technology factor proportions and competitiveness the paper reports an attempt to explain changes in the industrial pattern of relative international competitiveness and specialization in the swedish manufacturing industry during the period 1969 84 in particular we evaluate the role of rd this was true for industries intensive in human as well as physical capital the analysis confirmed the technology gap hypothesis in that a high level of rd on the other hand no indication was found of increased international specialization on r d intensive products in swedish industry

factor endowments factor proportions and the allocative efficiency of u s interregional trade the heckscher ohlin h o theory of trade has been subjected to numerous international tests based upon the empirical evidence presented in the literature it appears that the theory s explanatory power of the actual pattern of international trade is somewhat limited this may not be surprising however when one considers a host of extraneous factors such as tariffs quotas and other policy and institutional barriers to trade which distort the pattern of trade on the other hand some of the requisites of the h o theory are more nearly satisfied in interregional trade within a nation the extent of policy distortions on the overall pattern of commodity trade should be far less in interregional trade than in international trade likewise both production technologies and demand conditions assumed to be identical between nations in the h o theory should be more nearly so among regions within a nation while the theoretical basis of regional trade is of course the same as that of international trade it is primarily for these reasons that a number of researchers have more recently turned to interregional trade for the purpose of testing the h o theory the current literature on the u s regional comparative advantage includes the contributions by moroney and walker 1966 moroney 1972 1975 estle 1967 and klaasen 1973 whereas these studies focused primarily on the pattern of regional production as revealed by value added concentration ratios for the u s south the major objectives of this paper are i to design and perform factor proportion tests based upon the actual interregional pattern of trade and ii to investigate one neglected empirical aspect of the h o theory bearing upon the substitutive role that commodity trade plays for direct factor mobility in section ii we present estimates of the regional distribution of major input supplies in the united states the input classes considered are capital equipment human capital labor and renewable and nonrenewable natural resources in particular we have found that there are fairly distinct differences among u s census regions pertaining to relative aggregate input supplies defined by physical capital labor ratio human capital labor ratio renewable natural resource labor ratio and nonrenewable resource labor ratio section iii presents the methodology and major empirical findings of the factor proportions test as adapted to interregional trade section iv extends the analysis to consider an alternative hypothesis of the h o theory based on the substitutive relationship between direct factor movements and commodity trade as embedded in the original h o theory this aspect of the theory has not been explicitly dealt with in the empirical literature and we consider its practical implication concerning the allocative efficiency of trade a summary section concludes the paper

a dual definition for the factor content of trade and its effect on factor rewards in us manufacturing sector we introduce a dual definition of the factor content of trade fct using the concept of the equivalent autarky equilibrium estimating a symmetric normalized quadratic revenue function for the u s manufacturing sector between 1965 and 1991 we find that the fct for capital is positive while the fct for skilled and unskilled labor is negative suggesting that the leontief paradox is not present then the growth rate of the factor rewards is decomposed to the fct endowments and technological change effects we find that technological change is the most important determinant in explaining wage inequality between skilled and unskilled labor

factor proportions in israel s manufacturing trade 1965 1982 abstract this paper tries to explain changes in the foreign trade patterns of israel s manufacturing sector in terms of changes in relative factor use during the period 1965 1982 although the sector s comparative advantage lay in labor intensive goods in most of this period changes in net exports were correlated positively with changes in human and physical capital use and negatively with changes in labor use this was due to the expansion of capital intensive exports

in search of the good samaritan estimating the impact of altruism on voters preferences this paper continues the development of a theoretical foundation for measuring altruistic behaviour with respect to tax versus expenditure preferences in three specific spheres health education and welfare payments particular emphasis is placed on analysing the choice theoretic calculus that underlies individual preferences using this theoretical foundation econometric techniques allow progress to be made in measuring the characteristics of the underlying utility function the empirical work relates to the uk and confirms that both self interest and public interest with a slight emphasis on the latter determine overall preferences the implications of this for the public choice school are then examined

factor inputs and japanese manufacturing trade structure the japanese international trade structure in manufactured goods has been analyzed using cross section regression analysis in which labor capital human capital and energy are regressed on japanese net exports exports and imports with the world oecd and developing countries for 1967 and 1975 skill and wage differential measures have been utilized for the measuring of human capital contrary to the dualism found in earlier studies the estimated results show that in 1967 japan exported unskilled labor intensive goods with respect to the developing countries as well as the oecd countries in 1975 japan exported capital intensive goods to all regions and imported unskilled labor intensive goods from the world and the developing countries skilled labor intensive goods were imported from the oecd countries in both years drastic changes between 1967 and 1975 are noted japanese exports shifted from unskilled labor intensive goods to capital intensive goods while imports did the opposite this result conforms to the changes in unskilled labor and capital usage in japan and her major trading partners

domestic trade and transportation costs as barriers to international trade available evidence indicates that costs of nontraded services in domestic transportation wholesaling and retailing domestic margins are higher if a good is shipped in international trade than if it is shipped from domestic producers to domestic consumers consequently domestic margins appear to act as natural barriers to trade in the same manner as international transp ort costs do this paper presents estimates of the barriers that the domestic margins impose against u s imports and shows that they exc eed the barriers imposed by tariffs and international transport costs combined

