Business dynamics,industry productivity growth,and the distribution of firm-level performance: evidence for the role of ICT using Dutch firm-level data

We present evidence on industry productivity growth and business dynamics in Dutch industries for the period 2007–2012, and investigate whether there is a role for ICT intensity in explaining differences across industries. Moreover, we relate ICT intensity to various distributional characteristics of firm performance, such as the dispersion of labor productivity and turnover, concentration and turbulence of market shares, and the efficiency of resource allocation. In the first part of the paper we follow a decomposition approach, whereas in the second part we apply a regression based analysis. The results suggest that productivity growth is higher in ICT production and industries with high ICT usage, but that ICT also increases differences in firm performance and leads to concentration of markets. In addition, there is evidence that markets are more efficient in ICT intensive industries.     

Heterogeneity of market power: firm-level evidence

Economic Change and Restructuring - Recent work in macroeconomics argues that firm market power dramatically increased since the 1980s in the world. The evolution of product markups has important...     

Tripartite decomposition of labor productivity growth,FDI and human development: evidence from transition economies

This study investigates the relative contribution of technological change, technological catch-up and capital deepening as drivers of labor productivity growth in 14 transition economies during the period 2000–2012. In addition, the study extends the usual decomposition of labor productivity growth by encompassing the impact of foreign direct investment (FDI) on labor productivity growth in transition economies. To illustrate the relative contribution of FDI as a driver of labor productivity growth, we present a simple theoretical model that augments Kohli [Labour productivity vs. total factor productivity. IFC Bulletin 20 (April), Irving Fisher Committee on Central Bank Statistics, International Statistical Institute, 2005] and Grosskopf et al. (Aggregation, efficiency, and measurement, Springer, New York, pp 97–116, 2007) decomposition of the labor productivity. The insights derived in this model provide an underpinning to the empirical analysis in this study. Using Blundell–Bond dynamic panel General Method of Moments estimators, the main finding of dynamic panel data regressions shows that technological catch-up, technological change, and human development level, trade and demographic of population ageing are the main factors that affect labor productivity growth in transition countries. Furthermore, the findings of dynamic panel data regressions show insignificant positive impact of FDI on productivity growth in transition economies. One explanation is that the 14 transition economies that are included in this study do not reach a minimum human development threshold level.     

The effects of stronger intellectual property rights on technology transfer: evidence from Japanese firm-level data

This paper presents the theoretical framework and empirical analysis of the effect of stronger Intellectual Property Rights (IPRs) on technology transfer from parent firm to its subsidiaries in foreign countries. The results of empirical testing, based on the firm-level panel data of Japanese MNCs’ foreign subsidiaries, show that the stronger protection of IPRs has a positive effect on the promotion of intra-firm technology transfer after controlling for market specific factors in the host countries as well as parent-subsidiary firm specific factors. They are consistent with our theoretical prediction and the results of the previous studies based on US firm-level data.

Symmetry,proportionality and productivity bias hypothesis: evidence from panel-VAR models

By imposing symmetry and proportionality conditions and using the asymptotic theory of panel-VAR models, this study examines the behavior of real exchange rates and productivity bias hypothesis for New Zealand vis-a-vis her major trading partners and the proposed free trade area. The evidence clearly rejects the strong version of the PPP hypothesis but the weak version of the PPP hypothesis receives some support. The findings also indicate that productivity differentials among countries are one of the major sources that contribute to the deviation of the PPP-based exchange rate from the equilibrium rate. Policy implications for the proposed free trade agreement are offered.     

Productivity growth, trade and FDI nexus: evidence from the Canadian manufacturing sector

Using the confined exponential and logistic models of technology diffusion, this paper investigates the roles played by international trade and FDI in explaining productivity growth through both technology transfer and domestic innovation, with the technology transfer also occurring independently. Using panel data on Canadian manufacturing industries, we first find a robust role for the autonomous and international trade embodied technology transfer in explaining TFP growth. Second, international trade and FDI (as well as research and development) all contribute to productivity growth through the rate of innovation. Finally, we find that the exponential and logistic models of technology diffusion may have different implications for the growth dynamics in a technologically lagging country.     

Re-examining the effect of financial markets and institutions on economic growth: evidence from the OECD countries

Economic Change and Restructuring - This study re-examines the impact of financial structure on economic growth for 24 advanced OECD countries from 1980 to 2017 using dynamic panel estimators....     

Financial development and economic growth in India: some evidence from non-linear causality analysis

In the light of the recent observation that the relationship between financial development and economic growth is one of non-linear and limitations of granger test, this paper re-examined relationship in the framework of non-linear Granger causality employing (Diks and Panchenko in Stud Nonlinear Dyn Econ 9(2), 2006) test. The limitation of non-stationarity of earlier study is also addressed using the Toda and Yamamoto (J Econ 66:225–250, 1995) test. The present study attempts to undertake this exercise, as causal inference is sensitive to the twin limitations of non-stationarity and non-linearity. We used principal component analysis to construct index of financial development comprising alternative measures of financial development. The analysis has been carried out for the period 1990–2010. The results of Toda–Yamamoto and Diks–Panchenko tests reveal that financial development and economic growth bear no causal relationship, a finding contrary to the findings of several of the existing studies in the Grangerian framework.     

Mafia markers: assessing organized crime and its impact upon societies

This study develops a causal model of the independent effect of organized crime, rule of law, and corruption on national wealth. To measure the level of organized crime a Composite Organized Crime Index (COCI) is constructed combining data on the perceived prevalence of organized crime, unsolved homicides, grand corruption, money-laundering and the extent of the black economy, drawing on the World Economic Forum’s annual surveys among CEOs of larger companies, the Merchant International Group’s assessments of investment risks in 150 countries, studies by the World Bank Institute, and official crime statistics. The findings of the explorative analysis show that a political strategy of tolerating activities of local criminal groups in the hope of beneficial effects on the wealth of a nation is unlikely to bring the expected results. Although some types of organized crime may bring in significant revenues, tolerating Mafia-type activities implies letting the Trojan horse of racketeering and grand corruption into the walls of government.

