Technology Choice in the IT Industry and Changes of the Trade Structure

In the IT industry, there has been a remarkable increase in the demand for system LSI. A system LSI must be produced, tailor-designed for each electrical appliance. It is said that this production method has made the IC cycle ambiguous in recent years. It can be sought that the choice of whether the economy pursues a development path centering on technology which is tradable or technology which is embodied in labor, depends on the historical background. The relationship between these two types of technologies is changing rapidly every one or two years. In this background, the analysis is focused on the new trend of technology. In the section 2, the newest trend of technology in the field of system LSI is explained. Then, which kind of technology will be developed and how it will have an affect in the near future, is considered.Technology Choice, IT industry, Trade Structure, System LSI, Information technology, Information services industry

Strategic trade policy and non-linear subsidy : in the case of price competition

In a strategic trade policy, it is assumed, in this paper, that a government changes disbursement or levy method so that the reaction function of home firm approaches infinitely close to that of foreign firm. In the framework of Bertrand-Nash equilibrium, Eaton and Grossman[1986] showed that export tax is preferable to export subsidy. In this paper, it is shown that export subsidy is preferable to export tax in some cases in the framework of Bertrand-Nash equilibrium, considering the uncertainty in demand. Historically, many economists mentioned non-linear subsidy or tax. However, optimum solution of it has not yet been shown. The optimum solution is shown in this paper.Trade policy, Exports, Taxation, Strategic trade policy, Non-linear subsidy, Bertrand-Nash equilibrium, Stackelberg equilibrium

Backward-bending of labor supply function and free riders

It seems like that backward- bending of labor supply function can be observed in Central Asian Countries such as Uzbekistan and Kazakhstan. People’s basic needs of life are satisfied and they do not increase labor supplies even if wage increases. It is possible to find some cases in which slowdowns increase, when a manager in a firm enforces penalties for workers have slowdowns. This phenomenon occurs because a worker prefers the position of equilibrium on the labor supply function always in the upper direction. This article explains the increase of free-riders by penalties and how to avoid them

Financial Policies and Dynamic Game Simulation in Poland and Hungary

Recently, steady economic growth rates have been kept in Poland and Hungary. Moneysupplies are growing rather rapidly in these economies. In large, exchange rates have trends ofdepreciation. Then, exports and prices show the steady growth rates. It can be thought that percapita GDPs are in the same level and development stages are similar in these two countries. It isassumed that these two economies have the same export market and export goods are competing init. If one country has an expansion of monetary policy, price increase and interest rate decrease.Then, exchange rate decrease. Exports and GDP will increase through this phenomenon. At thesame time, this expanded monetary policy affects another country through the trade. This mutualrelationship between two countries can be expressed by the Nash-equilibrium in the Game theory.In this paper, macro-econometric models of Polish and Hungarian economies are built and theNash- equilibrium is introduced into them

Technology Choice in the IT Industry and Changes of the Trade Structure

In the IT industry, there has been a remarkable increase in the demand forsystem LSI. A system LSI must be produced, tailor-designed for each electricalappliance. It is said that this production method has made the IC cycle ambiguous inrecent years. It can be sought that the choice of whether the economy pursues adevelopment path centering on technology which is tradable or technology which isembodied in labor, depends on the historical background. The relationship betweenthese two types of technologies is changing rapidly every one or two years. In thisbackground, the analysis is focused on the new trend of technology. In the section 2,the newest trend of technology in the field of system LSI is explained. Then, whichkind of technology will be developed and how it will have an affect in the nearfuture, is considered

Strategic trade policy and non-linear subsidy : in the case of price competition

In a strategic trade policy, it is assumed, in this paper, that a government changes disbursement or levy method so that the reaction function of home firm approaches infinitely close to that of foreign firm. In the framework of Bertrand-Nash equilibrium, Eaton and Grossman[1986] showed that export tax is preferable to export subsidy. In this paper, it is shown that export subsidy is preferable to export tax in some cases in the framework of Bertrand-Nash equilibrium, considering the uncertainty in demand. Historically, many economists mentioned non-linear subsidy or tax. However, optimum solution of it has not yet been shown. The optimum solution is shown in this paper

Technology Choice, Change of Trade Structure, and A Case of Hungarian Economy

In the IT industry, there has been a remarkable increase in the demand for system LSI. A system LSI must be tailor-designed for each electrical appliance, and then produced. It is said that in recent years, this production method has made the IC cycle ambiguous. It can be sought that the choice of whether the economy pursues a development path centering on technology which is tradable or technology which is embodied in labor, depends on the historical background. In this paper, the economic background is explained in order to analyze and capture movements in the IT industry and technology. Then, an econometric model for Hungary has been constructed to estimate the effect of technological progress on the economy