The profound impact of the ICT revolution on the job market have been widely studied, but the effects of different types of technology can be heterogeneous and even contradictory. This column presents evidence that technologies providing access to stored data tend to empower front line workers, while communicative technologies put more power in the hands of managers.
Fixed and sunk costs are widely accepted as important determinants of export behaviour. This column argues that such costs may be shared by agglomerated collections of firms, and presents evidence of agglomeration’s effects on exporting in China. Agglomeration is more effective in low-tech sectors and land-locked areas. Surprisingly, the effect of agglomeration is different for indigenous and foreign firms.
A major feature of globalisation in the last decades has been the emergence of global supply chains, especially in Asia. This column explains how supply chains may increase the risks of shock contagion across countries. It shows how the earthquake and tsunami in Japan, and the floods in Thailand had ripple effects on the Japanese automobile industry across countries. It suggests that greater international cooperation, such as the development of sister industrial clusters, is one way to mitigate the risks.
A few large firms have disproportionate influence on economic fluctuations even in large countries. Such multinational firms are likely to transmit shocks across borders. This column argues that foreign affiliates drive the real business-cycle comovement between the region of location and the parent country. A few mechanisms explaining this link are presented.
The resale-pricing aspect adopted by Apple’s agency model is highly controversial. Competition authorities fear that it raises retail prices. In the app market, resale pricing reduces prices to stimulate innovation and entrepreneurship. Prices of eBooks, though, increased when Apple entered the industry. This column analyses why this is the case.
Other Recent Articles:
- Distance frictions and firm border effects in knowledge creation: Evidence from Japanese patent data
- ICT and global supply chains
- Where unethical corporate culture comes from
- Competitive effects of PC software bundling
- Did US beer mergers cause a price increase?
- The economic ideas of Ronald Coase
- Is deregulating firm entry good for the workers? Which workers?
- Anatomy of cartel contracts
- The origins of entrepreneurship and innovation clusters
- Service-sector reforms enhance manufacturing productivity: Evidence from Indonesia
- Infrastructure: The governance failures
- The architecture of innovation
- On the causes and consequences of land use regulations
- Caution to place makers: Greater firm density does not always promote incumbent firm health
- Making a future for manufacturing in advanced economies
- Being in a global value chain: Hell or heaven?
- Firm organisation: What we know and why we should care
- Unbundling the incumbent: Evidence from UK broadband
- The (re)location effects of enterprise zones
- Is India’s manufacturing sector moving out of the cities?
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013