The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD countries

Technological change is far from neutral. The empirical analysis of the rate and direction of technological change in a significant sample of 12 major OECD countries in the years 1970–2003 confirms the strong bias of new technologies. The paper implements a novel methodology to identify and disentangle the effects of the direction of technological change upon total factor productivity (TFP) and shows how the introduction of new and biased technologies affects the actual levels of TFP according to the relative local endowments. The empirical evidence confirms that the introduction of biased technologies enhances TFP when its direction matches the characteristics of local factor markets so that locally abundant inputs become more productive. When the direction of technological change favours the intensive use of production factors that are locally scarce, the actual increase of TFP is reduced.     

Questions,propositions and assessing different levels of evidence: Forensic voice comparison in practice

This paper contributes to the ongoing discussion about the distinction between observations and propositions in forensic inference, with a specific focus on forensic voice comparison casework conducted in the UK. We outline both linguistic and legal issues which make the evaluation of voice evidence and the refinement of propositions problematic in practice, and illustrate these using case examples. We will argue that group-level observations from the offender sample will always be evidential and that the value of this evidence must be determined by the expert. As such, a proposal is made that experts should, at least conceptually, think of voice evidence as having two levels, both with evidential value: group-level and individual-level. The two rely on different underlying assumptions, and the group-level observations can be used to inform the individual-level propositions. However, for the sake of interpretability, it is probably preferable to present only one combined conclusion to the end user. We also wish to reiterate points made in previous work: in providing conclusions, the forensic expert must acknowledge that the value of the evidence is dependent on a number of assumptions (propositions and background information) and these assumptions must be made clear and explicit to the user.     

Bicameralism in the Americas: around the extremes of symmetry and incongruence

Bicameral legislatures have recently attracted considerable attention in comparative literature. However, this increased interest has been uneven and insufficient to close the many gaps existing in this area of research. Latin America, a continent with a long tradition of bicameralism, has been all but ignored. This study develops a system of scores with which to measure the strength of the bicameral systems of the Americas. Twelve cases are examined: the nine current bicameral legislatures, two unicameral cases that became in the 1990s and, finally, the United States, which provides a pattern of comparison and is the model on which Latin American constitutions have been based.     

Trade liberalisation and endogenous growth: Some evidence for Turkey

This paper examines the impact of trade liberalisation on the long-run economic development as measured by the real GDP per capita in Turkey. Based on the ‘endogenous’ growth theory, we employ bivariate and multivariate cointegration analyses to test the long-run relationship among the relevant variables. Results for Turkey suggest a stable, joint long-run relationship among real GDP per capita, an index of trade liberalisation, human and physical capital in accordance with the ‘endogenous’ growth theory. Statistically significant error-correction terms provide further evidence that those variables are indeed cointegrated. This also implies causal effects.     

Government expenditure on public order and safety,economic growth and private investment: Empirical evidence from the United States

The analysis begins by using annual data for the US from 1959 to 2003 to examine the macroeconomic relationship between government expenditure on public order and safety, output and investment. In practice, total spending on public order and safety is divided up into four categories (police force, fire service, law courts and prison service) so in the second part of the analysis we test for Granger causality between output, investment and each category of spending. But the division of aggregate spending may give rise to trade-offs/complementarities so in the final part of the analysis Granger causality tests are used to investigate this issue. Among other things, the results suggest that changes in output Granger cause changes in total spending on public order and safety. In particular, when total spending is disaggregated the findings suggest that changes in output Granger cause changes in spending on the police force and the law courts.     

The recovery of pollen evidence from documents and its forensic implications

Three experiments were undertaken to establish the potential for forensic palynological analysis in cases of suspected document fraud. The first study tested 6 different types of paper and 9 different types of ink (n = 54) and it was established that the best retainer of particulates (in this case a proxy was used in the form of UV powder) was medium biro ink and Wove and Connoisseur paper. It was found that for the different paper types 42–52% of the particulates collected were found in the ink and thus both the paper and the ink are potentially valuable sources of trace evidence in a forensic investigation. The second study sought to address the differences in the spatial distribution of particulates on documents when writing took place before or after the paper was treated with UV particulates. Ninety-six observations were made for each piece of paper tested and it was found that when the writing took place after the particulates were applied to the paper; more particulates were retained on the paper in contrast to when the writing took place before the particulate treatment. The spatial distribution of particulates was also affected, with particulates being retained in the folds of the paper when the writing took place before particulate treatment in contrast to a more erratic pattern that emerged due to the pressure of the hand of the writer when the writing took place after the particulate treatment. The third study utilised lily (Lilium) pollen grains and the findings broadly concurred with the second study. The main difference identified was when the writing took place before the particulates were applied; when UV powder was used the particulates were retained in the folds of the paper whereas this pattern was not seen to the same degree when pollen grains were used due to their ‘stickier’ nature. Envelopes and the pen nibs were also found to be rich sources of pollen grains after the experiments were undertaken.These studies have implications for the application of forensic palynology in cases of suspected document fraud. Pollen grains may well be present, and their analysis has the potential to reveal not only the timing of the generation of the document, but the spatial trends revealed indicate that it may well be possible to establish the sequence of significant events for forensic reconstruction. As such forensic palynology is demonstrated to have great potential in aiding forensic investigations, and is as yet an under-utilised form of trace evidence.