fdi and income inequality evidence from a panel of u s states this study employs state level panel data to explore the relationship between inward foreign direct investment fdi and income inequality in the united states using panel cointegration techniques that allow for cross sectional heterogeneity cross sectional dependence and endogenous regressors we find that the short run effects of fdi on income inequality are insignificant or weakly significant and negative in the long run however fdi exerts a significant and robust negative effect on income inequality in the united states this result for the united states as a whole does not imply that fdi narrows income gaps in the long run in each individual state there is considerable heterogeneity in the long run effects of fdi on income inequality across states with some states 21 out of 48 cases exhibiting a positive relationship between fdi in income inequality

cost reduction competition and industry performance in many markets firms compete over time by expending resources with the purpose of reducing their costs sometimes the cost reducing investments operate directly on costs in many instances they take the form of developing new products that deliver what customers need more cheaply therefore product development can have the same ultimate effect as direct cost reduction in fact if one thinks of the product as the services it delivers to the customer in the way that lancaster pioneered then product development often is just cost reduction

the role of expectations in adolescent schooling choices do youths respond to economic incentives i introduction over the postwar period the level of education attained by individuals in nations of the organisation for economic co operation and development has increased steadily this is especially true for the united states 1 in 1950 for example the average american aged 25 or older had 9 3 years of education by 2000 this had increased to 12 7 years this increase reflects sizable increases in the rate of high school completion in the cohort aged 16 24 in 1960 more than 27 were counted as high school dropouts by 2001 the proportion of high school dropouts in this age cohort had fallen to 10 7 although the proportion of whites in any given age cohort who graduated high school has exceeded that for african americans over this period this gap narrowed significantly during the 1970s and 1980s and by 2000 had nearly closed 2 observed trends in and patterns of educational attainment human capital accumulation and labor market success are determined by several factors in addition to changes in a wide variety of background factors such as ability motivation race and gender these involve decisions made by governments as reflected in school resources and macroeconomic performance and by parents e g parental education work effort and child care time also relevant are the choices made by adolescents themselves in response to the net economic returns of the options open to them in this article we explore the schooling choices of youths in response to their perception of these returns economic and sociological research on the determinants of the schooling outcomes of youths is extensive and distinguished 3 these studies focus primarily on the family neighborhood and peer group determinants of educational attainments and are largely reduced form in nature the role of youth preferences and the choices made in response to the economic incentives and constraints that young people face have not been systematically explored in these studies hence their results may attribute to background and family characteristics effects properly attributed to differences in youths own choices in response to the incentives that they face 4 in this study we address the role of youths own choice conditioned expectations in understanding their schooling choices by constructing a choice or switching model we emphasize the effect of individual student perceptions regarding the returns associated with graduating from high school versus dropping out while controlling for an extensive set of family and community factors youths are presumed to form their expectations by referring to the outcomes of a slightly older cohort of individuals who have characteristics similar to their own because these expected income returns are choice specific we require estimates of each youth s choice conditioned expected returns taken to be unobserved by the analyst but known by the youth 5 we focus on the high school graduation outcome for three reasons first individuals must complete high school to consider postsecondary schooling options hence the decision to complete high school carries with it an option value benefit 6 second high school completion the first schooling decision over which adolescents have some control plays a crucial role in understanding the declining labor market position of low skilled workers 7 finally our analysis of the high school graduation choice is nested within an extensive economic literature that addresses the determinants of this outcome by focusing on the role of youth s own expectations we have neglected other aspects of a complete analysis of the process of educational attainment for example we presume that our extensive set of family and neighborhood factors are exogenous to the outcome and independent of unobserved factors although we do not explicitly include school characteristics in our estimation our detailed neighborhood and family variables are likely to accurately proxy for neighborhood school quality

does foreign aid increase private investment evidence from panel cointegration this article uses panel cointegration and causality techniques to examine the long run relationship between foreign aid and private investment our main result is that aid has a statistically significant negative effect on private investment this result is robust to outliers different measures and forms of aid sample selection and the sample period in addition we find that long run causality runs in both directions suggesting that an increase in aid reduces private investment and that in turn higher private investment leads to lower aid inflows

india s technological capability an analysis of its achievements and limits abstract four types of technological capability are distinguished capability in the purchase of technology plant operation duplication and expansion and innovation in the purchase of technology indian buyers are observed to be less inhibited by lack of knowledge as by the inability to attract technology sellers of their choice the difficulty becomes greater if the buyers become significant exporters the scaling down of plants and the adaptation of processes to locally available materials have called for local technological development which has been more successful in engineering than in the process industries the engineering industry was built up through blanket import substitution whose cost was paid by the investing industries in the form of high capital costs and low quality of equipment but in industries where a large number of plants was built teething problems in plant construction were overcome and cheap and reliable equipment came to be made which formed the basis of india s technology exports in the late seventies

