Folk Economics

One Theoretical and Statistical Questions in Industrial Organization.- I. Theory comes to industrial organization.- 1. Introduction.- 2. The role theory has played in industrial organization.- 3. Uncertainty and interpretation of evidence in industrial organization.- 4. Certainty through uncertainty.- 5. Coherent theory for industrial organization.- II. The dominant firm in relation to market structure.- 1. The firm and its setting.- 2. Several implications.- 3. Conclusion.- III. The ownership and control of industry.- 1. Introduction.- 2. Previous studies.- 3. A critique of the conventional view.- 4. Recent studies.- 5. Ownership and control of the 'Top 250' UK firms.- 6. The stages of corporate control.- 7. The behaviour consequences of types of control.- 8. Historical case-studies.- 9. Conclusion.- Two Stagflation and Industrial Structure.- IV. Inflation and competition.- 1. Introduction.- 2. Relating monopolization to inflation.- 3. Price rigidity and inflation.- 4. Price rigidity and competition.- 5. Price fluctuation and stability of relative prices.- 6. The phenomenon of specialization or division of labour.- 7. Specialization and risk.- 8. Ruinous competition.- 9. Price competition.- 10. Vertical integration.- 11. Price flexibility and anti-inflationary policies.- 12. Conclusion.- V. Oligopoly and inflation.- 1. Introduction.- 2. A theoretical approach.- 3. Applying the analysis to present-day reality.- VI. Stagflation problems in a workers' self-management socialist economy: the Yugoslav case.- 1. Introduction.- 2. Decisions on employment problems.- 3. Policies to promote growth and employment.- 4. Conclusion.- Three The International Economy and Industrial Organization.- VII. International trade and industrial organization: some statistical evidence.- 1. Trade structure and industrial structure in the USA.- 2. Trade and market power in the UK.- 3. Summary and conclusions.- VIII. Large industrial firms of the Atlantic community: production methods, asset finance, profitability, and growth.- 1. Introduction.- 2. The data.- 3. Statistical results.- 4. Implications.- 5. Conclusion.- IX. Import quotas and industrial performance.- 1. Some representative US import quotas.- 2. The political economy of protectionism: a case study of steel.- 3. Imports, injury and relief: the question of standards.- 4. Import quotas and industry performance.- 5. Conclusion.- X. UK industry and the world economy: a case of de-industrialization?.- 1. The phenomenon known as 'de-industrialization'.- 2. The effects of foreign competition on domestic manufacturing industry.- 3. Ways in which participation in the international economy could lead to deindustrialization.- 4. The de-industrialization of the UK economy.- 5. The nature and extent of the decline in UK manufacturing industry.- 6. Trends in the UK's price competitiveness and trading position.- 7. Implications of the above analysis.- Four Monopoly and Economies of Scale.- XI. Monopoly welfare gains and the costs of decentralization.- 1. Introduction.- 2. Literature review.- 3. Williamson's trade-off approach.- 4. The importance of economies of scale.- 5. Empirical estimates of economies of scale.- 6. The model.- 7. Numerical computations and results.- 8. Some further empirical observations.- 9. Qualifications and conclusions.- XII. Economies as an antitrust defense revisited.- 1. Operationality.- 2. Tradeoff analysis.- 3. Monopoly rent transformation.- 4. Transactional efficiencies.- 5. Public policy.- 6. Conclusions.- XIII. Economies of scale, industrial structure and efficiency: the brewing industry in nine nations.- 1. Introduction.- 2. Structure comparisons.- 3. Economies of scale.- 4. Scale economies and technical efficiency.- 5. Scale economies and competition.- 6. Summary.- XIV. Economies of scale and technological change: an international comparison of blast furnace technology.- 1. Introduction.- 2. The blast furnace process.- 3. An international comparison of the development of average practice in blast furnaces 1950-1973.- 4. Cost implications of differences in raw material input requirements.- 5. Calculation of total cost differences.- 6. Some conclusions.- Five Industrial Policies.- XV. An investigation into the effectiveness of a capital market sanction on poor performance.- 1. Introduction.- 2. Capital market discipline.- 3. Data and method of assessment.- 4. Profitability and survival ability of firms.- 5. Difficulty of recognizing survival potential in low performance firms.- 6. Examining propositions on takeover and bankruptcy.- 7. First conclusions.- 8. Implications of ownership and of firms in declining industries.- 9. Implications of this examination of poorly performing firms.- XVI. The abolition of cartels and structural change in the United Kingdom.- 1. The post-war legislation.- 2. Implementation 1948-1956.- 3. Conclusions on cartel investigations.- 4. The Restrictive Trade Practices Act, 1956.- 5. Action on agreements.- 6. The effects of abandonment.- 7. The present study.- 8. Regression results.- 9. Conclusion.- XVII. The regulation and control of public utility prices: British experience 1960-1975.- 1. Developments in normative price theory.- 2. Policy framework for the nationalized industries in Britain.- 3. Management of the economy via the nationalized industries.- 4. Conclusions.- XVIII. French antitrust legislation: an exercise in futility.- 1. Prohibited agreements.- 2. Exemptions.- 3. The Commission's recommendations.- 4. Overall appraisal of the current system and policy implications.- Index/.

