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The listed A-share manufacturing enterprises in China from 2010 to 2019 serve as the research samples in this study. Moreover, the influence mechanism and effect of digital transformation of enterprises on technology innovation are studied at the micro level. The digital transformation of enterprises can facilitate technology innovation, and this effect continues to be significant after a series of endogenous and robustness tests are performed, as indicated by the results of this study. For mechanism, digital transformation is capable of indirectly affecting technology innovation via three channels, including reducing costs, elevating the efficiency of human capital, and deepening R&D collaboration among enterprises. In-depth analysis suggests that the effect of digital transformation on technology innovation exhibits certain heterogeneity in the development level of regional digital economy and the capital intensity of enterprises. Furthermore, enterprises in areas with higher development level of digital economy and those exhibiting higher capital intensity better enjoy the stimulating effect of digital transformation on technology innovation. [ABSTRACT FROM AUTHOR]

We study the impact of energy price changes on energy consumption intensity and its substitution effect on consumption intensity of labor, capital and raw materials, through the decomposition of input consumption intensity in Iranian manufacturing industries from 2006 to 2018. Using translog cost function, we find that increase in energy prices has a negative effect on energy intensity of all manufacturing industries and thus increasing energy prices as a strategy to reduce energy intensity is effective, although its effect on different manufacturing industries are not the same. Moreover, we find that the effect of energy price changes on consumption intensity of capital and raw material is small, while its effect on consumption intensity of energy and labor is large. An overall assessment of the change in energy prices on the input consumption intensity shows that an increase in energy prices improves not only energy efficiency but also the efficiency of labor and capital consumption. However, relative performance of energy price reform in Iran depends on general economic conditions, as well as the process of price changes. [ABSTRACT FROM AUTHOR]

The document "Outsourcing Child Labor" discusses the connection between child labor and outsourcing decisions made by multinational companies. The author uses two indices to measure the extent of child labor in the production of goods in both the U.S. and foreign supplier countries. The research reveals that there is a negative relationship between the share of imports produced in-house and the intensity of child labor. This suggests that industries with higher child labor intensity tend to outsource more of their production. The findings have implications for policymakers who are working to eliminate child labor in supply chains. [Extracted from the article]

This study uses a data envelopment analysis model to assess the inclusive green growth (IGG) level for five major urban agglomerations in China from 2013 to 2020. In addition, it analyzes the potential digital finance (DIF) mechanism affecting IGG. Several conclusions are obtained. First, the IGG levels of the five major urban agglomerations in China increase yearly, narrowing their gaps. Second, DIF can significantly promote IGG. Third, heterogeneity exists in the impact of DIF on IGG owing to the differences in city tiers and sizes. Meanwhile, the coverage and digitization level of DIF significantly and positively promote IGG. Fourth, financial supervision intensity and human capital level play a single‐threshold effect in the relationship between DIF and IGG. The contribution of DIF to IGG is further enhanced when financial regulation intensity and human capital level exceed the thresholds 0.0013 and 1.5084, respectively. Lastly, green technology innovation, regional entrepreneurship, and industrial structure upgrading have intermediary roles in the baseline path of DIF impacting IGG. [ABSTRACT FROM AUTHOR]

This article analyses the importance of intangible capital for firm productivity using comprehensive official firm-level data from German manufacturing. Both aggregate intangible investment and the share of investing firms increase over time. However, the distribution of intangible investment is heavily right-skewed, with many firms investing nothing or little and few investing a lot. This holds both for manufacturing overall and within narrowly defined industries. The group of top investors is highly persistent from year to year, and persistence increases over time. Production function estimations reveal a positive output elasticity of intangible capital which is small on average but increases substantially with firm-level intangible capital intensity. There are also effect heterogeneities by firm size and enterprise group membership, especially among high-intangible-intensive firms. Finally, considering intangibles as production factors reduces the measured dispersion of Total Factor Productivity (TFP), mainly by tightening the upper part of the TFP distribution. [ABSTRACT FROM AUTHOR]

Covering the bulk of economic activity in ten developed countries over 1982–2005, this paper is the first to study the distinct effects of Information Technologies (IT) and Communication Technologies (CT) on labor, and in particular, the relative demand for different education groups of workers. Consistent with evidence on automation‐induced job and skill polarization, IT capital intensity decreased the demand for the middle‐educated relative to the highly and low‐educated. Instead, CT capital intensity increased the demand for the highly educated relative to the low‐educated, suggesting that CT facilitate the leverage of knowledge by the former group in production teams or the identification of new investment opportunities for their companies. Additional evidence, especially on the effects of CT, yields a richer set of insights. [ABSTRACT FROM AUTHOR]

Based on the quasi-natural experiment of the Notice on Policies Related to the Simplified Value-added Tax Rate in 2017, this paper constructs a difference-in-difference model to shed light on the impact of the value-added tax reduction policy on a firm's green innovation and its potential mechanism. The results reveal that after the implementation of the value-added tax reduction policy, the green innovation level of firms affected by the policy shock has significantly improved, and this conclusion remains consistent after a series of robustness tests. From the type of firms' green innovation, the enforcement of the value-added tax reduction policy spurs firms' substantive green innovation, but has limited impact on firms' strategic green innovation. The mechanism test finds that easing financing constraints is an important channel for tax reduction policies to affect firms' green innovation activities. In addition, the analysis indicates that the positive effect of the value-added tax reduction policy on green innovation is more pronounced among firms with more government innovation subsidies, stronger human capital, and higher capital intensity. [ABSTRACT FROM AUTHOR]

