Global Externalities, Local Policies, and Firm Selection

How to fight global problems with local tools? When only firms know what externality-producing activities can be relocated, policies shape the location distribution of firm types with different social values. We find that, because of this selection effect, the optimal local policies confront firms’ mobility with elevated corrective externality prices, in contrast with the common remedies for the relocation risk. Our mechanism incentivizes also moving firms to limit the externality, and it influences strategically the distribution of moving firms that comply with policies elsewhere. The magnitude of these effects is illustrated by a quantification for the key sectors in the EU emissions trading system.

Potentials and Prerequisites on the Way to a Circular Economy: A Value Chain Perspective on Batteries and Buildings

It is becoming increasingly clear that linear modes of production and consumption are unsustainable. A circular economy would help to minimize both environmental and social problems. As a result, the concept is gaining momentum in the political discourse. However, current policies do not seem sufficient to transform linear value chains to circular ones. This paper compares the potentials of and prerequisites for a circular economy along two important value chains. As a best practice example, the legal framework along the battery value chain is analyzed. This analysis is used to derive recommendations for how to improve the legal framework along the building value chain. We find that the battery value chain is already addressed by targeted instruments and the instruments addressing the building value chain have to be aligned and their credibility improved through mandatory requirements. A value chain-specific approach to develop the legal framework is promising for key sectors, while both general frameworks and value chain-specific instruments are required to fully exploit the CE for every product.

Foreign Direct Investment and Local Firm’s Performance

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI and performance of local firms in Kenya . The study has sought to establish the overall effect of FDI on the performance-manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The study developed hypothesis which was tested using simple linear regression to establish the effect of FDI on performance of manufacturing firms. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with polices geared to attracting more FDI into the key sectors of the economy.

Hubungan Antar Sektor dan Daerah dalam Perekonomian Provinsi Su-matera Barat Tahun 2016 (An Inter-Regional Input-Output Analysis)

Kinerja perekonomian di suatu daerah tidak hanya dapat dilihat melalui kontribusi suatu sektor terhadap total perekonomian di daerah tersebut, namun juga dapat dilihat berdasarkan keterkaitan sektor tersebut terhadap sektor lainnya. Artinya, bagaimana suatu sektor mampu mempengaruhi dan memberikan efek terhadap aktivitas sektor-sektor ekonomi lainnya di daerah tersebut. Kontribusi suatu sektor terhadap total perekonomian, serta keterkaitan yang terjadi antar sektor akan memberikan gambaran menyeluruh terkait integrasi dalam pembangunan ekonomi di suatu daerah. Salah satu alat yang dapat digunakan adalah Tabel Input-Output Regional (Tabel I-O Regional). Tabel I-O Regional disusun untuk menyajikan gambaran hubungan timbal-balik dan saling keterkaitan antar sektor dalam perekonomian di suatu daerah selama periode tertentu (biasanya satu tahun). Selain itu, untuk memperlihatkan peranan dari masing-masing daerah dan adanya saling ketergantungan antar daerah tersebut, juga digunakan Inter-Regional Input-Output (Tabel IRIO). Pada tulisan ini, daerah yang menjadi fokus analisis adalah Provinsi Sumatera Barat, dengan menggunakan Tabel I-O Sumatera Barat berukuran 17x17 lapangan usaha serta Tabel IRIO 17 lapangan usaha x 34 provinsi yang diperoleh dari publikasi Badan Pusat Statistik. Hasil analisis menunjukkan bahwa 4 lapangan usaha yang teridentifikasi sebagai nasional key sectors, dimana 3 lapangan usaha pertama juga merupakan local key sectors, yaitu: lapangan usaha Pengadaan Listrik dan Gas (D), Transportasi dan Pergudangan (H), Informasi dan Komunikasi (J) , serta Industri Pengolahan (C). Selain itu, jika terjadi perubahan permintaan akhir di Provinsi Sumatera Barat, maka provinsi yang akan menerima dampak limpahan (spillover output dan NTB) terbesar adalah ke provinsi-provinsi di Pulau Jawa dan Pulau Sumatera, terutama provinsi DKI Jakarta. Di sisi lain, Provinsi Sumatera Barat akan memperoleh dampak limpahan (spillover output dan NTB) terbesar jika terjadi perubahan permintaan akhir di provinsi-provinsi di Pulau Sumatera, terutama Provinsi Jambi.