This paper analyzes the effects of changes in relative commodity prices on the distribution of income among factors of production in the context of two models of a simple, two-good economy. In the first model capital is treated as a specific factor in each industry, with labor mobile between industries. The assumption of specificity determines the direction of factor income changes, with magnitudes depending on substitutability between factors and on intensities of factor use within the two industries. In the second model, capital is viewed as a quasi-fixed factor. For the short run, this model is identical to the model first considered. For the long run, this model is identical to the Stolper-Samuelson model in which the direction and magnitude of factor income changes depend solely on relative factor intensities. The difference between the short-run and long-run determinants of changes in factor incomes gives rise to a conflict between factor owners' short-run and long-run interests.

This article provides a comprehensive overview of the complex relationship between international trade and economic growth. The research background and importance include the following two aspects. Global economic integration: Accelerating development, international trade has become a key force. Economic connectivity: International trade promotes the integration of global resources, technology, and markets. The theoretical foundation review includes the following two aspects. Traditional international trade theory: absolute advantage, comparative advantage, factor endowment, etc. Modern International Trade Theory: Further Enriching and Improving the Theoretical Framework. In multidimensional empirical analysis, the following aspects are included. Macro level: The impact mechanism of international trade on the overall economy. Optimize resource allocation: improve production efficiency and promote economic growth. Promote technological progress: Introduce advanced technology to enhance industrial competitiveness. Micro level: International trade effects at the enterprise level. Industrial upgrading: International trade promotes the optimization and upgrading of industrial structure. Regional level: Differences in international trade and economic growth among different regions. The research conclusions and policy recommendations include the following aspects. Positive correlation: International trade and economic growth correlate positively and significantly. Policy reference: Provide valuable reference basis for policy makers. Sustainable Development: Helping countries achieve sustained and healthy economic development in the process of globalization.

The paper sought to test the impact of international trade on economic growth in Nigeria. The research adopted the causal research design. Time series data sourced from the Central Bank of Nigeria Statistical Bulletin from 1986 to 2019 were used to determine the impact of international trade on economic growth in Nigeria. Economic growth was proxied by Gross Domestic Product while international trade was proxied by trade openness, export, and exchange rate as a moderator. Trend analysis was employed in the analysis and the hypothesis was tested at 5% level of significance. To get a more robust estimate of the effects of the independent variables on the dependent variable, the log of the variables were taken. The unit root test result showed that the log of Gross Domestic Product (GDP), Trade Openness (TOP) and were stationary at level while the log of Exchange Rate (EXCHR) and Export (XP) were stationary at first difference. Consequently, we applied the ARDL model in the analysis. The results showed that Exchange rate and trade openness had negative and significant impact on economic growth while export had positive and significant impact on growth. Nigeria could gain more from international trade if the economy and the production structures becomes responsive and more adaptable to changes both internally and externally on the basis of international economic system. In ever changing and highly competitive global environment, Nigeria needs to continually re-examine, revise and re-evaluate sources of strengths, weaknesses, opportunities and threats (SWOT analysis) in order to develop appropriate policy strategies, that can lead to maximum national benefits from international trade.

