...Running Header: Market Equilibration Process Paper Labor Demand and Supply Economics ECO/561 April 21, 2011 Running Header: Market Equilibration Process Paper Introduction The purpose of this paper is to relate the concepts of the market equilibrating process to a prior real-world experience occurring in a free market. The market equilibrating process will be explained and the following components will be considered in the explanation; Law of demand and the determinants of demand, law of supply and the determinants of supply, labor demand and supply. Law of Demand and the Determinants of Demand According to Economics: Principles, problems, and politics, a fundamental characteristic of demand is this: Other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls. In short, there is a negative or inverse relationship between price and quantity demanded. Economists call this inverse relationship the law of demand and the determinants are the “other things equal” in the relationship between price and quantity demanded (McConnell, Brue and Flynn, 2009). Law of Supply and the Determinants of Supply According to Economics: Principles, problems, and politics, the law of supply states that as price rises, the quantity supplied rises; as price falls, the quantity supplied falls and the basic determinants of supply are, resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number...
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...Graduate School of Development Studies INFLATION IN VIETNAM OVER THE PERIOD 1990-2007 A Research Paper presented by: Bui Thi Kim Thanh (Vietnam) in partial fulfillment of the requirements for obtaining the degree of MASTERS OF ARTS IN DEVELOPMENT STUDIES Specialisation: Economic of Development (ECD) Members of the examining committee: Dr. Karel Jansen Dr. Lorenzo Pellegrini The Hague, The Netherlands November, 2008 1 Disclaimer: This document represents part of the author’s study programme while at the Institute of Social Studies. The views stated therein are those of the author and not necessarily those of the Institute. Research papers are not made available for circulation outside of the Institute. Inquiries: Postal address: Institute of Social Studies P.O. Box 29776 2502 LT The Hague The Netherlands Kortenaerkade 12 2518 AX The Hague The Netherlands +31 70 426 0460 +31 70 426 0799 Location: Telephone: Fax: 2 Table of Content Chapter 1 INTRODUCTION 1.1 BACKGROUND AND STATEMENT OF THE PROBLEM The period 1980-1984 The period 1985-1989 The period 1990-2007 1.2 OBJECTIVE AND SCOPE OF THE PAPER 1.3 APPROACH OF THE PAPER AND DATA 1.4 STRUCTURE OF THE PAPER Chapter 2 THE THEORETICAL AND EMPERICAL FRAMEWORK 2.1 THEORETICAL CONSIDERATION 2.1.1 Demand-pull inflation 2.1.2 Cost-push inflation 2.2 APPLICABILITY OF THE THEORIES IN THE CASE OF VIETNAM 2.3 EMPERICAL EVIDENCES Chapter 3 ANALYSING INFLATION IN VIETNAM AN OVERVIEW OF VIETNAM’S ECONOMY...
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...International Investment in Insurance Services in the US By Christopher Chan (z3329864), Chun Kin Kwok (z3308661), Jay Jung (z3331738) Abstract This paper proposes several determinants of FDI in insurances services in the US and then examines its relationship and significance to FDI inflows in insurance services by an Ordinary Least Squares (OLS) regression. The regression found that a higher US wage rate discourages FDI in insurance services. However, it also shows that FDI in manufacturing and insurance services complement each other. Thus, the foreign acquisition of US manufacturing assets may have contributed to the almost fourfold increase of FDI inflows in insurance services between 1987 and 1998. 1) Introduction Since the 1980s, many foreign firms have seen the US as a relatively attractive destination for direct investment. Foreign direct investment (FDI)1 allows investors to exert a significant influence on the host country. It creates a global marketplace in which firms from one country are operating another firm in a totally different environment. The US has undergone a major process of restructuring and deregulation that has encouraged this type of investment. In 1998, US FDI inflows accounted for 30% of worldwide FDI inflows (US $193 billion) with the second largest host country (the UK) a distant US$130 billion behind. The dot com bubble in the 90s spurred the nearly doubling of FDI levels in the US in 1998 as overseas firms were eager to tap into the expanding...