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

technological accumulation diversification and organisation in uk companies 1945 1983 a survey of more than 4 000 significant innovations and innovating firms in the uk from 1945 1983 shows that the scope and organisation of technological activities vary greatly as functions of firms principal activities and size 1 technological opportunities and threats are greatest in firms in chemicals and engineering opportunities in such science based and specialist supplier firms in general emerge horizontally in related product markets and downstream in user sectors in scale intensive e g steel vehicles and supplier dominated e g printing construction firms opportunities tend to be upstream in related production technologies breakthrough innovations in science based firms also induce clusters of technological opportunities upstream for suppliers horizontally for partners and downstream for users their effective exploitation requires diversity of firms technological activities greater than that strictly required for current output 2 the nature of technological opportunities and of organisation for their exploitation also varies with firm size firms with fewer than 1 000 employees have major opportunities with specialised strategies in mechanical engineering and instruments the prevalence of broad front technological strategies and of divisionalisation increases sharply with firm size together with dependence on formal r and d activities the size of innovating divisions has diminished sharply over the period divisionalisation improves the goodness of fit between the core business of innovating divisions and the innovations themselves but 40 have remained consistently outside the core business of divisions 3 these findings help identify the key tasks of technological strategy in firms in different industries and of different sizes thus in large firms divisionalisation can create the small size of unit conducive to effective implementation but it cannot absolve central management from the continuous task of matching technological opportunities with organisational forms and boundaries

inter industry technology flows in the united states abstract this paper presents for the u s economy a technology flows matrix tracing 1974 industrial r d expenditures from their industries of origin to industries in which the use of resulting products and processes was anticipated the distinction between origin and using industries is crucial to understanding the links between r d and productivity growth a regression analysis reveals high social rates of return and substantial productivity impacts from r d attributed to industries of use

the determinants of educational attainment modeling and estimating the human capital model and education production functions this paper develops and estimates a theoretical model of an individual s high school graduation choice the model incorporates the idea of a utility maximizing youth responding to the economic incentives associated with incremental education as posited by the human capital literature however it also allows for family neighborhood and school characteristics to affect the process of being educated as posited by the education production function literature estimation of the model using the panel study of income dynamics psid supplemented with neighborhood and school data indicates that indeed students respond to economic incentives in making education choices however most of the effects of background characteristics are working through the education process rather than affecting returns to schooling

female labour supply and on the job search an empirical model estimated using complementary data sets we develop an empirical model of labour supply that is consistent with on the job search and which is identified and estimated by combining two data sets the u k family expenditure survey which contains information on income and expenditure and the u k labour force survey which has data on hours and job search behaviour we provide statistical evidence on the compatibility of the two samples for the purposes of estimating our model we find that search has a direct negative effect on hours of work and we establish a strong positive effect of wages on hours

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

the long run relationship between trade and population health evidence from five decades in recent years the increase in international trade has sparked a debate about the impact of international trade on population health to date however there has been very little econometric research on the relationship between these two variables this paper examines the long run relationship between trade openness and population health for a sample of 74 countries over five decades from 1960 to 2010 using panel time series techniques it is shown that international trade in general has a robust positive long run effect on health as measured by life expectancy and infant mortality this effect tends to be greater in countries with lower development levels higher taxes on income profits and capital gains and less restrictive business and labour market regulations