demand for local public spending evidence from the british social attitudes survey the british social attitudes survey bsas is a uk wide survey that provides a rich source of information on individuals attitudes to a variety of topics including locally provided service in this paper we seek to model answers to questions on attitudes to local authority spending which invite the expression of a private demand for local public spending a convincing picture has emerged of locally provided public goods as imperfectly congested public goods with a price elastic and probably income inelastic demand the view that central government grants may induce voter confusion over tax prices of public services also finds support

determinants of the structure of u s foreign trade 1958 1976 abstract the heckscher ohlin model with three direct factor inputs is borne out for u s net exports of manufactures in annual cross section regressions for 1958 1976 the coefficient on unskilled labor became significantly more negative over the period and there is evidence that the negative sign on physical capital may reflect the inclusion of natural resource industries further analysis based upon 1960 and 1970 census years suggests the importance as well of skill and technological variables calculations of the total factor requirements of u s trade uphold the leontief paradox for 1958 but not for 1972

the direction of developing country trade empirical evidence of differences between south south and south north trade abstract declining market opportunities in northern markets led to views that greater south south trading might provide an alternative growth stimulus this paper analyses the characteristics of south south trade in manufactures and recent changes in the level of such trade to help clarify the potential of greater self reliance within the south south south trade is found to be more intensive in the use of both physical and human capital hence less rational from the static comparative advantage viewpoint than south north trade there is indirect but strong evidence that exporting countries with greatest orientation towards the south are those with greater distortions less rapid movements up the ladder of comparative advantage and weaker export performance finally it is observed that the recent boom in south south trade is largely explained by simple market size effects very rapid growth of rich oil exporters and the faster gnp growth of developing compared to developed countries the paper concludes that while south south trade of about the present magnitude one of greater developing country exports is certainly rational there is little evidence to support views that greater south south trade should be especially promoted arguments of dynamic comparative advantage may favor south south trade but so far these have been more speculative and not yet well researched empirically

the influence of the number of statewide legislative referendums on voter participation in the us this empirical study seeks to broaden the interpretation of the rational voter model so as to include the potential effects of the number of statewide legislative referendums this study tests the hypothesis that greater numbers of such referendums increase voter turnout because they elevate the expected gross benefits egb of voting by empowering voters while not significantly increasing the expected gross costs egc of voting using state level data for the 2006 general election in the us as well as the 2004 us presidential election and after allowing for a variety of economic and demographic factors this study finds compelling evidence that the number of statewide legislative referendums does significantly increase voter turnout

understanding preference for egalitarian policies in health are age and sex determinants this article presents an empirical assessment of the relevance of different factors when understanding preferences for outcome egalitarian policies in health in particular respondent age and sex a representative sample of the spanish population was interviewed n 1209 after being informed that those from the higher social class have longer life expectancy at birth than those from the lower social class respondents were required to choose between two programmes to increase life expectancy of the two groups by the same amount the distribution neutral programme and to target the lowest social class group thereby reducing current health inequalities the targeting or egalitarian programme two variants one with and the other without visual aid are used majority 69 of respondents support targeting an effect of age was observed where younger and older individuals are less likely to target the egalitarian policy than those in middle age however individual s sex was not associated wit

comparative advantage geographic advantage and the volume of trade a functional relationship between the degree of a country s comparative advantage and the volume of its net exports of any good to its trading partner is established using a model with per unit distance transportation costs between countries coasts and their interiors the greater a country s comparative advantage the deeper its exports penetrate geographically into its trading partner the internal spatial structure of a country consists of cities on a river it is shown that population sizes wage rates and residential rental rates are greatest in the port city and decline monotonically as one moves inland copyright 1991 by royal economic society

closing the gap a learning algorithm for lost sales inventory systems with lead times we consider a periodic review single product inventory system with lost sales and positive lead times under censored demand in contrast to the classical inventory literature we assume the firm d

a single item continuous review inventory problem with space restriction abstract with today s high cost of land acquisition observed in most countries management can no longer afford large storage facilities to house their products for this reason one of the main concerns of inventory managers is to ensure that enough storage space is available upon the delivery of a product they therefore have to determine the least cost ordering policy so as to meet demand and taking into account the space limitation in this paper we investigate the problem of a single item continuous review inventory problem in the presence of a space restriction when the demand is stochastic through a sensitivity analysis study it is found that ordering cost storage capacity average demand per unit time and holding cost rate are the most influential problem parameters on the expected inventory costs it is also shown numerically that a simple solution based on economic order quantity is performing very well with an average and maximum cost penalty of 0 19 and 2 03 respectively

immiserizing investment from abroad the singer prebisch thesis reconsidered the present paper lends new analytical support to the controversial singer prebisch thesis according to this well known thesis less developed countries ldcs suffer a welfare loss from secular decline in their international terms of trade for primary product exports the standard theoretical criticism of the thesis makes two basic arguments both relating to the impact of economic expansion 2 first there is no well established presumption that the terms of trade for primary products will indeed deteriorate in a growing world economy second if domestic economic expansion does happen to worsen the terms of trade for ldcs economic welfare of these countries still need not deteriorate except under bhagwati s 1958 well known conditions for immiserizing growth thus the traditional critique sees the singer prebisch thesis as an unconvincing allegation about the relationship between growth and welfare via the terms of trade the following discussion suggests an alternative more favorable interpretation of the thesis this reinterpretation focuses upon the process of foreign investment4 rather than economic growth as the essential reason for adverse changes in the terms of trade and level of welfare for ldcs exporting primary products such a focus appears to be fully consistent with the analysis of singer 19501 5 whose main