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...Article review- Institutional Determinants of Labour Reallocation in Transition. Tito Boeri and Katherine Terrell This paper analyses the transition process from centrally planned to market economies and focus on analysis of interaction between institutions and structural change process. Paper focuses more on reallocation of labour. It also analyses and finds explains that how central and eastern Europe is different in the transition process and reallocation of the labour. During the initial phase of the transition, employment had to flow out of state-owned heavy industry into new, private and small-scale business sector. The extent of effectiveness in labour reallocation can assess to the success of transition in a given country (Boeri and Terrell, 2002). The authors compares the patterns of labour market adjustment trajectories across countries and time, found that countries from central and Eastern Europe differs substantially from the economies of the former Soviet Union in several aspects; asymmetries in the responsiveness of employment to output change, the extend of real wages decline, structural change of employment, Unemployment dynamics and its duration and degree of wage dispersion. They further provide a reason behind different adjustment trajectories is that different models of social policy adopted in two groups of countries. In CEE, non-employment benefit was initially set at relatively higher level than in FSU. Given the need of structural change of employment...
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...RESEARCH PROPOSAL TOPIC: Rising inflation in Pakistan: Causes and Remedies SUBMITTED BY: NAILA ERUM NATIONAL DEFENCE UNIVERSITY, ISLAMABAD Rising inflation in Pakistan: Causes and Remedies Introduction Pakistan is currently facing unprecedented high Inflation. High inflation is contributing to increase in vulnerability and fall in real income of lower, middle and fixed income segments of the society. It is increasing uncertainty about future scenario of the business environment and instability of the financial system, erosion of business and investors’ confidence, slowing down of real economic activities, investment, economic growth and employment. Inflation is known as a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, there is a decline in the real value of money and purchasing power. Inflation is an indicator of a country’s macro economic stability and provides important insight on the state of the economy and the sound macroeconomic policies that govern it. A stable inflation not only gives a nurturing environment for economic growth, but also uplifts the poor and fixed income citizens who are the most vulnerable in society. A numerous supply side and demand side factors could be responsible for this surge in inflation. Inflation can be a result of shocks to the supply of certain food items and to world...
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...International Monetary Fund (IMF) defined Foreign Direct Investment (FDI) as “ an incorporated or unincorporated enterprise in which a foreign investor owns 10% or more of the ordinary shares or voting power of an incorporated enterprise or the equivalent of an unincorporated enterprise”. (IMF, 2004). Gilomore, O’s Donnel, Carson and Cummins (2003) stated, “There are eight factors that are influencing the choice of host market in terms of FDI. They are knowledge and experience of foreign market, size and growth of the foreign market, government emphasis on FDI and financial incentives, economic policy, transportation material and labor cost, availability of resources, technology and political stability.” Since 1970s FDI inflows increased in Malaysia reaching its peak around the 1990s and since then fluctuating and recently experiencing outflows of foreign funds. (TheGlobalEconomy, 2016). The objective of this essay is to discuss factors influencing a decrease in FDI in Malaysia. Slow economic growth is one of the factors that have affected FDI in Malaysia. According to Hill, Cronk & Wickramasekera (2013), “Economic growth is an increase in the productive capacity and national output of a country, measured by the rate of increase of GDP”. China being Malaysia’s second biggest export market after Singapore has a direct impact on the Malaysian economy. (Hui, 2014). Because of a lower economic growth in China, demand for Malaysian goods and services have declined in the...
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...Working Conditions as a Determinant of Health This summary is primarily based on papers and presentations by Andrew Jackson, Senior Economist, Canadian Labour Congress, and Michael Polanyi Assistant Professor, Saskatchewan Population Health Research and Evaluation Unit, and Faculty of Kinesiology and Health Studies, University of Regina. The presentations were prepared for The Social Determinants of Health Across the Life-Span Conference, held in Toronto in November 2002. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of Health Canada. Current Situation Over the 1980s and 1990s, there has been an ongoing restructuring of the labour market and of employment relationships. The intent of these changes has been to promote productivity and competitiveness, as opposed to promoting a worker-centred agenda of “good jobs” (Lowe, 2000). In Canada, only two-thirds of the employed workforce are in “standard” salaried jobs with no defined end date (mostly provided by large firms and the public sector). In this shrinking core job market, workers who have survived layoffs, privatization and contracting-out are generally working longer and harder. Employers have tried to increase profitability and competitiveness and to contain budgets by boosting productivity. This has been accomplished largely by increasing workloads. For example, in the health sector, fewer nurses, social workers and other health professionals must now deal...
