Top PDF Intangible Investment in Japan: New Estimates and Contribution to Economic Growth

Intangible Investment in Japan: New Estimates and Contribution to Economic Growth

Intangible Investment in Japan: New Estimates and Contribution to Economic Growth

The purpose of this paper is to measure intangible assets, to construct the capital stock of intangible assets, and to examine the contribution of intangible capital to economic growth in Japan. We follow the approach of Corrado, Hulten, and Sichel (2005, 2006) to measure intangible investment using the 2008 version of the Japan Industrial Productivity (JIP) Database. We find that the ratio of intangible investment to GDP in Japan has risen during the past 20 years and now stands at 11.6%, which is lower than the ratio estimated for the United States in the early 2000s. The ratio of intangible to tangible investment in Japan is also lower than equivalent values estimated for the United States. In addition, we find that, in stark contrast with the United States, where intangible capital grew rapidly in the late 1990s, the growth rate of intangible capital in Japan declined from the late 1980s to the early 2000s. In order to examine the robustness of our results, we also conducted a sensitivity analysis and found that the slowdown of the contribution of intangible capital deepening to economic growth and the recovery in Multi-Factor Productivity (MFP) growth from the second half of the 1990s observed in our base case remain unchanged even if we take on-the-job training and Japanese data with respect to investment in firm-specific resources into account.
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Intangible Investment in Japan: Measurement and Contribution to Economic Growth

Intangible Investment in Japan: Measurement and Contribution to Economic Growth

Our paper consists of four sections. In the next section, we estimate tentative time series of intangible investment following the methodology developed by Corrado, Hulten, and Sichel (2005, 2006). We find that the ratio of intangible to tangible assets is lower in Japan than in the US. In Section 3, we construct intangible capital by using the intangible investment series and conduct a growth accounting exercise. The results of the growth accounting with intangible capital show that the contribution of intangible capital to economic growth is small because the share of intangible capital in total capital is also relatively small. However, this result does not mean that the potential role of intangible capital is not important for economic growth. If intangible capital in Japan contributed to economic growth at the same rate as in the US, labor productivity growth in Japan would be 0.2 percentage points higher. The last section summarizes our results and their policy implications and discusses future tasks.
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Productivity and growth in UK industries : an intangible investment approach

Productivity and growth in UK industries : an intangible investment approach

This paper tries to calculate some facts for the “knowledge economy”. Building on the work of Corrado, Hulten and Sichel (CHS, 2005,9), using new data sets and a new micro survey, we (1) document UK intangible investment and (2) see how it contributes to economic growth. Regarding investment in knowledge/intangibles, we find (a) this is now greater than tangible investment at, in 2008, £141bn and £104bn respectively; (b) that R&D is about 11% of total intangible investment, software 15%, design 17%, and training and organizational capital 22%; (d) the most intangible-intensive industry is manufacturing (intangible investment is 20% of value added) and (e) treating intangible expenditure as investment raises market sector value added growth in the 1990s due to the ICT investment boom, but slightly reduces it in the 2000s. Regarding the contribution to growth, for 2000-08, (a) intangible capital deepening accounts for 23% of labour productivity growth, against computer hardware (12%) and TFP (40%); (b) adding intangibles to growth accounting lowers TFP growth by about 15% (c) capitalising R&D adds 0.03% to input growth and reduces lnTFP by 0.03% and (d) manufacturing accounts for just over 40% of intangible capital deepening plus TFP.
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The economic and fiscal contribution of US investment in Ireland

The economic and fiscal contribution of US investment in Ireland

€500m of investments were made in R&D projects in 2009, with over €350m of this originated from US firms. US firms in 2009 exported an estimated €93.5 billion of products and services from Ireland into world markets. The US is one of Ireland's top export destinations with total bilateral trade in the first three quarters of 2009 (exports to + imports from the USA) worth €20 billion. US firms in Ireland form a critical part of Ireland's cutting-edge, internationally traded goods and services economy in industries such as ICT, biotechnology, pharmaceuticals, medical devices and financial services. It is clear, therefore, that US investment has been critically important to the growth and modernisation of Irish industry over the past 25 years, providing new technology, export capabilities, and employment opportunities. In more recent years, Ireland has also become an important R&D centre for US firms in Europe.
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Drivers of Ethiopian Economic Growth: A Systematic Review