the influence of market demand upon innovation a critical review of some recent empirical studies abstract a number of recent empirical studies of technical change at the level of the individual firm have concluded that market demand is the dominant influence upon the innovation process calling forth innovations in market economies the pace of innovation in the private sector heavily influences the growth of national output and productivity and these studies and their conclusions have therefore received much attention having been extensively quoted in discussions of appropriate government policy for the encouragement of innovation this paper reviews a number of these studies and concludes that their findings and the interpretations of their findings in the secondary literature are seriously flawed and in many cases invalid the proposition that market demand governs the innovation process is by no means conclusively demonstrated in these studies and they are therefore inadequate and inappropriate guides for the formulation of policy most of the studies examined employ a working definition of demand factors which is so broad as to embrace a range of possible influences upon innovation which should more properly be classified elsewhere the concept of demand utilized in these studies bears little resemblance to the more restrictive and precise definition of market demand found in economics in addition the phenomena analyzed in these studies are a very heterogeneous lot the studies do not address identical empirical questions and their findings are as a result neither uniform nor unambiguous both demand and supply side influences are crucial to understanding the innovation process and it is the exclusive preoccupation with only one set of these forces which is criticized in this paper some implications of the criticism for government policy toward innovation are discussed in the conclusion

the long run relationship between public consumption and output in developing countries evidence from panel data abstract this paper uses heterogeneous panel cointegration techniques to examine the long run effect of public consumption on output for 33 low and lower middle income developing countries from 1972 to 2014 we include total investment in the cointegration relation and explicitly deal with cross sectional dependence in the data that arises due to unobserved common factors we find that on average government consumption has a negative impact on output in the long run a result driven by non sub saharan african countries in our sample in contrast investment has a consistent positive effect on output the results suggest that fiscal adjustments that cut government consumption while maintaining investment spending will have a potential expansionary effect on long run output

the economics of schooling production and efficiency in public schools n recent years public and professional interest in schools has been heightened by a spate of reports many of them critical of current school policy these policy documents have added to persistent and long standing concerns about the cost effectiveness and fairness of the current school structure and have made schooling once again a serious public issue as in the past however any renewed interest in education is likely to be short lived doomed to dissipate as frustration over the inability of policy to improve school practice sets in this frustration about school policy relates directly to knowledge about the educational production process and in turn to underlying research on schools although the educational process has been extensively researched clear policy prescriptions flowing from this research have been difficult to derive 2 there exists however a consistency to the research findings that does have an immediate application to school policy schools differ dramatically in quality

technology strategies of large enterprises in indian industry some explorations abstract a firm s technology strategy is influenced by the technology regime in which it operates the regime is broadly defined by a combination of variables capturing industrial structure nature of technical knowledge and the policy environment together these variables determine the opportunity and appropriability conditions faced by a firm in a well defined industry given these broad relationships a heuristic framework is developed to analyze firms technology strategies across industry groups four firm level strategies are identified 1 a undertake research and development 2 b purchase disembodied foreign technology 3 c combine a and b 4 d remain technologically inactive i e do neither a nor b the framework is translated into a multinomial logit model to explore empirically the determinants of technology choices made by indian firms in two different industries non electrical machinery and chemicals the impact of the following determinants is explored firm size capital and material imports foreign equity participation and foreign domestic technology spillovers

religiosity and income a panel cointegration and causality analysis abstractin this article we examine the long run relationship between religiosity and income using retrospective data on church attendance rates for a panel of countries from 1930 to 1990 we employ panel cointegration and causality techniques to control for omitted variable and endogeneity bias and test for the direction of causality we show that there exists a negative long run relationship between the level of religiosity measured by church attendance and the level of income measured by the log of gdp per capita the result is robust to alternative estimation methods potential outliers different samples different measures of church attendance and alternative specifications of the income variable long run causality runs in both directions higher income leads to declining religiosity and declining religiosity leads to higher income

private donations government grants commercial activities and fundraising cointegration and causality for ngos in international development cooperation ngos could help scale up foreign aid efforts by mobilizing private donations however fundraising activities do not necessarily result in higher donations and substitution effects between different sources of revenue may diminish the overall pool of ngos resources this paper examines the determinants of private donations to us based ngos engaged in international development cooperation we employ panel cointegration and causality techniques to analyze the interactions between private donations government grants commercial revenues and fundraising expenditures according to our results a marginal dollar spent on fundraising yields almost five dollars in new donations in the long run government grants crowd in private donations in the long run whereas commercial revenues crowd out donations in the long run moreover our panel vector error correction model reveals complex short run dynamics