Engaging in export activities is a key factor influencing firm performance. This paper explores the export-productivity and export-capital intensity relationship using firm-level data from the Brazilian manufacturing industry over the period 2007–2014. The empirical strategy combines Propensity Score Matching (PSM) and Differences in Differences (DD) methods and explores the fact that firms enter the external market at different moments, generating a variation in the period and permanence in international trade. We find static and dynamic effects on labor productivity, total factor productivity, and capital intensity. Firms that start exports experience an average productivity growth of about 5% and a 2% decrease in capital intensity compared to non-exporting firms. The permanence in the activity magnifies these impacts. After three periods, the growth (reduction) in productivity (capital intensity) is around 10.5% (4.7%). We identify heterogeneous effects, leading to variations in magnitude across dimensions such as technological intensity, size, age, ex-ante levels of productivity and capital intensity, and intensive margin of trade. We also show that firms become more labor intensive by demanding more skilled workers. • Engaging in export activities is a key factor influencing firm performance. • We explore the export-productivity and export-capital intensity relationship using firm-level data from Brazilian manufacturing industry over the period 2007-2014. • We find static and dynamic effects on labor productivity, total factor productivity, and capital intensity. • Firms that start export experience an average productivity growth of about 5% and a 2% decrease in capital intensity compared to non-exporting firms. • Firms become more labor intensive by demanding more skilled workers. [ABSTRACT FROM AUTHOR]

A vibrant Micro, Small, and Medium Enterprises (MSME) sector is fundamental for ongoing development in both advanced and emerging economies. MSMEs are significant employment providers, particularly in OECD countries, employing around two-thirds of the formal workforce. In India, MSMEs play an important role in the economy by fostering entrepreneurial culture, innovation, and job creation. They are well-distributed across various economic sectors, catering to domestic and international markets. As of November 2021, India had approximately 63.38 million MSMEs, with significant portions in manufacturing and trading, contributing about 29% to India's GDP. Despite their economic importance, MSMEs face significant challenges in securing financing, particularly working capital. Compared to larger businesses, MSMEs have higher capital intensity per unit of revenue due to limited internal cash reserves, making timely access to affordable finance essential. Liquidity issues, primarily due to delayed payments from corporate buyers, exacerbate these challenges. The Reserve Bank of India introduced the Trade Receivables Discounting System (TReDS) in 2014 to address these issues by facilitating the financing of MSME trade receivables from corporate buyers through multiple financiers. This study examines the condition of MSMEs in India, their economic significance, and their financing challenges, with a particular focus on the TReDS e-discounting platform. The study updates the literature by detailing the TReDS process, presenting recent data on its growth, and identifying current challenges. [ABSTRACT FROM AUTHOR]

It is of great significance to explore the role of land supervision in the standardization of local land transactions. We document the DID strategy to systematically evaluate how land audits affect the transactions in the land market. The results show that: (1) land audits have restrained the transactions of low price of industrial lands and the high price of commercial and residential lands, raised the unit price of industrial lands transactions, and reduced the price of commercial and residential lands, and these effects would not exist in the public sectors land transactions; (2) the impacts of land audits are more pronounced in State-Owned Enterprises (SOEs) and enterprises with large-scale operations and high capital intensity; (3) audits have overall positive significance, which has increased the total investment of local industrial enterprises and reduced the investment bubble. However, there are no deterrent effects. The conclusions have important implications for our understanding of the loss of lands and resources, supervision, and the standardized construction of the trading market. [ABSTRACT FROM AUTHOR]

This paper constructs a theoretical model where brain skills and capital are complementary, and female workers have a comparative advantage in brain-intensive occupations compared with brawn-intensive occupations. Financing constraints reduce the capital intensity and the demand for brain-intensive occupations, thus reducing the demand for female workers. Using data of manufacturing firms in China from 2004 to 2007, this paper finds that financing constraints reduce the female share of employment in firms. This effect is greater in industries with higher external finance dependence. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the short-term market reaction for the world's 100 largest listed defence firms at and around the three recent largest threats to the global economy – Ukraine–Russia war, Fourth Taiwan Strait Crisis and the Hamas terrorist attack on Israel. Design/methodology/approach: The author examine the impact of the three recent largest threats to the global economy in the largest listed defence firms using an event study methodology. Findings: The results show a positive and statistically significant short-term reaction around the three geopolitical threats. The results also reveal the existence of higher abnormal returns for defence firms with greater weight of defence sales, in line with the captured regulator theory and for firms with higher research and development and capital expenditure intensity. Originality/value: The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature through the analysis of the three recent largest threats to the global economy. [ABSTRACT FROM AUTHOR]

