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This paper examines how firm heterogeneity plays a role in trade deflection effects when exporters exit trading partners' markets with trade-restrictive measures and deflect exports toward third markets with less stringent ones. We develop a Cournot-type three-country theoretical framework that highlights the role of firm productivity in trade deflection effects of trade-restrictive measures and empirically examine research hypotheses using a firm–product–destination level panel data of Korean exporting firms during the 1996–2010 period. We find that highly productive firms facing higher tariffs are more likely to deflect export to new third-country markets with lower tariffs as alternatives. However, once they enter the third destination, the positive effect of tariffs on the deflection of trade volume is less prominent for highly productive firms due to a lower trade destruction effect for them. Our results imply that the magnitude of trade deflection at both the intensive and extensive margins can be heterogeneous across firm productivity and multi-destination status. [ABSTRACT FROM AUTHOR]

We prove that if the total factor productivity A of an aggregative economy is right at the barrier $ \sigma +\lambda $ σ + λ , with σ being the growth rate of labor force and λ the real interest rate, then the unique policy to optimally control the economy is the same as the one for optimally controlling weak economies, where $ A \lt \sigma +\lambda $ A < σ + λ. This result gives a complete answer for the interesting open question raised by Vu Thi Huong in her recent paper [Optimal economic growth problems with high values of total factor productivity. Appl Anal. 2022;101:1315–1329]. [ABSTRACT FROM AUTHOR]

The shift towards digitalization is fundamentally transforming societies and changing lives. Meanwhile, many African countries are lagging behind on the dividends of accelerated digital technologies to address their developmental challenges. This is partly because of the dearth of evidence demonstrating how technological integration impacts on economic growth and poverty reduction. By relying on panel data for the period 2011–2021, this study empirically estimates the degree to which ICT adoption contributes to South Africa's economic competitiveness along four indicators: boosting productivity, accelerating business growth, increasing government operational efficiency, and creating opportunities for people. The data were analyzed using multivariate regression analysis. The findings indicated a strong positive correlation between the application of digital technologies and the improvement of business operations welfare improvement, and GDP growth. The findings suggest to policymakers the need to prioritize interventions that drive investment in digital infrastructure. Given the net positive effects of ICT innovations, it is also recommended that policymakers focus on building the ICT skills of South Africans, while ensuring a business-friendly environment that enables fast digital penetration in the economy. [ABSTRACT FROM AUTHOR]

This paper examines the effects of related and unrelated variety on total factor productivity (TFP) in Poland. Based on dynamic panel data regression results for Polish regions in 2003-2019, we find the positive effect of related variety and the strong negative effect of unrelated variety on TFP. This implies that regions with high related and low unrelated variety optimize TFP. Using the estimated TFP values, we tested for TFP convergence to the technological frontier using convergence tests that take into account significant differences in technological advancement across regions. We reject TFP convergence for all regions, but we find evidence of regional club convergence. The results of the convergence tests obtained for the simulation variants indicate that changes in related and unrelated variety structures may lead to the formation of convergence clubs with the regional technological leader. Furthermore, the changes primarily in related variety structures lead to the convergence of some regions to the regional technological frontier. [ABSTRACT FROM AUTHOR]

Systems, generally being nonlinear behaves unexpectedly due to external disturbances. Therefore, operation controllers are needed in tracking, chemical engineering, electrical engineering, and other areas. For continuing quality and productivity of industrial firms, the deployment of industrial robots is increasing. Different structures of fuzzy-Proportional Integral Derivative based trajectories for robot manipulators are designed, for various regular and irregular trajectories. Industrial robot's performance is compared by Proportional Integral Derivative and Fuzzy- Proportional Integral Derivative controller. For tracking the peak power in a Photo Voltaic system, a nonlinear proportional–integral–derivative controller is applied for rapidly changing environmental conditions, particle swarm optimization based Nonlinear-PID, Maximum Power Point Tracking method offers a clean response for Maximum Power Point Tracking. To maintain constant frequency and power variations in power systems the freedom of a three-degree Proportional Integral Derivative controller was designed. For excitation control in Automatic Voltage Regulators, Proportional Integral Derivative and Proportional Integral Derivative -Acceleration controllers are used, Proportional Integral Derivative -Acceleration has more response speed and more stability and it has a good response time and response of frequency by implementing the Particle Swarms Optimization and Gravitational Search algorithm-based Proportional Integral Derivative controller Automatic Voltage Regulator's voltage response is effective. This paper deals with studying the behavior of various controllers and algorithms in practical applications, comparative analysis of magnetic levitation system response with different controllers and algorithms, and finding the performance of magnetic levitation systems by using a Particle Swarm Optimization algorithm-based Proportional Integral Derivative controller. [ABSTRACT FROM AUTHOR]

China's high-speed rail (HSR) construction provides an ideal 'quasi-natural experiment' in which regional issues are investigated. This study explores how HSR affects innovation efficiency and explores the mediating effect of urban form. Based on panel data comprising 280 cities in China from 2006 to 2016, this study uses a time-varying difference-in-differences method to analyze whether HSR affects regional innovation, and it explores the mediating effect of urban form. The results show the following. (1) HSR significantly promotes regional innovation. The parallel trend test shows that the treatment group and the control group have the same trend before HSR construction. (2) Knowledge spillovers are important manifestations through which HSR promotes regional innovation. HSR can significantly improve the level of total factor productivity and human capital. (3) Urban form mediates the impact of HSR on regional innovation significantly, which varies across the different indexes of different urban forms. [ABSTRACT FROM AUTHOR]