Drivers of Ethiopian Economic Growth: A Systematic Review

The review applied two stage screening process: title and abstract screening and Full-text screening. The researcher used hand searching method with key search terms from internet. Various papers were indentified with the same topic. Of these paper 12(twelve) studies were found relevant. The study assumed that dependent variable (Economic Growth) is a function of various economic variables. For this study, however, the main determinants of economic growth are: Household Consumption(C), Private Investment (PI), Government Investment and Expenditure (GE), Trade Openness (TO), External Debt (ED), Exchange Rate (ER), and Export (EX), Foreign Aid (FA) and Human Capital (HC).
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Sectoral inflow of foreign direct investment and economic growth  in nigeria: a co integration analysis

Sectoral inflow of foreign direct investment and economic growth in nigeria: a co integration analysis

fact that the FDI has the potential to improve the growth and development of the economy. Nigeria in quest for growth and development joined the rest of the world in seeking the inflow of FDI as it helps the domestic resources of the economy to enhanced economic growth. An augmented growth model was estimated via the Ordinary Least Square (OLS) techniques to establish the relationship between inflow of FDI to manufacturing sector, telecommunication sector, oil sector and economic growth (GDP). The variables were tested for stationarity and co-integration analysis was also carried out using the Johansen co-integration technique. The study found that components of FDI have a long run relationship with economic growth in Nigeria. Thus, the alternative hypothesis that there is a long run relationship between gross domestic product (GDP) and sectoral inflow of FDI was accepted. Meaning that continuous inflow of foreign direct in manufacturing, telecommunication and oil sectors has the tendency to induced Nigeria economic growth. Based on the aforementioned findings from the study, the following recommendations were made: Since foreign direct investments in manufacturing, telecommunication, and oil sectors have the potentials to induce economic growth in Nigeria, there is therefore the need to properly channel and integrate them into the mainstream of the economy. Also, there is the need for continuity and consistency in government policies directed specifically towards improving the business environment to attract foreign investors which will in turn impact positively on economic growth. One way to improve the business environment is by conscious provision of necessary infrastructure facilities such as good electricity, which will lower the cost of doing business in Nigeria.
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Private Capital Inflows and Economic Growth in Kenya

Private Capital Inflows and Economic Growth in Kenya

However, Herz (2000) argues that there is no consensus on the exact benefits of foreign private capital inflows in the context of globalization. There is the argument that MNEs are big and their sales exceed the GDP of some of the African countries. Also, there are no trickle-down effects from FDI, and MNEs pay abysmally low wages. Moreover, the freedom of policy makers in developing countries is increasingly constrained by the need to cater for the interest of big business. In Kenya the incentives given to foreign investors in the form of tax holidays, stamp duty exemption and value added tax (VAT) exemption on company inputs by the Export Processing Zone (EPZ) may impact negatively on the development of indigenous entrepreneurship (Republic of Kenya, 1990). If Kenya has to transform itself into a newly industrialized, middle income country as envisioned in the Kenya Vision 2030, capital inflows in the form of foreign direct investment and more portfolio inflows should be encouraged. Only then can an economic growth of 10 per cent be attained and sustained(Republic of Kenya,2007).
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The Six Linkages between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force and Economic Growth: New Empirical and Policy Analysis from Nigeria

The Six Linkages between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force and Economic Growth: New Empirical and Policy Analysis from Nigeria

The contribution of this study is to search the six linkages between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force and Economic Growth in Nigeria by using vector error correction model for the period 1981 – 2015. The empirical results indicate that there is no relationship between the six variables in the long run. In the short run imports cause economic growth and domestic investment; exports and FDI cause labor; and labor causes FDI. These findings present the critical situation of Nigeria, which requires an entry of urgent economic reforms.
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The Impact of Foreign Direct Investment on Economic Growth in Libya