Intensive urban land use is a strategy to enhance productivity and mitigate environmental challenges in emerging regions, but its relationship with carbon emissions needs further city-level investigation. This study investigates the impact of intensive urban land use on carbon emissions across 153 cities in China, thus employing the STIRPAT model with the ordinary least square (OLS) and geographical weighted regression (GWR) methods. The findings underscore the heterogenous influence of intensive urban land use on carbon emissions across China's urban landscapes: (1) R&D investment intensity and population density show significant negative association with carbon emissions in general. (2) Capital investment intensity positively affects carbon emissions in low-income cities, R&D investment intensity shows negative effects on carbon emissions in middle-income cities, and population density emerges as a substantial factor in reducing carbon emissions in both middle- and low-income cities. (3) Capital intensity, labor intensity, and R&D investment intensity exert positive effects on emissions in middle China and negative influences in northeastern and southern China, whereas population density shows converse spatial effects. Based on the study's results, tailored policy implications are provided for urban planning authorities in emerging regions. [ABSTRACT FROM AUTHOR]

Innovation is important to firms' productivity, competitiveness, agility, resilience and growth. The success of a firm's innovation strategy depends in part on how it combines and absorbs different innovation activities. Using the Crépon-Duguet-Mairesse (CDM) structural model, this paper analyses complementarity between product and process innovation for the case of small and micro manufacturing firms in Johannesburg, South Africa. The empirical analysis utilises rich new firm-level survey data that, unlike most firm surveys, includes micro-sized firms as well as informal enterprises. Our results show strong evidence of complementarity between product and process innovations in their effects on firm performance. The results suggest that firm size, capital intensity, firm age, innovation expenditure and financial constraints are key variables associated with complementarity. We extend the specifications used in previous studies to take account of the contextual setting, with split samples by firm formality, ownership and size. We find evidence of complementarity in formal firms only. Our results also show stronger effects of complementarity in micro-firms and foreign-owned firms. The findings have relevance for promoting innovation and for enhancing the effects of innovation on firm performance among micro- and small enterprises (MSEs) in a developing country context. [ABSTRACT FROM AUTHOR]

Relatedness has often been shown to have a central role in regional diversification. Knowledge flows between related industries are an important source of innovation, leading to industry growth and the establishment of new industries. Earlier studies have focused on dynamic diversification into new industries, but in this study, we emphasize static diversification, that is, changes in the balance between existing industries in a region. We use linked employer–employee data from Denmark and construct a range of measures at the level of regional industries. The role of relatedness in static diversification 2008–2013 is then analyzed based on industry characteristics in 2008. We find that relatedness plays a more important role in regions that are either spatially peripheral or economically non-peripheral, while relatedness has no relationship to static diversification on average. In addition to the empirical result, we contribute by comparing indices of relatedness, suggesting an alternative employment-weighted index, and conceptualizing relatedness as itself a disparity dimension of diversity. We finally ask how static and dynamic diversification affect disparity. We find that human capital intensity plays an important role in the link between diversification and the evolution of disparity. [ABSTRACT FROM AUTHOR]

We develop general equilibrium models that incorporate an agricultural equipment sector to explore the impact of climate change on skilled-unskilled wage inequality in a small open economy, with a specific focus on the role of the domestic capital market. In the model with the agricultural equipment sector using skilled labor as input, we illustrate that climate change decreases both skilled and unskilled wages. However, its effect on wage inequality varies depending on the discrepancy of the capital intensity between the urban skilled and unskilled sectors. Moreover, if the demand for capital in the agricultural equipment sector significantly influences the capital market, this sector will not only act as a buffer, but also trigger a reversal change of wage inequality. To enhance the robustness of our findings, we extend the model to include considerations of public goods provision and taxation. [ABSTRACT FROM AUTHOR]

Limited knowledge of African historical inequality trajectories hampers our understanding of inequality outcomes today and leads to a major omission in debates about global inequality. Economies in colonial Africa were characterized by a process of export‐oriented commercialization. We hypothesize that this process itself, the capital intensity of the commodities produced, and the relative importance of European and Asian expatriates and settlers in the economy shaped heterogeneous inequality outcomes. We evaluate these hypotheses using 33 social tables from six predominately agricultural countries between 1914 and 1969. Social tables capture income across the full distribution, aggregated in classes. We assess and improve the commensurability of the different social tables. We then apply different inequality metrics, and find that Gini and Theil coefficients and Inequality Extraction Ratios rose over time. Gini coefficients moved in conjunction with the real value of commodity exports per capita. Using Theil decompositions, we observe a trade‐off between inequality among African classes on the one hand, and among non‐Africans and between races on the other. Whenever present, non‐Africans captured a large share of the export profits. Inequality patterns towards the end of the period suggest that capital‐intensive commodities were associated with higher levels of inequality in the agricultural sector. [ABSTRACT FROM AUTHOR]

While promoting manufacturing growth is imperative to boost economic growth, potential adverse consequences on natural resources and ecology have created sustainability-related concerns and challenges. In India, with the reform processes deepening further and the business environment becoming more market-oriented over the years, the adoption of appropriate measures for sustainable manufacturing growth under such conditions would require a deeper investigation of the underlying dynamics, particularly to address the impacts of external shocks. This is especially true when external shocks alter market dynamics and, hence, input is used significantly in the manufacturing sector. Given this backdrop, the present paper examines how the major external shocks to the Indian economy during in the post-reform era have altered the resource use patterns in selected manufacturing industries. The paper uses secondary data collected from the KLEMS database of the Reserve Bank of India for the period from 1980–81 to 2019–20 and applies descriptive statistics and econometric techniques to address the research objective. It is found that energy intensity, vertical integration, capital intensity, and rate of growth of total factor productivity decreased over the decades, whereas labour productivity experienced an increasing trend in most industries. However, the trends are mixed in the case of material intensity. Further, the regression results indicate significant effects of external shocks on resource use, factor productivity, and structural changes. There are also industry-specific differences in the nature and extent of such changes. Hence, a deeper investigation of the underlying factors and impacts at a disaggregate industry level is necessary to draw more robust insights. [ABSTRACT FROM AUTHOR]