Often in the past, economists have analysed the relation between international trade and national economic growth. For the market economies they have usually concluded that international trade makes a more efficient use of national resources possible and that it generates several multiplicative effects (via incomes and prices of products and production factors) which are likely to enhance economic growth. There are economists who will be inclined to identify in the rapid growth of the recent post-war period the application of many of the theoretical mechanisms of the positive enhancing relation between trade and growth. However, as always happens in the social sciences, various other factors stimulating economic growth have been at play during this period: conscious growth policies of governments, for one; also, the more subtle effect of psychological attitudes in production agents and the population at large, continuously favourable to so-called ‘material’ economic growth. Furthermore, economic growth has had an effect on international trade, facilitating structural readjustments, making possible and accommodating rapid shifts in the relative prices of commodities.KeywordsInternational TradeManufacturing SectorRelative PrexInternational Economic OrderEquipment GoodThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This research aims to analyze the influence of international trade, exports and imports on economic growth in ASEAN countries. This research was conducted using international trade and economic growth data from ASEAN countries in the 2013-2022 period. The method used in this research is regression analysis to measure the relationship between export, import and economic growth variables. The data used is secondary data obtained from trusted sources such as reports from the Central Statistics Agency and Word Bank. The research results show that international export trade has a significant positive influence on economic growth in ASEAN countries. This shows that increasing exports can contribute to increasing economic growth in ASEAN countries. On the other hand, international import trade also has a significant positive influence on economic growth in ASEAN countries

The authors show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy—that is, where economic activity occurs and why. Using new tools—in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth—this "new economic geography" has emerged as one of the most exciting areas of contemporary economics. The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales.

Navigating New Landscapes: The Contribution of Socio-Legal Scholarship in Mapping the Plurality of International Economic Law and Locating Power in International Economic Relations

Studies have examined economic growth mostly without inspecting the combined effect of international trade (IT) and financial development (FD). Considering Bangladesh's perspective, this study investigates the nexus of IT, FD, and economic growth. Time-series econometric data covering 1971-2016 are used. Econometric techniques that are used to meet the objectives are mainly the “Augmented Dickey-Fuller” for unit root test, “Johansen and Juselius” test for co-integration and popular VECM for checking long-run equilibrium relation and causality test. The exploratory findings of this study show that a long-run equilibrium relationship exists among the IT, FD and the growth of the economy. This study also finds unidirectional or one-way long-run causality from IT and FD to the economy's growth, and in the short-run, bidirectional causality is running from IT to Economic growth and Economic Growth to IT. Policies related to further FD and trade openness are suggested for accelerating the growth of Bangladesh economy.

All prescriptions of behavior for individuals require enforcement. Usually the obligation to behave in a prescribed way is entered into voluntarily by explicit or implicit contract. For example, I promise to teach certain classes with designated frequency and to discuss matters which I, and possibly others, believe are relevant to the course titles. By negotiation, and in the event of its failure, by legal action, I and my employer seek to enforce the contract of employment against large departures from the promised behavior. Performance of some kinds of behavior is difficult or impossible to enforce-such as promises to be creative, noble, or steadfast in crisis-and as a result such contractual promises are either not made or enforced only when there is an uncontroversially flagrant violation. The influence upon contract, and upon economic organization generally, of the costs of enforcing various kinds of contracts has received virtually no study by economists, despite its immense potential explanatory power. When the prescribed behavior is fixed unilaterally rather than by individual agreement, we have the regulation or law, and enforcement of these unilateral rules is the subject of the present essay. Departures of actual from prescribed behavior are crimes or violations, although one could wish for a less formidable description than "criminal" to describe many of the trifling offenses or the offenses against unjust laws. My primary purpose is to construct a theory of rational enforcement, a theory which owes much to Gary Becker's major article on the subject (1968). In the conclusion the problem of explanation, as distinguished from prescription, will be commented upon.

This new and original book by Zoltan Acs explores the relationship between industrial innovation and economic growth at the regional level, and reaches conclusions as to why some regions grow but others decline. While the analysis draws on industrial organization, labor economics, regional science, geography and entrepreneurship, the book focuses on innovation and the growth of cities by the use of endogenous growth theory.