liberalization outward orientation and in house r d activity of multinational and local firms a quantitative exploration for indian manufacturing abstract in an increasingly globalizing and knowledge based world economy the declining importance of r d activity in india is a matter of concern this paper analyzes the determinants of r d behaviour of indian enterprises over the 1990s in the context of the reforms of 1991 and their impact on the r d behaviour of mne affiliates and local enterprises the analysis suggests that although average levels of spending have fallen increased competition due to liberalization seems to have pushed local firms to rationalize their r d activity and make it more efficient also r d spending seems to rise more than proportionally with firm size after a certain threshold level has been reached the analysis brings out differences in the nature of r d activity of mne affiliates and local firms local firms direct their r d activity primarily towards the assimilation of imported technology and to providing a backup to their outward expansion via exports and fdi mne affiliates on the other hand focus on exploiting the advantages of india as an r d platform for their parents the paper is concluded with some policy implications of the findings

the panel study of income dynamics after fourteen years an evaluation this article considers the representativeness of the panel study of income dynamics psid over its 14 year history from 1968 to 1981 given the dynamics of entry and exit from the panel by 1981 40 of the original members had left the sample and were replaced by new entrants who joined either existing households or new households being formed by members of the original sample we consider the distribution of demographic characteristics and earnings equations over time and we compare the psid with the current population survey cps by either approach we find little evidence that the psid has become unrepresentative

the white black educational gap stalled progress and the long term consequences of the emergence of crack cocaine markets abstract we propose the rise of crack cocaine markets as a key explanation for the end to the convergence in black white educational outcomes in the united states that began in the mid 1980s after constructing a measure to date the arrival of crack markets in cities and states we show that the decline in educational outcomes for black males begins with the start of the crack epidemic we also show that there are higher murder and incarceration rates after the arrival of crack cocaine and that these are predictive of lower black high school completion rates a result consistent with human capital theory we estimate that effects related to crack markets can account for approximately 40 to 70 of the fall in black male high school completion rates

foreign direct investment and the domestic capital stock this paper evaluates evidence of the impact of outbound foreign direct investment fdi on domestic investment rates oecd countries with high rates of outbound fdi in the 1980s and 1990s exhibited lower domestic investment than other countries which suggests that fdi and domestic investment are substitutes u s time series data tell a very different story however years in which american multinational firms have greater foreign capital expenditures coincide with greater domestic capital spending by the same firms one dollar of additional foreign capital spending is associated with 3 5 dollars of additional domestic capital spending in the time series implying that foreign and domestic capital are complements in production by multinational firms this effect is consistent with cross sectional evidence that firms whose foreign operations expand simultaneously expand their domestic operations and suggests that interpretation of the oecd cross sectional evidence may be confounded by omitted variables this abstract was borrowed from another version of this item

identification of endogenous social effects the reflection problem this paper examines the reflection problem that arises when a researcher observing the distribution of behaviour in a population tries to infer whether the average behaviour in some group influences the behaviour of the individuals that comprise the group it is found that inference is not possible unless the researcher has prior information specifying the compisition of reference groups if this information is available the prospects for inference depend critically on the population relationship between the variables defining reference groups and those directly affecting outcomes inference is difficult to implossible if these variables are functionally dependent or are statistically independent the prospects are better if the variables defining reference groups and those directly affecting outcomes are moderately related in the population

the long run relationship between outward fdi and domestic output evidence from panel data abstract we find for 14 industrialized countries over the period 1971 2005 that outward fdi has positive long run effects on domestic output our results suggest that increased outward fdi is both a cause and a consequence of increased domestic output

the roles of science in technological innovation abstract one of the central issues in science policy during the past decade has been the extent to which the national levels of expenditure on scientific education and research influence the standard of living this paper provides empirical evidence to show that the pay off from this investment in science is more complex and indirect than previously supposed

does economic liberalisation endanger indigenous technological developments an analysis of the indian experience abstract india s recent economic liberalisation measures have raised concerns that enterprises will begin to neglect the development of indigenous technologies and will make increasing use of imported technologies and or of standardised technologies this paper argues that the comparative advantages of the different types of technologies will depend on certain enterprise level characteristics including age and size and consequently enterprises that use the technologies based on their in house r d efforts may perform well even under a liberalised regime empirical tests using data of enterprises in three major industry groups gave results consistent with these arguments over the period 1991 1998 the growth performance of enterprises that make products based on their in house r d efforts have compared favourably with those of other enterprises in two of the industries moreover the share of the r d based products in enterprises overall sales has been maintained in both the industries for which this test could be undertaken