The Impact of Foreign Direct Investment on Economic Growth in Libya

Thus, from Table 5, it can be concluded that the R squared value indicates that about 61% of the changes in the economic growth rate can be attributed to foreign direct investmentIn addition, Table 5 shows that multiple R values represent the multiple correlation of 0.781 (column "R"), indicating a high degree of correlation between all forecasters in the model (FDI, human capital value (labor force), And the value of inflation was excluded due to the absence of reliable data (and the dependent variable) which is economic growth. And Durbin-Watson d = 1.383, where this value between the two forest values is 0.562 <d <2.220 (α = 0.05) (Anderson, Sweeney, Williams, Cam, & Cochran, 2014). Thus, it can be assumed that there is no automatic correlation in the current multiple linear regression data.As shown in the above table, the estimated value of the parameters was as follows: The independent variable (ln FDI) coefficient (0.215) was positive. This means that the increase in FDI by 1% leads to an increase in GDP by 0.215% The estimated general line has given the best results, as follows: LnGDP = 1.929 + 0.215lnFDI + 1.039lnHC and this satisfies the assumption that increased foreign direct investment leads to the higher economic growth rate in Libya.
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The Role of Intellectual Property Rights in the UK Market Sector*

The Role of Intellectual Property Rights in the UK Market Sector*

This report estimates (a) the level of UK market sector investment in knowledge assets protected by Intellectual Property Rights (IPRs) and (b) the impact of investment in those assets via their contribution to labour productivity growth in the UK market sector. Estimates for investment and the stock of IPR capital are based on previous work and includes new estimates for investment in artistic originals, funded by the Intellectual Property Office (IPO) and featured in the accompanying report. We also comment on additional spending on IP-protected goods that do not represent investments, although the coverage of this category is far from complete. Our main findings are: 1) On average, between 2000 and 2008, 48% of knowledge investment in the UK market sector was protected by IPRs 2) The majority of IPR investment is on assets protected by copyright and design rights 3) In 2008 approximately 62% of the stock of knowledge assets in the UK market sector was protected by IPRs 4) On average, between 1990 and 2008, 10.6% of growth in labour productivity was due to growth in capital deepening of IPR-protected assets. Comparable figures for ICT equipment and knowledge capital not protected by IPRs are 11.1% and 10.3% respectively.
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An Analytical Study On Contributions Of Tourism Industry In India

An Analytical Study On Contributions Of Tourism Industry In India

While tourism is no universal elixir, the development of tourism can play a much more significant role in the future than it does at present. Analysis of the economic effects of tourism based on a comparison of the nation’s shows that mobilising the demand and supply chain for tourism services has extremely beneficial effects on employment and the current balance of payments. The nations have a major responsibility to promote the economic role of tourism, towards both themselves and the entire international community, especially the host country. In order to do so, India can promote significant use of tourism as a factor of economic development and job creation by setting up specific initiatives. Tourism is playing vital role in the economic development of India which we are observed by various facts and figures of this article. Tourism significantly helping to generate foreign exchange, infrastructure development, Direct & Induced employment, increasing revenue, opportunities for FDI etc. is the key factors for the development of the nation.
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The Impact Of Diffusion Of Information Communications Technology (ICT) On Iran Sectoral Productivity Growth

The Impact Of Diffusion Of Information Communications Technology (ICT) On Iran Sectoral Productivity Growth