This dissertation postulates that the trend of increasing globalization of economic activities within the shifting features of the world economy has been the dominating force transforming and integrating the international economic structure. I adopt ecological theory's external view of system structure, and focus on a more relational view of international exchange. Using network methodology, I analyze the effects of global transactional interactions on economic growth. This research extends concepts of the macro-urban approach to an analysis of international transactions. Based on data for 93 nations over a 20-year period (1970-1978 and 1978-1990) from three transactional networks (93 x 93 matrices), major effects of international trade, capital, and labor flows on global economic structure and growth are carefully examined. Results indicate that economic interdependencies developed in terms of network positions and changes in the network centralities have been pivotal determinants in reorganizing international economies and creating competitive advantages for economic growth for countries centrally located in the global production networks. Applying difference-of-logs (growth rate) models, the results present robust positive effects of transactional networks on economic growth net of four groups of alternatively hypothesized determinants (dependence, industrialization, human capital investment, and military expenditure). The results indicate that increased transactional linkages with the international economy have been beneficial rather than harmful to economic growth. I conclude that structural position in external transaction networks has been the critical factor affecting growth and transformation in the world economy.

UNITED STATES economists may deserve credit for having promoted the statistical investigation of hypotheses about industrial organization. But theyand their less numerate forebears-must shoulder blame for our habitual acceptance of 'the nation' as the presumed geographic span of the market. The power of international competition to shape market structure and performance seemed modest in the giant US economy. The analytically messy problem of drawing appropriate market boundaries has not attracted the theorists. So one can readily understand the neglect of international forces prevalent in industrial organization research until the past decade (for a literature survey, see [3]). That neglect has become an increasing embarrassment, of course, as international links among national product markets have grown and revealed their influence to the naked eye. The unholy alliance between the tariff collector and the local monopolist is a long-standing one. Since World War II tariff barriers have been reduced substantially, and international trade (especially in manufactures) has grown more rapidly than national production in the industrial countries. The European Community and lesser preferential arrangements have taken bold steps toward erasing the economic barriers of national frontiers. The pervasive expansion of intraindustry trade shows that much of the enlargement of international commerce takes the form of increasingly fine division of labor within industries, rather than the sectoral specialization assumed in classical discussions of comparative advantage-this to the discomfiture of international-trade economists weaned on models of pure competition. Perhaps knowledge of the structure of international trade can be surmounted only if an industrial-organization economist is included in the climbing party! One might hope that internationalizing the field of industrial organization would greatly simplify its conceptual structure. If buyers and sellers the world around comprise 'the market' and the individual nation's transactors are a small fraction of the total, then the national market becomes a pricetaking subsector of the world market. Measures of national seller and buyer concentration lose their economic meaning, and enthusiasts for competition policy can confine their efforts to the occasional noisy demonstration at the front door of the tariff-setting authority. Alas, theoretical and empirical research have shown that the recognition of international influences on competition in the national market makes the subject more rather than less

The dynamic links between energy consumption, economic growth, financial development and trade in China: Fresh evidence from multivariate framework analysis

Economic growth is the process of a country's economic condition continuously moving towards a better condition over a certain period. Economic growth can also be interpreted as the process of increasing the production capacity of an economy which is realized in the form of an increase in national income. The aim of the research was to determine the effect of capital expenditure and investment on economic growth in West Nusa Tenggara Province. The method used in this research is the case study method and data collection in this research is by collecting information related to economic growth as seen from capital expenditure and investment. The research uses secondary data from 2012 to 2022 consisting of capital expenditure and investment data as well as economic growth. Data analysis techniques use the Multiple Linear Regression equation, t test, F test and coefficient of determination (R2). The research results show that capital expenditure has a positive but not significant effect on economic growth because it is based on the results of the regression with a tcount value smaller than ttable and a significance value greater than 0.05. The research results also show that investment has a positive and significant effect on economic growth. The coefficient of determination test results (R2) of 77.1% for capital expenditure and investment can explain economic growth and 22.9% is influenced by other variables not included in the research.