15,983 research outputs found
Discriminating Among Alternative Theories of the Multinational Enterprise
Recent theoretical developments have incorporated endogenous multinational firms into the general-equilibrium model of trade. One simple taxonomy separates the theory into vertical' models in which firms geographically separate activities by stages of production and horizontal' models of multi-plant firms which duplicate roughly the same activities in many countries. We refer to a hybrid of these two as the 'knowledge capital model'. In this paper, we nest these three models within an unrestricted model. Econometric tests give strong support to the horizontal model and overwhelming reject the vertical model.
General-Equilibrium Approaches to the Multinational Firm: A Review of Theory and Evidence
Beginning in the early 1980s, theoretical analyses have incorporated the multinational firm into the microeconomic, general-equilibrium theory of international trade. Recent advances indicate how vertical and horizontal multinationals arise endogenously as determined by country characteristics, including relative size and relative endowment differences, and trade and investment costs. Results also characterize the relationship between foreign affiliate production and international trade in goods and services. In this paper, we survey some of this recent work, and note the testable predictions generated in the theory. In the second part of the paper, we examine empirical results that relate foreign affiliate production to country characteristics and trade/investment cost factors. We also review findings from analyses of the pattern of substitutability or complementarity between trade and foreign production.
A Unified Approach to Intra-Industry Trade and Direct Foreign Investment
Economic interactions among the high-income developed countries are characterized by high degrees of both intra-industry trade and intra-industry affiliate production and sales. Similar high-income countries both heavily trade with and invest into each other. The purpose of this paper is to show how the theory of direct investment can now be integrated with the theory of international trade in goods, and to show how the two combine to determine the pattern of trade and foreign affiliate production. Empirical estimation gives good support to the predictions of the theory for intra-industry affiliate sales, with somewhat weaker results for intra-industry trade. Results confirm that the intra-industry affiliate sales index rises relative to the intra-industry trade index as countries become richer and more similar in size and in relative endowments.
Shape versus Volume: Making Large Flat Extra Dimensions Invisible
Much recent attention has focused on theories with large extra compactified
dimensions. However, while the phenomenological implications of the volume
moduli associated with such compactifications are well understood, relatively
little attention has been devoted to the shape moduli. In this paper, we show
that the shape moduli have a dramatic effect on the corresponding Kaluza-Klein
spectra: they change the mass gap, induce level crossings, and can even be used
to interpolate between theories with different numbers of compactified
dimensions. Furthermore, we show that in certain cases it is possible to
maintain the ratio between the higher-dimensional and four-dimensional Planck
scales while simultaneously increasing the Kaluza-Klein graviton mass gap by an
arbitrarily large factor. This mechanism can therefore be used to alleviate (or
perhaps even eliminate) many of the experimental bounds on theories with large
extra spacetime dimensions.Comment: 9 pages, LaTeX, 5 figure
Estimating the Knowledge-Capital Model of the Multinational Enterprise
What we term the firm includes three principal assumptions. First, services of knowledge-based and knowledge-generating activities, such as R&D, can be geographically separated from production and supplied to production facilities at low cost. Second, these knowledge-intensive activities are skilled-labor intensive relative to production. These characteristics give rise to vertical multinationals, which fragment production and locate activities according to factor prices and market size. Third, knowledge-based services have a (partial) joint-input characteristic that they can be supplied to additional production facilities at low cost. This characteristic gives rise to horizontal multinationals, which produce the same goods or services in multiple locations. In this paper, we note how this model predicts relationships between affiliate sales and country characteristics. We then subject these predictions to empirical tests.
A COMPARISON OF THE ECONOMIC RENT AND CONSUMER SURPLUS METHODS OF VALUING RECREATION BOATING SITES
Resource /Energy Economics and Policy,
The Effects of Individual Vessel Quotas in the British Columbia Halibut Fishery
Implementation of Individual vessel quotas (IVQs) in the British Columbia halibut fishery has provided a unique opportunity to examine the effects of this management technique on a previously intense "derby" fishery. This paper describes the changes that have occurred in the fishery since the introduction of individual vessel quotas in 1991. The results presented here are largely based on the findings of two surveys. In September 1993, we conducted in-depth interviews with most of the major halibut processors in British Columbia. These processors reported significant changes in the processors and marketing of halibut. In Spring 1994, we conducted a mail survey of all 435 licensed halibut fishermen. The survey consisted of several series of questions designed to measure changes in fishing operations (crew size, fishing practices, etc.). quota leasing activities, changes in fishing income, and opinions about the effects of IVQs. The results presented here provide important information about the effects of the British Columbia halibut IVQ program to date and will be useful for comparison to similar management programs implemented elsewhere.fishery management, ITQs, Pacific Halibut, Environmental Economics and Policy, International Relations/Trade, Resource /Energy Economics and Policy,
Digital control of magnetic bearings supporting a multimass flexible rotor
The characteristics of magnetic bearings used to support a three mass flexible rotor operated at speeds up to 14,000 RPM are discussed. The magnetic components of the bearing are of a type reported in the literature previously, but the earlier analog controls were replaced by digital ones. Analog-to-digital and digital-to-analog converters and digital control software were installed in an AT&T PC. This PC-based digital controller was used to operate one of the magnetic bearings on the test rig. Basic proportional-derivative control was applied to the bearings, and the bearing stiffness and damping characteristics were evaluated. Particular attention is paid to the frequency dependent behavior of the stiffness and damping properties, and comparisons are made between the actual controllers and ideal proportional-derivative control
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