3- Empirical Result of Impact of ICT on Sectroal Productivity: Iran’s telecommunications industry is almost entirely state-owned, dominated by the Telecommunications Company of Iran (TCI). Among the infrastructure systems, the telecommunications sector has the best prospects of growth under private sector ownership. Economic structure of ICT sector in Iran has been undergoing due to privatization since 2004. The ultimate goals that the government hopes to attain are increased competition and the large productivity gains. Achieving these gains is therefore contingent on a number of factors including investment and access to ICT sector and the needed skills. This study analyzes data for empirical study to reveal whether telecom service make been enhanced efficiency and productivity growth in Iran. ICT can be substituted for labour forces and capital and decreases employment and capital and make to cost-reduction. It makes decrease price of production of ICT goods and services relative to the retail price index considerably. Figure (1) shows unlikely this fact that telecommunications price has increased more than retail price index before privatization that maybe arising state-owned of ICT sector and inspired price which has increased by government, but after privatization telecom price has fallen. On vertical axis, figure (1) shows telecommunication price and retail price at the prices prevailing 2004 and on horizontal axis the over period.
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The impact of trade on economic growth

The impact of trade on economic growth

The issue of convergence versus economic divergence has been a great debate in the literature over the past decades. In 1990s the endogenous growth models emerged. In fact, technological progress, innovation could not be analyzed outside the economic system, as demonstrated by exogenous growth models. The models of monopolistic competition (endogenous) showed that international trade, foreign direct investment and technological factors promoted the economic growth. Thus, it appears that it is more important to assess the growth perspective endogenous than exogenous. That is, more than studying the convergence versus the economic divergence between a group of economies, it is important to evaluate the economic growth in a dynamic perspective. With the economic globalization the theoretical and empirical models were revisited.
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The Financial Crisis and the Measurement of Financial Sector Activity

The Financial Crisis and the Measurement of Financial Sector Activity

This paper will examine the potential that a contraction in U.S. finance has to impinge aggregate output, looking at both the direct effects of a diminution in the size of the sector, and at potential spillovers to the rest of the economy. Steindel (2090) found that in the data used in the National Income and Product Accounts, substantial, sustained contractions in both finance and real estate do not appear to, by themselves, be capable of accounting for very large and prolonged slowdowns in activity. This paper re-examines those findings in the wake of updated data. Furthermore, taking into account the work of Corrado, Hulten, and Sichel (2005, 2009) on the role of intangible investments in U.S. economic growth, a modified estimate of financial sector activity is discussed. This measure assumes that the unusually large compensation received by workers in the financial sector (documented by Phillipon and Reshef, 2009) may be a proxy for investment in market knowledge. The resulting augmentation of financial investment appears capable of accounting for a meaningful proportion—on the order of one-third—of the brisk trend growth rate of multifactor productivity (MFP) in the sector in the last generation. This allows for a more systematic estimation of the potential direct aggregate impact of a contraction in finance.
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The contribution of university research to economic growth

The contribution of university research to economic growth

As well as the direct commercialisation of their own research, innovation generated through business-university collaboration is critical to growth in new businesses and driving efficiencies and value in existing businesses. There is clear evidence to show linking with the academic base results in greater economic impact. And, here in the UK, we are good at collaborative innovation, outperforming nearly every other country in the efficiency and productivity of our university-business activities. These strong and productive partnerships are enabled by our effective support mechanisms for getting the best out of collaboration.
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Stock Market and Economic Growth in Nigeria

Stock Market and Economic Growth in Nigeria

The broad objective of this study is to examine the impact of stock market on economic growth in Nigeria and the study thus seeks specifically to examine the trend in Nigeria’s stock market and analyze the direction of casualty between stock market parameters (in terms of size, actual performance and the inclusion of the gross capital formation among the gaps found in literature) and economic growth in Nigeria. Studying the relationship between Stock market and real output growth is important because of the need to understand the complex link between the two variables. A strong capital formation will also ensure the citizens are enlightened on the benefit of stock market through media. This will solve the problem of awareness of stock exchange. This is further structured as follows: section two consists of the literature review which shows the insights from relevant literature. The next section (three) is the theoretical framework and methodology which is then followed by section four (results and discussion) and finally the summary, conclusion and recommendation as the section five.
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Fintech contribution to Indonesia's economic growth

