Relative Backwardness and Technological Catching Up with Scale Effects

This paper theoretically and empirically analyzes the sources of the observed pattern that the levels and growth rates of technology are different across countries. The model is extended version of endogenous growth models with catching up model which is formulated by the relative backwardness hypothesis and the adoption capacity. The relative backwardness hypothesis states that the backward countries attain a high productivity growth rate because adopting advanced technologies is easier and less costly than innovation, Thus, the technologically less advanced countries tend to grow faster than technologically leading countries. A necessary condition, in order that the laggard countries might be able to take advantage of the available technology, is the well-developed capacity, ``Adoption capacity'', to adopt the superior technology. This is determined by policy variables that are conducive to technology adoption. The catching up theory states that technological catching up is strongest in countries that are not only technologically backward but also in those countries which have policy determinants conducive to technology adoption. Theoretically, it is shown that the steady state growth rate of technology is determined by population growth rate while the steady state relative backwardness depends on the adoption capacity, the productivity in the R&D sector, and the relative human capital stock. The empirical relevance of the catching up theory is investigated as well. The empirical results support the formalized catching up theory by showing the significant role which policy determinants conducive to technological adoption play. The robust role of scale effects in explaining technological catching up is also shown. Further, the speeds of technological catching up are estimated to be around 2 percent.

Overseas Entry Decision and Ownership Strategy of Japanese Companies: Institution and Corporate Governance

Using 20-year panel data, this paper tests Japanese companies' sequential decisions: (1) to invest abroad or not and (2) if so, what ownership strategy for that local company to be employed. In addition to transaction advantage emphasized by traditional studies on FDI, the focus is the role of corporate governance of the parent companies and institutional environment of the host countries. Through Heckman's two-step estimation, corporate governance is found to play an important role for entry decision but not for ownership strategy. Transaction cost approach has been well supported for entry decision. Most importantly, an institutional environment favorable to MNEs leads to higher level of ownership of local companies. Firm size plays a significant role for FDI decision as well as for ownership decisionSample selection bias; Entry decision; Ownership strategy; Corporate governance; Institution

Global well-posedness and scattering of the (4+1)-dimensional Maxwell-Klein-Gordon equation

This article constitutes the final and main part of a three-paper sequence, whose goal is to prove global well-posedness and scattering of the energy critical Maxwell-Klein-Gordon equation (MKG) on $\mathbb{R}^{1+4}$ for arbitrary finite energy initial data. Using the successively stronger continuation/scattering criteria established in the previous two papers, we carry out a blow-up analysis and deduce that the failure of global well-posedness and scattering implies the existence of a nontrivial stationary or self-similar solution to MKG. Then, by establishing that such solutions do not exist, we complete the proof.Comment: 64 page