Labour productivity growth in the construction sector has been very weak in recent decades in most OECD countries. This paper addresses this issue based on a panel of 23 countries over the period 1995–2015. First, we use the Ackerberg, Caves, and Frazer (2015) method to propose a multifactor explanation for this lack of productivity growth: (i) average TFP growth is close to zero and even negative for most countries; (ii) average contributions to growth of capital and intermediate inputs are positive but weak, respectively of 0.05% and 0.90% per year, and much smaller than in the manufacturing sector over the same period (respectively of 0.40% and 3.10% per year). Then, we investigate whether reforms of regulations specific to the construction sector might boost productivity there. Using regulation indicators from the 'Doing Business Report', we find a negative impact of these regulations on TFP, but not on the intensities of capital and intermediate inputs. Our results suggest that reducing the construction sector regulations might bolster productivity: a switch to the lightest regulations would lead to a long-term TFP increase of 6% on average. [ABSTRACT FROM AUTHOR]

The purpose of the article is to determine the impact of PPP on the economic growth of Akmola region. The object of the study is PPP projects implemented in Akmola region and the process of socioeconomic development of the region. According to the results of the analysis, the impact of PPP on the economic growth of the region was assessed. In the course of the study a dynamic analysis of PPP projects implemented in Akmola region was carried out. The analysis used information on PPP projects for 2018-2022 and economic indicators characterizing the economic growth of the region. Using the Horrard-Domer model, the economic growth of the region was determined and a factor analysis of the factors affecting it was conducted. In Akmola region in the period from 2018 to 2022, a total of 66 PPP projects were implemented with the attraction of investments in the amount of 7783.26 thousand tenge, and the attracted investments for the years amounted to an average of 15.36%. The growth rate of the economy according to the model of R. Harrod and E. Domar showed the following: the ratio of investment to total income averaged 0.88 million tenge, capital intensity amounted to 2.25 million tenge, the growth rate of the economy increased by 0.38 or 38.26%. For successful implementation of PPP in Akmola region it is necessary to create a stable investment climate. [ABSTRACT FROM AUTHOR]

This paper uses the web crawler method to obtain information on the distribution of commercial bank branches in China and uses the multidimensional fixed-effects model to explore the impact of commercial bank expansion on firm pollution emissions and its mechanism. The findings reveal that commercial bank expansion significantly reduces firms’ pollution emissions and that there is an optimal geographical radius for this suppression effect. The number of commercial bank branches within 20 km of the firm has the biggest inhibiting influence on the firm’s pollution emission, which diminishes as geographical distance increases. This dampening effect remains robust after testing using the instrumental variable method and the Difference-In-Differences method. Examination of heterogeneity demonstrates that the influence of commercial bank expansion on firm pollution emission depends on the degree of regional low-carbon policies and laws, the level of pollution in the industry, and capital intensity of the industry, as well as the firm’s size and ownership. The mechanism test proves that commercial bank expansion reduces firm pollution emissions by promoting technological progress and increasing their investment in pollution reduction. [ABSTRACT FROM AUTHOR]

Standard financial theories assume that investment and financing decisions are intertwined. Investment decisions involve selecting assets that generate positive cash flows and maximize shareholder value, while financing decisions involve identifying the optimal mix of debt and equity financing to fund these investments. The main objective of this paper is to analyze the interdependence of assets and liabilities in a sample of Colombian manufacturing firms with varying degrees of roundaboutness (capital-intensive nature). This study employs canonical correlation analysis to determine the interaction between balance sheet components. Subsequently, a threshold regression model is employed to evaluate the influence of financial indicators on the financial performance of firms with heterogeneous capital intensity. The findings reveal that low-capital intensity firms match the maturity structure of assets and liabilities. In firms with low roundaboutness there is a significant relation between throughput, working capital turnover and the proportion of capital expenditure to operating cash flow with ROIC. However, this relationship becomes non-significant at high levels of indebtedness. Conversely, capital-intensive firms exhibit a mismatch between asset and liability maturities, relying on shareholders' funds to finance longterm assets and inventories. In this group of companies, throughput is positively associated with ROIC regardless of the level of debt, whereas the relationship between working capital turnover and ROIC is not significant until a certain debt threshold is exceeded. The impact of the capital expenditure to operating cash flow ratio on ROIC varies depending on debt levels. Companies with high roundaboutness that exceeds a debt threshold experience a negative impact. [ABSTRACT FROM AUTHOR]

