We develop a theoretical framework to characterize strategic behavior in sequential markets under imperfect competition and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the model predictions using microdata from the Iberian...

Transport costs are generally attributable to price differentials across geographically separated regions. However, when using price differential data, the identification of distance-elastic transport costs depends on how producers handle transport costs and set prices in remote markets. To...

There has been an explosion of parts and components traded within East Asian production networks. China has emerged as the final assembly point for the goods produced. These goods then flow primarily outside of the region. When the Global Financial Crisis (GFC) occurred, the decrease in Western...

The role of buyers and suppliers has received little attention in the literature on research and development (R&D) spillovers and productivity, which has focused primarily on the moderating roles of technological and geographic proximity. In this study, we examine R&D spillovers that result from...

We investigate the parts transactions between finished auto manufacturers and first tier parts suppliers in Japan from 1989 to 2010. Our main results are as follows:- The density of transaction networks has grown throughout the investigated period. In the 2000s, it was due mainly to suppliers...

Using a newly constructed China Industrial Productivity (CIP) data set, this study adopts the Jorgensonian aggregate production possibility frontier (APPF) framework incorporating Domar weights to account for the industry origin of China's aggregate growth for the period 1980-2010. We show that...

We examine the significance of the distortionary effect of collateral requirements for investments in pledgeable assets by small and medium-sized enterprises (SMEs). The theory predicts that the binding collateral constraint causes over-investment if land prices are expected to go up steeply...

We investigate the determinants of the end of lending relationships with banks using small business data. We also investigate how small businesses without lending relationships financed credit demand during the global financial shock. First, we find that firms with high internal cash holdings,...

This study empirically investigates the determinants of the productivity of knowledge creation by collaboration. By using the Japanese patent database, we extracted establishment-level patent co-invention information and found the following results. First, we find an inverse U-shaped pattern in...

In 2009, the European Union (EU) introduced a regulation prohibiting the importation and marketing of seal products except for those originated from the hunts by indigenous people or from the hunts for maritime resource management. The measure relates to animal welfare as it is concerned about...