on the suboptimality of s 1 s lost sales inventory policies abstract this paper considers replenishment policies for the continuous review inventory model with poisson demand a fixed lead time on replenishment and lost sales during a stockout there is a time dependent stockholding cost and a cost per unit of sale lost but there is no or negligible cost associated with placing a replenishment order the standard policy is to specify a maximum stock level s and place a replenishment order whenever a demand occurs and is met this is commonly referred to as an s 1 s policy it is shown that there are other replenishment policies which give lower cost solutions in fact it is demonstrated that an s 1 s policy can never be optimal if s 2

the effect of inventory record inaccuracy in information exchange supply chains abstract the goal of this paper is to quantify the impact of inventory record inaccuracy on the dynamics of collaborative supply chains both in terms of operational performance i e order and inventory stability and customer service level to do so we model an information exchange supply chain under shrinkage errors in the inventory item recording activity of their nodes present the mathematical formulation of such supply chain model and conduct a numerical simulation assuming different levels of errors results clearly show that inventory record inaccuracy strongly compromises supply chain stability particularly when moving upwards in the supply chain important managerial insights can be extracted from this analysis such as the role of benefit sharing strategies in order to guarantee the advantage of investments in connectivity technologies

industrialisation and the factor content of latin american exports of manufactures this article shows that latin american exports of manufactures that grow consistently over time arise from both traditional as well as policy induced sources of comparative advantage case studies for argentina colombia and venezuela show that manufactures originally developed for the domestic market were exported with consistent growth rates and came to represent an important proportion of total manufacturing exports the study also shows that inter country differences in the factor content of these exports reflect both differences in original resource endowments as well as the effects of industrialisation policy

asymptotic optimality of order up to policies in lost sales inventory systems we study a single product single location inventory system under periodic review where excess demand is lost and the replenishment lead time is positive the performance measure of interest is the long run average holding cost and lost sales penalty cost for a large class of demand distributions we show that when the lost sales penalty becomes large compared to the holding cost the relative difference between the cost of the optimal policy and the best order up to policy converges to zero for any given cost parameters we establish a bound on this relative difference numerical experiments show that the best order up to policy performs well yielding an average cost that is within 1 5 of the optimal cost when the ratio between the lost sales penalty and the holding cost is 100 we also propose a heuristic order up to level using two newsvendor expressions in our experiments the cost of this order up to policy is 2 52 higher on an average than the best order up to policy

the determinants of spanish industrial exports to the european union this paper investigates the determinants of trends in spain s industrial exports to the other european union countries by using a sectoral panel data approach the results show that price elasticities of export demand differ widely among sectors they also provide support to the idea that non price factors have a significant influence on international competitiveness in particular they show that technological and advertising effort have a significant effect not only on the evolution of exports but also on price elasticity

some insights regarding the optimal reorder period in periodic review inventory systems abstract the periodic review inventory system is not only pervasive but also has an extensive literature dealing with various aspects from its theoretical underpinnings through to its performance however the selection of the best review period and its behaviour with respect to basic inventory parameters such as demand and supply variability appears to be poorly understood in this paper we treat the normal and gamma distributions which are probably the two most commonly used distributions of demand over the key protection time interval in a periodic review system we show that the total cost function is not necessarily well behaved as a function of the review period in particular it can be non convex which complicates the determination of the best value of the review interval also we demonstrate and explain how the best review period changes as the values of various parameters are modified some of these changes are initially counterintuitive in nature managerially oriented interpretations should also be helpful to organisations seeking improvement in inventory system performance

a note on international trade and market structure as exports become an increasing part of industry sales the determinants of a firm s international position become increasingly important tests have supported single factors such as product life cycle lutz and green 1983 as well as multi factor models to explain the determinants of industry imports and exports stern and maskus 1981 harkness and kyle 1975 baldwin 1971 this study also presents a multi factor analysis of the determinants of u s trade patterns this study utilized the spi strategic planning institute data set which allows research at the business unit product line level results indicate that productivity and product development are the principal characteristics of high export percentage business units these findings are especially true for nonconsumer industries thus to the degree that business are concerned over the short term costs of product development direct or indirect for example insurance government aid may be required to promote u s export industries

inventory control in directed networks a note on linear costs we consider periodic review inventory control problems in directed networks primary examples of which are distribution systems and assembly systems external demand could occur at each node when inventory is insufficient to meet requirements at a node a portion of this demand is backordered and the remaining is lost external demands as well as lead times for inventory purchase assembly and transportation are stochastic in each period linear sales revenues and the following costs all linear are charged at each node a inventory purchase assembly transfer cost to receive inventory b holding cost c backorder cost and d lost sales cost when the objective function of interest is a discounted sum of profits over a finite planning horizon it is shown that the sales prices and the inventory purchase assembly transfer cost parameters can be assumed to be zero without loss of generality the result is proved for every realization of demands and lead times some extensions to these results are discussed during this process we also generalize the concept of echelon inventories to directed networks