This empirical study delves into the intricate factors that shape firms' choices regarding the adoption of robots within the Spanish context. Using a dataset encompassing a diverse set of industries, we employ an empirical analysis to uncover the determinants of robot adoption and investigate the associated outcomes on market variables. Our findings reveal several key factors that significantly influence a firm's likelihood of adopting robots. We find that firm profitability, exporter status, the control variables including share of R&D, and capital intensity exhibit strong positive relationships with robot adoption. Conversely, the impact of the level of human capital on adoption decisions is less pronounced. Furthermore, our study explores the impact of robot adoption on firm performance. We observe that firms embracing robotisation experience notable improvements in the output, exporting activities, and reduction in labour cost share. This study incorporates a gradient boosting‐based machine‐learning model, specifically XGBoost, along with instrumental variable regression models, to conduct rigorous robustness analyses and validate the obtained results. These findings contribute to the understanding of the dynamics and implications of robot adoption in the manufacturing sector, explaining the factors that drive firms' decisions and the subsequent market effects. [ABSTRACT FROM AUTHOR]

This research focuses on the effects of incentive pay schemes (IPSs) on the within-establishment gender wage gap and explores whether the intensity of intangible capital at the industry level moderates such effects. To this aim, we use establishment-level data from various waves (from 2006 to 2018) of the SES – Structure of Earning Surveys for the five largest European economies (Germany, France, Italy, Spain, and the UK). Data on intangible capital stocks (on 25 industries) are from the EU-KLEMS database. The analysis, which addresses potential endogeneity issues, indicates that more pervasive use of IPSs alleviates the adjusted gender pay gap. However, this inequality-attenuating effect of IPSs materialises only in contexts where intangible capital intensity is low. The result is confirmed if we replicate the analysis in subsamples of establishments belonging to industries with high/low intensity of various intangible capital components, but training emerges as a notable exception. [ABSTRACT FROM AUTHOR]

Tax aggressiveness is an activity or reconstruction effort carried out with the aim of maximizing contributions to the company through tax management strategies. This study aims to analyze the effect of capital intensity, inventory intensity, profitability, and leverage on tax aggressiveness. The population studied was property and real estate companies listed on the Indonesia Stock Exchange from 2019 to 2022. Sampling using a purposive sampling method. The number of samples as many as 61 companies. Data collection techniques through documentation techniques using secondary data sources. Data analysis using multiple linear regression using statistical Application Program tools: Statistical Product and Service Solutions (SPSS). The results of this study showed that capital intensity, and profitability affect tax aggressiveness, while inventory intensity, and leverage did not affect tax aggressiveness. [ABSTRACT FROM AUTHOR]

• New panel dataset of Marxist variables for 43 countries from 2000 to 2014. • Dataset includes rates of surplus value, composition of capital, shares of productive activity, and profit rates for the global economy. • The paper tests Marx's hypotheses on economic development at the world level. • Marx was right at the global level: capital intensity rises faster than exploitation rate, and the global profit rate declines. • Productive capital relocated to China, and unproductive activity increased in developed countries. We assess Marx's hypotheses about capitalist development on a global scale by constructing a new dataset of Marxist variables (profit rates, exploitation rates, composition of capital, and shares of productive activity) for 43 major economies, derived from world input-output data and national accounts in the 2000–2014 period. Consistent with Marx's hypotheses, the average profit rate declines at the world level, between countries, and within countries. The global rate of exploitation increases until 2008 but stagnates after the financial crisis, while capital intensity continued to increase. At the cross-country level, rich countries became increasingly dominated by unproductive activity. China absorbed much of the world's productive activity and kept the labor share of value added roughly constant at the world level. [ABSTRACT FROM AUTHOR]

The macroeconomic implications of movements in labour income share across several economies are of serious concern. This study examines the relationship between labour income share and its key drivers: market power, capital intensity and automation. The study uses data on Indian firms from 2013 to 2021. The relationship is analysed by employing panel fixed effects and method of moments panel quantile estimators. The results indicate that market power is significantly and negatively associated with the labour share of income. Similarly, capital intensity and automation have a positive impact on the labour income share. Estimates of quantile regression reveal that the influence of market power and automation becomes more pronounced at higher quantiles of the labour share. In general, the relationship is consistent even after accounting for firm size and ownership type. The study also indicate complementary nature of labour and capital. • Examines the significance of market power, capital intensity, and automation on labour income share using firm-level data. • Finds a significant inverse relationship between market power and labour income share. • Capital and labour are found to be complementary as capital intensity has a positive effect on labour income share. • Positive and significant coefficient for automation indicates the prevalence of productivity effect in the Indian context. • Market power and automation have a greater impact on firms with higher labour share. [ABSTRACT FROM AUTHOR]

How does out‐migration of skilled workers affect unskilled workers' wage in the source country? When skilled workers emigrate, unskilled wages tend to go down in some countries. If the sector that uses both skilled and unskilled workers shows a lower degree of capital intensity as compared to sectors that use only skilled workers in production, it is a common outcome. We use 19 years of cross‐country data from the International Labor Organization (ILO) spanning Asia and Latin America to show that skill emigration reduces unskilled wage unambiguously for panel fixed effects and difference generalized method of moments (DGMM) estimates. The structure is also subjected to system GMM with endogenous covariates and allied robustness checks. Importantly, we find a critical level of tertiary education, such that countries generating more skill shall face weaker negative impact on unskilled wages. [ABSTRACT FROM AUTHOR]