Lessons from Applying Sanctions and Blockades

From the geo-economic standpoint, a power may avail itself of a spectrum of constraining measures against a hostile or dangerous nation - measures ranging from sanctions, boycotts to embargos and blockades, which last represent the ultimate form of economic pressure to which an adversary may be subjected. Because they are an extreme type of economic banishment, their imposition reveals the physiognomy of the power struggle; and, because they obstruct the free flow of goods, they also appear to be an ephemeral anomaly within the Liberal world order. Yet, their incumbency in the game is a reflection of geo-economic complexity. Whether enacted to great fanfare or not, blockades freeze some transactions while generating business opportunities elsewhere. And while an activity momentarily stilled in one zone may be reshaped to the advantage of another, blockades still allow their instigators to zero in on key sectors of the enemy's economy without endangering the country's survival. Thus, we can see blockades as an economic and military measure serving imperial ends. This essay succinctly reviews the history of famous blockades and garners the core economic lessons one may learn from them.

South Africa and the Fourth Industrial Revolution

The Fourth Industrial Revolution (4IR) is widely predicted to transform what have been manual-labour-dominated sectors in the production of goods and offering of services while driving wages down. South Africa is largely no exception, although we also note some unevenness and contradictory trends in this chapter. 4IR also presents numerous opportunities for the South African government, businesses, and consumers in terms of economic growth, efficiency, and cost-effectiveness. We conduct a review of recent trends in the 4IR worldwide and focus on such trends in South Africa through wages, key sectors, corporate sentiment, as well as government expenditure in research and development. There is indication that the country has a mismatch in the skills being produced and those required by the 4IR, while its GERD is substantially below the global average for 4IR leadership and equitable participation. 4IR Commission recommendations propose reforms, but over them looms the slow rate of implementation due to past poor execution of other plans in the digital and communications spheres.

The role of robots in the green economy

Purpose This aims to illustrate the role robotic technology is playing in the key sectors of the green economy. Design/methodology/approach Following a short introduction, this paper discusses existing and potential robotic applications in three key sectors of green economy: renewable energy, recycling and waste management and sustainable transport. This is followed by a discussion and concluding comments. Findings Robots are playing critical and growing roles in each of the three sectors of the green economy considered. Uses are expanding in the production of renewable energy systems and in their inspection and maintenance. Advances in AI and machine vision have enabled robotic mixed waste sorting which plays a vital role in recycling, and the robotic disassembly of electronic products is also gaining pace. Robots are being used extensively in the sustainable transport sector in the manufacture of electric vehicles and also in the production and recycling of electric vehicle batteries. Emerging applications include robotic vehicle recharging and battery swapping. Originality/value This provides an insight into the many ways in which robots are contributing to key sectors of the green economy.

Impact of Covid-19 on Livestock Production Chain and its Consequences on Food Security: A Review

Covid-19 represents an unprecedented public health threat and a severe crisis of society globally. Government agencies, policymakers and the global institutions, on the other hand, should give particular attention to and try to alleviate the problem (present and prospective) of the pandemic and related crisis response on key sectors that contribute to food stability, nutrition and livelihoods. The livestock sector plays an essential role in these areas, particularly for the particularly vulnerable population groups. Covid-19’s effects on livestock production are still largely unsubstantiated and not fully felt. Although case studies are not yet possible, observational data show interruptions in livestock’s entire value chain. The consequences of Covid-19 on the livestock production chain are in particular interruptions throughout the entire livestock value chain, lack of sales markets, import/export restrictions due to border closures, substantial financial losses to producers, increased cases of food insecurity.

Russian-Chinese Projects as the Basis for the Development of Cooperation in Tourism

Contemporary tourism has become one of the key sectors of world economy. The Russian Federation and People’s Republic of China are the countries with a huge tourism potential and opportunities for cooperation in this area. The objective of this article is to reveal prospective directions for the development of cooperation between Russia and China in tourism business. On the basis of the analysis of the projects in the area of tourism, the authors identified the most prospective projects and drew a conclusion about the necessity of digitalization of the tourism sector to enhance competitiveness of the companies engaged in it, as travel industry has to change its strategies and look for new ways of travelling because of the Coronavirus pandemic. The conducted analysis of the statistical data of 2019–2020 allowed the authors to draw a conclusion that, notwithstanding the new global challenges the tourism faces, the mechanism of business partnership between our countries is constantly improving and cooperation in tourism has become one of the significant factors for the development of strategic partnership between China and Russia.