The observed low level of information and communication technology (ICT) usage among micro, small, and medium-sized enterprise (MSME) firms in many African countries may serve as a major constraint to their productivity. The productivity of service and manufacturing firms is impacted differently due to this low uptake of ICT. This paper seeks to examine the differential effects of ICT on MSMEs' productivity in emerging African economies, specifically Egypt and Nigeria. This study evaluates the effects of ICT on MSMEs' productivity across different sectors (services and manufacturing), by size and aggregated. The estimated results support the positive impact of MSMEs' website presence and use of email on their productivity, though the magnitude varies across different analyses and sectors. This appears to support the differential sectoral impacts of ICT on MSMEs' productivity across countries in emerging markets. Specifically, this study finds evidence for a higher impact of firms' website presence on productivity in the manufacturing sector than the services sector across emerging economies. The study, therefore, recommends that emerging markets economies that want to implement appropriate national technology policies to enhance their firms' productivity should always consider their differential effects on various sectors, as universal ICT policies may not achieve the desired objectives. [ABSTRACT FROM AUTHOR]

This article presents the methodology to examine the impact of foreign ownership on firm productivity using firm-level data of Japanese manufacturing firms from 2000 to 2016, which include 1,458 listed companies in Japan. Firm productivity is represented by total factor productivity (TFP), which is estimated by the Olley–Pakes semiparametric estimation method to minimize the simultaneity problem in production function estimation. In the estimation of the impact of foreign ownership on firm productivity, system GMM estimation is applied to address a possible reversal causality problem between foreign ownership and firm productivity. Based on the case of the manufacturing firms in Japan, this article shows that 1 percentage point increase in foreign ownership increases the firm productivity by 0.06 percent. The evidence of this article supports the positive impact of foreign ownership on firm productivity and further implies that the promotion of foreign investment could be a policy option to improve firm productivity. This study analyzes the impact of foreign ownership on firm productivity. Firm-level data of the Japanese manufacturing firms from 2000 to 2016 are analyzed. The result supports the positive impact of foreign ownership on firm productivity. [ABSTRACT FROM AUTHOR]

This paper investigates income convergence of Indian states in the post-reform period when markets played a greater role in resource allocation. We analyze stochastic convergence of relative per capita incomes of 19 states for the period 1994–2018 by employing a recently developed panel data approach controlling for structural breaks as smooth shifts. Smooth shifts are modelled using a more flexible Fourier approach that does not require identifying the number, date, and form of breaks. The empirical results, contrary to recent empirical findings, do not support evidence in favour of convergence in per capita income among Indian states. Poor infrastructure, lack of adequate financial development, and weak governance structure coupled with low total factor productivity growth seem to be responsible for the divergence of income. The findings suggest that development intervention in the post-reform period has neither been of the required order nor in the desired direction to help the lagging states to catch up with the leading ones. [ABSTRACT FROM AUTHOR]

This paper investigates the evidence of productivity spillover from foreign-invested enterprises (FIEs) to local firms through horizontal, backward, and forward spillover channels, using establishment-level data from Vietnam in 2006–2017. The paper also considers the effects of foreign ownership types on the existence and magnitude of the productivity spillover. In addition, the paper examines whether the involvement of domestic firms in global production networks (GPNs) impacts on the nature of the spillover. The findings indicate that productivity from FIEs spills over to local firms through backward and forward channels, but not horizontal channels. Ownership structures of FIEs serve as an important determinant of productivity spillover: joint ventures tend to generate more significant positive productivity spillover to domestic firms than fully owned foreign firms. Lastly, local firms operating within GPNs benefit more from the presence of FIEs compared to those involved in horizontal specialization. [ABSTRACT FROM AUTHOR]

Environmental influence on the economy can be enhanced by consumption upgrading, transforming the key driver of economic development from supply to demand. This study constructs a model for consumption upgrading and applies threshold regression based on the susceptible–infectious–recovered (SIR) model, to explore the role of carbon emissions on high-quality economic development. The results reveal that the environmental input characterized by carbon emissions has an inverted U-shaped effect on high-quality economic development. A diminishing marginal rate of substitution of economic output demand to environment demand is observed during consumption upgrading. This study proves that environmental resources can assume both supply and demand roles for economic output and customers, which gradually emerge during consumption upgrading. [ABSTRACT FROM AUTHOR]

Misallocation of factors of production has been recently viewed as a promising explanation accounting for the large difference in total factor productivity (TFP) across countries. This article differs from previous studies by concentrating on interregional capital misallocation and by focusing on the role of fiscal decentralization in shaping misallocation. Using a city level panel data set, we measure intra-provincial and inter-city capital misallocation in China over 2003–2018. The empirical results based on provincial level panel data suggest that fiscal decentralization can lower inter-city capital misallocation while revenue decentralization performs better than expenditure decentralization. We further find that this positive effect is more significant and much larger when it is the market rather than government intervention that is driving the flow of capital. The results are robust to subsample regressions, IV estimations, spatial autoregressions and alternative measurement of interregional misallocation. [ABSTRACT FROM AUTHOR]