The paper aims to identify the key determinants of labour productivity in the organised textile sector of India using the Panel Autoregressive Distributed Lag model. Panel data from the Annual Survey of Industries for 17 states for the period 1991–1992 to 2018–2019 was used for the study. Based on the results of the Hausman Test, the pool-mean-group model was consistently more efficient and reliable than mean-group or dynamic-fixed-effect models. Labour productivity is affected by skill intensity, wages, capital intensity, capacity utilisation, and welfare expenditure in both the short and long run. Skill intensity and capital intensity have smaller effects on labour productivity in the short run, but play a larger role in the long run. On the other hand, the importance of wages decreases in the long run compared to the short run in determining labour productivity. Further, the coefficient of error correction term is negative and significant, indicating that all the variables in the model were cointegrated in the long run. Any deviation from the equilibrium between labour productivity and its determinants, in the long run, will be adjusted by 28 per cent and states will be able to regain equilibrium after five years. The error correction term for each state shows that all the states will converge to equilibrium position at a different speed, but Tamil Nadu has the fastest speed of convergence while Uttar Pradesh shows slow adjustment towards equilibrium. [ABSTRACT FROM AUTHOR]

Copyright of China Mining Magazine is the property of China Mining Magazine Co., Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research aims to analyze the effect of leverage, capital intensity, profitability, and institutional ownership on tax avoidance in the food and beverage subsector companies listed on the IDX during the period of 2019-2023. 17 companies were selected using purposive sampling technique, resulting in 85 observations for the analysis The analytical method employed is panel data regression using Eviews 10. The results show that partially leverage, capital intensity, and institutional ownership have no significant effect on tax avoidance. However, profitability has a negative and significant effect on tax avoidance. Simultaneously, leverage, capital intensity, profitability, and institutional ownership have a significant effect on tax avoidance. According to agency theory, principals and agents are prepared to accept high tax consequensces if the companies achieve high profitability. Additionally, tax practitioners should particularly monitor companies with low profitability, as tax avoidance tends to increase.

This research aims to empirically test the influence of corporate social responsibility, capital intensity, and executive compensation on tax avoidance in manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange in 2016-2020. This research was conducted using associative quantitative methods. The research population was 54 companies, and a sample of 18 companies was taken using purposive sampling. The research was conducted at consumer goods sector companies on the IDX for 2016-2020. The type of data used is secondary data obtained from www.idx.co.id. Data was collected with the 2016-2020 annual report and analyzed with SPSS version 26. Tax avoidance in this research uses the Effective Tax Ratio (ETR) measurement. The results of hypothesis testing using t statistics show that corporate social responsibility affects tax avoidance. In contrast, capital intensity does not affect tax avoidance, and executive compensation affects tax avoidance. The test results show that corporate social responsibility, capital intensity, and executive compensation affect tax avoidance in manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange in 2016-2020.

This research aims to test whether capital intensity, leverage, liquidity, tax to book ratio and business risk have an effect on financial performance (empirical study of property and real estate companies listed on the Indonesia Stock Exchange for the 2019-2022 period). This data uses secondary data. The sample for this research is property and real estate companies listed on the Indonesia Stock Exchange (BEI) in 2019-2020 using the purposive sampling method. There are 72 companies that meet the criteria as research samples. This research uses quantitative methods. This research uses quantitative methods. The variables used are capital intensity, leverage, liquidity, tax to book ratio, business risk and financial performance. The test used is multiple linear regression analysis using the SPSS 27 program application. The results of this research show that the variables capital intensity, leverage, liquidity have a significant effect on financial performance, and tax to book ratio, business risk has a significant effect on financial performance.

This paper investigates the effect of China's accelerated depreciation policy on within-firm pay gap. We exploit a firm-level panel data from China's A-share listed companies and estimate the policy effects by constructing a difference-in-differences model. Results show that the accelerated depreciation policy significantly increases the within-firm pay gap of firms of pilot industries than those of non-pilot industries, and this finding continues to hold after accounting for other contemporaneous shocks and is robust to a battery of robustness checks. Our mechanism tests demonstrate that, the rank-and-file employees replaced by the use of capital rather than executives, dominates the positive nexus between within-firm pay gap and accelerated depreciation policy. This effect is more pronounced for firms with higher tax burden, stronger financing constraint and higher capital intensity. We also find that China's accelerated depreciation policy improves overall capital allocation efficiency and labor allocation efficiency. Our findings provide a deep understanding of the link between tax incentives and within-firm pay gap, especially from the perspective of factor allocation. [ABSTRACT FROM AUTHOR]