impact of inventory inaccuracy on service level quality in q r continuous review lost sales inventory models this article focus on the behavior of a q r continuous review lost sales inventory model exposed to an inventory record inaccuracy iri an unusual phenomenon has been observed which runs counter to certain empirical practices in the smes based on the principle that safety stock is only necessary for certain intervals in the data inaccuracy rate both analytical results and simulation modeling are proposed to investigate the relationship between the quality of service safety stock and inventory inaccuracy under demand variations it is shown that the service level quality is a non monotone function of the inaccuracy rate i e the service level quality increases up to an iri level and subsequently decreases other inaccuracy distribution functions have produced the same phenomena with constant demand as well as with demand fluctuations finally another noteworthy result also shows the same phenomenon between the function involving a level of safety stock defined by simulation and the function between the service level quality and iri these different observed results are discussed in terms of both their contribution to the q r inventory management policies in smes and of the limitations to this study

lost sales problems with stochastic lead times convexity results for base stock policies we consider a single location inventory system with periodic review and stochastic demand it places replenishment orders to raise the inventory position that is inventory on hand plus inventory in transit to exactly s at the beginning of every period the lead time associated with each of these orders is random however the lead time process is such that these orders do not cross demand that cannot be met with inventory available on hand is lost permanently we state and prove some sample path properties of lost sales inventory on hand at the end of a period and inventory position at the end of a period as functions of s the main result is the convexity of the expected discounted sum of holding and lost sales costs as a function of s this result justifies the use of common search procedures or linear programming methods to determine optimal base stock levels for inventory systems with lost sales and stochastic lead times it should be noted that the class of base stock policies is suboptimal for such systems and we are primarily interested in them because of their widespread use

admission and inventory control of a single component make to order production system with replenishment setup cost and lead time abstract we consider the admission control and inventory management problems of a single component make to order production system components are purchased from suppliers in batches of fixed size subject to stochastic lead times and setup costs a control policy specifies when a batch of components is purchased and whether the demand for each mto production is accepted upon arrival we formulate the problem as a markov decision process mdp model and characterize the structure of optimal admission control and inventory replenishment policies we show that a state dependent base stock policy is optimal for the inventory replenishment although the mdp value function is not necessarily convex we also show that the optimal admission control can be identified as a lattice dependent policy a sensitivity analysis is conducted to show how the optimal policy changes as a function of the system parameters to effectively coordinate admission and inventory control decisions we propose simple implementable and yet effective heuristic policies our extensive numerical results suggest that the proposed heuristics can greatly help firms to effectively coordinate their admission and inventory control activities

optimal safety stock levels of subassemblies and manufacturing components abstract in order to control the time to market and manufacturing costs companies produce and purchase many parts and components before receiving customer orders consequently demand forecasting is a critical decision process using modular product design and super bills of materials are two effective strategies for developing a reliable demand forecasting process they reduce the probability of stockouts in diversified production contexts furthermore managing and controlling safety stocks for pre assembled modules provide an effective solution to the problem of minimizing the effects of forecast errors this paper develops evaluates and applies innovative cost based analytical models so that the optimal safety stock of modular subassemblies and components in assembly to order and manufacturing to order systems respectively can be rapidly quantified the implementation of the proposed models in two industrial case applications demonstrates that they significantly reduce the safety stock inventory levels and the global logistical cost

export performance in china s regional economies china enjoyed unprecedented economic growth in the 1980s and 1990s associated with this growth was the rapid expansion of exports from the chinese regions this study aims to provide an empirical assessment of export performance in the chinese regions during 1992 2001 it has shown that on an average china s regional economies have only achieved 70 of their export potential leaving substantial scope for improvement there is also considerable variation in export performance among the chinese regions with the noncoastal areas lagging behind in addition this article also shows that several region specific factors e g foreign direct investment government spending infrastructure development and the nonstate sector have affected regional export performance positively furthermore it is found that the development of china s western regions has boosted and will continue to improve the export sectors in these regions

measurement of the factor content of foreign trade with traded intermediate goods abstract in a recent article helpman 1984 develops readily testable bilateral restrictions in a model of international trade which preserves the spirit of heckscher ohlin trade theory important in any empirical exploration of the heckscher ohlin model is the decision of whether to employ direct or direct plus indirect calculations in determining the factor content of trade this paper extends helpman s analysis to a world of freely traded intermediate goods and shows that direct factor content calculations are the theoretically appropriate measure for use in evaluating these empirical implications of the heckscher ohlin model

new products and the factor content of international trade this paper extends the multicommodity two input version of the heckscher ohlin model to include new products on which considerable interest has been focused by the product cycle hypothesis and related analyses the extended model is then used to reexamine the implications of relative factor abundance for the capital and labor content of international commodity trade as this analysis shows the presence of new products might in principle resolve the leontief paradox under certain specific conditions

the leontief paradox continued according to leamer 1980 the leontief paradox is based on a simple conceptual misunderstanding in a multifactor version of the heckscher ohlin model he argues that a capital abundant country need not have its exports more capital intensive than its importsprovided that the country s commodity trade embodies a net export of both labor and capital services as was the case for the united states in leontief s 1954 data for such a country however the model does imply that capital per worker be greater in net exports than in consumption leamer finds that this implication is indeed consistent with leontief s data this note shows however that there is another feature of the trade data which is not so easily explained the fact that the united states exported labor services is in itself paradoxical as discussed below sec ii the model which leamer uses to explain the paradox implies that a country is a net exporter of labor services if and only if its aggregate expenditure per worker is less than that in the rest of the world this implication is clearly inconsistent with the evidence reviewed below in sec iii which shows that expenditure per worker was substantially greater in the united states than the rest of the world and yet the united states exported labor services therefore a modified version of the leontief paradox continues to stand

