Found 6 article(s) for author 'Manufacturing'

Are economic rents good for development? Evidence from the manufacturing sector

Are economic rents good for development? Evidence from the manufacturing sector. Eric Werker, December 2018, Paper, “Are rents, or excess profits, good for development? Rents could induce firms to lobby or bribe governments to preserve the status quo; on the other hand, rents may promote growth by giving firms the needed funds to make investments in fixed capital or research and development. To test this question empirically, we use a panel of manufacturing data at the industry-country-year level, and measure rents by the mark-up ratio. We find that the relationship between rents and growth is strongly negative, with the results being primarily driven by the poorer countries (or those with worse institutions) in the sample.Link

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Recent US Manufacturing Employment: The Exception that Proves the Rule

Recent US Manufacturing Employment: The Exception that Proves the Rule. Robert Lawrence, November 2017, Paper, “This Working Paper challenges two widely held views: first that trade performance has been the primary reason for the declining share of manufacturing employment in the United States, and second that recent productivity growth in manufacturing has actually been quite rapid but is not accurately measured. The paper shows that for many decades, faster productivity growth interacting with unresponsive demand has been the dominant force behind the declining share of employment in manufacturing in the United States and other industrial economies. It also shows that since 2010, however, the relationship has been reversed and slower productivity growth in manufacturing has been associated with more robust performance in manufacturing employment.” Link

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Made in the World – Global Production: Firms, Contracts, and Trade Structure

Made in the World – Global Production: Firms, Contracts, and Trade Structure. Pol Antras, 2016, Book Chapter, “Global Production is the first book to provide a fully comprehensive overview of the complicated issues facing multinational companies and their global sourcing strategies. Few international trade transactions today are based on the exchange of finished goods; rather, the majority of transactions are dominated by sales of individual components and intermediary services. Many firms organize global production around offshoring parts, components, and services to producers in distant countries, and contracts are drawn up specific to the parties and distinct legal systems involved. Pol Antràs examines the contractual frictions that arise in the international system of production and how these frictions influence the world economy.Link

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Informal Tradables and the Employment Growth of Indian Manufacturing

Informal Tradables and the Employment Growth of Indian Manufacturing. William R. Kerr, March 2015, Paper. “India’s manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a “push” entrepreneurship story. The paper also finds modest connections of this growth to rising female...” Link

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Profits and Economic Development

Profits and Economic Development. Eric Werker, April 3, 2014, Paper. “Are rents, or excess profits, good for development? Using industry-level manufacturing data, this paper demonstrates a negative effect of rents, measured by the mark-up ratio, on productivity growth. The negative effect is strongest in poor countries, suggesting that high profits stymie economic development rather than enable it. Consistent with the rent-seeking mechanism of our model, we find that high rents are associated with a slower reduction in tariffs. A country’s average mark-up in manufacturing is a strong negative predictor of…” Link Verified October 11, 2014

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Unconditional Convergence in Manufacturing

Unconditional Convergence in Manufacturing. Dani Rodrik, Paper, May 2013. “Unlike economies as a whole, manufacturing industries exhibit strong unconditional convergence in labor productivity. The article documents this at various levels of disaggregation for a large sample covering more than 100 countries over recent decades. The result is highly robust to changes in the sample and specification. The coefficient of unconditional convergence is estimated quite precisely and is large, at between 2–3% in most specifications and 2.9% a year in the baseline specification covering 118 countries. The article also finds…” Link

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