Fintech contribution to Indonesia's economic growth

Financial markets can be done through direct finance (direct finance) or indirect financing (indirect finance). The fundamental difference between the two types is the existence of financial intermediary institutions in indirect financing that shape the process of channeling funds. The role of financial intermediary institutions is very important in this fund flow process because it can reduce transaction costs, the existence of a risk- sharing system, prevent adverse selection and moral hazard by providing symmetrical information. Thus, owners and borrowers of small amounts of funds can participate in the financial markets, so as a whole can improve efficiency in the economy (Matthews, Giuliodori, & Mishkin, 2013). The intended efficiency allows limited resources to be allocated for productive activities and is able to significantly boost economic growth.
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Determinants of Foreign Direct Investment: Empirical Evidence from Saudi Arabia

Determinants of Foreign Direct Investment: Empirical Evidence from Saudi Arabia

FDI is an integral funding mechanism for capital projects across different countries [14]. This is particularly true for developing countries where the FDI inflow is observed to drive economic growth, meet capital deficits and impose a positive effect on their economies [15-17]. Bekhet and Al-Smadi [18] have also demonstrated that FDI acts as an economic growth stimulator and brings not only capital, but technological skills and the expertise necessary to augment a country’s production quality. This is also evident from UNCTAD’s statistical reporting, which showed an increase in FDI from 1980 to 2015, when it rose from 54.396m dollars to 1,762.155m dollars, respectively [19]. Empirical studies have used various methods to determine the FDI trends in a country. For example, Anwar and Cooray [20] used ordinary least squares (OLS), generalized method of moments, and panel data to investigate the interaction among gross domestic product (GDP), official development assistance, FDI, and remittances for 103 countries from 1970 to 2011. It showed that remittances and FDI of a country positively impact GDP. It also listed government expenditure, institutional quality, and human capital as FDI incentives. Gui-Diby and Renard [21] applied the generalized least squares method to identify FDI’s relationship with industrialization in the African countries from 1980 to 2009. The variables studied include the formation of gross fixed capital, industrialization level, imports, FDI, exports, and the value added to the agricultural sector. The findings of the study showed that the level of industrialization and the market size have no impact on the FDI flow, whereas international trade and the financial sector have a positive impact.
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The Impact of Domestic Investment on Economic Growth: New Evidence from Malaysia

The Impact of Domestic Investment on Economic Growth: New Evidence from Malaysia

The aim of this study was to determine the impact of domestic investment on economic growth in Tunisia during the period of 1969 to 2015. The correlation analysis, the cointegration analysis, VECM model and the Granger Causality Tests are used here to look into the relationship between domestic investment and economic growth in the long run term and in the short run term. According the results, we find that there is a positive impact of domestic investment, exports and labor on economic growth in the long run term; however, there is no relationship between domestic investment and economic growth in the short term. This is due to the importance of the geographical location of Malaysia. Where it is located in the heart of the East Asian and is a very distinct area and it is easy to export to the neighboring day and this is a very important feature. The Malaysian government also encourages investors to invest and trade on their land by providing them with the convenience and ease of procedures. In addition, Malaysia is a politically stable country with laws in force. The technological development witnessed by Malaysia has helped the owners of factories and companies to excel in their work by improving the quality of production and marketing and at all other levels. One of the most important factors explaining the effectiveness of domestic investment and export in Malaysia's high economic growth is its excellent infrastructure.
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Democracy, Investment and Economic Growth

Democracy, Investment and Economic Growth

Generally, empirical studies have been conducted to test the said relationship agree, despite the diversity of samples and indicators, on the adverse effects of political instability on economic performance of the country concerned. Thus, studies of Barro (1996), Azam et al. (1996) showed a direct negative impact of political instability on economic growth. Guillaumont et al. (1999) have shown that political instability is a key variable to explain the systematic underperformance of African countries over the period 1970-1990. De Haan and Siermann (1996) do not contest the effect of instability on growth, but state that this happens mainly by the investment variable.
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