comparative advantage in manufactured goods a re appraisal japanese input coefficients are used to investigate the pattern of comparative advantage in the exportation of manufactured products in a cross country framework estimates are made for the imports of manufactured products as well as for net exports also alternative techniques of estimation are utilized and an attempt to explain the residuals in the regression equations and to indicate the predictive power of these equations is made the paper shows that patterns of comparative advantage in manufactured goods can be explained by reference to commodity characteristics and country characteristics in turn intercountry differences in the extent of trade orientation the concentration of exports and foreign direct investment explain part of the residuals of the cross country regression equations finally it has been found that the method applied permits projecting the factor intensity of trade for individual countries

an empirical investigation of the heckscher ohlin theorem further empirical tests are required to substantiate or disprove the heckscher ohlin theorem because earlier tests were based on an incorrect test statistic a multi commodity two country two factor model is constructed to test the theorem and derive an appropriate test statistic the model provides testable hypotheses for trade based on its profit and wage content rather than on its capital and labour content the results show that the 1968 trade patterns for australia ireland japan korea new zealand and the united states support the heckscherohlin theorem while those of israel kenya and the united kingdom do not une etude empirique du theoreme heckscher ohlin il faut des tests empiriques additionnels pour decider si l on doit supporter ou renvoyer le theoreme de heckscher ohlin puisque les tests anterieurs ont ete eriges sur une statistique incorrecte les auteurs developpent un modele de commerce international pour deux pays deux facteurs de production et plusieurs biens afin de pouvoir confectionner un test approprie du theoreme le modele suggere des hypotheses veifiables construites a partir des variables profits et salaires plutot qu a partir de variables comme les coefficients d intensite en capital et en travail les resultats indiquent que les patterns de commerce en 1968 pour l australie l irlande le japon la nouvelle zelande et les etats unis tendent a supporter le theoreme heckscher ohlin alors que 1 experience du kenya et du royaume uni va dans l autre sens starting with leontief s seminal paper 1953 examinations of the factoral content of international trade have cast doubt on the reliability of the heckscher ohlin theorem in these studies patterns of trade between the rest of the world and the united states japan west germany and canada contradicted the theorem while those of east germany and india supported it bharadwaj 1962 leontief 1953 1956 roskamp 1961 stolper and roskamp 1961 tatemoto and ichimura 1959 and wahl 1961 as baldwin 1971 126 stated these results effectively destroyed the comfortable confidence of economists in the simple version of the heckscher ohlin trade theory they also provoked numerous articles advancing other ways to account for the pattern of a country s trade the test statistic used for these empirical studies of the heckscher ohlin theorem was developed by leontief and further applied by later investigators although it was never set within a theoretical framework no one questioned it until williams canadian journal of economics revue canadienne d economique xvii no 1 february fevrier 1984 printed in canada imprime au canada 0008 4085 84 0000 0032 1 50 1984 canadian economics association this content downloaded from 157 55 39 104 on mon 20 jun 2016 05 49 18 utc all use subject to http about jstor org terms empirical investigation of heckscher ohlin theorem 33 published his paper in 1970 in that work williams asserted that leontief s inference is incorrect the united states is plentiful in capital and he provided a model from which he derived a correct test statistic williams 1970 from a practical point of view a major limitation of williams s model is the assumption that trade is perfectly free and that factor prices will be equalized through trade more recent papers by deardorff 1979 and brecher and choudhri 1982 have suggested in a two country context at least that the factor content condition developed by williams should hold when factor prices are unequal and there are tariffs or other impediments to trade marxsen 1983 has demonstrated that such is the case and therefore that the williams condition should hold even if factor prices are unequal and trade is tariff ridden the purpose of this paper is to provide an empirical test of the heckscher ohlin theorem in the first section a multi commodity two country two factor model is constructed and an approprite test statistic is devised based on the profit and wage content rather than the capital and labour content of trade the second section presents the empirical test results for the 1968 trade patterns of the nine countries under study in the third section these results are considered in the light of previous work and conclusions are drawn about the heckscher ohlin theorem

import share under international oligopoly with differentiated products japanese imports in u s manufacturing this paper seeks to identify the determinants of the japanese impor t share in the u s market from the assumptions of international oligopoly and internationally differentiated products a theoretical model is developed where import share is considered as a cournot nash equilibrium the relative position of the reaction functions is determined by the previous commitments of both domestic and foreign firms on advertising r d and tangible investment as well as by artificial and natural trade barriers using a sample of twenty four three digit import competing u s industries matched to japanese industries the empirical analysis provides evidence supporting the model s predictions that the relative strategic expenditures and market structures of both partners explain the japanese import share in u s markets copyright 1988 by mit press

labour skills and the uk s comparative advantage with its european union partners this paper assesses the extent and sources of the uk comparative advantage within the european union eu it finds that both inter industry and intra industry trade are important despite clear aggregation effects having established that there is a significant degree of inter industry specialization the sources of this are analysed using a factor content approach results are reported for aggregate factors of production and in the case of labour by disaggregated skill categories a key finding is that the uk s net trade with the eu is driven more by a specialization in specific types of skill than by an overall endowment of human capital the results also suggest that the inter industry specialization cannot be explained by comparative advantage alone

