprises from the mainstream market, and takes product value, suppliers, dealers and external relations, research capabilities, shareholders, and profitability as potential explanatory elements to analyze business model differentiation between different ownership categories. The article explores the reasons for the di...
In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980... more In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980s, many developing countries, particularly in Latin America, ran into serious debt-servicing difficulties. To cope with this debt crisis, radical policy changes were introduced. These ‘structural adjustment programmes’ generally included deregulation and privatization of the economies, and opening them to external markets and competition.1 The shift from inward to outward orientation has involved shifting production from domestic to export markets. In this study, we examine the extent to which a number of heavily-indebted Latin American countries have redirected their sales of manufactured goods to world markets and the role of multinational corporations in this shift. We are particularly interested in investigating whether affiliates of multinational firms are better equipped to redirect their sales than local firms in developing countries.2
Multinational firms may initiate affiliate activities abroad in two different ways; either by bui... more Multinational firms may initiate affiliate activities abroad in two different ways; either by building a new establishment (greenfield investment) or by taking over an already existing firm (acquisition).The two methods can be expected to yield different costs and benefits for the host economy. Some argue, for example, that acquisitions have few positive effects on productive capacity, employment or market concentration, and that foreign purchases of local firms should therefore be prevented. Others are less pessimistic and point to possible long- run effects on the host economy, such as improvements in technology and management practices.
The fact that multinational companies do not undertake all their research and development activit... more The fact that multinational companies do not undertake all their research and development activities at home has become a matter of recent concern, both in the home and host countries of these companies. Some empirical work has been done on the question of why MNCs decentralize their RD Lall, 1979a; Hakansson, 1980; and Hirschey and Caves, 1981).1 The study by Hakansson (1980) is one of the few that deal with the determinants of the R&D intensity of MNC affiliates, but it is confined to subsidiaries that carry out R&D, while foreign affiliates that do not are excluded.2 Furthermore, the analysis does not take into account the characteristics of the MNC to which the affiliates belong.
During the spring and early summer of 1997, there was widespread speculation against the Thai bah... more During the spring and early summer of 1997, there was widespread speculation against the Thai baht. The currency was closely tied to a basket dominated by the US dollar. The gradual appreciation of the dollar after the early 1990s had made the Thai baht more expensive, weakened export competitiveness, and contributed to a current account deficit of around 8 per cent of GDP. Worsening the problems related to the increasingly overvalued currency, there were also severe troubles in the financial sector. Asset prices had risen ...
Since the introduction of comprehensive economic reforms in the mid-1980s, Vietnam has become an ... more Since the introduction of comprehensive economic reforms in the mid-1980s, Vietnam has become an attractive production location for foreign direct investment. By the end of 1995, the Vietnamese authorities had issued foreign direct investment (FDI) licenses for a total investment ...
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