Search

We study how internal trade costs affect the Chinese economy. Combining regional and industry data with a multiregional multisector general equilibrium model, we quantify the magnitude of total trade costs and institutional trade costs, and the impact of their changes on aggregate, regional, and sectoral total factor productivity, gross domestic product, and welfare. Using unique data, we estimate the sectoral trade elasticity of internal trade in 16 tradable sectors. We use our calibrated model to perform a variety of counterfactual exercises. We find that the welfare gains are negative for a 5% reduction in total trade costs and for the elimination of institutional trade costs, which can be attributed to inherent inefficiencies in the economy. However, as total trade costs decrease further, the positive welfare effect significantly exceeds the impact of inefficiency. The regional and sectoral effects of changes in trade costs show that the spatial structure of the economy, input‐output linkages, and local factors together determine the heterogeneity of sectoral and regional consequences. Finally, we infer the relative changes in China's internal trade costs from 2012 to 2017, and calculate their economic effects. [ABSTRACT FROM AUTHOR]

The comprehension of the textbook and augmented Solow growth model has been studied to picture the consequences of workforce growth and capital. In the age of digitalization, Information and Communications Technology (ICT) is also the first necessity identified factors affecting labor productivity. This paper revisits the augmented Solow growth equation by integrating ICT as an explanator that improves labor productivity in Southeast Asian emerging economies. We used a Two‐Way Random‐Effects Model to regress the impact of workforce growth rate, physical capital, and human capital on labor productivity. The results show that using human capital is essential to improve output in emerging market countries rather than only using physical capital. According to our adjusted ICT factors, our analysis reveals that using the Internet and mobile cellular significantly boosts labor productivity. Moreover, the analysis of total factor productivity shows that most Southeast Asian economies highly depend on implementing ICT, especially the contribution of Internet usage and mobile cellular. Therefore, this study contributes to further studies and policy recommendations in improving the introduction of Internet usage and installation, especially for the emerging Southeast Asian. [ABSTRACT FROM AUTHOR]

The European Green Deal aims to mitigate the environmental impact of food production while improving the income of primary producers and strengthening the EU's competitiveness. We examine how the degree of ecologisation affects farms' total factor productivity (TFP). Our analysis combines a random‐parameter stochastic production frontier model with a composite indicator and a dose–response function approach. Results show a monotonically decreasing relationship between ecologisation and expected TFP level. On average, a one‐step increase in the degree of ecologisation results in a 12% decrease in TFP. However, the results indicate a non‐linear relationship. Three regions of the dose–response function can be distinguished; associated with high, medium and low degrees of ecologisation. In a region with a low degree of ecologisation, farms can increase the degree of ecologisation without reducing TFP. Both efficiency and technological differences contribute to these differences, but the main reason is technological. With increasing ecologisation, farm technology becomes more 'land using'. Therefore, farms can increase their TFP and degree of ecologisation simultaneously by using land‐saving technologies or through sustainable intensification. [ABSTRACT FROM AUTHOR]