new policies for the stochastic inventory control problem with two supply sources we study an inventory system under periodic review in the presence of two suppliers or delivery modes the emergency supplier has a shorter lead time than the regular supplier but the unit price he offers is higher excess demand is backlogged we generalize the recently studied class of dual index policies veeraraghavan s a scheller wolf 2008 now or later dual index policies for capacitated dual sourcing systems oper res 56 4 850 864 by proposing two classes of policies the first class consists of policies that have an order up to structure for the emergency supplier we provide analytical results that are useful for determining optimal or near optimal policies within this class this analysis and the policies we propose leverage our observation that the classical lost sales inventory problem is a special case of this problem the second class consists of policies that have an order up to structure for the regular supplier here we derive bounds on the optimal order quantity from the emergency supplier in any period and use these bounds for finding effective policies within this class finally we undertake an elaborate computational investigation to compare the performance of the policies we propose with that of dual index policies one of our policies provides an average cost saving of 1 1 over the best dual index policy and has the same computational requirements another policy that we propose has a cost performance similar to the best dual index policy but its computational requirements are lower

continuous review lost sales inventory models with poisson demand a fixed lead time and no fixed order cost abstract this paper considers continuous review lost sales inventory models with no fixed order cost and a poisson demand process there is a holding cost per unit per unit time and a lost sales cost per unit the objective is to minimise the long run total cost base stock policies are in general sub optimal under lost sales the optimal policy would have to take full account of the remaining lead times on all the orders currently outstanding and such a policy would be too complex to analyse let alone implement this paper considers policies which make use of the observation that for lost sales models base stock policies can be improved by imposing a delay between the placement of successive orders the performance of these policies is compared with that of the corresponding base stock policy and also with the policy of ordering at fixed and regular intervals of time

modified base stock policies for continuous review lost sales inventory models with poisson demand and a fixed lead time abstract this paper reconsiders the lost sales inventory system studied by hill 2007 the commonly assumed policy to apply to the system is a pure base stock policy pbsp for which the best base stock is easily found hill shows that his simple delay policy sdp and full delay policy fdp perform better the sdp is a s d policy where s is the base stock of the best pbsp and d is a common lower bound on the delay between the placement of successive replenishment orders we show by simulation that the d value suggested by johansen 2001 outperforms hill s suggestion and that the performance often can be further improved by optimizing d for the test bed investigated by hill we show that for some parameter settings an additional improvement is achieved when s and d are optimized simultaneously the policy suggested by johansen performs better than the fdp in all settings where the former policy reduces the average cost of the best pbsp by at least 1

competing at home to win abroad evidence from japanese industry the study explores the influence of domestic competition on international trade performance using data from a broad sample of japanese industries domestic rivalry is measured directly using market share instability rather than employing structural variables such as seller concentration we find robust evidence that domestic rivalry has a positive and significant relationship with trade performance measured by world export share particularly when r d intensity reveals opportunities for dynamic improvement and innovation conversely trade protection reduces export performance these findings support the view that local competition not monopoly collusion or a sheltered home market pressures dynamic improvement that leads to international competitiveness

the kennedy round evidence on the regulation of international trade in the united states the purpose of this paper is to analyze and provide empirical evidence regarding the regulation of international trade flows our goal is to provide an explanation of the changes in the interindustry pattern of trade restrictions which emerged from the kennedy round of tariff negotiations the principal conclusion of the analysis is that the pattern of protection which resulted from the kennedy round was shaped to minimize the domestic political disruption resulting from liberalization industries which faced significant import threats and whose characteristics enhanced their potential political influence were able to maintain tariff protection in the face of overall liberalization the potential impact of the agreed upon tariff reductions was partially undermined by the introduction of offsetting nontariff trade barriers ntbs in addition ntbs were introduced systematically in industries that were becom

exports and economic growth in industrialized countries the prima facie causal relationships between growth exports and factor inputs capital and labour are investigated in five industrialized countries germany itlay japan united kingdom and united states over the period 1960 87 by analysing a four variable vector autoregressive var model for each country our results indicate that germany and japan experienced export led growth reverse causality between exports and growth is found in the case of the us and uk while to causal relationship between exports and output is found for itlay

knowledge flows in the global innovation system do u s firms share more scientific knowledge than their japanese rivals in this paper i test the common assumption that japanese firms strive to appropriate knowledge from the global scientific community while sharing little in return i found no support for this conventional perspective in the flat panel display industry u s firms shared no more knowledge with their global scientific community than japanese firms similarly japanese firms appropriated no more knowledge from the global community than their u s counterparts

market structure and u s trade flows abstract using samples of input output table detailed industries we test the impact of various elements of market structure on u s trade flows at the industry level holding factor proportions constant industry demand characteristics and the extent of scale economies have significant impacts on trade flows labor intensity at the industry level has the effects on trade flows which are predicted by the factor proportions theory capital intensity increases both import and export flows this result together with certain others suggests the importance of trade among industrialized countries in producer goods