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...Review of Industrial Organization (2006) 28:145–164 DOI 10.1007/s11151-006-0010-z © Springer 2006 The Determinants of Pharmaceutical R&D Expenditures: Evidence from Japan ¨ JORG C. MAHLICHa and THOMAS ROEDIGER-SCHLUGAb, Economic Policy Department, Austrian Federal Economic Chamber, Wiedner Hauptstrasse 63, A-1045 Vienna, Austria. b Department of Technology Policy, ARC systems research, Donau-City-Strasse 1, A-1220 Vienna, Austria. Author for correspondence. E-mail: thomas.roediger@arcs.ac.at a Abstract. During the past 20 years, the world pharmaceutical industry has experienced a dramatic increase in R&D intensity. We apply and extend a model developed by Grabowski and Vernon (2000, Journal of Evolutionary Economics, 10, 201–215) with a pooled data sample of the 15 publicly listed Japanese drug firms for the period 1987– 1998. As in the original study, we find expected returns to be an important determinant of R&D spending in the Japanese drug industry, albeit considerably smaller than in the U.S., which is particularly obvious in the case of returns from newly introduced drugs. However, our results are sensitive to econometric model specification, in particular to controlling for serial correlation and to a dynamic specification of the baseline model. Likewise, estimates on financial constraints are sensitive to model specification, indicating that Japanese drug firms face small or no financial constraints. Our results are consistent with the general literature on R&D investment...
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...letters attest to the courage, tenacity, and intelligence of youth who had few resources, but hoped for better lives during this era. The editor also clarifies Mrs. Roosevelt and her staff’s responses to the letters. Only 1 percent of youths received the material assistance they requested. About 5 percent were told by Mrs. Roosevelt’s staff to seek help from New Deal agencies, 3 percent were directed toward charities, and 3 percent were encouraged to contact educational institutions. Eighty-eight percent of the letter writers were rejected by Mrs. Roosevelt’s office. Readers are left to wonder about the children and youth who never had their requests filled. Collier, P. (1999) ‘On the Economic Consequences of Civil War’ in Oxford Economic Papers vol. 51 no. 1, 1999. Oxford and Washington DC: Oxford University...
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...funds. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the flow of foreign direct investment. This paper analyses FDI inflow into the country during the Post Liberalization period. Further, the trends of FDI inflow into the country are projected for a period of five years from 2010-11 to 2014-15 using Autoregressive Integrated Moving Average (ARIMA) forecasting technique. The paper tries to examine the various set of factors which influence the flow of FDI Identifying the causes for low inflow and suggestive...
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...there has been much research into the area of Labour Economics, and hence the determinants of supply, demand and wages for labour. In this essay, I will be looking at the unique example of the Sports Labour Market with specific focus on the European Football Market, and use various economic models to justify the huge salaries currently offered to top athletes within this field. The wages of professional footballers have risen dramatically since the Bosman ruling in December 1995, in which EU football players were given the right to a free transfer at the end of their contracts, with the provision that they were transferring from a club within one EU Association to a club within another EU Association (European Commission, 2012).This has been supported by various studies, including (Simmons, 1997), who argued that the move towards a free agency had the consequent impact of increasing players’ salaries, as the forgone transfer fees translate into increased salaries, since the bargaining power is transferred to the player. This was reinforced by (Downward, 2000) who found that post-Bosman, the wages within the United Kingdom’s Premier League rose considerably. However, these findings conflict with other studies conducted, including (Szymanski, 1999), who argued that the new ruling only lead to increased wages for superstar players who have the greatest bargaining power, and that it did not affect the wages for the average player. During this essay I will first discuss the basic economic...