We investigate the effect of servicification on global value chain (GVC) upgrading within the context of China's manufacturing industry. Utilising comprehensive data on manufacturing value-added, we present new evidence for the influence of servicification on the GVC position of the manufacturing industry in China. We find that although domestic and aggregate servicification enhances GVC, foreign servicification curtails the GVCs of manufacturing firms. Our results show that foreign direct investment, capital intensity and institutions are GVC enhancing. At the same time, the increased global market share of the Chinese manufacturing industry has reduced the GVC of manufacturing firms in China. From a policy perspective, the results highlight the need to take cognisance of the heterogeneity of manufacturing firms and the impact of domestic and foreign servicification on the GVC of manufacturing firms in China. Total servicification and domestic servicification enhanced the GVC position of Chinese manufacturing industry. Foreign servicification worsened the GVC position of Chinese manufacturing industry. Foreign direct investment, capital intensity and institutions are GVC-enhancing, while increased global market share is GVC-impeding. The GFC exacerbated the adverse impact of foreign servicification on the GVC position of Chinese manufacturing industry. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Reviu Akuntansi dan Keuangan (JRAK) is the property of Universitas Muhammadiyah Malang and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Jurnal Reviu Akuntansi dan Keuangan (JRAK) is the property of Universitas Muhammadiyah Malang and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Facing the increasingly complex and uncertain external environment, the reasonable control of investment risk is the key to realizing the sound operation and high-quality development of enterprises. Based on the innovation perspective, this paper takes A-share non-financial listed companies from 2007 to 2021 as the research sample to explore the impact of the corporate risk-taking level on the high-quality development of enterprises and examines the transmission mechanism of the relationship between the two from the perspectives of innovation efficiency, innovation input, and innovation output. It is found that enterprise risk-taking significantly inhibits the high-quality development of enterprises, by reducing innovation efficiency; innovation efficiency plays a mediating role in the influence of the relationship between the two, which is mainly due to the fact that enterprise risk-taking increases the innovation inputs of enterprises but reduces the innovation outputs of enterprises, and then reduces the innovation efficiency of enterprises and inhibits the high-quality development of enterprises. This heterogeneity study finds that the inhibitory effect of corporate risk-taking on the high-quality development of firms is more pronounced among manufacturing firms, small-scale firms, and firms with higher capital intensity. The findings of this study provide both guidance to help enterprises to reduce risky investment decision-making behaviors and experience for regulators to effectively promote the formulation of policies related to the high-quality development of the real economy. [ABSTRACT FROM AUTHOR]

Exploiting Google's 2010 withdrawal from mainland China, we examine the causal impact of information accessibility on export quality, and find that export quality decreases after Google's exit. The effect is more pronounced for firms and products facing greater information frictions, for firms in regions with local web filters, for firms trading with countries with more online information, and for firms facing fiercer product market competition. The more intensively affected firms also become less productive and their capital intensity declines after Google's exit. Overall, these results suggest that limited information accessibility may impair a country's international competitiveness through deteriorating export quality. [ABSTRACT FROM AUTHOR]

Purpose: In today's complex and rapidly changing business environment, cross-boundary growth is increasingly critical to the survival or even success of organizations. The purpose of this study is to examine the forming mechanism of firm's cross-boundary growth by integrating the two important antecedent factors of performance pressure and managerial discretion into a united framework and theoretically analyze the direct role of performance pressure on firm's cross-boundary growth as well as reveal the moderating role of managerial discretion. Also, the authors select listed manufacturing companies in China as samples to empirically test the research hypotheses. Design/methodology/approach: The authors design a multiple regression model to perform empirical analysis by using a panel of 4,002 year-observations in 1,334 listed manufacturing companies between 2013 and 2016. The sample data sources mainly come from the Wind Database, which is mainland China's leading financial database and software services provider. The hypotheses proposed are tested by adopting a panel data set of the listed manufacturing companies of China. Findings: Empirical results show that performance pressure has a positive effect on the cross-industry growth and cross-domestic regional growth but a negative effect on the cross-international regional growth, and managerial discretion has a different moderating effect. Specifically, capital intensity strengthens the positive effect of performance pressure on cross-industry growth but weakens the negative effect of performance pressure on cross-international regional growth. State ownership enhances the positive effect of performance pressure on cross-domestic regional growth but decreases the negative effect of performance pressure on cross-international regional growth. CEO duality increases the negative impact of performance pressure on cross-international regional growth. Practical implications: This study provides several implications for top executives, including how to dialectically consider the double-edged effect of performance pressure on cross-boundary growth of firms, create an appropriate environments of managerial discretion and design the types of cross-boundary growth strategies that top executives can follow in the volatility, uncertainty, complexity and ambiguity era. Originality/value: Although the relevant literature highlights the importance of performance pressure, it has not been related to the cross-boundary growth of firms. This paper makes an incremental contribution to the literature on the forming mechanisms of firm's cross-boundary growth by providing an important perspective of performance pressure to firm growth determinants and taking into account the moderating role of managerial discretion. [ABSTRACT FROM AUTHOR]

Capital-skill complementarity in production implies non-trivial interactions between the availability of human capital and financial constraints. Firms that are constrained in their access to finance hire a lower proportion of skilled workers than do unconstrained firms. Conversely, a lack of human capital increases skilled wages, reducing firms' desired capital intensity and thus loosening firms' effective financial constraints. To assess the macroeconomic implications of such firm-level interactions, we build an occupational-choice model with capital-skill complementarity in production, which we calibrate to US data. We vary financial frictions, educational attainment and total factor productivity across countries, and we quantify how aggregate output, wage inequality and entrepreneurship are affected by financial market liberalizations and increases in educational attainment. For aggregate output, the joint effect of both factors is, on average, 30% larger than the sum of the individual effects. Taking the educational attainment of the population as given, in countries with a negligible share of tertiary-educated workers and low total factor productivity, financial development has only small effects on aggregate output. [ABSTRACT FROM AUTHOR]

Purpose: This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies' performance. Design/methodology/approach: Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression. Findings: The result shows that risk management committee moderates the effect of risk-taking behavior on companies' performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies' performance. Originality/value: This research contributes to fill the previous gap of risk-taking behavior and companies' performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior. [ABSTRACT FROM AUTHOR]