science and technology in united states foreign trade economists generally believe that modern science technology such as the presence of scientists and engineers or research and development is a central factor in the comparative advantage of advanced industrial nations however most discussion of this topic rests on cross industry regressions which leamer and bowen i981 do not provide a valid indication of factor abundance so the overall role of science still remains to be established in addition much remains to be known about the role of different facets of science and innovation in the process of generating comparative advantage there are two fundamentally different ways of understanding technological differences between countries one point of view adopted in the standard neoclassical theory of international trade assumes all countries are on the same production function under these circumstances relative factor abundance determines the factor services which a country exports or imports within this perspective one can make progress towards an understanding of the role of science and technology in international trade by dividing science into many highly specific narrowly defined input factors calculations can then determine the relative abundance of those inputs associated with science technology versus other input factors in a given country or the relative abundance of different elements within the broad area of overall science technology quite another procedure assumes there are substantial differences in the production possibilities faced by different countries for example krugman i979 recently argued that advantages in innovation and lags in the diffusion of knowledge are the basic influences which permit incomes to be higher in the industrialised world than in developing nations this view illustrates the potential economic significance of innovation in advanced countries since the generation of new technologies in industrialised countries and their diffusion to the rest of the world then essentially determines world income distribution and world economic development however empirical implementation of the diffusion viewpoint requires data for many countries which greatly limits the number of facets of technology which can be considered since the present paper is centrally concerned with the effect which a wide variety of technological elements has on international trade we choose to select a framework within which the ample data available on different aspects of technology in the united states can be utilised the first view of technological

technical note linear inflation rules for the random yield problem analysis and computations in this paper we propose a simple heuristic approach for the inventory control problem with stochastic demand and multiplicative random yield our heuristic tries to find the best candidate within a class of policies that are referred to in the literature as the linear inflation rule lir policies our approach is computationally fast easy to implement and intuitive to understand moreover we find that in a significant number of instances our heuristic performs better than several other well known heuristics that are available in the literature

resource supplies and changing world agricultural comparative advantage abstract this paper advances consideration of the heckscher ohlin h o theory of comparative advantage to agriculture in a dynamic setting the dynamic relationship among trade flows resource supplies and factor contents is studied the view that special circumstances in the agricultural sector render the h o theory inapplicable as a guide to agricultural trade is challenged consistent with the h o theory the results suggest that changing world patterns of resource abundance are an important explanation of the evolving structure of world trade in agriculture commodities

a multiechelon inventory model with fixed replenishment intervals this paper develops a new model for studying multiechelon inventory systems with stochastic demand for the model we assume that each site in the system orders at preset times according to an order up to policy that delivery times are deterministic and that the demand processes are stochastic with independent increments we introduce a new scheme for allocating stock in short supply which we call virtual allocation and which permits significant tractability we exercise the model on a set of test problems for two echelon systems to get insight into the structure of good policies the primary findings are that both the central warehouse upper echelon and the retail sites lower echelon should hold safety stock but that most of the safety stock should be at the retail sites consequently the central warehouse will stock out with high probability furthermore we show that the virtual allocation rule is near optimal for the set of test problems

a test of the heckscher ohlin vanek theorem the leontief commonplace abstract this paper provides a logically complete empirical test of the hov theorem for the united states by comparing measures of factor intensities trade and factor endowments under the appropriate computations of the factor contents of trade and production u s data are shown to diverge often from their values as predicted by hov as a result it appears that paradoxical outcomes may be common in empirical applications of the theorem

r d rivalry industrial policy and u s japanese trade the authors examine how the strategic aspect of japanese research and development expenditures and industrial policies affected u s japanese bilateral trade during the late 1970s and investigate which component of r d expenditures on process innovation product quality improvements new products and new technology or technology transfer proved to be most effective they find that while japanese r d expenditures have generally promoted japan s trade advantage certain components of r d have proved more effective than other the depreciation subsidy and special status with the ministry of international trade and industry is positively related to the japanese trade performance while legal cartelization status has not had any apparent effect copyright 1988 by mit press

free trade fair trade strategic trade and protectionism in the u s congress 1987 88 what conditions led the one hundredth congress of the united states to enact fair trade and strategic trade policies into law during 1987 88 political partisanship is an important force with democrats supporting and republicans opposing all types of trade intervention otherwise the coalitions of support for and opposition to the various trade policies differ particularly in the senate in that body international business is associated with support for fair trade policies and with opposition to classical protectionism while domestic u s business is associated with support for classical protectionism liberalism is strongly associated with support for fair and strategic trade policies but is not associated with classical protectionism in the house of representatives the long standing protectionist coalition remains an influence few forces in support of free trade remain in u s politics changing international market conditions rapidly affect the making of u s trade policy

pure and modified base stock policies for the lost sales inventory system with negligible set up costs and constant lead times abstract the studied inventory system with continuous review has an easily computed optimal s 1 s policy when unsatisfied demands are backlogged we assume that unsatisfied demands are lost and then it is also easy to compute the best s 1 s policy but as demonstrated by roger hill at the isir symposium in 1996 this pure base stock policy can never be optimal if s 2 our focus is on periodic review we use erlang s loss formula to derive approximate expressions for the stockout probability and the average cost these expressions are used to approximate the average cost and to compute a good base stock we formulate and implement a markov decision model to find the optimal replenishment policy the model is solved by a policy iteration algorithm because the optimal policy is often rather complicated we introduce modified base stock policies they are specified by a pair s t where s is the base stock and t is a lower bound for the number of review periods between review epochs in which placing a replenishment order is permitted a simple one has s equal to the base stock computed from erlang s formula and fixes t as the largest integer which is less than or equal to the ratio of the number of review periods per delivery period and s our numerical examples show that the simple modified base stock policy provides most of the cost reduction which can be obtained by replacing the best pure base stock policy by the optimal policy