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...Determinants of FDI THE POWER OF FDI IN REGARDS TO GLOBALIZATION: Globalization is an inevitable and irreversible process, and dealing with the imperatives of globalization capitalizing on its positive aspects and mitigating the negative ones is perhaps the most important challenge for today. Globalization has enhanced the opportunities for success, but it has also posed new risks to developing countries. Globalization has many faces; however, globalization is first and foremost comprehended in economic and financial terms. In this sense, it may be defined as the broadening and deepening linkages of national economies into a worldwide market for goods, services and especially capital. Perhaps the most prominent face of globalization is the rapid integration of production and financial markets over the last decade; that is, trade and investment are the prime driving forces behind globalization. Foreign direct investment (FDI) has been one of the core features of globalization and the world economy over the past two decades. It has grown at an unprecedented pace for more than a decade, with only a slight interruption during the recession of the early 1990s. More firms in more industries from more countries are expanding abroad through direct investment than ever before, and virtually all economies now compete to attract multinational enterprises (MNEs). This trend has been driven by the complex interaction of technological change, evolving corporate strategies towards...
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...global competitiveness of Korea and Singapore H. Chang Moona,*, Alan M. Rugmanb, Alain Verbekec a Graduate Institute for International & Area Studies, Seoul National University, Seoul 151–742, South Korea b Templeton College, University of Oxford, Oxford OX1 5NY, UK c Solvay Business School, University of Brussels (V.U.B.), Brussels, Belgium Abstract Globalization is very important for small economies such as Korea and Singapore. The single diamond model (Porter, 1990, The competitive advantage of nations) suggests some important determinants for a nation’s global competitiveness. However, this model is incomplete, mainly because it does not incorporate multinational activities. A new approach, the generalized double diamond model (Moon et al., 1995, in Research in global strategic management: Volume 5: Beyond the diamond) offers some important extensions to Porter’s original model. To test the validity of these two models this paper evaluates relevant data for both domestic and international variables in the case of Korea and Singapore. The results generally support the generalized double diamond model © 1998 Elsevier Science Ltd. All rights reserved. Keywords: International competitiveness; Double diamond; Porter’s single diamond; Korea; Singapore; Small open economies 1. Introduction In his famous book, The competitive advantage of nations, Porter (1990) studied eight developed countries and two newly industrialized countries (NICs). The latter two are Korea and...
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...The good I have chosen for this supply and demand paper is buying a new car. I just bought a brand new 2012 Honda Accord LX from the Crystal lake, Illinois Honda dealer. I traded in my old 1999 Honda Accord EX which had 195000 miles on it. I had bought that car new as well from the Honda dealer. I was going to get my old car fixed but it would have cost me 2000.00 the Honda dealer said. They suggested I buy a new one and I was promised a good deal because sales were low for them. I made the decision to trade my old Honda Accord for 4000.00 and get the new one. I am so happy I made the right choice of buying a new car instead of throwing money away in the old one. In this paper I would like to talk about factors that could cause possible changes in the supply and demand when buying a new car. Determine at least two substitutes there may be for new cars. Also, check at least two complements there may be for new cars. Lastly, determine the key determinants of the price elasticity of demand. Some of the factors that could cause possible changes in supply and demand when buying a new car are when there are high unemployment rates and lower wages, the demand for new cars will be less. When people have a good job and make more than minimum wage they may buy a car for every driver in the house and then the demand for new cars will automatically increase. Also, when gas prices are really high people may avoid buying new cars especially since a lot of newer models have really...
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...provide a literature review on wage rate determination issues globally and in Zimbabwe. This chapter provides an overview of wage determination. Determination of wage rates is reviewed bringing into attention some of the factors that contribute to determination of wages. Review of the importance of wage determination is also done. Empirical tools commonly used in assessing wage determination are finally reviewed. The third chapter will provide an outline of the methodology used in the study. A conceptual framework will be developed in order to identify possible variables for the study. Tools of analysis are also discussed in this chapter. The relevance of the hypothesis is also tested in this chapter. Chapter four analyzes the determinants of wages. Econometric techniques will be used in this chapter. Chapter five provides a conclusion and possible policy recommendations for the empirical findings of the study. A summary of results is presented first before recommendations. Chapter one Background of the study There is extensive literature that demonstrates important wage differences across workers exist. One of the principal explanations is that workers differ on levels of human capital. According to Schultz (1961), “investment in human capital accounts for most of the impressive rise in the real earnings per worker”. He goes on to suggest that workers who invest more in human capital will earn higher wages compared to their counterparts...
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