This study examines two decades of labor and capital costs and gross output to evaluate production in 19 industries. A lesson learned is the need to have more input cost variables specifically defined to capture the production environment. Simply evaluating production by two categories alone-labor and capital-is not sufficient. This study tests a new production equation, producing an ordinary least squares regression model to explain changes to labor and capital resources in the U.S. economy. I found that increasingly growing capital intensity might not be optimal. Labor continues to play a role in production. Applied in proper proportion-neither too much nor too little-labor can be effective in producing maximum output. This study contributes to the literature by quantifying capital intensity with a measure that generalizes about U.S. production across industries. Evidence shows that 12 out of 19 industries had low capital intensity; in other words, most industries were labor intensive with relatively small utilization of equipment. [ABSTRACT FROM AUTHOR]

The economics literature emphasizes the importance of the elasticity of substitution between capital and labour in several economic contexts. However, analyses of the effect of the elasticity of substitution on the direction of technological change are often overlooked. Most assessments of the direction of technological change rely on a Constant Elasticity of Substitution (CES) production framework. This strand of empirical work considers the elasticity of substitution between capital and labour as a deep and fixed parameter. In this article, we show that the change in the elasticity of substitution that has occurred in recent decades might be an alternative source of change of factor income shares in addition to changes in factor-augmenting technological change. We construct a theoretical environment in which the elasticity of substitution is determined endogenously by the capital share and capital intensity. Rolling window estimates and non-linear estimation methods show that the elasticity of substitution in nine OECD economies observed between 1950 and 2017 was not constant and that, in fact, in the latter half of the 1970s, the elasticity of substitution increased, in the presence of labour-augmenting technical change. [ABSTRACT FROM AUTHOR]

Whether regional innovation policy can stimulate firms' indigenous innovation is an essential issue of common concern for policymakers and scholars. Treating the pilot project of innovative cities as a quasi-natural experiment and using firm-level data from 2006 to 2013, this paper employs the difference-in-differences method to quantify the influence of innovative cities' policy on enterprise indigenous innovation. We found that the innovative city pilot policy significantly stimulates firms' indigenous innovation and this impact is heterogeneous at the industry and firm levels. In terms of industry heterogeneity, the innovative city pilot policy increases the number of patent filings in industries with high capital intensity; in terms of firm heterogeneity, the innovative city pilot policy stimulates the number of patent filings in both large and non-SOE enterprises. This policy mainly promotes high-quality indigenous innovation in firms. The test of the impact mechanism reveals that government subsidy and market competition are critical paths through which innovation city pilot policy influence enterprises' indigenous innovation activities. The research in this paper reveals the micro effects of regional innovation policy and points out the direction for further promoting innovation city pilot work and formulating regional innovation policy. [ABSTRACT FROM AUTHOR]

• Examine how the cross-border M&As strategies adopted by Chinese listed firms are affected by host countries' GVC embeddedness. • Firms are more likely to conduct large-scale M&As when a host country has higher backward GVC embeddedness and a relatively lower position within GVC. • Host countries' capital intensities, total factor productivity, and labor productivity moderate firm M&A location preferences along GVC. The global value chain (GVC) position of a host country is an important benchmark for firms from home countries to determine their degree of embeddedness within the chain and implement corresponding internationalization strategies. Although there have been a certain number of existing studies related to GVC from various aspects, the links between a host country's GVC embeddedness and firm-level cross-border activities stemming from home countries are surprisingly unexplored in the current literature. This study fills this gap and applies the feasible generalized least squares model to examine how the cross-border mergers and acquisitions (M&As) strategies adopted by Chinese listed firms from 2005 to 2015 are affected by host countries' GVC embeddedness, with particular reference to their forward and backward embeddedness as well as the degree of participation along GVC. It is found that Chinese firms are more likely to conduct large-scale cross-border M&As when a host country has higher backward GVC embeddedness and a relatively lower position within GVC. This conclusion remains robust after considering alternative indices, sample range adjustments, and issues of self-selection bias. Further empirical discussions show that the Belt and Road Initiative results in more balanced M&A structures. Additionally, it is empirically demonstrated that host countries' capital intensities, total factor productivity, and labor productivity moderate Chinese firm M&A location preferences along GVC. This paper has far-reaching policy implications for the internationalization strategies adopted by Chinese firms and offers important insights into how firms could effectively utilize cross-border M&As to conduct optimal international investments around the globe. [Display omitted] [ABSTRACT FROM AUTHOR]

Based on Arrighi, we empirically investigate whether financialization and militarization are mutually reinforcing phenomena in the United States. Military spending during the 1950–1960s in the United States counteracted the stagnation of the monopolistic stage of capitalism. Monopoly capital was transformed into finance monopoly capital as the intensity of financial capital increased during the late 1970s in response to stagnation. Considering alternative financialization variables and the profit rate in the financial sector, and using several parametric and nonparametric methods, we found a significant relationship between financialization and militarization in the United States for 1949–2019. The results suggest that the rise in financialization is parallel to the decline in the profit rates, leading to larger military expenditure in total, but with relatively smaller share in GDP. JEL Classification: C14, E11, G32 [ABSTRACT FROM AUTHOR]