offshore sourcing reaction maturation and consolidation of u s multinationals the authors conducted a quasi longitudinal investigation of u s multinationals r d manufacturing offshore sourcing strategies and resultant global market performance implications utilizing comprehensive data collected by the 1977 1982 and 1989 benchmark surveys of u s direct investment abroad hypotheses were tested in a path analytic framework despite increased competition at home and abroad causing their global market share positions to weaken in recent years u s multinationals have maintained and even may have improved their global consolidated profitability levels by skillfully exploiting their technological prowess through technology transfer and off shore sourcing rapidly changing roles of u s parent firms and their foreign affiliates in technology development and global sourcing relationships portend a maturing yet arduous shift toward a global rationalization

taxes and expenditures in the u s public opinion surveys and incidence analysis compared the usefulness of surveys for eliciting fiscal opinions of voters is investigated using data from the u s advisory commission in intergovernmental relations annual surveys of attitude toward government and taxes the survey responses are related to economic and political factors and the survey results compared to those predicted by incidence analysis the results from this analysis and a review of previous studies of this type suggest that there is often no consistent economic foundation for answers to fiscal survey questions it also appears that some standard survey questions are too general to produce precise estimates of the factors influencing responses

managing inventory with multiple products lags in delivery resource constraints and lost sales a mathematical programming approach this paper develops an order up tos inventory model that is designed to handle multiple items resource constraints lags in delivery and lost sales without sacrificing computational simplicity mild conditions are shown to ensure that the expected average holding cost and the expected average shortage cost are separable convex functions of the order up to levels we develop nonparametric estimates of these costs and use them in conjunction with linear programming to produce what is termed the lp policy the lp policy has two major advantages over traditional methods first it can be computed in complex environments such as the one described above and second it does not require an explicit functional form of demand something that is difficult to specify accurately in practice in two numerical experiments designed so that optimal policies could be computed the lp policy fared well differing from the optimal profit by an average of 2 20 and 1 84 respectively these results compare quite favorably with the errors incurred in traditional methods when a correctly specified distribution uses estimated parameters our findings support the effectiveness of this mathematical programming technique for approximating complex real world inventory control problems

the impact of technological innovation on international trade patterns the evidence reconsidered abstract this paper presents some new evidence in relation to the role of technical change in particular industrial innovation on the international competitiveness of the various oecd countries its originality consists primarily of a using a technology output indicator to measure technological performance b presenting and comparing various measures of trade and technological performance for each individual oecd country with the exception of iceland c analysing at a relatively high level of product industry disaggregation the relationship between export performance and technological performance at the same time the very limited scope of the paper has to be emphasized a the analysis is purely static all the evidence presented relates to one year 1977 b most of the results obtained are preliminary and should be further substantiated by more detailed empirical and theoretical research c as a consequence little attention has been paid to policy implications which it was felt could only be discussed properly in a later stage the paper consists of four sections a brief review of the state of the art section 1 a discussion on definitions of technology intensity section 2 the development of the best technology output indicator section 3 and the empirical analysis itself section 4 the following most important results emerge from these various sections a there are serious shortcomings in using average technology intensity as bench mark for classifying products or industries in technology intensive or nontechnology intensive categories b there is a substantial difference between technology intensity as measured on the basis of a technology input proxy rd c yet as between countries the most traditional output and input indicators the number of patents granted and the amount spent on rd d foreign patenting in particular foreign patenting in the united states figs 1 and 2 section 3 is a more reliable technology output proxy than domestic patenting e in terms of technological comparative advantage as opposed to technology intensity it is the small oecd countries as opposed to the large ones which seem to base their trade comparative advantage on technological comparative performance table 7 section 4 1 f at the individual industry level it is found that i for most technology intensive industries defined however in a less restrictive way than us r d intensities a close relation exists between technological performance and export performance and ii that as compared to other country specific resource variables technological performance is the most important trade explanatory variable its elasticity increasing with the technology intensity of industries tables 11 and 12 section 4 2 space constraints prevented us from presenting the data in relation to the inter industry and inter country analysis these can however be obtained from the author

international r d rivalry and industrial strategy this paper presents a theory of government intervention which provides an explanation for industrial strategy policies such as r d or export subsidies in imperfectly competitive international markets domestic net welfare is improved by the capture of a greater share of the output of rent earning industries although the subsidy ridden noncooperative international equilibrium is jointly suboptimal behaviour of governments and firms is modelled as a three stage subgame perfect nash equilibrium the assumption that the government is the first player in this game allows it to influence equilibrium outcomes by altering the set of credible actions open to firms

s s policies for a dynamic inventory model with stochastic lead times this study analyzes a stochastic lead time inventory model under the assumptions that a replenishment orders do not cross in time and b the lead time distribution for a given order is independent of the number and sizes of outstanding orders the study extends the existing literature on the finite horizon version of the model and yields an intuitively appealing dynamic program that is nearly identical to one that would apply in a transformed model with all lead times fixed at zero hence many results that have been derived for fixed lead time models generalize easily conditions for the optimality of myopic base stock policies and for the optimality of s s policies are established for both finite and infinite planning horizons the infinite horizon model analysis is extended by adapting the fixed lead time results for the efficient computation of optimal and approximately optimal s s policies

game theoretic pricing and ordering decisions with partial lost sales in two stage supply chains abstract few papers have studied the optimal pricing and ordering with partial lost sales from a two stage game theoretic perspective this paper considers a supply chain game with a buyer and a seller through pricing and ordering models with partial lost sales we evaluate the optimal solutions for the buyer and the seller and provide insights into both the deterministic and stochastic demand models we also propose search algorithms to obtain the global optimum when convexity and concavity conditions are not satisfied